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.