Empower Your Business

Accounting is Just the Beginning

By

Are You Buying A Business?

There seems to be a lot of interest in people buying businesses so let us hope that is a good sign for the economy. We’ve already talked about the need for care generally when you are looking at a business acquisition (click here) but if you are contemplating buying a business, there are numerous matters to be considered

Essential information you need to get before acquiring a business

Other issues to be aware of:

  • Never sign a contract until you have had legal and accounting advice
  • Make sure you are buying the business in the appropriate entity
  • Keep full records of everything that is said or given to you by the vendor or vendor’s representative.
  • Do your own due diligence and check all the information supplied to you.
  • Is the location satisfactory for your business?

If you would like a copy of our Guide to Buying a Business, please contact Nick on 0800 ASK NICK or email nick@abac.co.nz.

2 Responses to Are You Buying A Business?

  1. Thanks for that. It really depends on the circumstances at the time e.g. the price, the size and complexity of the business. For a simple business with a low price, just looking at the annual financials & GST returns may suffice, but for bigger businesses, you need to look in depth at all aspects of the business. There are useful checklists available (I have a good one) to make sure you don’t miss anything.

  2. dongrgic says:

    Great advice Nick.
    I think many buyers struggle with the concept of due diligence. It can be such a broad topic. Do you only check the information provided or do you look at the broader aspects? To what depth do you think due diligence should be undertaken to and do you have any suggestions?