About Buying a Business

Things To Look For When Buying A Business

Earnings report before proprietor's drawings, interest, taxes and depreciation.(EBPITA).

Business contacts that are transferable.

Value of Plant and Equipment.

Inventory and stock.

How does business performance stack up against industry averages?

How does business expenses stack up against indusry averages?

Check industry associations.

Expected return on investment.

Fair salary for business owner.

Adjusted net profit.

Leasehold improvements.

Calculate your start up costs to get in business.

Value intangible assets.

Transition and training time included in purchace price

How seller arrived at asking price.

Do you have the cash and financing in place to buy the business of your choice?