Melbourne is a great city not only for tourism but also for business. It is vibrant, modern and full of people which easily makes the economy thriving. If you wish to start a business here, one option is to buy an existing company.
Well, this move is undoubtedly laden with advantages and disadvantages so it is not recommended to push through if you haven’t considered both, especially not without the help of a reliable Melbourne accountant or a small accounting firm in Melbourne. A huge sum of money is at stake in this endeavour so you might want to cover all the bases with the help of a professional.
Soon as you’ve decided that this route is best for you, here are steps to ensure success in your purchase:
1. Set your own criteria. Many potential buyers skip this part when the offer comes first before the idea of acquiring a business. However, even with a tempting proposal, it’s still ideal to come up with your criteria for acquisition. This will help you evaluate if a particular business is what you really want and if you are truly up for it. Some of the things you may want to consider are business type, location and profitability. Your financial capacity will surely be in play, too, so factor it in.
2. Exercise due diligence. A list of businesses that satisfied your criteria can be trimmed further by doing preliminary review. Find out if the details the company provided are true and if there are problems they failed to mention that are potential deal breakers. Your investigation can save you a huge amount of money, time and trouble. Make sure to have your Melbourne accountant verify financial statements. A trained eye can see glitches and misstatements that people without an accounting background may miss.
3. Employ the best valuation method/s. Valuation is an important aspect in buying a business. Know that there are assets that are hard to monetize and the process may involve more than one valuation method so it’s best to hire a valuation expert. This will help you determine if you are getting a good deal and even set the tone for negotiation. A Melbourne accountant or a small accounting firm in Melbourne can be of great assistance in ensuring that a reasonable tag price is attached to the business.