Overcoming Fear and Taking the First Step towards Buying a Business

It’s the nerve center of a business – the books are critical to a company’s financial health and prosperity. But how do you know how your business will perform when it comes time to buy another? In this episode, we talk to Johan Goree, the managing director of on-point accounting firm. He shares his tips on what to look at when presented with a set of accounts and more accounting insights for potential business buyers. Johann also shares some words of advice to those interested in purchasing their businesses and haven’t owing to some fears. 

[00:14] What Johan does in his accounting firm

[02:14] Top three things that Johan looks at when presented with a set of accounts

[06:06] How to deal with vendors of businesses who don't have up-to-date information and blame it on accountants

[10:36] Acquisitions done by Johan

[13:54] How to deal with business owners who say they have fixed assets of a certain value, they've got stock of a certain value, and they want 100% of that value

[18:20] Johan’s take on the purchase of business without including the firm’s assets

[25:304] How to finance business acquisitions

[27:47] Advice to the people who want to buy businesses but they haven’t

• Profit is a figure that can be moved on paper. What's more important is how's the cash flow.
• If you're looking to sell your business, you want to have instant accessible financial data, and you want it to be live so you can get the best value for your business because the accounts that are two or three months old on 12 months old may not be the true reflection of where your business is now.
• If you are trying, if you're a vendor, and you're trying to sell your business, you need to start planning ahead. So if you know, in the next year, you want to sell your business, talk to your accountant about getting cloud systems.
• If you've got a slow solicitor and you've got a slow vendor or a slow acquirer, then don't start financial due diligence until you are comfortable that you are within a month of the close of the business.
• If you are planning on raising finance on this company that you're going to buy, so you can finance the deal, then get the, get the lenders to do most of your financial due diligence.
• If you don't take that first step, you're not going to get it.
• I think there is a joint responsibility between accountants and business owners to have modern accounting systems and processes.
• So if you know, in the next year, you want to sell your business, talk to your accountant about getting cloud systems.

Resources

If you are looking for a lawyer in the UK to help you get the deal over the line, then use my guy, John Andrews. You can phone his office at (0345) 2412494 or email him at johnandrews.deallawyer@jmw.co.uk.

If you would like to take the next step to learn the best ways of buying a business, without risking your own cash, you can access my free training at: https://www.dealmakersvideo.co.uk

Watch my Webinar Training Video: https://www.dealmakerspodcast.co.uk

You can also request a free copy of my book at: https://www.thedealmakersacademy.com/free-book-giveaway/

If you want to jump straight to my live Zoom FastTrack course, please go to: https://www.thedealmakersacademy.com/fast 

Connect with Jonathan Jay at: Website: https://www.thedealmakersacademy.com/ LinkedIn: https://www.linkedin.com/in/jonathan-jay-3556b230/ YouTube: https://www.youtube.com/c/TheDealmakersAcademy