Do I need a broker or advisor to buy a business?

Posted by James Price | JPAbusiness on 03-Jul-2019 02:00:00

I strongly advise anyone looking to make a substantial investment in a business to consider independent external advice, whether that comes from a business broker, business advisor or accountant, or another specialist.

That advice might be in the form of:

  • providing a sounding board as you determine exactly what your own aims are in buying a business
  • objective advice on whether the business or businesses you’re considering actually meet those objectives
  • providing an independent view of the value of the business you’re looking to buy
  • assisting you in the purchase negotiation process
  • conducting the due diligence process.

However, this is where my answer gets a little tricky, because not all brokers have the same level of experience, and some offer a form of service I don’t endorse.

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Topics: Buying a business, Due diligence, business buying, business broker, return on investment

What should my business be returning for my investment?

Posted by James Price | JPAbusiness on 06-Mar-2019 02:00:00

The business buyers and owners we work with in the SME market tend to target a return on investment in a range from 10 to 40%.

This range is influenced by factors such as:

  • industry prospects
  • competitive dynamics
  • points of difference
  • use of technology
  • delivery capability

...and a myriad of factors relating to the business model and specific enterprise.

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Topics: valuing a business, return on investment

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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