Things to consider before buying an existing business

Vendor – Why is the business being sold?
Costs – What variable and fixed costs will there be?
Profits – Do previous financial statements show that the business is profitable?
Assets – What assets are owned by the business?
Liabilities – Does the business have any outstanding or substantial debts?
Tax – Always ensure that GST, Capital Gains Tax, and stamp duty implications are in the equation when drafting a business plan
History – What has and hasn’t worked in the business in the past?

Purchasing a business is a far more complex and serious transaction than most others, a small or careless decision can leave you financially damaged. Luckily the skilled team at Phoenix Law can advise you throughout and ensure that you avoid common mistakes.