Features of a Quality Business

Yes No
Be established for at least 3 years
Have full financial records & tax returns for at least 3 years
Show growth in sales and profits over recent years (stable YTD 08/09)
Show at least $80,000 EBIT (Profit after management or fair owner's wage)
Show potential for further growth
Allow owner operators to work no more than 5 days per week
Have better than average condition plant & equipment
Have continuing and reliable staff (and management team, if applicable)
Have a good and saleable inventory of stock
Have formal lease for minimum of seven years (including options) at an acceptable industry related rental
Have tidy, easily maintained and well constructed freehold premises (if applicable)
Be suitably located
Have a Niche market or barrier to entry
Have a well diversified customer base
Not be dependent on personal relationships established with the principal
Have a well developed marketing plan and materials
Have a written management and operations manual
Have a genuine reason for sale
Have protected patents, registered designs or any other intellectual property
Have full transition assistance from the Vendor
Have some vendor finance available for goodwill
Have other businesses close by that give synergistic benefits