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.

 

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Whether you dream of buying a business, want to sell your Perth or WA business, or want to know the value of your company – GMO’s business brokers and valuers are here to assist you. We have won the City of Perth Award for Business Excellence and our Managing Director has been elected as a fellow of the Australian Institute of Business Brokers. Whether you are a buyer or a seller, GMO can introduce you to the right person.

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  • The disclosers are willing to disclose such information to the recipient subject to their acceptance of the following conditions:
    1. The recipient shall treat all information received from the discloser as confidential and shall ensure that all such information remains confidential and shall not use any such information in any way other than for the specific purpose aforesaid. The recipient acknowledges that all conditions subsequent in this disclosure apply to the recipient and any associates of the recipient be they partners, co‐directors, trustees, holders of shares or officersin entity(s) the recipient has interest in.
    2. The obligations of paragraph 1 shall not extend to any such information which is in the public domain, or which hereafter becomes part of the public domain otherwise than as a result of any unauthorised activity or omission of the recipient, or which is already in the possession of the recipient and was not derived from the disclosers.
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    4. The obligations set forth in paragraph 1, 2 and 3 shall terminate 12 months from the date of this agreement or upon the disclosers and the recipients entering into an agreement whichever event occursfirst.
    5. The recipient shall obtain no rights of any kind to such information other than for the specific purpose stated in this agreement.
    6. The receiving party will not utilise any material made available to improve, construct or change another business, in such a way as to allow that business to compete with the business being discussed.
    7. The recipient understands that the information has been compiled by GMO from details provided by the Vendor. Prospective purchasers should be aware that it is not intended that any projections or this information be treated as a representation, warranty or promise by GMO or its representatives, as to the correctness of the information, or that all relevant information is contained in the information provided.
    8. The recipient acknowledges that they will not act on information provided without first seeking independent financial and legal advice.
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