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Thread: Thinking of buying a business

  1. #51
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    Quote Originally Posted by HumaneHosting View Post
    If you do it right you don't need to pay for another middle man. For example make sure they give you temporary access to inventories, billing, and etc to audit everything for yourself. If they won't do this for you I would find another seller to buy from.
    This was your original answer. You suggested auditing everything yourself, rather than pay a "middleman". You inferred that if you can't, just pass up on the deal. It may be true in your business, but not a logical answer for many others. You went on to talk about "trusting" brokers and sellers.

    I, and others, tried to point out that you should NOT just trust brokers and sellers and that even auditing yourself is insufficient, unless of course you are an auditor. We also mentioned many of the issues you may never find that an attorney could.

    So, I took your advice to mean, that if you checked everything yourself, and it looked good, you should go forward without further assistance. I just don't think that is sound advice, especially to a person buying their first business. If you are a very experience buyer you probably can do much of the due diligence yourself. But even then you would still bring in pros.

    It goes without saying that if it didn't seem like a good opportunity initially ,you would not go forward.

  2. #52

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    Quote Originally Posted by Paul View Post
    This was your original answer. You suggested auditing everything yourself, rather than pay a "middleman". You inferred that if you can't, just pass up on the deal. It may be true in your business, but not a logical answer for many others. You went on to talk about "trusting" brokers and sellers.

    I, and others, tried to point out that you should NOT just trust brokers and sellers and that even auditing yourself is insufficient, unless of course you are an auditor. We also mentioned many of the issues you may never find that an attorney could.

    So, I took your advice to mean, that if you checked everything yourself, and it looked good, you should go forward without further assistance. I just don't think that is sound advice, especially to a person buying their first business. If you are a very experience buyer you probably can do much of the due diligence yourself. But even then you would still bring in pros.

    It goes without saying that if it didn't seem like a good opportunity initially ,you would not go forward.
    Listen, this is a place of discussion, if your going to keep on beating up a "dead horse" I am so done.

    I had already inferred that paying for a lawyer and/or an accountant is wise after that. But what the reason why I was found of moving forward with his own devices as he mentioned that signed the NDA thus being a good opportunity to audit what your able to do yourself.

    That means if you do need an accountant with you then sure hire one for this, otherwise if you can check the basics yourself hire him/her LATER.

    What's is your problem of waiting to bring them in?

  3. #53

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    "What we've got here is failure to communicate." Cool Hand Luke (1967)

  4. #54
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    Quote Originally Posted by HumaneHosting View Post
    Listen, this is a place of discussion, if your going to keep on beating up a "dead horse" I am so done.

    I had already inferred that paying for a lawyer and/or an accountant is wise after that. But what the reason why I was found of moving forward with his own devices as he mentioned that signed the NDA thus being a good opportunity to audit what your able to do yourself.

    That means if you do need an accountant with you then sure hire one for this, otherwise if you can check the basics yourself hire him/her LATER.

    What's is your problem of waiting to bring them in?
    Yes, it is a place of discussion. We both answered the op with different opinions. I didn't even refer to your first post in my first post. I just offered my own opinion. You seemed to want to debate my, and others, point of view. So we had a discussion.

    I agree with the evolved position, Clearly you would not go forward if it didn't seem right. I assume you are correct regarding hosting companies. That's your business, I have no clue. But, the op asked a general question, not specifically about hosting. We all give our own best advice on here.

  5. #55

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    I would suggest you to have proper dealings directly with the owners of business. You should not involve any intermediaries in this deal. Try to have proper documentation of this deal.

  6. #56
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    With the lawyer and accountant I would suggest definitely using and agreeing a fixed fee on a contingency basis i.e. the bill will be paid by the company once you close. Brokers can be good and bad depends on how much work they do rather than leaving you to do all the work.. I have seen all and suggest making the broker work for their money. You dont need your own broker as the broker is working for both parties. Under the due diligence your lawyer and accountant will validate the numbers. But again check against the tax submissions in the USA and in the UK against companies house statutory submissions... So many just make up the numbers..Hope that helps

  7. #57
    David Wood
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    A business broker may be able to help you, brokers are often hired by the seller of a company, but they can also be hired by a prospective buyer to do a highly targeted search for businesses that meet your niche criteria.



  8. #58

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    Depends on the type of business

  9. #59

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    Quote Originally Posted by dfcoug View Post
    I have recently identified a business I want to purchase, already spoken to the broker, signed the NDA and are in discussion. My question is do I need to find my own broker? I have never bought a business before and feel like I will need some help along the way

    Thanks,

    David
    Request the financials (P&Lís and balance sheet) and have your accountant review them in detail.

    itís like doing blood work on a business

  10. #60
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    If you plan on acquiring a business then make sure all the taxes are paid. if they are legally approved by the government and registered. then make sure if that business is salvageable so you are able to make it into a well established business

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