Article by BAMR (Business Accountants & Management Rights)

As practicing accountants and CPA's with over twenty years experience, many of which are heavily involved with this industry, we would like to help guide you through the purchase, operation toward eventual sale of these businesses.

We believe that people contemplating any business should focus on the long term goals and we recommend that you consider the following steps in the process -

Step 1 - UNDERSTAND THE INDUSTRY

  • Talk To Experienced Professionals In The Industry
  • Attend Seminars

Step 2 - MEET WITH AN ACCOUNTANT

  • TO DETERMINE A SUITABLE BUSINESS STRUCTURE (See Prior to Contract Signing)

Step 3 - START LOOKING FOR YOUR NEW BUSINESS

  • Use only Industry Specialist Brokers with lots of experience

Step 4 - PRESENT AN "OFFER"

  • to the Vendor - Negotiating the price you are willing to pay

Step 5 - SIGN THE BUSINESS CONTRACT

  • In name of business entity previously discussed in Step 2 AND SIGN THE UNIT CONTRACT again discussed in Step 2

Step 6 - THE PROCESS STARTS

  • Accountants will conduct the profit verification - See Verification of Profitability
  • Lawyers will conduct the Legal Due Diligence
  • Financiers will prepare lending documents
  • You will meet the Body Corporate
  • You ensure your Licence is ready

Step 7 - ENSURE YOUR TAXATION, GST AND OTHER REGISTRATIONS ARE IN PLACE

 

Step 8 - COMMENCE BUSINESS

  • Know how to manage your trust account
  • Know how to manage your tax & GST oblibations - See General & Trust Accounting
  • Learn how to save tax - See Taxation & GST matters
  • Plan for your long-term financial goals

Step 9 - BE READY FOR SALE

  • Operate a good growing business
  • Operate an efficient accounting system
  • Be able to prepare accurate "selling" reports

Step 10 - AFTER SALE

  • Work to minimize or eliminate any Capital Gains tax
  • Work with a Financial Planner on your wealth / retirement strategy