Results 1 to 4 of 4

Thread: Buying a preexisting business

  1. #1
    New Member
    Join Date
    Feb 2020
    Location
    Durban
    Posts
    3
    Thanks
    1
    Thanked 0 Times in 0 Posts

    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

  2. #2
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    3,479
    Thanks
    134
    Thanked 695 Times in 593 Posts
    Blog Entries
    1
    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 pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za

  3. Thanks given for this post:

    Elton_m (26-Feb-20)

  4. #3
    New Member
    Join Date
    Feb 2020
    Location
    Durban
    Posts
    3
    Thanks
    1
    Thanked 0 Times in 0 Posts
    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!!

  5. #4
    Silver Member
    Join Date
    May 2010
    Location
    durban
    Posts
    419
    Thanks
    128
    Thanked 61 Times in 52 Posts
    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.

Similar Threads

  1. buying a business: revenue lower than when negotiating
    By Leonp in forum Entrepreneurship and Business Management Forum
    Replies: 14
    Last Post: 25-Jul-14, 08:15 AM
  2. buying a business or investments
    By obinwanne in forum General Business Forum
    Replies: 4
    Last Post: 03-Nov-12, 07:19 AM
  3. Buying a small business
    By Tabby in forum Entrepreneurship and Business Management Forum
    Replies: 12
    Last Post: 14-Aug-12, 12:18 PM
  4. VAT liability for the business I am buying
    By rhiralal in forum Tax Forum
    Replies: 1
    Last Post: 27-Oct-11, 02:28 PM
  5. Buying a business
    By TedP in forum General Business Forum
    Replies: 12
    Last Post: 15-Oct-10, 12:08 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •