How do I buy an existing business in South Africa?

10 Steps to Buying a Business in South Africa

  1. Step 1: Determine if the seller’s price is fair.
  2. Step 3: Draw up and sign a Letter of Intent.
  3. Step 4: Draw up a closing checklist.
  4. Step 5: Proceed with due diligence.
  5. Step 6: Obtain the finance you need for the sale and working capital.
  6. Step 7: Finalise the purchase agreement.

How do I sell my business shares?

The simplest solution for selling private shares is to approach the issuing company and ask how other investors liquidated their stakes. Some private companies have buyback programs, which allow investors to sell their shares back to the issuing company.

How do I sell my small business in South Africa?

Prepare to exit the business

  1. merge with a similar company to get more market leverage.
  2. be acquired by an industry leader.
  3. launch an Initial Public Offering (IPO)
  4. put your business up for sale on the open market.
  5. sell out to your business partner or an investor.
  6. sell to existing employees.

How do you sell a business?

How to Sell a Small Business in 7 Steps

  1. Determine the value of your company.
  2. Clean up your small business financials.
  3. Prepare your exit strategy in advance.
  4. Boost your sales.
  5. Find a business broker.
  6. Pre-qualify your buyers.
  7. Get business contracts in order.

How do I buy a business with no money?

The most popular methods to buy a business with no money of your own are SBA loan and Seller financing. There are more ways such as getting an equipment loan, depending on the type of business you are buying. Owning your own business is one of the best ways to generate ongoing wealth.

How much does it cost to buy an existing business?

The median sale price of a business has been in the range of $150,000 to $200,000 for the last 4 years. It slipped slightly from 2014 ($189,000) to 2015 ($185,000). According to BizBuySell, this is probably because buyers paid less due to the slightly higher costs of running a business in 2015.

Can I sell my 50% share in a business?

Selling half of a corporation is different from selling half of its assets. Because your business is incorporated, you own shares in the corporation and the corporation owns the assets. For this reason, you must execute a share transfer agreement to sell your half of a corporation. A number of legal restrictions apply.

Which shares to buy right now in South Africa?

Here are the top-rated stocks currently being suggested by those who know the markets best.

  1. British American Tobacco. BTA is listed with both the London Stock Exchange and the JSE, where it is one of the largest stocks in terms of market capitalization.
  2. Gold Fields Limited.
  3. Naspers.
  4. Sasol.
  5. Capitec.
  6. Shoprite.
  7. Bidvest.

How much can I sell my business for?

A business will likely sell for two to four times seller’s discretionary earnings (SDE)range –the majority selling within the 2 to 3 range. In essence, if the annual cash flow is $200,000, the selling price will likely be between $400,000 and $600,000.

How do I sell something in South Africa?

Top 5 ways to sell online in South Africa

  1. Create your own website. Whether you’re making your own products at home, selling a service, or reselling goods you’ve found elsewhere, setting up a website is probably the best way to get your business out into the world.
  2. Social media.
  3. Takealot.
  4. Classifieds.
  5. bidorbuy.

How much is my company worth?

Add up the value of everything the business owns, including all equipment and inventory. Subtract any debts or liabilities. The value of the business’s balance sheet is at least a starting point for determining the business’s worth. But the business is probably worth a lot more than its net assets.

How much can I sell my small business for?

Typically, the selling range for small businesses is between two-times and three-times earnings. Outliers may be multiples of one-time or less or four-times or more. In rare situations, I have seen well-run businesses in a growing market garner as much as seven-times earnings.