When you’re buying a going concern your accountant will tell you to look hard at the figures to understand the performance of the company.
Tony Arena reckons those figures will only give you part of the picture. He says you also need to take a good look at the people running the business. That’ll give you a better idea of the risk. Could all the clients walk when the owner leaves, for example. Or conversely, was the owner widely disliked and inhibiting the business?
Tony is the Managing Director at BCI Business Brokers and runs buyafranchise.com.au. I talk to him in today’s program about dealing with people when you’re buying a business — the owner, staff and customers.