Buying a business?

[golfman]

I am considering buying another established business that has been offered to me, which will fit nicely into our own.

Done a PH search but couldn’t find anything.

Does anyone have any experience / pointers?

Much appreciated!

[2 Smokin Barrels]

Most important question...why are they selling it!!

[golfman]

2 Smokin Barrels said:

Most important question...why are they selling it!!

Exactly, apparently they are growing another division that they want to concentrate on more, and would rather sell this side off due to their lack of interest (from what I can gather). They have blue chip clients going back to 1974.

[2 Smokin Barrels]

golfman said:

2 Smokin Barrels said: Most important question...why are they selling it!! Exactly, apparently they are growing another division that they want to concentrate on more, and would rather sell this side off due to their lack of interest (from what I can gather). They have blue chip clients going back to 1974.

I guess if it was making a packet they'd keep it anyway. The theory of acquiring an existing business is usually you can tack it onto yours, and lose some of their overhead, or they've lost the sparkle that you've got!

[2 Smokin Barrels]

Be sure what's up for sale. Is is the trade? the assets? the assets & liabilities? or the shares of a limited company?

Are the assets worth what's being asked? or do they even exist.

If people are involved there's another set of issues, for example TUPE.

I expect Eric will be along shortly....

[golfman]

2 Smokin Barrels said:

I guess if it was making a packet they'd keep it anyway. The theory of acquiring an existing business is usually you can tack it onto yours, and lose some of their overhead, or they've lost the sparkle that you've got!

Apparently we have a lot of sparkle, I’ll try turning a turd into gold given a chance!

[2 Smokin Barrels]

That'd make yer eyes water!

[Davel]

You need a good accountant with the capacity to have a good look at the business.

I know a brilliant company up this way (North West) but you may have one of your own anyway.

I'm looking at other ventures too.

[apguy]

I did exactly this 12 months ago. (I started my own business and then bought another one and incorporated it into my own). I had to deal with finance, heads of terms, contracts, liability, TUPE, pensions etc

I'm happy to answer specific questions.