Buying a Business
Buying A Business And Making It Work
Buying a business is about more than just doing the deal. This book sets out a 5 phase programme for helping you to achieve your real objective, to become the owner of a successful business.
'If you are buying a business, GET THIS BOOK' Amazon review
ISBN 1-84528-041-5
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Book's contents listed below
Contents
INTRODUCTION
Who are you and how can this book help?
PHASE 1 THE PLANNING PROCESS
Chapter 1 Deciding you want to buy
Undertaking research
You as a business buyer
Who are you and why do you want to buy?
The qualities you need (or why you shouldn’t buy a business)
And what happens if it all goes wrong?
Alternatives to buy for expansion
Chapter 2 Deciding what to buy
The importance of focus
What types of business are you going to want to buy?
What types of business are there?
Some other characteristics to consider
Researching the industry
Where should you buy business?
When is the best time to buy a business?
Chapter 3 Beginning your planning and appointing advisers
Having a plan
Do it is the group
Purchasing vehicle
Acquisition plan
Who you will need
Appointing advisers
Managing your advisers
The need for due diligence
PHASE 2 THE SEARCH PROCESS
Chapter 4 Starting your search
What are you looking for?
Who are sellers?
Why do sellers sell?
Why sellers don’t sell
Family businesses
Who are you competing with?
Chapter 5 Finding a business to buy
Search tactics
Businesses for sale and not for sale
Finding businesses that are formally for sale
Financial promotion
Finding businesses that are not for sale
MBO specific issues
Franchising
PHASE 3 APPROACHING AND SCREENING
Chapter 6 Before you approach
Desktop reviews and screening
Sources of non-financial information
Financial information
Having faith in numbers
Understanding accounts
How are accounts prepared?
What is even each part of the accounts?
What should you look for in the accounts?
Understanding profitability
Understanding financial stability
Understanding financial efficiency
Summary
Chapter 7 Approaching the business
The importance of first contact
The first meeting
Understanding the business beyond the numbers
Review checklist
Confidentiality
Chapter 8 What is it worth?
The importance of realistic valuations at the outset
How does price relate to risk for either side?
Valuations are valueless
Valuing issues
The value of valuations
What if the seller has set a high asking price?
It’s rude to talk about money
Basis of valuations
What is for sale?
Is it really a buyable business?
Dealing with a mixed bag
Chapter 9 Valuation techniques
Do you need to know about valuations?
Restatement of earnings
In the black
Asset valuation
Market valuation
Discounted cashflow
Return on investment
Sector specific
Earnings multiples
What you should not pay for
Summary
Chapter 10 Financing the deal
What does the money need to cover?
When you get the money?
What for external finances right?
Equity
Borrowing against personal property
Grants
Debt
How much can you borrow?
Vendor finance
Financial assistance
PHASE 4 NEGOTIATING THE PURCHASE
Chapter 11 Negotiating the price
The negotiation process
What if negotiations run into difficulties?
How is the deal to be structured?
How certain is payment going to be?
How much is the seller financing?
How certain is the price?
Other key terms
Heads of terms
Chapter 12 Due diligence
What is due diligence?
Legal due diligence
Sample legal due diligence checklist
Chapter 13 Financial due diligence
Why financial due diligence is important
Sample financial due diligence checklist
More than just ticks in boxes
Contents of due diligence report
Chapter 14 Commercial due diligence
Why commercial due diligence is important
Assessment of the management team
What about the old owner?
Problem due diligence
Chapter 15 The sales contract and completion
The twin track process
The sales contract
So what are representations, warranties, indemnities and covenants?
Covenants
Closure
Sample typical share purchase agreement
Chapter 16 Trouble with the taxman
Value added tax
Stamp duty
Capital gains tax
Income tax
Interaction of income and capital gains taxes
PHASE 5 MAKING IT WORK
Chapter 17 Taking control
The timescale and need for speed
Fast or slow integration?
Your plan
Communications
Change management
Managing people and the process of change
How can you make change happen?
Managing and motivating staff to change
Redundancies
Chapter 18 Financial management
Managing by the numbers
Group structure
Cleaning the group structure
Management information
Profit improvement
Cash flow management
Cash flow improvement
Chapter 19 Buying a business to turnaround
Why buy a business in difficulties?
So how and why do businesses start to fail?
Finding a business to turnaround
Buying a business before insolvency
Buying from a receiver or administrator
Making a turnaround work
GOLDEN RULES
USEFUL CONTACTS
INDEX
