Before you buy a business

Before you buy a business

Buying an existing business can be attractive. But high revenue, profitable annual accounts and a convincing seller do not automatically mean that you are buying a good business.

What is really left when the owner leaves? Which debts and obligations do you take over? And can the business also carry the acquisition financing if results disappoint?

FOREFACT researches what you need to check before you buy a business in the Netherlands. From financial figures and business valuation to due diligence, financing, contracts and hidden risks.

What will you discover in this research?

• Financial figures: how to assess revenue, EBITDA, normalised profit and actual cash flows.

• Business valuation: how to compare multiples, goodwill and different valuation methods.

• The real purchase price: the effect of debts, working capital and hidden obligations.

• Acquisition financing: how to calculate interest, repayments and financial setbacks.

• Transferability: what happens to clients, staff, contracts and business knowledge when the owner leaves.

• Due diligence: which financial, legal, tax and operational documents you need to check.

• Contracts and risks: what to look out for in a letter of intent, purchase agreement, warranties and the handover.

• Stopping points: when you are better off renegotiating or walking away from the acquisition.

What do you get?

• An independent research report of 48 pages.

• Ten worked-out practical financial cases and valuation calculations.

• Five practical worksheets, including a due diligence checklist and a comparison of three acquisition candidates.

• Thirty questions for conversations with the seller.

• A decision protocol to assess key risks before signing.

Who is it for?

For entrepreneurs and investors who want to buy an existing business, assess a sales memorandum or prepare for an acquisition meeting.

Research market: the Netherlands
Delivery: digital download
Language: English

The financial examples are illustrative and not guaranteed valuations. The research does not replace professional due diligence or individual legal, tax and financial advice.