A number of factors will affect the price you pay for a business. These include whether it operates from a freehold property, which you will own outright, or if you will be renting the premises. Usually the price of a business will be calculated as a multiple of net profit plus the value of any assets. These assets can include the value of the company’s brand, as well as physical assets like equipment and property. Location can play a big role in the value of some businesses, particularly if you are purchasing freehold premises.

This depends on a number of factors, including what you can afford. If you want to buy commercial premises using a self-invested personal pension, or as an investment, then you will need to look at freehold properties. If your main interest is in growing the business rapidly, and having maximum flexibility, then leasehold could be the better option.

Most businesses listed with Blacks Corporate are sold as companies. This means that all contracts with customers, staff and suppliers continue uninterrupted, minimising disruption and maintaining the reputation of the business in its marketplace.

If you buy a business that is still trading then any staff will have the right to stay on with that business, whether you buy the company or just the assets. You might be able to make staff redundant if their skills do not match your requirements, but you should seek specialist legal advice before doing so. If you want to start from scratch with all your own staff it might be better to buy the assets of a closed business.

Whether you are investing your own money or borrowing to buy a business, you should satisfy yourself that the business will generate enough money either comfortably to cover your loan repayments or to provide a healthy return on your investment. Our advisers can help you with this calculation and, if borrowing to fund the purchase is appropriate, can put you in touch with a range of specialist lenders.