“Craig was extremely patient and very thorough in assisting me in making my decision about starting a new business or acquiring an existing one. He was readily available to answer all my queries and we were able to discuss all aspects of the process in a confidential and professional manner. Now, I have a business advisor I trust. As my accountant for the business, he liaises directly with my office manager, and I can concentrate on doing what I love to do best and that’s building”.Luke Payne
Owner, Abroenet Building Solutions
In 2011, after 20 years of being an employee for large building companies, Luke Payne decided it was time to go out on his own. That much was decided. What came next was a tough decision to buy an existing business or start his own from scratch. Being charged with such an important decision, Luke felt it best to approach 542 Partners for advice on the best approach for him.
The decision to purchase an existing business or start your own shouldn’t be taken lightly. Knowing this Luke enlisted Craig from 542 Partners for some professional guidance.
To make the decision best for him, Luke needed to know fully, the costs and risks associated with starting a business or buying an existing business.
Craig worked with Luke to formulate strategic scenario plans for both situations. At Luke’s request, the scenario planning took place over a 12 month period. It was a structured approach, to help Luke visualise the two very different business scenarios, in real terms.
Firstly, Craig identified the driving influencers that had the greatest potential to impact the success of each situation – and which are also the most uncertain.
Craig then developed detailed cash flow forecasts and business plans for both scenarios. Due diligence and analysis of the existing business’s numbers were also undertaken for a true reflection of the scenario plans.
After more than 12 months of analysis, Luke purchased the business Abroenet Building Services with both vendor and Luke being very happy with the transaction. The arrangement was so harmonious that the previous owner still does consulting where needed.
Need to know what’s best for your situation?
542 Partners can help you weigh up the options.