At some point the buyer of a business will hope to make an offer on the right business for them. It is then that the business broker will almost always recommend that you buy the business as a going concern.
What does this mean and what is the difference in buying a business as a "going concern" or "by the sale of shares".
There are only two ways to buy a business – as a going concern or by a sale of shares. The latter is easy to understand – you buy the shares in the company from the Seller. Put another way – you buy... (More)
We as business brokers are faced with perplexed potential buyers of businesses, who don’t always appreciate the reasons why business sales are handled in the strictest confidence.
Here we list a few basic reasons why confidentiality is so import when selling a business.
On occasion, we as business brokers are faced with perplexed potential buyers of businesses, who don’t always appreciate the reasons why business sales are handled in the strictest confidence This i... (More)
So you’ve enjoyed the festive season – taken your clients for year-end lunches, thanked them for their business and even got new business leads.
But now the new year is already in its second month and, for small business owners, this can be a grim time to manage cash flow. Here are tips on how to manage cash flow and effectivel... (More)
Many business owners struggle to go on holiday during the festive season, even though it’s essential for everyone to find time to switch off and recharge. One way to help you relax and take a break is to have a business continuity plan. Here are a few tips to help you and your business survive the summer holiday.
PLANNING Because you know the festive season dates well in advance, you can create a plan that will help you organise and prioritise tasks. The key is to start as early as possible, so y... (More)
Obtaining finance for the acquisition of an SME is an extremely difficult exercise in the current economic environment. Perhaps the following five practical ideas may assist (both the buyer and seller) in concluding a successful transaction.
1. Seller Finance Numerous business sales involve the seller to provide some form of financing by means of retaining equity in the firm and being paid out of the profits over a period of time. This i... (More)
When selling your business there are various aspects you need to consider, of which one is capital gains tax (CGT). When selling your business, this event is considered for all tax purposes as the disposal of an asset.
The income received from the sale of your business is also often subject to other tax-types. Keep in mind that the full proceeds of the sale will not be subject to CGT, but only the “capital” portion... (More)
Buying versus renting business premises – it is an argument that’s been around for a very long time, and it will probably be around for some time to come. Here are some pointers to guide you if you are faced with this decision.
Property rights Owners have more freedom to use the property as they please. For instance, if there is enough space on the premises for an additional business, you can supplement your income by lea... (More)
When doing business or operating as an SME in South Africa’s famous northern neighbour, it is a mixture of “high stakes” opportunities and challenges. Our franchisee in Zimbabwe, Busisa Moyo, highlighted a few of these challenges that a business person is likely to encounter when engaging in a Zimbabwean enterprise.
Multi-currency. Having abandoned the Zimbabwe Dollar in 2009, the country does not have a currency of its own. It uses a basket of currencies, all of which have been accepted as legal tenders. This... (More)
Have you decided to take the leap into entrepreneurship and start your own business? It is a very exciting time but first check if you need a business licence or you might find yourself on the wrong side of the law instead of making a profit.
Here’s how to ensure you stay on the right side of the law Have you decided to take the leap into entrepreneurship and start your own business? It is a very exciting time but first check... (More)
The only simple thing about a fast food restaurant is ordering food. Although they are seen as low budget and low-quality restaurants, they can be very challenging to manage successfully. The main quality of a fast food restaurant is to produce high quantity food quickly. Hence, training your staff and keeping their morale up are incredibly important. But what factors should you be aware of when you think about buying (or already owning) a fast food restaurant?
The only simple thing about a fast food restaurant is ordering food. Although they are seen as low‑budget and low-quality restaurants, they can be very challenging to manage successfully. The main qu... (More)