Working out your best assets
Starting up may mean launching your own venture. But it can also involve buying another business. However, be aware that the latter option isn’t hassle-free.
If you are looking for quick growth or you need scale quickly then buying a business can make a lot of sense. The hard work is to find the right business, making sure that it stacks up and then agreeing on the price.
Get past this and the hard part of the acquisition should just about be there. But there may be one more important step – agreeing the apportionment of the price across the different assets that make up the business.
Sometimes the buyer and the seller have different ideas about how to apportion the sale price. You’ll need to make a call on this because it will be required for the contract.
So does it really matter? Does it make a significant difference?
FIND OUT MORE
Tax impact will tell on sale
Q. I have read some of your previous comments about getting your business ready for succession and the need to start early. Our plan is to sell our business somewhere in the next three to five years. What should be considering at this point?
FIND OUT MORE
What’s the best time to sell?
Timing is critical when you’re selling your business. The big questions are:
- How long do you need to get your business sale ready?
- When do you start the preparation process; and
- what are the implementation steps? FIND OUT MORE
Key issues in the sale process
Managing the information flow during the sale process
One of the key issues you will need to be aware of before selling your business is how much information you should supply to a potential purchaser and when you should supply it.
Too often we see businesses where a possible sale is derailed simply because the vendors are not able to produce information required by the buyer in a timely way. FIND OUT MORE
Who will buy my business?
Likely buyers will vary from business to business. Areas that will influence the buying pool include the industry sector, size of the business, degree of complexity of the business, and purchase price. Your buyer may come from the broader market or alternately your business may be attractive to a competitor, one of your suppliers, someone working in the same customer channel, or even your own management team. FIND OUT MORE
Loading ...
