Buying A Business
Buying a business is about doing your homework and making the right match – our advisers work with you to identify opportunities to meet your aspirations, goals and ambitions.
Buying A Business
Interested in owning your own business?
Interested in purchasing an additional business to add to your portfolio?
A good business purchase is about planning and ensuring you have plenty of information to base decisions on, rather than rushing in and letting emotions take over.
Tikowrie Capital helps clients manage the risks and optimise the returns from owning a business.
The Tikowrie Capital Buyer’s Checklist can help you find the RIGHT business for you.
The Tikowrie Capital Buyer’s Checklist
- What are the core reasons you want to purchase this business?
- Do you have a strategic plan to guide and shape your personal and business objectives (for e.g. your expected return on investment, growth aspirations, lifestyle plans etc.)?
- Why will you succeed in this business?
- Is the business you are potentially going to invest and work in for an extended period the right fit for you?
- Does the vendor’s asking price represent value for money?
- How does the asking price compare to a market appraisal of recent sales and market trends?
- What due diligence have you done to assess if your investment will see you generating a return in line with your objectives?
- Have you sufficient cash or equity that can be easily borrowed against to pay the purchase price?
- Does your business plan assess and project the working capital requirements to operate?
- Have you considered the most flexible and effective commercial finance option for your circumstances?
- Are you clear on the pros and cons of buying a franchise?
- Do you understand the candidate assessment process and what the franchisor is looking for in a franchisee?
- Have you considered the risks and opportunities associated with a greenfield franchise opportunity (at a new site) versus purchasing an existing business?
- Have you factored in all the costs and benefits of the franchise opportunity (for e.g. franchise fees, marketing expenses or contributions, reviews, refreshes or fit-outs, reporting and systems obligations and restrictions, product supply and ordering requirements etc.)?
- Do you fully understand the requirements of the premises lease relating to your potential business purchase?
- Have you considered other locations for the business and how that might impact performance?
- Would you like to compare a number of businesses against your requirements? A business finder can sometimes help.
- Do you need ‘arms length’ assistance with purchase negotiations?
Ultimately, buying a business is about ‘making a match’ between your requirements and risk profile, and the business you are assessing.
Be diligent about your assessment and also be prepared to ‘walk away’ if the business or the deal doesn’t stack up.
If there is one business that interests you, there are bound to be others. You just need to find the RIGHT one!
Finding the right business – where should you start looking?
Many businesses are advertised in print media and on internet sites.
However sometimes the business you are interested in might not be advertised.
This is where your business advisor/broker can help. They will act in your interests by directly approaching vendors to see if they are willing sellers – look for advisors or brokers who offer business finder services.