Are you looking at buying a Business that you have found already? Or perhaps you are looking for a business opportunity but you have not found it yet. Alan Maddick the practice owners has a range of experience in business sales and mergers across a range of industries.
So often as Accountants we will get a new client who walks in our doors all excited “I have just bought this Business!” as Accountants this can be a little frustrating as we do not get a chance to advise on the purchase, if the price is ok or if the business is even worth buying. On some occasions clients have paid tens or hundreds of thousands of dollars for a Business which is Insolvent! If possible please come and see us before you sign any contracts to purchase!
Some of the things we look at when we are looking at a business opportunity;
- What is the position of the Product or Service; Is it Valuable to its users? Is it getting more Valuable or less Valuable?
- Is the Product or Service Rare? If you have the only Coffee Shop in your Suburb then you are pretty likely to make money, however if you are one of 20 or 30 Coffee Shops in your suburb then its going to be a lot harder to make and maintain a profit.
- How hard is it to re-create the business? This effects 2 things – 1. If its easy for competitors to set up in competition to you then you will have more competition, this will make doing business harder and likely force prices down over time. 2. If its hard and expensive to set up a competitors business this effects the price you should pay for the business.
- What is the political, environmental and social position of the business and service or product? For example if you were looking at buying a Coal Fired Power Station today you would not want to pay much with public and government forces meaning Coal is no longer an option for power generation.
We can get involved in your plans in a range of ways;
- Identifying opportunities that are a good strategic and cultural fit for your business and your life. Remember you need to make sure any proposed business venture will fit your life. Do you have kids? Perhaps a Business that requires you work 10 hrs Saturday and Sunday may not be Idea?
- Business Valuation – we have extensive experience and training in Business and Investment Valuation
- Merger and Acquisition Plans, both for you the business owner(s) as well as to present and explain your proposal to Investors and Bankers. A Merger or Business Purchase has a large number of small steps, if you are new to the process you may miss some key steps, we can help you draw up a step by step plan and help you execute and stay on track.