Young lady taking keys from female real estate agent during meeting after signing rental lease contract or sale purchase agreement. Independent woman purchasing new home, close up view

Tips For Buying a Business

When it comes to the decision to buy a business, there are many factors to consider.

Not only do you need to choose the correct type of industry suitable for your needs, but you also need to understand the value in any business you may wish to buy.

To buy a business at the right price is paramount as the entry price will likely determine any future capital gains potential you may realise at a later date when you eventually exit. If you buy a business well, manage it intensively and add value, there is every chance you will realise a capital gain when you finally sell the business.

However, if you buy a business and pay too much, then you will find yourself asking an unrealisable amount for the business when it comes time to sell the business. This is an understandable human emotion to recover all the purchase costs and ancillary costs in your asking price, but buyers of businesses are not interested in “what you need” to sell, they themselves are interested only in buying the business at a fair or favourable price themselves. Therefore there is little point in telling your business broker what you need to sell, he can only get you what the market will pay.

The solution is to have the business you are considering buying valued before you buy it. When you buy a business, you need a professional Business Broker on your team. Their business appraisal will assist you in your negotiations with the seller, assist you with finance and minimise your entry risk.

GMO can help you buy a business the right way. They can give you a proposal on examining several potential purchases and give their opinion on the risk factors of several industries, so you start the process of buying a business on the right foot.

Contact Graham O’Hehir, GMO’s Managing Director today, and discuss your options. Graham will direct your unique situation to the most suitable Business Broker, who will be your guide the rest of the way.

 

MORE NEWS STORIES

101-blog-post-headline-formulas-you-can-swipe-and-deploy

Small Business Valuation Formula

Small business valuation formulas are used by business valuers to benchmark businesses against their peer groups. Some of the most commonly used small business valuation formula terms to describe the business's profits and the price the Read more
steve

Why Good times are Ahead for Small ASX Gold Miners

"It has been a couple of big months for gold producers – with 15 percent share price gains notched up by the established names, as gold prices start knocking on the door of $1700. But the Read more
fb-image

GMO’s February Hotlistings

We are pleased to present GMO's February Hotlistings, a list of our current businesses for sale in Perth and Western Australia. For further information on any of these business opportunities, or to arrange a confidential discussion with Read more