Some aspects of a business are more valuable than others. There are some aspects that you simply can’t live without. For example, whilst an owner of a café can easily replace a coffee machine if it fails, it may not be as easy to replace the taste of their particular coffee blend, which their particular clients are fond of, if they have a fall out with their supplier. Similarly, to replace the barista whom the customers share a quick laugh with every morning when they grab their daily dose might also be problematic. As a result, buyers need to ensure that the key aspects of the business are sound when they are buying a business. They need to make sure they are getting value for money. Continue reading
It could be 65% off a five night, five star holiday in Phuket for $999 or 71% off a fresh seafood basket at a local Brisbane take away shop for $16. A few years on from Groupon’s launch in 2008, group buying by consumers is becoming an everyday consideration for many business owners and consumers. It is now more than just marketing for some businesses that rely on the “Groupons” of the world as their primary, if not sole, source of income. As a result, coupons, vouchers and gift certificates have become a greater consideration when a business is being sold.
Whilst buyers of a rent roll business will encounter similar issues to buying a real estate agency, there are some very specific issues that require particular attention to protect a buyer’s interest and their ability to maximise their returns after settlement.
In particular, the three critical issues that need to be examined: the multiplier, the retention and the restraint of trade.
This Guide is designed for use by buyers of businesses, business brokers and professional advisers when buying a business. The purpose of the Guide is to explain some of the key issues, specific risks and the potential for getting things wrong and some opportunities where professional advisers can assist in securing better decisions. Continue reading
Whilst buying a real estate agency involves similar issues to other professional and semi-professional service businesses, there are some very important issues that require particular attention to protect a buyer’s interest and their ability to run the business after settlement. Continue reading
In this 4BC Small Business Show segment with Kevin Turner, Joe Kafrouni highlights concerns raised by the Australian Institute of Business Brokers (AIBB) over the conduct of some rogue business brokers (+discussion on business sales and partnerships). In a nut shell, business owners looking to sell there businesses need to be careful when engaging business brokers who represent:
- they have access to significant foreign buyers of businesses;
- these foreign buyers are prepared to pay top dollar to buy their business;
- provide an appraisal of the business that exceeds the owner’s expectations;
- the business owner is encouraged to invest in an advert in an “independent” publication (usually a magazine) for a significant amount of money (usually $6,000 to $24,000). Continue reading
Key points when buying a cafe:
- the Business Sale Contract should be made conditional upon the transfer and acquisition of all necessary local and state licenses and approvals for the business.
- particular attention should be paid to any key supplier agreements to ensure continuity of supply to the business.
- State health and safety laws must be met in regard to food storage units and cooking equipment.
There are many factors to consider when purchasing a manufacturing business in order to protect the continuity of the business following settlement. Here we cover some of the important issues (amongst others) that a buyer should discuss with their business lawyer before signing a contract. Continue reading
Pharmacy sales have many similar issues to other retail businesses. However, there are some very significant issues that require a buyer’s particular attention prior to entering into a contract, so that the buyer can legally run the business after settlement. Continue reading