Buying a business

Josh_Milner

Hi All,

Just checking we are going along the right lines in seeing what cost are involved in purchasing an established company we have been looking at.

• Business Price
• Solicitors Fees
• Landlords Fees for the change on the lease
• Insurance (once purchased)
• Accountants Fees

Is there anything I’m completely overlooking and have missed out? We are in general just pricing it to see what the cost will be for us to take over the company and start trading.

The company is a children’s soft play area including cafeteria

Thanks

Pennywise

Don't underestimate everything else for which you may have to pay in advance, i.e. food/drink for the cafe, arrangement fees/deposits for things like the credit card machine, alarm systems, and also costs payable in advance/monthly such as rates, water, power, waste disposal etc.

pearl123

Josh_Milner wrote: »

Hi All,

Just checking we are going along the right lines in seeing what cost are involved in purchasing an established company we have been looking at.

• Business Price
• Solicitors Fees
• Landlords Fees for the change on the lease
• Insurance (once purchased)
• Accountants Fees

Is there anything I’m completely overlooking and have missed out? We are in general just pricing it to see what the cost will be for us to take over the company and start trading.

The company is a children’s soft play area including cafeteria

Thanks

Would it not be cheaper to start up from scratch rather than buy and established business? Just putting it forward as a suggestion.

Josh_Milner

We have all that on the accounts so we know the cost of that, it also needs a £1000 for stock on top of the asking price. It’s more the initial buying fees we are trying to cost and have a basic understanding just trying to think if we’ve missed anything.

Thanks

Josh_Milner

pearl123 wrote: »

Would it not be cheaper to start up from scratch rather than buy and established business? Just putting it forward as a suggestion.

Yes it possibly could be although it’s getting a area with little competition, the location of this business doesn’t have competition within the close proximity but they have just started a new housing estate next to it so potentially it’s located very well with good returns if run properly.

Thanks

paddyrg

Be VERY careful around commercial leases BTW - you can easily end up committed to replacing a leaking roof 5 years later even after a company has folded