Buying a business – before, during, and aftercare
If you’re looking to buy an existing business, there are plenty on offer. But it’s a situation that comes with significant financial risks. Therefore, finding someone to give you guidance throughout the process could save you a significant amount of money.
Before you buy
Buying a business might be quicker and easier than starting your own. But to make sure you find one that’s likely to pay off, you must invest time and money to find the right one. Understanding what makes a business profitable and valuable is essential. You might need the help of a valuer and business advisors who will talk you through the prospective company’s pros and cons.
You’ll need professional advice which will prove invaluable during negotiation, valuation, and purchase. This advice may come in the form of a professional business broker, but you’ll also require a solicitor and an accountant.
A solicitor will consider a few factors including:
- Whether purchasing the company’s shares is the right structure for you
- Unique licenses or contracts the company has
- Your bargaining power
An accountant may help you look into:
- Your finances and how you can manage the purchase
- The tax considerations you must address before buying the business
Seeking input from these professionals is one of the first things you should do.
During the sale, your professional business and legal advisors will manage the sale on your behalf. It’s important to work with those who prioritise close communication with their clients so you don’t end up out of the loop. These advisors can foresee and manage any problems likely to arise with the purchase because they should have extensive experience in the purchase and sale process.
It’s almost time to relax and enjoy your new empire. However, there are still important things to take care of in your new business to make sure you don’t end up in trouble or receiving sanctions. The first thing is to ensure your finances, bookkeeping, and taxes are in order. This will require an experienced accountant who can set you up with an efficient system. Then it’s up to you to keep the company running like a well-oiled machine. Depending on your experience, this might be easier said than done. But don’t worry; there are plenty of business advisors who can show you the ropes and point you in the right direction.
Buying a business isn’t a decision you should take lightly. Employing the best help possible is an excellent way to make sure your purchase is a success.
Big Hand offer first-class business advice to new business owners and those looking to take their company to the top. We also manage your accounting so you can focus on what really matters – running your business. For more information about our advice and accountancy services, give us a call on 0161 327 2911.