buying a business

How to Buy a Business

How to Buy a Business

If your own business is well-established and of a certain size, you may consider buying another existing one. A good purchase can see you reaping copious financial rewards, but a bad one could utterly sink you. It’s therefore vital that you investigate your potential target fully, and negotiate a deal tailored to its current positions/situation as it relates to your own. This guide will help you approach a target, investigate it, make and follow up on an offer, negotiate the final terms and ensure a smooth transition. How do I approach negotiations when buying a business? One of the first steps will involve approaching the vendor. Most businesses will have appointed professional advisers to handle the sale. Contact these first, rather than the current management. You must then register you... »

11 Rules for Buying a Business

11 Rules for Buying a Business

A growing number of UK entrepreneurs are choosing to buy an existing business to grow, especially with banks looking favourably upon acquisition lending, rather than facing the struggles of starting from scratch. Finding an existing business where much has been done but there remains much to do can provide the same level of exhilaration as a start-up. If you are interested in buying a business as an alternative to starting up, then follow these steps to ensure that you know what to look for and how to be prepared. Do comprehensive due diligence Leave no stone unturned. Ask about the company’s insurance claims over the past three years, and any outstanding cases. Also make sure you see all financial statements from the past three years, including declarations of cash assets, intellectual pr... »

Small Firms use Downturn to Create Opportunities

More than a quarter of small businesses are using the economic downturn to seize new business opportunities, according to the Tenon Forum. Their research has revealed that 29% of small businesses say they are benefiting from the downturn. Of these, 40% have taken clients from competitors, 13% have bought assets or stock at a competitive price, and 7% have acquired other businesses. According to Tenon director of recovery Martin Austin, small firms can also benefit from the downturn by recruiting staff from other businesses. “There are opportunities in every sector, but conversely the worst–hit sectors are the ones where there is perhaps the most opportunity, in terms of picking up contracts or buying competitors.” “Whether or not a business can take these opportunit... »