How to buy a building maintenance business?
Click here if you want to download a business sale agreement for purchasing an building maintenance business.
When it comes to building maintenance, there are many different types of businesses that fall into this category. For instance, there is property restoration, gas and electricity inspections, plumbing, and kitchen fitting, so on and so forth. Resultantly, there is plenty of opportunity in this sector.
Numerous maintenance business offer specialised services as well such as locksmiths, pest control, oven cleaning, lawn care, and energy efficiency solutions.
With all these sectors and types, you need guidance in order to help you purchase the right business. Read on to find out what you need to know to buy a building maintenance business.
In order to be successful in this sector, you shall need the following:
- It will be hugely beneficial if you have prior experience in the field. If you lack in experience, while you could hire someone who does, it will increase your cost.
- Apart from prior experience, you need the physical ability to be able to manage the workload. Regardless of whether you are a worker or a manager, this job involves getting your hands dirty. Literally!
- As with any business, you will need to be business minded, have general entrepreneurial qualities which include finance management, communication and marketing skills. If you lack in any of these quarters, consider taking a business management course.
What to look for in a business
When it comes to the building maintenance industry, reputation is everything. You want to find out how many years the business has been operating for and what its’ performance and growth rate have been over the past 3 to 5 years. Further, you want to find out whether you will be taking over any regular contracts.
Additionally, you should request for a comprehensive list of assets that will be included in the sale. These can be tangible assets, such as machinery, equipment, and material. Or they can be intangible assets such as branding, goodwill, and contracts.
If the current business owner allows, it will help you greatly to just shadow the owner for a few weeks before you actually take over. It will allow you to evaluate the current structure and operations. Then you can make a better and more informed decision regarding which aspects should be improved and whether you can work with the existing employees.
The process of due diligence is one that provides a thorough investigation into a proposed investment transaction. It means you check the investment worthiness, and assess the full claims made by the owner. This check is usually performed by a solicitor and accountant who act on behalf of the buyer. A large portion of due diligence will involve checking financial statements and accounts.
Click here to find more about due diligence.
If you buy wisely and do a thorough research of the background and potential of the business which attracts your interest, you will get immediate access to the existing base of customers and suppliers. This will ensure that you know what you are getting into.
You need a solid contract
You, as the buyer, will have to produce the sale document. This agreement will have to cover the mechanics of the deal – what is being sold, where it is, how it is to be transferred, and so on. This is where warranties come in. Click here to download a business sale agreement if you are purchasing a building and maintenance business.
Warranties which are legally binding promise as facts about the business, which provide information relating to the business. Click here to know about how warranties work and why they are important.
Other documents you need
Additionally, you may need assignment and novation agreements to transfer contracts the seller is a party to.
If company shares are being sold, then you will need directors service agreements, board minutes to document approvals to changes, and possibly, a new shareholders agreement and new articles of association.
We can help you find exactly what you need for your circumstances if you contact us and ask.
exactly what you need for your circumstances if you contact us and ask.
Last but not the least, you also need to be aware of the legal considerations on the purchase or sale of a business.
Please note that the information provided on this page:
- Does not provide a complete or authoritative statement of the law;
- Does not constitute legal advice by Net Lawman;
- Does not create a contractual relationship;
- Does not form part of any other advice, whether paid or free.
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