Selling or buying a business is a major financial decision that will almost certainly have a dramatic effect on your life.
When combined with other factors such as changes in job roles, new work hours, borrowing money to fund the business purchase, impacts on your personal life and on your personal disposable income, selling or buying a business is one of the most stressful events that will occur in your life.
In making a decision it is sensible to seek professional advice. The problem is that traditional types of advisors have very little experience in assessing business value and potential.
Simply put, you need to know what you’re selling or buying. At BPS Advisory, we make very clear and definite distinctions between value, price and payment – and so should everyone involved in any business transaction.
Just looking at past trading performance indicated by financial statements is like trying to drive a car by looking in the rear view mirror. And understanding leases, supplier contracts, personal guarantees won’t help much when you’re trying to assess the potential for increasing sales and how best to advertise your business.
You wouldn’t dream of selling your house without having a look around and identifying the key selling points, doing a bit of housekeeping and thinking about who is most likely to buy.
And I can’t imagine buying a house without getting a building inspection done and taking the time to think about how that house will improve my life.
You should regard the need to conduct a thorough and effective due diligence review in the same way – whether you’re selling or buying. And, whichever side of the transaction you’re on, a professional due diligence process will save you money – you’ll be on firmer ground and much better placed to make a sound commercial decision.
With extensive experience in building successful businesses and in working with businesses in difficulty, BPS Advisory knows the questions to ask, the areas to investigate and where to look so that you know exactly what you’re selling or buying.