BUSINESS SALE & PURCHASE  Purchase Some of the important issues of  business evaluation include: · What is the purchase price made up of? (plant, vehicles, stock, goodwill etc).   · It is important to evaluate the breakdown of the purchase price to examine if it is value for money. · This will include looking at the profitability of the business to be purchased · We then examine if a return profit is going to be obtained for your management labour and then what is the return on your capital investment.  · In many cases there will be "rules of thumb" said to you by Real Estate and other Agents however we believe it is very important to calculate the return on investment as being a major indicator as to whether a business price is justifiable. · Accordingly we almost always ask for a breakdown of the purchase price and a copy of at least two years full trading profit and loss reports.  Plant, Vehicles, Fixtures & Fittings Generally these can be valued by an independent valuer but purchasers tend to know these values and whether they are worthwhile. An independent valuation can be obtained. Goodwill This is a figure set by vendor, reflecting the fact that you are buying a business, it is operational.  Goodwill can be valued at looking for the future profitability of a business and includes a review of the amount of work required to set up business and the client base that is available.  It also takes into account any manuals of procedures set up for administration and operation.  We believe we can evaluate any goodwill in any business. Sales of Businesses We can assist in setting the price of your business for sale. We can either sell an existing company by selling shares or selling the  business.  Note: this full sale price would include consideration for goodwill, key money, plant and equipment and other assets.  The price of the business will probably be enhanced or increased by including:  1. Full systems manuals that can be provided to a new purchaser   2. Providing marketing and/or business plans to a prospective purchaser  3. By providing profiles of staff, customers etc  To improve your sale price you must make the business look good.  Other  Other important issues to examine with a business purchase include:  1. Continuing assistance to a prospective purchaser for a period of time.  2. Warranties for turnover and sales being provided.  3. Ensuring that any assets owned by the company do not have existing encumbrances or paying those encumbrances off before sale.  4. Establishing who are the key employees and working with a prospective purchaser to ensure that employees can in the right  circumstances be transferred to the new owner.  Please click here to find out about businesses for sale that Accountants Hawkes Bay Ltd know about The people to talk to for business sales are Maurice, Trish, Grahame, or Richard Please click on their pictures to email them for information or call us on 06 8434868 If you requre and appointment please click on the words request appointment  Request Appointment Request Appointment Request Appointment Request Appointment