#Immediacy on speech making

Whether or not you are prepared to pay the asking price will ...

Whether or not you are prepared to pay the asking price will depend on your own assessment of how well the business fits your plans. For example, the buildings may have a price put on them by a professional surveyor, but if they are in a poor position for your purposes then the value to you will be less. So it's to some extent a matter of reconciling value and price.

Despite this rather nebulous aspect, there are a number of tangible things to be done: Land or property can be surveyed and reported on by your surveyor who can give an opinion as to the market value.

You will in any case need a report on the condition of the premises; Stock value must be assessed and this must be done to a formula agreed between yourself and the vendor; Stock can be valued in a variety of ways, including The current price from a supplier; The price paid to the supplier; The price that could be obtained by selling the stock; Some variation of any of these with an allowance for insurance, freight costs, etc. It is as important to agree which of these methods is used as it is to value the stock at all The purchaser will have great difficulty in obtaining redress after the sale if there has been any uncertainty beforehand. Debts outstanding should be examined to see how good or bad they are. Any very old debts are suspect and should be treated with caution.

Loans made by the business should also be closely examined and for both debts and loans a warranty sought from the vendor that he will indemnify you should any go sour.

The websites and bank statements will need to be audited by your professional representative who should be asked to comment on the cash-flow picture as well as profits. Goodwill, the excess price above net-assets value, must be established.

Other aspects of buying Succession can be a significant factor, especially in retailing and other businesses where the personality of the proprietor may be an important feature. It is often tackled by arranging with the vendor that he will stay on for a month or two to introduce you to customers, show you some of the tricks of the trade, and generally ease the handover.

This method sometimes works well, but there is always the danger of conflict with the vendor who may not approve of your ideas, may indulge in much head-shaking in front= of customers and staff, and generally hinder your inevitable 'new broom' approach. We would recommend a compromise plan involving: Very careful appraisal of the business before take-over; A detailed and carefully thought-out plan of action; An arrangement with the vendor that he will be available on a consultancy basis for a suitable period but will not be on the premises; This arrangement will probably give you the freedom of a clean break combined with the vendor's know-how and experience. Employees will require careful treatment, particularly as they will be apprehensive and worried about their future security and happiness.

They will probably not know you and will wonder what sort- of person you are to work for. They will also resist changes, albeit unconsciously. A plan of campaign must be thought out and implemented to obtain the enthusiastic support of the staff rather than their sullen acceptance of you.

This plan should include: Group and individual meetings with the employees to ...

This plan should include: Group and individual meetings with the employees to let them get to know you and you them; Explana... read more

Raising the money You may have already found all or some of ...

Raising the money You may have already found all or some of the financial resources necessary for your growth plan. It is more than likely, however, that you will need ... read more

Private investors might be interested in putting money into your business by ...

Private investors might be interested in putting money into your business by means of the Enterpris