Buying A Business

  • By Staff Writers
"If you plan to buy an existing business, carefully analyse both the advantages and disadvantages. One advantage is that a good business history can increase the likelihood of a successful operation and ensure that finance is easier to obtain. Potential disadvantages can be overestimating the goodwill figure and a poor public image inherited from the previous owner.

"As a prospective business owner you should determine the current worth of the business and its future prospects. Some important considerations are:
  • "Vendor - reason for sale of business
  • "Sales - patterns, trends, customer base, current suppliers
  • "Costs - fixed and variable costs, staff costs
  • "Profits - analyse financial records, future cash flow and profitability
  • "Assets - identify and check all assets, including intellectual property and leasing arrangements
  • "Liabilities - outstanding debts, refunds and warranties
  • "Purchase agreement - review carefully
  • "Tax - GST, Capital Gains Tax, stamp duty implications
  • "Legal issues - leases, business structure.
"For advice and protection in buying a business we suggest that you seek the services of a solicitor, accountant or business adviser."

Cited: http://www.business.gov.au/Business+Entry+Point/How-to+guides/Starting+a+business/Buying+an+established+business.htm Date: 16 June 2008



Buying A Pharmacy

Despite the numerous threats and pressures facing pharmacy, Goodwill is and remains at an all time high. By any measure the cost of pharmacy ownership is high and the payback period greater than in recent history. So too are the associated risks of pharmacy ownership.

However, the returns for wisely selected pharmacies can be excellent and the rewards, both personal and financial, can be exceptional!

Recent sales evidence suggests a number of warning bells which I wish to alert you to.

Put simply, many pharmacists are being hoodwinked into paying too much for pharmacies without exercising due care. This column provides analysis to demonstrate areas of concern and methods to identify a sound risk adjusted value for pharmacy.



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