How long will it take to buy a business? [Video]

Posted by James Price | JPAbusiness on 16-Sep-2020 02:00:00

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We have helped some clients find the right business within six months while, for other clients, it has taken over three years.

The key phrase is ‘the right business’; I’m sure we could speed up the process if our aim was just to help our clients buy ‘a’ business, but that’s not our job.

In this video I explain why it's important not to rush into buying a business, and share four tips for managing risk during the business buying process.

 

So, how long does it take?

Buying a business should take as long as it needs to take to find the right business for you.

Be prepared to invest in independent advice from an advisory, valuation or accounting business, to pressure test your views, support your decision making and balance your important emotional reaction with objective data.

Use the Business Buying FunnelBusiness Buying Funnel 2

A key tool for assessing a business and determining whether it’s right or wrong for you is what I call the funnel process.

[We have created the 10-step Business Buying Funnel to help readers understand and apply this process. Click on the link or image for a full explanation.]

Imagine the top of the funnel is wide and has a screen which sifts out businesses which don’t meet your requirements.

These requirements may relate to:

  • Geography
  • Size and turnover
  • Earnings
  • Price
  • Product or service
  • Customer base, etc.

Once the various sale opportunities have been ‘sifted’ you are left with the select few businesses which meet your requirements. 

The funnel process allows you to do some initial testing and assessment upfront, against your clear objectives, and determine quickly whether the stars will line up or not. 

Resources to help you manage the purchase process

We have produced a number of free resources to help our clients and subscribers when buying a business:

You can download these and other free resources from our online Resource Library.

 

Due Diligence Checklist | JPAbusiness

 

If you would like advice about any aspect of buying or selling a business, contact the team at JPAbusiness on 02 6360 0360 or 02 9893 1803 for a confidential, obligation-free discussion.


James Price 2018 smallJames Price has over 30 years' experience in providing strategic, commercial and financial advice to Australian and international business clients. James' blogs provide business advice for aspiring and current small to mid-sized business owners, operators and managers.

 

Topics: Buying a business, infographic, Video, business advice, Business valuation, Business advisor, business broker, vendor due diligence, business buying funnel, JPAbusiness, Parramatta, Central West NSW, business buyer, business transaction advisor

 
Disclaimer: The information contained in this blog is general in nature and should not be taken as personal, professional advice. Readers should make their own inquiries and obtain independent, professional advice before making any decisions, taking any action or relying on any information in this blog. 
 
 

 

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