Enterprise Business Experts

Top Menu

  • Reach Us

Main Menu

  • Home
  • Business
  • Business Experts
  • Enterprise
  • Industry
  • Investment
  • Management
  • Marketing
  • Reach Us

logo

Enterprise Business Experts

  • Home
  • Business
  • Business Experts
  • Enterprise
  • Industry
  • Investment
  • Management
  • Marketing
  • Different Parts Of Your Business You Can Outsource To Reputable Companies In Thailand

  • Setting Up Your New Office Space In Bangkok

  • Three Unique Benefits of Automating your Repair Shop with a Management Software

  • How to Save Intelligently—Investment Plans

  • How to Invest in Metals: The Top 5 Ways

Business
Home›Business›5 clear signs that you’re buying an overpriced business.

5 clear signs that you’re buying an overpriced business.

By Danny Messinger
December 12, 2018
1363
0
Share:

When buying an existing business you need to be much more careful than you would be while establishing a business of your own. While there are a lot of advantages that come with an existing business, there also comes a lot of things that you, as a buyer, need to worry about. The market is overflowing with businesses for sale and a lot of these might seem very attractive at first glance, but you need to be well aware of the fact that not all which glitters is gold. Not all businesses that look worthy are actually worthy of the price that is been asked for them. One thing that you should be sure of before you buy a business is to check if the business is overpriced. With that in mind, here are the five clear signs that the business you are buying is overpriced.

  • Compare:

Before you buy a business, make sure you have a comparative statement of the prices of similar businesses in the vicinity. For example, if you have a business for sale in Miami, you need to research the business prices around that location. After you do this, you should only proceed with the plan of buying a particular business if the price offered for it is on a par with the prices available in the surroundings of your location. Although a little variation in the prices is understandable, you must also not be in a hurry to buy the business when the price is unsuitable.

  • Valuation:

A proper valuation of a business that you’re planning to buy or have already decided to buy always saves you the possibility of being ripped off. You must always make sure that you have the valuation done from a trusted attorney before you buy a business. If the said price of the business that you’re interested in happens to be more than the valuation of it, it is clear red flag. In fact, this is probably the time that you save your efforts and resources and make an exit from the deal.

  • Unclear financial record:

If you have come across a business that seems suitable enough for your goals and interests, and the cost is affordable according to your financial status, you should still not go ahead with the decision if the company is unable to produce proper financial data of its dealings. A legitimate business for sale is supposed to have a well-structured balance sheet of its incomes, expenditure, profits made, and losses suffered. This data sheet is to be produced to any prospective buyer once the confidentiality agreement is signed. In case your business seller fails to produce a balance sheet or makes excuses to avoid this discussion, you should identify the fraud and cancel the proceedings of this business deal right then and there.

  • Hidden taxes/ costs:

Make sure that the price that you agreed to buy the business for is exactly the price you pay. Do not get tricked into paying for hidden taxes and costs. These charges could include the fees of the business broker or legal advisors and could be slyly shifted to your court. Such hidden charges might not be mentioned along with the asking price and could be included later, much to your surprise.

Before you go ahead with the process of buying a particular business, make sure you ask the current owner about any potential hidden costs. This might come off as a little rude, but is sure going to save your pockets in the long run.

  • High priced lease/ rent:

It is a possibility that the business that you’re planning to buy might not be established on its own property. In this case, you need to be sure about all the legal documentation about the lease or the rent. The lease needs to be transferable and of affordable value for you to decide if the business can be purchased or not. If the price of the lease or the rent is unlikely high, it is about time that you back out or solve the issue by talking to the owner of the property. Whatever the case is, make sure you are not the one to pay the extra for a poorly negotiated lease or rental agreement.

Previous Article

So you Think you can be an ...

Next Article

How ASC 606 and IFRS 15 Will ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Related articles More from author

  • Business

    Three Unique Benefits of Automating your Repair Shop with a Management Software

    June 9, 2022
    By Danny Messinger
  • Business

    Enterprise development grant brand & marketing

    September 13, 2019
    By Danny Messinger
  • Business

    Quick Tips to Buy Amazing Used Cars in Bangalore

    March 4, 2017
    By Danny Messinger
  • BusinessEvent

    Need Help With Nonprofit Fundraising? Check These Amazing Ideas!

    October 27, 2017
    By Danny Messinger
  • Business

    Business Consulting Firms – Uncover 4 Effective Tips for Enhance Your Business Consulting Firms

    July 25, 2018
    By Danny Messinger
  • Business

    Must I Develop a Local or National Business?

    December 17, 2017
    By Danny Messinger

  • Business

    How Can Cubicles Make Your Office More Efficient?

  • Business

    4 Reasons Why Coworking is the Future of Offices

  • Business Experts

    Boost Visitors To Your Web Business With Specialist Help

  • Recent

  • Popular

  • Comments

  • Different Parts Of Your Business You Can Outsource To Reputable Companies In Thailand

    By Danny Messinger
    July 18, 2022
  • Setting Up Your New Office Space In Bangkok

    By Danny Messinger
    June 17, 2022
  • Three Unique Benefits of Automating your Repair Shop with a Management Software

    By Danny Messinger
    June 9, 2022
  • How to Save Intelligently—Investment Plans

    By Danny Messinger
    May 14, 2022
  • How to Invest in Metals: The Top 5 Ways

    By Danny Messinger
    March 18, 2022
  • Different Parts Of Your Business You Can Outsource To Reputable Companies In Thailand

    By Danny Messinger
    July 18, 2022
  • Benefits Of Hiring Event Companies

    By Danny Messinger
    January 12, 2016
  • Neglect The Options

    By Danny Messinger
    January 14, 2016
  • Deciding time for you to Sell a company

    By Danny Messinger
    June 3, 2016
  • Precautions to Take When Working on Electrical Wiring

    By Danny Messinger
    June 10, 2016

Recent Posts

  • Different Parts Of Your Business You Can Outsource To Reputable Companies In Thailand July 18, 2022
  • Setting Up Your New Office Space In Bangkok June 17, 2022
  • Three Unique Benefits of Automating your Repair Shop with a Management Software June 9, 2022
  • How to Save Intelligently—Investment Plans May 14, 2022
  • How to Invest in Metals: The Top 5 Ways March 18, 2022
  • Pipe Repair Solutions: How to Fix a Pipe Leak in Simple Steps February 28, 2022
  • The Best Stretch Wrap Machines for Businesses of All Sizes February 20, 2022
  • Tips for Getting Cash-Out Refinancing (Refinansiere) February 10, 2022

Archives

  • July 2022
  • June 2022
  • May 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • July 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • January 2016

Tags

Business Control your income Enterprise Entrepreneurship Industrial industrial painting Perth Investment loan with no job Marketing office fit outs printing companies Pontefract Sheet Metal Companies Small Business soap production virtual offices sydney
  • Home
  • Business
  • Business Experts
  • Enterprise
  • Industry
  • Investment
  • Management
  • Marketing
© 2022 Enterprise Business Experts. All Rights Reserved.