For a while now, you’ve been planning to invest in buying the business of your dreams. Thanks to your resilience, vision, and passion, it’s time to make your move as an entrepreneur towards making your dreams a reality.
Buying a business worth thousands or millions of dollars can be a difficult choice to make. Those selling their businesses will have often be emotionally attached to them, while others will simply believe their ideas are worth much more than the market is willing to pay for them. These factors can result in inflated prices for businesses that are for sale. Whichever scenario you are faced with, you want to make sure that when the ideal time arrives for you to buy a business, you strike the best deal possible, getting the most value for your money.
Before finalising a deal, here are some tips to keep front of mind:
Tip #1. Decide on what you’re looking for
Buying a business is an important decision which will impact your life for many years to come. There are a few important things that you’ll need to consider when acquiring a business including location, size of the business and the industry.
Ask yourself these simple questions to ensure you make the right decision:
· Would you move or are you looking for something close to home?
· Do you prefer buying a small, medium or large company?
· What areas/industries are you passionate about?
· What are your business strengths and skills?
Answering these questions will help you narrow down the choice of what to buy and help you towards landing your dream business.
Tip #2. Consider engaging a broker
Once you’ve created a clear picture of what is required when buying a business, next is to do your ground work well. Here, you want to have a full list of all businesses that match your specifications and are available for sale. You may opt to check the local business listing sites. However, if you still can’t seem to find exactly what you’re looking for, the easiest way is to work with a registered broker. Brokers will filter businesses according to your needs and pull up a few great deals for you.
ABBA Group is a registered and reputable firm for buying businesses locally and overseas with a track record of over $500 million worth of acquisitions, divestments and mergers since 2016.
Tip #3. Complete your due diligence and close the transaction
Upon identifying a good business either through a broker or an online listing, you want to complete a due diligence to make sure everything checks out. Businesses that look perfect on the surface may have serious underlying issues. If dealing with a broker, talk to them and iron out any concerns you may have before inking a deal.
Once satisfied, go ahead and arrange for the purchase funds. Funding may range from self financing to angel investing or a business loan. Depending on the source, ensure that funds are ready upon settling on your purchase.
Of course buying a business entails more than these three simple steps. However, the important things to have in mind are understanding exactly what you need, proper research or working with the right broker, and lastly, doing your own due diligence before writing that seller a cheque.
If you’re looking to cut through the red tape associated with acquiring a business in Australia or overseas, ABBA Group has you covered. With a team of highly specialised and well-networked brokers, you’re assured of expert guidance and advice from start to finish. Get in touch with us today.
