The Broker House - Business Broker - Detail of business for sale

There is a lot of wisdom on offer about businesses that is neither here nor there; if you can figure out fairly accurately how things will work with you as owner of the business you are well informed.
The fact is, most of what you read and see in the media is noise. It's not necessarily false, but it may be immaterial. If you are going to own (part of) a company, you need to focus on the important economic factors affecting your company and its industry, not the hype around it.Investopedia
Good businesses for sale in Cape Town are scarce, mainly because sellers want too much. But since good businesses are scarce, owners have to ask too much, or they wont be able to re-enter the market with their capital. So, if you want to buy a business, you need to put in a special effort to pry it from the grip of the seller!
It is a risk to take over a business where the relationship of the current owner with clients is an important source of business. But it also presents an opportunity to expand the business that is often not offered in anonymous businesses.
Make an offer before you have seen all of the financial and other business records of the business. It is simply not possible to know everything about a business before you make the initial offer. The offer does not commit you to the business, but it does let the seller know you are serious.
A seller is often more confident than seems justifiable about his/her business. Buyers sometimes mistake this for confidence for BS because they dont have the same history.
There are very few guarantees about business, in reality there are only opportunities. Insisting on guarantees from a seller often misses the point.
The absence of audited financials is not necessarily a bad sign, neither does the presence of these prove anything.
The seller need not prove information in the early stages of a transaction, but needs to be ready to do so when a buyer shows commitment.
Information about any business is privileged - even a buyer cannot simply demand access without a counter performance. However, if a buyer has shown committment and before the buyer pays, he/she is entitled to full disclosure.
It is often necessary to act quickly when buying a business. This is not the same as acting in haste.
It is better to keep committments in balance than to resort to trust or write good contracts.
Your background might help you assess a risk in a specific type of business better than others - this might be your key buying more income for your investment.
The idea is to buy a business that will do well with you as owner.
Only part of success lies in the business, most of it lies with the owner.
As a seller your chances are slim that some rich fool will come along and pay too much for your business. Or that an investor will see value where nobody else does and will pay for it.
Just because too many sellers offer little more than potential for an otherwise overpriced business it does not mean that potential is worthless. It simply needs to be backed up.
If you want assets why on earth would you buy a business? Assets can be bought at dealers and auctions. Install them in a premises and wait for the phone to ring. Or call the Broker House and buy yourself a business.

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Tue, 07 Sep 2010