Buying Tips

There are several mistakes that we see buyers make time and time again!

We have provided a list of important information for you to consider when buying a business:

  • Know your budget! You would be surprised how many people don’t understand the extra costs involved in acquiring a business.  Some additional costs that you might not have considered may include stamp duty, accounting fees, solicitor fees as well as bank guarantees for your new landlord if you will be taking over a lease.  If you require finance for the business you should speak to the bank or your finance broker as early as possible to be sure you have the lending capability.  Business lending can be difficult to obtain so speak to a professional well in advance to avoid disappointment. 
  • Decide on who you will use as a solicitor and accountant.  Don’t underestimate the importance of these two roles in a sale transaction.  It’s critical to be sure that your trusted advisors have experience in business sales so that you receive the most accurate feedback on your potential purchase.  Too often we see buyers trying to save money on this advice which ends up costing them more in the long run.
  • Have your purchasing structure ready to go.  See your accountant for advice on how you should structure the purchase, you will need your ABN / ACN details for the Contract of Business Sale so having this information ready beforehand is extremely helpful.  
  • Consider other aspects of the sale such as how long you would like the seller to stay on in the business to train you for as well as other items such as restriction of trade on the seller.