Buying a business is one of the most exciting career moves you can make (and perhaps the most daunting), so it’s important to make an informed decision. In addition to the advice you receive from your lawyer and accountant, conducting your own due diligence will ensure you get the full picture of the business you are buying.
Why the need for due diligence when buying a franchise business?
A contributing factor to your future success as a franchise business owner is the level of knowledge you have about the business at the time of purchase. Taking the time to undertake a comprehensive Due Diligence will help you assess both the value of a business and the risks associated with buying it.
Let us guide you through 43 points covering essential areas you should assess prior to investing in any business.
Throughout the due diligence process, you will get to carefully consider all aspects of a business for sale. This includes the business operations, financial performance, legal and tax compliance, customers, assets and many other details.
Example of points covered by this checklist:
- Have you contacted and spoken to at least 4 existing franchise owners?
- Did you ascertain the level of certainty that major customers will continue trading after the sale?
- Have you determined if the staff are related to the existing owner and the likelihood of them continuing their employment?
- Have you determined the impact the existing Owner has on the business and whether this can be replicated to retain the existing business?
- If the equipment is leased, check with suppliers to ensure no balloon payments have been included in the lease costs
There are 43 essential points covered in the Ultimate Due Diligence checklist which you can download for FREE here.
Furthermore, if you would like to discuss the pros and cons of franchising, give Benoit Davi a call. Benoit has years of experience working with people just like you to discuss if franchising is the right for you.
To book a time to discuss your circumstances with Benoit, call 02 9967 5500 or complete this form.
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