New Business Purchase
Due to a change in circumstance, a husband and wife sold a successful business that they had established some eight years earlier. They were keen to find a new business as they were living on the proceeds from the sale of the old business and were at a loose end. Which business to buy was a critical decision that they needed to get right.
To avoid a premature and emotionally motivated purchase decision we assisted the client in examining many different business opportunities and evaluating them based on their merits and their degree of fit with the clients’ capabilities, circumstances and objectives. This involved:
- Discounting many businesses because of poor investment returns relative to their risk and the level of input they required
- Discounting many businesses because of a poor fit with the clients’ capabilities, circumstances, goals and objectives
- Conducting due diligence on the most promising business prospects and extensive due diligence on the desired business
- Negotiating the purchase price and other key terms of the purchase for the desired business
- Arranging finance to fund the balance of the purchase price of the desired business
- Negotiating the heads of agreement and the detailed purchase contracts for the desired business
- Preparing for settlement including identifying and implementing new and improved management and operational systems that would enable the business to operate much more efficiently from the first day of trading
- Assisting with the changeover and setting out a range of other innovation projects for future implementation to further drive growth, profits and business value
The clients are now operating a highly profitable business that matches and enhances their personal circumstance and lifestyle and have a clear path to capturing even greater opportunity. They have avoided low profit businesses and the hardship of working in a business that does not match their capabilities, circumstances or personal goals and aspirations.