Buying a business: how does it work, step by step

Buying a business

Every year, around 40,000 trade change hands for an standard value of € 180,000. How is the transaction going? What do we buy? How is the price evaluated? What are the fees? Step by step, review the details of the purchase of a business.

Buy a business

The average value of a business was close to € 180,000. This figure is, of course, fluctuated from year to year, and, in the field, large variations. Depending on the activities also, PSS  the selling prices make a big difference: from 56,000 € for a trade fair.

What is a business?

pss elements

Goodwill is an insubstantial asset made up of touchable  and intangible elements used for the exploitation of a commercial, artisanal, or industrial activity. In detail, when we buy a business, we buy a set of tangible items: equipment, tools, vehicles, stock of goods and raw materials .intangible elements: clientele, trade name, and brand, reputation, right to lease, brand, patents and licenses, employment contracts, insurance contracts, goodwill. All these cumulative elements are created in order to operate a professional activity, which is essentially commercial. Legally, goodwill is considered to be an intangible personal property. And when you buy a business, you don’t buy buildings and/or exercise commercial premises receivables and payables contracts (with the exception of those that must be    transferred)accounting documents the rights and authorizations issued personally to the seller (right of the terrace for example)

Prospect

Prospecting to find the business suiting your needs and your budget begins with the definitions of an activity sector, a geographic the sector, and a price range. Depending on the case, the sector of activity can be known to the buyer (he can justify some experience there) or unknown (typical case of etraining). Certain sectors are naturally more buoyant than others, so it is important to understand the advantages of a specific industry before embarking on research.