Buying a Business in Wirral
For anyone planning on buying a business in Wirral specialist advice is essential as there are so many factors to consider. We provide expert assistance with business acquisitions.
There are advantages and disadvantages to buying an existing business compared with starting a new one. There is usually less risk, because the business has an existing customer base and income streams. It is also easier to calculate and predict costs, turnover, profit, and to predict cashflow. Premises, equipment, systems and suppliers should already be in place, and any staff will already be trained and experienced. It can therefore be easier to access finance.
On the other hand, buying a business can require a major upfront investment. You might have to honour existing contracts, especially employment contracts, as well as pay transfer and legal costs. You will also need to carry out due diligence once the Heads of Agreement (the purchase offer) have been signed. Due diligence involves:
- determining that the business has ‘commercial potential'
- assessing that the business is financially stable
- an examination of the brand, competitors, employees, intellectual property and other factors affecting the business's value
- examining the business' records to ensure it has the legal title to the assets being sold
Buying a business will have serious implications for all aspects of your lifestyle and finances, and professional support and advice is critical. We can help you with:
- carrying out due diligence
- valuations - the seller usually values the business before making it available for sale, but it doesn't follow that you can't value it at a lower price
- corporate structuring and taxation advice
- negotiating commercial agreements
- raising finance to make the purchase
If you are considering buying a business in Wirral, contact our team of specialist advisors for more help and advice.