Chapter 3 - The Seven Deadly Sins When Buying a Business - By Jeff Lermer, Chartered Accountant
I very much appreciate being asked to prepare this guest chapter in a very important publication, because this publication is the beginning of your journey to buying a business. As a Chartered Accountancy Practice, we help businesses in many ways and I’m gonna look at a number of sections as I have described as the seven deadly sins of buying a business. The seven deadly sins are as follows: 1. Not defining what you are buying 2. Using the wrong entity for buying a business 3. Not doing proper due diligence 4. Not knowing the value / agreeing on the price – paying for potential, understanding goodwill 5. Not budgeting cash flow, or understanding what you are buying 6. Not knowing what you don’t know 7. Not understanding tax
20
Made with FlippingBook - professional solution for displaying marketing and sales documents online