Important Considerations when Purchasing a Property Services Business
If you are looking to acquire a property services business, it is important to first understand the key factors that determine if an opportunity is a suitable match for your requirements. For many aspiring market entrants or business owners looking for expansion, this will be their first time looking for an acquisition target, and therefore not fully comprehend the nuances necessary to get the best value for money from their purchase. Accordingly, it is important to attain an understanding of the buying process in advance of any business viewings.
Review & Analyse
Your first consideration when purchasing a property services business will require a degree of internal review from yourself; how much knowledge of operating within this industry do you possess? Once you are satisfied that you are sufficiently prepared to undertake the ownership of a property services business, your first point of call when evaluating an acquisition opportunity will be to view and scrutinise its financial documentation. You will want to view the target’s profit and loss statements, balance sheets, cash flow statements and a full comprehensive asset list in order to arrive at a suitable monetary offer for the business.
Market Research
A key issue for property services opportunities is the level of competition you will inherit from the purchase. Before placing an offer for a business, you will first want to receive an overview of the local competition and on what terms do they compete with your prospective acquisition. Further, you will want to stipulate a non-compete agreement, whereby the previous owner will be forbidden from establishing a subsequent property services business and competing with yourself. As clients typically build up a strong relationship with the business’ owner, you will want to ensure that your newly acquired client base is protected from poaching.
If you are now considering the acquisition of a property services business, or would like to seek further guidance regarding your business requirements, please do not hesitate to get in contact with a member of the experienced Kings team and they will be delighted to assist you.
