If you plan to buy an existing business, carefully analyse both the advantages and disadvantages to doing so including the history, which is likely to impact the future of the business.One advantage is that a good business history can increase the likelihood of a successful operation and ensure that finance is easier to obtain. Potential disadvantages can be overestimating the goodwill figure and a poor public image inherited from the previous owner.Things to consider when buying an existing businessAs a prospective business owner you should determine the current worth of the business and its future prospects.When buying a business and considering its worth, you'll think about: Vendor - Why and what are the reasons the business being sold? Sales - Can you see any patterns or trends? What is the business' customer base? Who are the current suppliers? Costs - What are the fixed and variable costs? Are there any staff costs? Profits - Have you looked at previous financial records? Is the business profitable? Assets - What assets does the business have? Does it have any intellectual property or leasing arrangements? Inventory - Is the inventory on-hand being included in ...

Read more

There’s a lot to think about and a lot of questions to ask yourself when you consider buying a business. What type of business should I buy? How do I go about buying it? What research should I do before I buy the business? We decided to consult the experts to help find the answers to these important questions and more and thought Licensed Real Estate Agent, Certified practicing Business Broker and Director at Beyond Business Sales, Catherine Kimpton was the best qualified for the job. With over twenty years’ experience in recruitment, business sales, management and marketing we think you’ll find our Q & A session with Catherine both an interesting and informed one. AB: Why should people buy a business? CK: Business ownership can be very rewarding the opportunity to work at something that inspires you, and that you can grow and nurture and see the rewards of your hard work. Buying an established business means that you are buying certainty , you are buying a formula that already works that has been tried and can be relied on to generate profit for you, thus reducing your risk of failure and financial loss AB: What type of people are currently buying businesses? CK: Busine...

Read more

What has been touted as one of the most advanced cheese manufacturing plants in Australia is now on the market for sale. Located east of Melbourne near Gippsland, the plant enjoys great access to dairy farmers and milk supplies according to the company in charge of brokering the sale Business Brokers Victoria. Capable of large volumes of up to 35 tonne a week, the current vendors have also obtained an Export Licence giving its new owners an opportunity to manufacture and export cheese and other products nationally and worldwide. According to business broker Michael Keltie, the owner has been in the cheese manufacturing business for 60 years and has decided it’s time to retire. ``They have built up a great brand name with a trusted reputation,’’ Mr Keltie explained. ``This is a very technically advanced cheese manufacturing plant that has just been built and recently commissioned.The milk is delivered from the farm straight into the holding tank and right through the whole process of making the cheese, the product is never handled by human hands.’’ Mr Keltie said the property sits on one and a half acres and that the current building was ``huge’’ with opportunity for further ex...

Read more

When a business owner decides it’s time to sell their business, knowing all there is to know about its operations does not necessarily qualify them to complete a successful sale. Business ownership can be very rewarding and the opportunity to work at something that inspires you but when it comes time to part ways with their ‘baby’ it’s not always the owner that can execute a smooth exit with maximum profit. Licensed Real Estate Agent, Certified practicing Business Broker and Director at Beyond Business Sales, Catherine Kimpton said it was important to be able to access all the information available to you in order to make an informed decision. ``It is the broker’s job to represent a vendor in the market place, collate all of the information on their business and present it to the market,’’ Ms Kimpton explained. ``As a broker we advertise the opportunity and negotiate with prospective buyers in the same way as your Real Estate Agent would for your home to effect a successful sale and the best possible outcome.’’ Experts believe one of the biggest mistakes an owner can make is to not prepare the business for sale correctly, especially the finances. Ms Kimpton said the more p...

Read more

Looking to sell your business? You're looking at stiff odds. According to Michelle Seiler-Tucker, a business broker and founder of New Orleans-based Capital Business Solutions, 60% of business owners who try to sell their businesses can't get a deal done. Seiler-Tucker has owned and operated eight successful businesses and has also sold hundreds of franchises and businesses. She claims to close nearly 98 percent of all offers she writes, and says on average she obtains a 20 to 40 percent higher selling price for her clients. She also wrote the book Sell Your Business for More Than it's Worth. Here's her advice. 1. Get The Timing Right:  Seiler-Tucker says the biggest mistake that most sellers make is that they do not plan their exit strategy from Day One. "Unfortunately many business owners wait until a catastrophic event has occurred in order to sell their business and when that usually happens the business is typically trending downward and it's not making as much money as it once was," she says. "The best time to sell a business is when your business is doing well." 2. Get Your Books in Order: Before attempting to sell a business for maximum value Seiler-Tucker evaluates...

Read more

We all know the scenario. We happen to walk into a business, look around and think: “Gee I would love to own this, I wonder if I can buy it?” It can be a tempting thought, particularly if you see shortfalls that can be remedied quickly. But how should you go about approaching an owner when you want to buy their business? First ensure you have sufficient finances in place. The best way to gauge this is to see what similar businesses are trading for and what metrics are used to set the price. Now that you know what you’re up for, it is time to approach the owner – or, even better, engage a broker or adviser to act on your behalf. realcommercial.com.au spoke to two experts and the first, John Higginbotham of The Collins Street Consulting Group told me: “It’s a more common story than you might imagine. I often tell people that 90% of businesses listed for sale are not worth having, the best buys are those that aren’t formally up for sale. “You have to start with extensive research to find out what the business is really like, who the owners are and what their motivations for selling might be. “If you approach an owner with a genuine interest in their business and an understand...

Read more