Friday, 9 August 2013

6 Things To Consider When Buying A Business

  1. What is your strategy?  Geographic penetration? Buying along the purchasing chain perhaps?  Becoming the biggest in your sector or are you going head to head with your closest competitor? Quick growth, to take your business to the next level? Think about how this business will fit in with the rest of your existing business activities. 
  2. Do you want the business assets or just shares in this company? An experienced business broker will be able to explain the advantages and disadvantages of the different options open to you and what the seller is prepared to do.
  3. What are the benefits to your existing business portfolio? Will you be adding value? Will you be enjoying economies of scale?  
  4. What are the long term implications?  Have you carried out a PESTL audit of the current economic client home and abroad? What are the current marketing conditions?
  5. Ensure the business broker provides a strong Information Memorandum and associated papers before making a commitment.
  6. What support will the business broker  offer?  Will they attend meetings? Can they recommend professionals to act on your behalf to minimise risk during the buying process and also keep costs down?
Gill Evans, Marketing Manager

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