Start-Ups and Due Diligence
It is vital when considering the purchase of a new business venture that you possess accurate information that reflects the true market circumstances of the business venture you are entering into.
Armed with the correct information and shrewd business negotiating skills you will be able to realise all of your business goals.
At McKinley Plowman & Associates we offer start-up and due diligence services that equip our clients with essential market information. We also offer our services as business negotiators and advisors giving you peace of mind during the negotiation and purchase process. When you are purchasing an existing business the following start up and due diligence steps are carried out in a strict order to ensure you incur minimal costs should the proposed venture not proceed.
Firstly we conduct a general review of the business that you are interested in. This is necessary to determine all the factors that are involved in and affect your chosen business. From this analysis we determine a reasonable asking price. This process in itself involves a thorough analysis to ensure that the price you pay reflects the true market value of the business.
The negotiating process can be a daunting one, and at McKinley Plowman & Associates we offer our services in this area. We can complete the initial verbal negotiations for you, and by utilizing our experience in this area you can be guaranteed that we will endeavour to obtain the best possible purchase price for your new business.
Following confirmation of verbal negotiations we can work in conjunction with our recommended solicitors to draft up the purchase contracts and review any leases. At this stage further negotiations may be necessary and we can continue this process for you until the final purchase price and contract conditions is established.
The next phase of our involvement consists of providing financing options and advice on the most appropriate methods for your circumstance. We can arrange this process on your behalf enabling a smooth transition of sale. We will provide assistance in choosing the appropriate finance structure and liaise with banks on your behalf.
Where you are starting up your own business from scratch, our start up procedures will begin at the financing stage and do not include the following due diligence work.
The next and most important step where you are purchasing an existing business is the undertaking of the due diligence process, which involves the verification of both financial and non-financial information provided by the vendor. This can be carried out in conjunction with us or we can undertake this process exclusively, the choice is up to you. Should we discover anomalies, further negotiations on price will be entered into with the vendor.
We welcome your participation in this area to enable cost minimization to be achieved on your behalf.
Whether you are purchasing an existing business or you are commencing to start your own, the next procedure that is carried out is discussion on the most suitable business structure to use. This may take the form of a sole trader, partnership, company or trust. We will highlight the advantages and disadvantages of each organisation and guide you to the most beneficial choice based on your individual circumstances.
Once your business structure is decided, we will assist you in the setting up of your entity and the establishment of effective administration, running systems and procedures to stimulate growth. The initial areas of focus will include:
- Record keeping
- Employment of staff
- Business Activity Statements & GST
- Tax Planning
- Pricing Strategies