You have the choice to either build your company from scratch or to buy an existing one. Many consider the latter, as an investment move, smarter than the former since it helps you to skip the rough start up stage. You also get to inherit systems, customers, image and a workforce that’s already familiar with the firm’s operations. You can learn more at gotowespolki.co.pl. The toughest part of the process peg on the knowledge of how to buy a company without falling into legal and financial or contentious ownership loopholes. Here is how to go about it all in 3 easy steps.
Make the Right Business Choice
Start by identifying an industry that you’re passionate about and then narrow down to a particular segment of that industry. If you’re interested in the information technology sector, for instance, narrow down your focus and decide whether you want to buy software or a hardware company. Search and list down businesses for sale in your targeted industrial segment and then pick two or three of the best companies to consider in the list.
Do a Deep Background Check
Hire a competent business consultant, an attorney who is well-versed with company acquisition process as well as an accountant. The trio will assist you to pre-screen the three preferred firms to solidifying your interests on the one with the highest possible return on investment by taking a keen look at:
- All the company’s copies of contracts and legal certification
- The building, fixtures, equipment and furniture
- Its tax returns for the last five years
- Financial statements
- Sales records
- Receivable and payable accounts
- Customer patterns
- Insurance covers
- Advertising cost
Take a Shot at the Bargain
Walk into the boardroom with your team of business appraisers and negotiators to spark on the negotiation flames. Have a list of objective facts. Be clear about the company’s worth and the much you’re willing to pay for it. Remember to bring up the business’ Strengths, Weaknesses, Opportunities, and Threats or SWOT, for short, to enable you to put up spirited rounds of negotiations. Talk about the number of things that you will have to invest in to make the business more competitive in the global market with the aim of lowering the sellers’ overall price tag.
You can as well throw in niceties such as retaining the entire staff including the management top brass to get a fair price. Read the business transfer papers carefully with your team of professional advisers before appending your signature to close the deal. With these three how to buy a company tips, you can always hit the road global business success in any line of trade.