Business Tips

What to know when buying a business?

20 Sep , 2022  

The COVID-19 pandemic affected not only the health of people in Brisbane; it also made many re-think their careers. It brought on the Great Resignation because millions of working professionals voluntarily left their jobs. Many started their own business prompted by their need to break free from the 9 to 5 cycle and have a greater sense of purpose in life. Thus, if you want to own or buy a business for sale in Brisbane, now is the right time. However, starting a company from scratch is challenging and stressful. It is much more practical to buy an established business.


Want to be your boss? You’ll be surprised to find a business for sale in Brisbane quickly and without hassle, if you ask the following questions. Have a look.


1. Why is the business up for sale?

Knowing the answer to this question is crucial to identify red flags. Acceptable reasons for selling a business include relocation, health concerns, family obligations, retirement etc. Skip a business for sale in Brisbane if the reason for selling is related to its profitability, reach or growth.


2. How was the business valued? 

It is essential to know who the sellers reached the asking price. If you think the valuation is not correct, take the assistance of a business valuation expert to get an accurate estimation.


3. Is it an asset sale or a share sale?

Be sure what you want when buying a business for sale in Brisbane. You will find sellers offering business assets and shares. You will purchase individual assets and liabilities in an asset sale, whereas a share sale is when you purchase the owner’s shares.


4. What is the business’s financial health?

When buying a business for sale in Brisbane, you don’t want to save a sinking ship. Always inquire about the financial health of a business to ensure you can handle it well and make a profit.


5. How is the competition?

Market competition makes or breaks a business. Also, most decisions you will make will be based on it. Therefore, you should know how fierce or mellow the competition is on the market for the business you want to buy.


6. How are the customer relationships?

Companies need goodwill to thrive, and if a business has unsatisfied customers, it is best to avoid buying it. It can hamper a company’s growth and affect profits even when you re-brand.


The Bottom Line

Buying a business is one of the best ways to establish a foothold. It is also less stressful than starting a new venture. Therefore, if you plan to buy a business for sale in Brisbane, don’t forget to ask the above questions to make a profitable deal.