If you are looking to buy a business in Queensland, there is much to consider, and more often than not, the business would either include the freehold sale or a lease on property that is used as a business premises. When a business owner decides to sell, they would approach a local conveyancing firm, who would help them with the sale, and should you have your heart set of acquiring a business in Queensland, the conveyancing law firm would be a good place to start your search.
Crunching the Numbers
Before you can make a bid for a business up for sale, you really do need to be certain that you can afford to buy the business and manage to keep it running. To find out how much stamp duty you will have to pay, you can use a Queensland stamp duty calculator, which will give you an estimation of the tax due.
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Aside from the purchase price of the business, you will need to calculate how much working capital you need to get the project off the ground. It may be that the sale includes everything you need to continue trading, or it could be that the sale does not include a lot of the items that the business must have in order to trade. Either way, you need to know how much working capital it will take to keep the business running, which can be found by examining the cash forecast reports.
Reason for Sale
This is a critical aspect, as you don’t want to buy a business that is losing money, and if the reason is due to the owner retiring, or having to relocate for personal reasons, this is a positive sign. Of course, you might already know that the business is losing money, and you plan to manage the business in a different way, and if that is the case, you will likely acquire the business at a reduced price, as the owner is desperate to sell.
Thorough Business Review
Prior to making an offer for the business, you should carry out a thorough examination of the business, which would involve examining the books for at least the last 3 years, while also taking a good look at the market to ascertain whether the company’s products or services are in demand. If the business is doing well, how well? If it is performing poorly, how poorly?
If ever you needed sound professional advice, this would be the time, and by searching online for an experienced conveyancing law firm, you can receive the right advice. The property that comes with the business would need to be inspected, and a contract between both buyer and seller would be compiled, which is something that a conveyancing lawyer could help with.
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You are advised to approach buying a business with great care, and after carrying out your research, you should then contact a conveyancing lawyer who can help you prepare your offer. The contract needs to be favourable to the buyer and everything should be carefully examined when negotiating the purchase of an ongoing business.