#3 – Business Tips – Buying or taking over a New Business – By Pat Hoey
This is the third of a six-part series of tips about starting up and running a business by Pat Hoey
#3 – Buying or taking over a New Business
- What price are you paying for the business? And what is the split between goodwill and stock, asset and equipment?
- Have you completed a thorough due diligence of the business, so understand their income levels, profit figures, suppliers, customers, employees, etc
- What is the advantage of buying someone’s business, compared to starting a business from scratch?
- What is happening with employee’s leave entitlements?
- Will need to get new employee agreements
- Check any existing lease agreements with the option to renew down the track
- Will need to get new credit terms with suppliers
By Pat Hoey