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Reduce
Your Risk - Use Due Diligence - Buy the Right Business
for the
Right Price
Its a cold hard fact that over
80% of people pay TOO MUCH for the business they
buy.
Its also a fact that people who have paid too much for that same
business have a better chance of GOING BROKE or exiting with a
Low Return.
Another fact is that allot of Businesses have many hidden
problems that the buyer will not see until it is TOO
LATE.
The business brokers work for the vendor and they want the sale,
what more can I say? No sale - no commission.
You can never be 100% sure with the business choice you have
made, but if you can mitigate your risk as much as possible then
you will have a better chance of not being ripped off. Reduce
Your Risk NOW!!! The Process of Due Diligence - Business
Investigation is priced at ONLY
$29.95 and can be used throughout the World. Order now
and receive access within minutes to materials which could
ultimately SAVE YOU from potentially making the wrong
decision when deciding on the right business to buy at the right
price. There are more ways to reduce risk, see below:
How to
Reduce Risk
Ensure that you retain a qualified solicitor and an accountant
(preferably a CPA), as these people will be pivotal in the correct
selection of a business. To further mitigate your risk, Skynet
Business Coaches International can help you with a Due Diligence
Analysis (business viability analysis) of the business you have
selected, this is the "action at the coal face" part of business
investigation.
Solicitors and accountants are not at the coal face and may
overlook certain aspects at this level.
And again, to help reduce your risk you should firstly read my
eBook titled: "The
Process of Due Diligence" by Ray Earl. Uncover the
secrets that are hidden in the business before it is too
late. See further details below.
What
happens when you do not investigate the business
properly?
Heres an
Example of How to Lose $500,000 in six months
This is a true story (the names and places have been changed).
James bought a Cafe in the CBD of Sydney, NSW. He had never owned a
Cafe before but was overly happy to part with his $500,000 (which
included a $400,000 debt finance bank loan over 7 year term with
his house as security) for what he thought was a thriving business.
Without writing a book, I will provide you with the bullet points
of his financial demise:
- The turnover was $15,500 per week with a EBIT (net profit) of
$4,900 per week
- The rent was $1,600 per week
- Staff wages were $3,800 per week
- Lease of 3 x 3 x 3 (shopping centre lease)
- Loan repayments of $1,580 per week
One month into taking over the business, James heard from other
retailers in the complex that the building owner had made a
decision to allow its main tenant (who had 2,000 staff residing in
the building) to open a subsidised staff canteen
(offering meals at $1.90 per serve).
If James had fully investigated the lease, he would have realised
that the landlord was able to make these changes without
negotiation with tenants, that was the start of the end for James.
To insert a second nail into James coffin, another tenant relocated
its 1,600 staff to a building at the other side of town, if James
had spent time investigating the business and the surrounding
environment he might have possibly found out about these
changes.
The Outcome:
- Turnover reduced to $7,000 per week
- The lease review increased rent to $1,650 per week
- James had to cut his staff levels by more than 50%, which
reduced wages to $1,950 per week
- Loan repayments were not being maintained
- James tried to survive by working another full time job and a
casual job to meet the loan repayments
- The stress took its toll
- James was finishing night shift at 06:00am and getting to his
cafe by 06:45am and with no sleep he was running the business until
06:00pm five days a week and working all weekend at a restaurant as
second job
- Lack of sleep finally caused James to fall asleep at the wheel
of his car and he hit a light pole (he didn't get hurt, lucky
boy)
The business is no longer
under the same ownership and James lost almost everything. The
motto of my story is that you should trust no one who is involved
in selling you a business and be as "cold as deaf" when
investigating a business. Do not become another James. The dollar
you spend now on due diligence may save you your future.
If James
had retained our services or at the very least had read my
eBook
The outcome would have been different, he would NOT have
bought the business in the first place.....
What is
Due Diligence ?
As Entrepreneurs who have owned many businesses, our experience at
"the coal face" provides us with the tools to quickly identify
whether the business is a dog or a star.
If you buy a Star business - then the rewards can be incredible,
but if you buy a Dog business - then you could easily lose
everything. It takes "know how" to be successful in this area. The
Due Diligence will look to find problems with the business and also
try to verify what you have been told is true.
Due
Diligence Analysis
Skynet Business Coaches International can complete a Business
Investigation on your selected business. The key categories which
the analysis will cover:
- Financial's (If you don't have an accountant, we can supply a
CPA to investigate this section)
- Competition
- Customer
- Furniture & Equipment
- Insurance Policies
- Inventory - Good & Resalable
- Lease (You will need to source a Solicitor to complete this
section, but we will provide advice if requested)
- Marketing Plan Analysis
- Opportunity Analysis
- Staff
- Supplier Contracts
- Systems
- Valuation of Business
Retain Us
To Complete a Due Diligence - Investigate the Business You Want to
Buy!
The fee to complete a Due Diligence Analysis is on a
price per business basis and depends on how much investigation is
required, every business is different and it is totally up to you
on how deep you want us to dig. We are able to meet you in the CBD
of Melbourne for a 1 hour consultation at only $165.00, if
you retain our services, the first hour will be refunded.
Call
us now and we can provide you an estimate.
The
Process of Due Diligence eBook
We have developed an 81 page book which covers the basics of Due
Diligence. We have also included a case study looking at the
process of due diligence on a fictitious Cafe In Sydney. This book
will at the very least, help you to make a more qualified decision
on whether the business you or your client is looking to buy is a
Star or a Dog.
Also included in the price is a Financial Pro-forma (in excel
format), Work Schedule (in excel format) and a FREE copy of our
Skynet Business Goals Analysis (this is a profit maximiser
calculator which we use to help our coaches and clients to analyse
revenue and profit in a business).
The Due Diligence program is sold as an e-book and is downloadable
immediately, the spreadsheets will be emailed manually within three
business days of funds transfer to our account.
There is an enormous amount of data about Due Diligence
contained within this book.
Maximise your chances of success in business by purchasing "The
Process of Due Diligence" by Ray Earl for only
$29.95! AUD
Click here to view the table of
contents.
How to
Order
How to order? there are several possibilities available:
Click here to pay online via credit card:
Or: If you don't want to use the Internet to
make payment! click here and insert
your details and option of choice, we will e-mail you a payment
form which allows for other methods of payment.
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