Buying a Business

Purchasing a business is a major financial decision and it is essential to approach it with a clear understanding of the risks, requirements and long-term implications. At Rands Advisory Group, we help clients buy businesses with relevant, practical advice. We deliver the financial insight required to support informed decision making at every stage.

Key Considerations in Buying a Business

Risk Management

Rands Advisory Group can discuss the purchase opportunity to understand the likely financial return from the business. We can help you decide whether it is worthwhile and whether the purchase price is reasonable.

It is essential that the business’s financial performance be investigated by experienced professionals and that the risk associated with the purchase be minimised. Rands Advisory Group can help you, in conjunction with other professionals, such as commercial solicitors, identify risks and develop management strategies.

If you have decided to proceed, we can help you structure the purchase in a way that reduces your risk. We can also work with your legal team to ensure that the purchase documentation properly reflects what has been agreed upon and limits your financial exposure.

Business Structures

Selecting the appropriate ownership structure is a fundamental part of successfully purchasing a business. The structure you choose will determine how profits are taxed and how commercial liability is managed. Options may include a company, partnership, discretionary trust or unit trust, depending on your overall circumstances and preferences.

At Rands Advisory Group, we provide tailored advice on the structure that best suits your goals and future plans. We consider factors such as tax efficiency, control, asset protection, and succession planning. Once a suitable structure is determined, we liaise with your legal team to ensure it is properly established and integrated into the purchase process.

Business Funding

If you have to borrow to buy the business or need funding for vehicles, equipment, or working capital, we can help you determine what is required and how it should be structured.

Banks and other lenders have different types of loans and asset funding facilities, and these can have different tax and GST implications. Rands Advisory Group can advise you on your options and assist with your finance applications or dealings with financiers.

Business Record Keeping

The systems in place for recording and reporting financial data can significantly impact the ongoing success of the business. Accurate, up to date and reliable reporting provides a foundation for effective decision making and financial control.

Rands Advisory Group can assess the current record keeping and reporting tools used by the business and recommend practical solutions where needed. We are experienced with the implementation of appropriate information systems for business owners.