Advice for first-time sellers and buyers

Buying or selling a business is a significant step requiring effective planning. Getting the right advice at the right time is critical and can make the difference between success and failure.

By John Jones, partner and head of corporate finance, Beever and Struthers.

Pro-active business owners should always take steps to ensure the business is best placed for whatever the future brings, and one certainty going forward is that at some stage the owner will explore ways to exit the enterprise.

Selling a business can be complex and time-consuming, and while most entrepreneurs know their business inside out and are acutely aware of the market in which they operate, specialist skills and experience are required to optimise the return when a business is sold to maximise sale proceeds, minimise tax liabilities and complete the deal efficiently.

Buying a business is becoming an increasingly popular option for people who don't want to start from scratch. An established enterprise will have a market presence and revenue stream, representing a head start but not necessarily an easy option.

You’ll need to devote time and effort to find the business that’s right for you. Also, the costs involved in buying a business can be substantial and should not be underestimated.

There are many reasons why buying an existing business makes good corporate sense. But remember that you’ll be inheriting the legacy of the previous owner, so need to be aware of every aspect of the concern you’re targeting.

Any business needs to fit your own skills, lifestyle and aspirations. Think about what you can bring to a business and what you want to ultimately achieve. It’s always best to obtain professional advice before to buying or selling a business.