Investigating the Business

The investigation - let’s get the facts and see if it stacks up

BBA can assist you with assessing the business and determining its market value

Identifying a business to buy that appears to be operating successfully is an exciting moment. Emotions can take over and decisions clouded by promises and expectations.

Many businesses are not what they appear to be or in some cases are just jobs. Some are advertised as a Walk In Walk Out (WIWO) sale, which immediately raises concerns.

It is at this point that a non-emotional, realistic assessment of the business should be undertaken. All aspects of the business need to be addressed including but not limited to trading history, personnel, operations, location, growth and financial returns.

BBA can provide a business assessment to assist you with your decision. This assessment is completed before an offer is made and before too much time has been invested both financially and personally. This assessment may highlight many issues that need to be addressed during due diligence or request information that is required before an offer is tabled.

Whilst BBA are not sworn valuers, they have significant experience in determining a market value range for a business. The value of a business includes many factors but ultimately it is based on its operations and recent financial performance whilst the value to a buyer is the potential to grow the business to obtain a reasonable return and increase the overall value for an eventual sale.

Remember, a purchaser will pay what the business is worth at the time but will buy it for its future growth.

Conditions of sale are an important component of a purchase. BBA can assist the buyer in determining an expected purchase price and ensure conditions are included that will assist the buyer through the purchase process.

BBA are able to assist buyers in making a decision to proceed to negotiation stage or withdraw from proceedings. Having a third party assess a potential business prior to an offer is an important stage of the purchase process.

Have BBA assist you in assessing the business, Contact BBA to discuss further. Our specialists are there to assist you with your decision.

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