There is much to enjoy about being a business owner in Brisbane; Queensland offers a range of business advantages such as a stable economy, low operating costs, supportive government, highly skilled workforce, and a dependable growth forecast. However, there are many things you need to consider from a financial, legal, and general business standpoint. Moreover, making sure that you receive the right information and advice from the beginning is crucial. This is why we have outlined the following 5 important considerations to make when looking for a business for sale in Brisbane.
Make Sure That You Are 100% Business Ready
First things first, you need to make sure that you’re 100% ready to even start searching for a business for sale in Brisbane. Running a business isn’t easy and it usually requires a a lot of discipline. Before you consider buying a business, ask yourself the following questions:
- Do I have the right skillset to own and run a business?
- Do I have the time and resources to invest in a business and ensure it is successful?
- Am I physically and emotionally prepared to deal with the pressures of running a business?
- Are my personal goals in alignmentent with this decision and will running a business help me achieve them?
- Do I have the capital to invest in a business to ensure success?
Do Your Research
Finding a business for sale in Brisbane requires research. Before you even consider purchasing a business you need to look into its history and potential value. Not to mention, market research allows you to gain an understanding of the business’s customers, employees and competitors to see how the business is doing overall.
As mentioned above, you want to make sure that your personal goals align with this business. There are many opportunities out there, therefore, you want to ensure that you find a business that suits you.
Review and Understand the Documentation
Purchasing a business involves a lot of documentation and information, such as:
- Financial statements – including profit & loss statements, balance sheets with assets and liabilities, lists of debtors and creditors, and any BAS’s lodged by the business.
- List of plant, equipment, assets, and stock.
- Lists of customers and suppliers – customer and supplier relationships form a part of goodwill.
- Outline of current employees – including job descriptions, pay, years of service, and accrued entitlements.
- Important contracts – including copies of the lease of the premises and of any plant & equipment. Ensure that you check any provisions regarding term, assignment, change of control, and termination.
You want to ensure that you have a good understanding of these documents and information before the seller asks you to sign anything.
Ensure Due Diligence
When it comes to proper due diligence, this involves thoroughly checking the records of the business. You will want to ensure that documented sales are not subpar to what the owner has mentioned. Moreover, the business should not have any liabilities or legal obligations and their cash flow should be sustainable.
As you will be overtaking and running the business, you also want to ensure that the employees and customers will remain loyal once the handover is settled. Ideally, any due diligence should be undertaken before you sign anything.
Seek Professional Advice
As we have discussed, buying a business involves a lot of financial, legal, and operational considerations along the way. With this in mind, it is recommended that you engage with legal and financial advisors to ensure due diligence and a smooth sales process. This will save you from running into any unwelcoming surprises and difficulties along the way.
Here at BUSINESSNAV, our financial advisors are experts in facilitating business sales. From negotiating price and conditions to providing a vast suite of financial services, BUSINESSNAV is here to ensure that you are prepared in order to receive the best purchase. Find out more here or contact us here today.