B.C.G

Buying a business might seem the easiest way of entering the
business world, but it can be really troublesome if you do not what to
look out for both in regards to legal aspects and financial figures.
Make sure of buying a business for sale in South Africa, or anywhere
else, when you have the skills and the knowledge required to manage one.

If you are considering buying a business for sale in
South Africa, then there are certain questions you should ask the seller
like why he is selling off the business and what exactly is the
condition of the business? Before making the final decision, consider
the following important points without fail.

1.
Ask for the last (most recent) audited financial statements. If your
seller offers you a statement that is three or more months old, then
read the statements carefully as a lot of changes could taken place
within that time in terms of selling stocks and decrease in turnover.

2.
Also ask your seller to provide you with the interim statements. If
possible, ask for the VAT returns and the bank statements as well. By
seeing and checking all these, you would be able to understand about the
condition of the business well and about the overall turnover and the
profit margins.

Consider the Good Will of the firm as well and that is not related to
the profit margin earned by the business. It would be sheer stupidity to
buy a business at a high cost if you can set up your own new business
at a lower cost. Consult your legal advisors and accountants regarding
the buying price of the business and buy it, only if it is worth it.

There are certain things you should be aware of before buying a
business and the thing that tops the list is the yearly turnover trend
of the business. Take into account any technology that the company uses
to manufacture its products and what is the price of maintaining and
upgrading the same. If there is lease agreement of the land, ask for it
and consult the landlord for a new lease if possible to avoid any
problems in the future. Avoid buying the debtors and creditors and check
the stock. All moveable assets should be checked and check all the
equipments and machineries. Also contact the local authorities for
permits and/or licensing purposes. Consult an expert for help as he/she
would make sure that you do not run into any trouble later.