As a first time buyer, buying a business can be a daunting task. However, it is important to remember, that buying a business is a structured process - there are steps to finding a business, steps to settling a business and key parties who can assist you in the process. The key is to understand the process and assemble a team BEFORE looking to buy a business to ensure that you get the best outcome possible. When you find a business you would like to buy, it is important that you know how to determine your offer and that you are ready to proceed with the purchase.
The following tips can help you prepare to buy a business:
- Prepare a Team:
In order to buy a pharmacy, you will require an accountant to assist you with the analysis of the business, a solicitor to help you "paper the deal", a valuer to assess the business to make an offer/finance the acquisition and a banker (or finance broker) to help you finance the transaction. - Know What You're Looking To Buy:
When buying your first business, your time is limited, so take a moment to evaluate what you're looking to buy and target those opportunities. Know how much you can afford to buy, where you are looking to buy and what attributes of a business appeal to you. This will ensure that you can provide a wish list to a broker and identify opportunities that match your requirements. - Understand Financial Statements:
Take time to learn how to interpret financial statements. These will provide an indication of the return that the business is providing, so it is important that you can read these statements and understand what they are saying about the business. - Be Ready To Settle:
Once your offer is accepted, settlement can occur very quickly. As such it is important that you prepare yourself for what comes after signing an agreement to buy.
These points are by no means an exhaustive list. But they do help you to identify what you should be doing to prepare yourself for buying a business.
Advertisement:
Latest Blog Posts
Pharmacy For Sale Just Outside Adelaide, SA
A pharmacy for sale in a single pharmacy town in South Australia, just over 1 hour from Adelaide. Your opportunity to take an established pharmacy with a medical centre next door, and manage its transition to a dedicated health care destination for the region.
Read More »New Pharmacy For Sale in Victoria
A new pharmacy for sale has been added to Practice4Sale on the Mornington Peninsula.
Read More »