Go In With Your Eyes Wide Open

When buying a business, it’s essential to make sure there are no financial skeletons in the closet

- Anthony O'Brien

Most Australians start their hunt to buy a business with an online search. That’s the word from Noel Currie, certified business divestment and exit strategist from Australian Business Sales Corporation, who says at least 90% of buyers search the internet for their new business opportunity.

Still, finding the right business involves more than a few judicious mouse clicks; in fact, it’s a time-consuming and an incredibly challenging process.

How to find the right business

The first step involves finding a business that matches your experience. As a writer, I make an inferior builder. When looking at target companies to buy, Adam Smith, chartered accountant and director of professional services firm Aurecon, recommends seeking out businesses that align with your skill set, background and expertise.

“These days, there are countless websites and brokers you can approach to help you identify the right business,” says Smith. “However, it’s so important to conduct your market research and detailed due diligence. Thoroughly understanding the commercial environment you are operating in is paramount to business success.

“Generally, the worst and most expensive businesses to buy are the ones already listed for sale, because brokers can sometimes set unrealistic value expectations to justify their fees.”

Do your due diligence

Before buying a business, be sure to do your due diligence and research first. Researching the company that you want to buy will enable you to understand its reputation and potential.