On the previous article of our Business Deal or No Deal Series, we talked about buying an established franchise. For the last article of our series, we will be discussing the opposite end of the spectrum regarding our previous topic: The New Player.
Imagine this scenario: you got wind of an opportunity to buy a business. However, this business doesn’t seem to have much history to look into. He’s a new player into the market who’s selling or you can buy out. You’re looking at someone who doesn’t have much established but you seem to be interested in the potential of this particular business. Well, we can already tell you that this won’t be a clear-cut DEAL or NO DEAL.
You have to go back to the basics and look at what the seller has and can offer. Be sure to talk to him and research what you can. For how much is he selling the business? Now run that against what assets he is offering, how organized his financial books are as well as his legal papers. Will you also get the lease to the land he’s occupying (if he is)? Does he have a case he’s battling and, if so, indemnity from the seller? Is the seller going to help you out with the business for a while on how he does things? If he has, how are his current employees and suppliers? Consider all of these things.
From there, weigh everything and see for yourself whether it’s a DEAL or not. If you still have any doubts, it’s still best to get the help of a business broker/consultant.
About Brightblue Transition Solutions
Located on Vancouver’s North Shore we are the premier business broker in the lower mainland, contact us if you need any help buying or selling a business in the greater Vancouver or lower mainland areas.