Tony Rossiter from Holmans Accounting published a very interesting article in accomnews.com.au, relating to the importance of looking very carefully at any prospective business purchase, and the importance of ensuring that business is set up with the best structure to protect your assets if things don’t work out as planned – “Business Structures and Protecting Your Assets From Business Failure”
Purchasing a business is a major economic commitment, and seeking the help and support of your expert accountants and solicitors at this time is paramount in making sure you avoid any
Most certainly, the GFC and downturn in the tourism industry, has meant that some businesses which were previously operating quite comfortably, faced a much tighter economic period .This really drives home the importance of ensuring your bases are all covered with respect to structure, insurances, satisfactory due diligence etc. Asset protection should be top of mind when setting up any new business.t
Tony Rossiter states;
“The purchase of a business usually involves a sizeable investment of money and, as with most investments, comes with an element of risk. If you are buying a business, asset, company or group of companies, taking the time to organise a thorough “due diligence” prior to the purchase of a business or asset is essential for purchasers for identifying and minimising the risks. Due diligence is carried out by the purchaser, in close cooperation with the vendor. It is the last stage of the buying process when the purchaser should get full access to the company’s books, records and files to systematically evaluate information to identify risks and issues relating to a proposed transaction.
The point of the process is to determine at what valuation and, under what terms, to invest in a company or business. The process should also identify any areas of risk or liabilities that may not have been disclosed (or understood) by the vendor.”
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