The Features of a Quality Business


Established Business
  • The business has been established over 3 years
  • Full financial and tax records are available for at least the last 3 years
  • Business records are tidy and complete and ready for inspection when necessary
  • Demonstrated sales and profit growth over recent years
  • Suitably located
  • Diversified customer base
Business Management
  • Management policies and procedures have been documented
  • Reliable business systems have been developed
  • Operating and marketing plans have been created and are being followed
  • Income is not dependant on owners’ relationships
  • Risk management procedures are in operation
  • Owner operator works no more than 5 days per week
Earnings
  • Earnings provide a good ROI and debt coverage
  • Earnings are maintainable
  • Written contracts for services and purchase orders for large orders are in place
  • Preferred supplier status has been established with large clients
  • Potential growth for business is evident
Security of Tenure
  • A formal lease is in place with favourable terms
  • Rent and outgoings are at an acceptable industry rate
Skills & Staff
  • The business operates with staff that don’t require specialist skills
  • Continuing and reliable staff are in place
  • Full transition assistance can be provided to new owners
Assets & Inventory
  • Better than average condition of plant & equipment
  • Inventory consists of good quality saleable stock
  • Intellectual property is protected (patents, registered designs, trademarks etc)

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