So you've decided to buy a business?
The proces s of buying a business can be complex and time-consuming, involving a number of legal parties. However, if you're successful in your purchase, it is undoubtedly one of the quickest ways to assemble capital growth and wealth, far outstripping anything offered by the property market.
In order to help you to decide, we have prepared this checklist:
WHY DO I WANT TO BUY A BUSINESS?
- To earn a living
- To supplement other income
- To create an investment
- To work for myself
WHAT TYPE OF BUSINESS DO I WANT?
Am I in a position to compile a shortlist of options or would I benefit from consulting a business agent?
The following point may influence your shortlist:
- Is this type of business realistically affordable?
- Will it maintain my interest over time?
- Will my family give me their support?
- How much of my time will the business occupy?
- For how long will I be financially commited?
- Will the business provide the income I require?
- Do I have sufficient k nowledge or do I need to learn more?
Make sure that your interests are in line with your capabilities
HOW MUCH CAPITAL IS NEEDED?
Enough capital for the following:
- To buy a leasehold or freehold premises
- To buy the going concern and its stock
- To cover all professional costs incurred including: solicitors, accountants and survey/valuation costs
- Sufficient working capital (enough money to live on, ocver my initial overheads and replace stock as I build the business)
DO I NEED TO RAISE ADDITIONAL FUNDS?
- Re-mortgageing my house
- Selling my house
- Obtaining a bank, building society or finance house mortgage/loan
A good business agent should be in a positon to provide you with sound financial advice and access to good sources of funds
HOW COMMITTED IS THE SELLER?
- Understand the sellers motivation
- Why is the business for sale?
- How committed to selling are they?
- What will the owner do after the sale?
SHALL I BUY LEASEHOLD OR FREEHOLD?
Most business operate from either leasehold or freehold premises, which may or may not have accommodation attached. Your accountant will assess the value of the business by separating it from the value of the leasehold or freehold. A surveyor will place a value on the property.
For more information about selling your business, please contact Blackstone Group Property, Business Sales Consultants based in Bradford West Yorkshire. |
