Buying An Established Business

I found an interesting article today on that provided a simple overview of what to look for when Buying an Established Business. The overview provided a simple analysis of some of the key variables to consider in the process and is a good start for buyers new to the process.

The article was as follows:

If you plan to buy an existing business, carefully analyse both the advantages and disadvantages. One advantage is that a good business history can increase the likelihood of a successful operation and ensure that finance is easier to obtain. Potential disadvantages can be overestimating the goodwill figure and a poor public image inherited from the previous owner.

As a prospective business owner you should determine the current worth of the business and its future prospects. Some important considerations are:

  • Vendor reason for sale of business
  • Sales patterns, trends, customer base, current suppliers
  • Costs fixed and variable costs, staff costs
  • Profits analyse financial records, future cash flow and profitability
  • Assets identify and check all assets, including intellectual property and leasing arrangements
  • Liabilities outstanding debts, refunds and warranties
  • Purchase agreement review carefully
  • Tax GST, Capital Gains Tax, stamp duty implications
  • Legal issues leases, business structure.

For advice and protection in buying a business we suggest that you seek the services of a solicitor, accountant or business adviser.

This post was originally published on .

If you would like to discuss this article in further detail, please contact Attain Business Brokers on 1300 ATTAIN (1300 288 246).

If you do not yet have a Solicitor or an Accountant with pharmacy experience, find one today in our Services Directory.


More Blog Items

Buying An Un-Popular Pharmacy


Share your comments on this blog article: Buying An Established Business by completing the comments form below:

* Please note that all comments will be reviewed and approved before they are added to the website.

Contact us

1300 ATTAIN (1300 288 246)Click to Call Attain

Make an online enquiry

See more contact details

Recent Blog Entries

What Pharmacy Buyers Look For

There are a number of factors which buyers look for when buying a pharmacy. Ultimately all of these factors either impact on the return the buyer will receive on their investment or the amount of effort/time which is required for the ongoing operations of the pharmacy.
Read more »

Why Waiting to Sell Your Pharmacy May Not Be a Wise Investment Decision

For some time, my articles have alluded to the fact that a large percentage of pharmacy owners will be looking to retire in the next few years. For many owners, the sluggish economy and availability of funds for buyers may have been a deterrent to go to market - concerned that they may not yield the best result in the current environment. Hwoever, waiting for the market to recover could backfire. If and when the economy does recover, there could be a back-log of pharmacy owners keen to sell out, competing with the normal number of sellers for the same group of buyers. As such, a flood of opportunities could hamper the success of your sale.
Read more »

View more Blog Entries at

Looking to Buy A Pharmacy? Are You Ready?

Buying a pharmacy can be
one of the biggest financial
decisions you make. Ensure
that you have the tools and
knowledge to make the right

Ownership Ready Courses   ►

Need A Solicitor ... Accountant ... Banker ... Valuer?

Whether you're buying or selling a pharmacy, you need to ensure that you have the right team behind you to help you complete the transaction.

Our Services Directory has been established to provide a list of people/companies that can assist you.

Browse Services Directory   ►