The city of Melbourne is a choice spot for businesses. No wonder many of Australia’s biggest companies chose it to house their head offices. If you’re planning to have your own business in
this thriving city, acquiring an existing company might pique your interest.
Buying a business in Melbourne or in any other city has its pros and cons. On the bright side, you skip steps that most business owners who start from scratch experience. It might be easier to get funding, too. Lastly, don’t underestimate the power of having a ready customer base.
Needless to say, there’s a greater chance to succeed with some cards already laid down for you. However, there are also disadvantages particularly if the business has an awful history or reputation among customers. So, what should you do before acquiring a business?
It’s necessary to seek the help of a Melbourne accountant. In fact, it should be a priority whether or not you have found a company that you wish to buy. An accountant who is familiar with the city’s laws and businesses can help you decide on several critical factors as well as connect you to people worth talking to when still in search for a company to acquire.
Get a good Melbourne accountant on your team as he or she can walk you through the tricky valuation process. Will you acquire only the assets or will you be responsible for the liabilities, too? How will the company’s loans be handled? These are just some issues you will likely encounter. A good tip when hiring a Melbourne accountant is to check out a small accounting firm in Melbourne. Keep in mind that it’s not practical to get the services of big firms when you’re just starting out or dealing with small business. A small accounting firm in Melbourne may fit your needs and budget better.
When buying a business, it’s important not to get easily swayed by the promise of low purchase cost and convenience. Sometimes, it may cost you more than putting up a new business if you factor in the liabilities. You need a trained eye to look at the company’s financial records and determine if the company is really worth your time and money.