Buying a Business
"Caveat Emptor" - Let the buyer beware.
A phrase often heard when buying second hand goods. It applies equally to buying an existing business.
It's an exciting time, it means that you, as the buyer, have to make sure that you truly understand what it is you are going to get for your money.
This is where we can help, with our "Due Diligence" services.
We will examine the last few year's financial statements of the business you intend to purchase and provide you with a realistic estimate of the valuation.
We can advise on:
- What is a fair price for the business?
- How should the purchase price be divided between the different assets you are acquiring?
- If it's an incorporated business, should you buy the shares of the company or just buy the assets from the company?
- How much money your business will need
- How to structure and finance the deal
- The income tax implications
…and much more.
Our firm has experience with clients in mergers and acquisitions. We are there to assist in the following areas:
- Due diligence on purchase
- Review of cash flow
- Optimization of taxes
- Assistance in financing
- Structuring agreements
- Establishing purchase price
- Strategies and planning
An in-depth assessment of a business could include some of the following steps:
- Assessing your needs and situation
- Research and collecting information
- Analysis of research and information
- Preliminary due diligence
- Value enhancement
- Problem identification and proposed solutions
- Valuation
- Developing a profile
- Presenting profile and reviewing conclusions with you
You stand to make a better decision on whether to buy any specific business or not based on the help we can provide, and that means better protection for your investment.
If you decide to proceed, but need additional funding, then we can help you present your proposal to the bank.
Over the years, Joe Truscott has written many individual income tax and business articles which have been posted here for you to review. You can also review many additional articles that have appeared in his quarterly client bulletin called Business Matters.
Please Call Us Today at 905-528-0234 to Discuss Any Concerns You May Have.
