Tips for buying an existing business

"Here are a few key aspects that you need to be on the lookout for when buying someone else's small business.

Positive cash flow
There’s a high chance you’ll experience positive cash flow from the outset after buying an existing business, but only if it has the necessary infrastructure in place and an established customer base.
‘Infrastructure’ can include everything from a shop front to an established website, social media branding and all legal and licensing requirements already in place. Provided the customers remain loyal and your business plan has allowed for it, the cash flow should cover any borrowing costs that were incurred in buying the business too.

Existing goodwill
Once you go through all your checks and balances and decide on a price for the business to be bought, you will note that part of the price will include equipment and part will constitute goodwill. This amount is basically covering the price of the business’s good reputation and customer base."

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Tips for buying an existing business:

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.