Hidden VALUE in Potential? How to Buy a Business.
Will a buyer pay more for a business because of potential? When it comes to buying a business, potential plays a crucial role in shaping the perceived value. Buyers will often seek opportunities that not only offer current profitability but also promise future growth and development. The question is whether buyers are willing to pay a premium for the untapped potential of a business. Is the decision to purchase a business based on its future potential profits rather than its current performance a smart move or a risky gamble? In this video, I talk about the dynamics of purchasing a business based on its potential and the factors that influence buyers in making such decisions.
0:00 Intro
1:29 Buyers View of Business Potential
1:51 Evaluating Business Potential
2:30 Potential's Effect on Sale Price
2:57 Track Record Matters
3:26 Tangible Assets and Reliable Cash Flow
3:50 Pitfalls in Evaluating Potential
4:22 People, Staff, Employees and Management Team
4:49 Will Buyers Still Pay for Potential?
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These videos are general in nature and not intended to be a substitute for detailed and specific advice. It is important that you get the right professional advice and I strongly suggest you talk to legal or accounting professionals to help you structure for tax, budgeting, interpret contracts and leases and all the other specific details of your own situation. They will help you to make sound decisions in the best interest of you and your business
Keep in touch:
LinkedIn: / peternola
Website: https://www.businessesforsale.co.nz/b...
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