A Good Business to Buy?
What factors make an attractive business investment?
There are many considerations when purchasing a business. Some buyers consider only the financial aspects of a business, albeit to the detriment of the buying decision. Buyers should ensure both financial and non-financial needs are satisfied. Typical strengths of a good business to buy might include:
- Return on investment in the range of 25%-50% (after owners wage)
- Payback period of under 5 years
- Earnings between 10% and 20%
- Year in year out profit growth history of 10%+
- Ease of availability of resources (HR, capital and technology)
- Ability for the business to managed without being dependent on the owner
One Business Brokers has the skills and experience to assist you in purchasing a high quality business.