Business Tips

April 17, 2019

Things to Watch Out For When Buying a Business

Failure to disclose information You should be wary of a seller who is failing to disclose important information, such as why they’re selling, the lease, licences, permits and staff. Poor business performance Be wary of sellers who are subject to: pending litigation have a record of customer complaints talk up the cash trading drop the sale of their products or services to bump up gross sales before selling the business. Make sure the business you buy is not overvalued by completing financial due diligence. Have an accountant analyse the financial information provided by sellers to see if a business is profitable. Sellers behaving badly Watch out for sellers who won’t allow a trial period, won’t introduce you to suppliers, the […]
April 10, 2019

Buying a Restaurant Franchise

There are many different types of business format franchises, but when most people think of a franchise business, their first thought is of food. The success and growth of the many big brand-name fast-food franchises makes this a logical first stop in the thinking process. When evaluating restaurant franchises, you must focus on the characteristics of the business from a franchisee’s perspective to determine whether this industry is the right one for you. There are some wonderful advantages to having a food business, but there are also some challenges you need to be aware of before proceeding in this industry. In assessing a food business, the main advantages are typically considered to be: Built-in Demand. Consumers have been trained to […]
April 10, 2019

The Importance of Due Diligence

Buying a business involves a lot of twists and turns, but no part of the process is more important than completing due diligence. Due Diligence—An Overview  Due diligence is the process of evaluating a business from all aspects before making a purchase decision. It’s often performed when buying a business but there are many other situations in which due diligence might be necessary as well. It’s a big factor in private equity funding through venture capitalists and it’s part of the purchase of real estate, particularly in checking the legal history of the property. Due diligence is not a general investigation. It includes specific elements that can vary based on the situation and the nature of the business. Due diligence protects both parties […]
February 27, 2019

5 Ways Small Businesses Can Become More Attractive to Buyers

Entrepreneurs who have built businesses with years of blood and toil often find that selling to a good firm doesn’t happen overnight. Indeed, it takes three to five years of careful preparation, including doing such things as maximizing cash flow and putting in place the next generation of leaders. As General Electric founder Thomas Edison once said, “good fortune often happens when opportunity meets with preparation.” For small business owners, that preparation is like selling your house — paying attention to some crucial details can help you get top dollar for your business. And decisions made years earlier can have a major impact. The good news is that the market for selling small businesses is hot. The average multiple of […]