Buying a Business? - YES WE CAN!

It’s the role of a business broker to present a business in its best possible light while avoiding exposing its challenges or weaknesses.

Jamie Tulloch “The Business Engineer” MD – E3 Business Accountants

Good brokers will not misrepresent their clients’ businesses, but when you’re laying out tens of thousands of dollars (possibly even hundreds of thousands or more), borrowing from the bank and putting your personal assets on the line, you need to be very sure you can make a success of the business you are buying.

So E3 has developed an economical process to carry out Due Diligence in three affordable steps.

Step One – meet with you to understand your particular skills and business experience. Next we compare what we learn from this meeting to the skills required to own and run the business for sale and advise if we think you are a good “fit” and have a reasonable chance of success. We also talk through the source of the funding required to buy the business. Be assured, we will be frank with our advice.

Step Two – review and get verification of the financial information provided by the vendor and broker to ensure that the data stacks up and has not been skewered, distorted and is in “full disclosure” mode. This often requires us to go back to the vendor’s accountants as the original source. We also need to understand the methodology used to reach the asking price of the business. This especially means looking at how the Goodwill or Intangible Asset value has been calculated. Over the years, I’ve seen lots of wishful asking prices that are far away from reality.

Step Three – build a financial blueprint including a budget and cashflow projection to see how the business will perform over the next 12-24 months. This blueprint will also form the basis of a funding request from the bank or other investors.”

“We will quote each step before we start but indicative fees are:

  • Step One: $450 – $750 plus GST
  • Step Two: $550 – $950 plus GST
  • Step Three: From $1250 plus GST 

Phone Jamie on 0274 337 280 during business hours or text anytime for a fast reply

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