Buying A Business

We are often approached by prospective and existing clients to advise them on buying a business.  Books have been written on this topic but the following provides an overview of some of the key points that need to be considered when purchasing a business.

The Starting Point

Like a house owner, business owners often have an over-inflated view of what their business is worth.  That can result in emotional issues intruding into negotiations.

The Investment Decision

The critical decision is evaluating the business and whether it’s a good deal.  Over paying for a business means the seller has taken value off the purchaser’s balance sheet.  The ultimate decision for a business buyer is “does the investment produce an adequate return” when assessing the business nature and its risk.  It is important the buyer is clear about his/her objectives.  Is the intention to “buy a job” or is it to make a serious investment with a focus on making a good income and significant capital gain.

Keep in mind, a high percentage of small businesses fail or cease within the first 5 years and remember once you own a business your capital is at risk.


Taxing Matters

Taxing matters provides a summary of topical tax and business information relating to individuals and business. Trust Documentation While it is not longer necessary to  file gifting statements with the IRD (from 1 October 2011) a Deed of Acknowledgment of Debt and Deed of Forgiveness of Debt should still be maintained as part of standard…


Staff News

UHY Haines Norton is pleased to welcome Lalita Robertson to the practise. Lalita is a qualified Chartered Accountant and has joined our Business Advisory Services team as a senior accountant. In his spare time UHY Haines Norton staff member Andrew Clarke can be found on the football fields around Auckland coaching his under 8 side…