Advice for first-time business sellers and buyers
June 5, 2017
Today, Associate John Jones of Beever and Struthers shares his thoughts on how best to tackle the minefield of buying or selling a business – a significant step that requires effective planning. Getting the right advice at the right time is critical and can make the difference between success and failure.
Pro-active business owners should always take steps to ensure their own entity is best placed for whatever the future brings, and one certainty going forward is that at some stage the owner will explore ways to exit the enterprise.
Selling a business can be complex and time-consuming. Whilst most entrepreneurs know their business inside out and are acutely aware of the market in which they operate, they need to find specialist skills and experience to optimise the return, to maximise sale proceeds, minimise tax liabilities and complete the deal efficiently.
Buying an existing business is becoming an increasingly popular option for people who don’t want to start from scratch. An established enterprise will have a market presence and revenue stream, representing a head start but not necessarily an easy option. You’ll need to devote time and effort to find the one that’s right for you. Also, the costs involved in buying can be substantial and should not be underestimated.
There are many reasons why buying an existing set-up makes good corporate sense. But remember that you’ll be inheriting the legacy of the previous owner, so need to be aware of every aspect of the concern you’re targeting. It will need to fit your own skills, lifestyle and aspirations.
Think about what you can bring to the deal and what you want to ultimately achieve.
It’s always best to obtain professional advice before to buying or selling a business. Beever and Struthers offer a free initial consultation, so please contact John for more information.