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Thread: Buying a preexisting business

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    Buying a preexisting business

    Hi All

    So a friend of mine has put his hardware business up for sale.... He seems to have been doing really well with it over the last few years, but has now managed to secure a "tender" which will take up all his resources......
    I am really interested in taking him up on his offer regarding the business, but was wondering what are some of the things
    that I should consider before making the decision. I have never purchased a business before.....
    Thanks in advance

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    I am not sure the amount of money you are talking here.

    I suggest you enlist the services of a business broker to evaluate the business on your behalf.
    I seem to remember a chap called Mark Corke from a company called Suitegum
    It can be a minefield if you do not know what to do. From my experience, especially with staff, because of long term service, and that you have to buy it as part of an ongoing concern, is to ensure or get the seller to do the retrenchment package as part of the sale, and you rehire them as new staff from the 1st day you take over.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

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    Elton_m (26-Feb-20)

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    Thanks for the response. I am looking at a purchase price in the region of R2 million, which includes all stock. The business is situated in what would appear to be a prime location.... I will contact a business broker.....someone in the Durban area.
    Thanks again!!

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    Quote Originally Posted by Elton_m View Post
    Thanks for the response. I am looking at a purchase price in the region of R2 million, which includes all stock. The business is situated in what would appear to be a prime location.... I will contact a business broker.....someone in the Durban area.
    Thanks again!!
    A businesss broker whilst he should be, is never able to carry out a due diligence on seller's books. The right guy for this would be your accountant or if u don't have one, get one. It will be money well spent.

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