McLEAN AND CO. Chartered Accountants

Accounting                               Taxation                                   Business Advice and Development Assistance                                        

 P.O. Box 10 , Clive         133 Main Rd, Clive           Tel. (06) 8700952          Fax. (06) 8700955 

Email murray@mcleanandco.co.nz                                  Website www.mcleanandco.co.nz

 
EMAIL NEWSLETTER  FEBRUARY 2014
 

Welcome again to the McLean and Co. Newsletter in which we discuss current taxation and business matters. We trust you find it informative.  

 

NEW CLIENTS

We are happy to accept new clients.  We would be happy to assist colleagues and acquaintances as new clients.

 

INDEX

  1. Buying a Business- Due Diligence

  2. 11 Inspirational Quotes to Start Your Week

  3. Fraudulent (IRD) Phone Calls

 

BUYING A BUSINESS- DUE DILIGENCE

Due diligence is probably the most critical stage in the buying process. Many prospective buyers incorrectly identify this period as strictly a financial review but it goes far beyond that. Due diligence encompasses a far greater project and that being the complete investigation and review of the business.

One of the keys to buying a good business, comes from your ability to learn the intimate details of the business. To identify the strengths, weaknesses, pluses, minuses, growth opportunities and areas of concerns. If you do not do a flawless job of gathering information, you will not be able to complete the transaction since you値l be uncertain about too many components of the business. 

When To Start The Due Diligence?

The investigation process begins the moment a business becomes of interest to you.   Your goal is to make certain that you uncover everything about any business BEFORE you buy it. You don稚 have to meet the seller or even visit the business for your research to begin. The Internet is a tool that will allow you to investigate the business, the industry, the competition, the marketing, the suppliers, and so on.

By beginning your investigation early on  you値l position yourself to ask the proper questions to the seller. Once you progress to the stage of an accepted offer, you will commence the inspection or financial due diligence.  This is the time when you値l have access to all of the company痴 books and records.

Once you  look at a particular business, you値l find a number of things crossing your mind regarding the acquisition.  Keep a notepad handy at all times and log your thoughts.  You値l have many thoughts about things 的 need to check out. Put together your checklist of what you need to investigate and how you池e going to do it along with the materials you may need from the seller to accomplish it. 

Things to keep in mind:

Allow yourself enough time:

Many sellers and some brokers will press for a very short inspection period; sometimes just days. Don稚 get bullied into this - give yourself ample time to complete this part of the process. You should allow for, negotiate and not settle until you have sufficient time to finalise to your satisfaction the inspection/due diligence period.

Prepare properly:

Since you値l have some time restrictions (you値l only have x number of days per the contract), provide the seller with a listing of all of the materials required for you and or your Accountant to complete this exercise. No matter what you池e told, do not begin the process until they have everything ready for you.

Dealing With Surprises:

You値l probably find some surprises, don稚 panic, it痴 normal. Work through them. Get clarification. Build your case. Don稚 run to the seller or broker every time you find an inconsistency between what you致e seen versus what you were told.  No business is perfect. The rule to follow is do not treat any incidents and catastrophes nor should you treat any catastrophes as incidents. If you find a major problem, get your facts in order and you can then decide the appropriate action to be taken with the seller (i.e. renegotiation, walking from the deal, etc..)

 

11 INSPIRATIONAL QUOTES TO START YOUR WEEK

  1. Whatever the mind of man can conceive and believe, it can achieve. 鋒apoleon Hill
  2. Strive not to be a success, but rather to be of value. 泡lbert Einstein
  3. Two roads diverged in a wood, and I took the one less travelled by, and that has made all the difference.  乏obert Frost
  4. I attribute my success to this: I never gave or took any excuse. 芳lorence Nightingale
  5. I致e missed more than 9000 shots in my career. I致e lost almost 300 games. 26 times I致e been trusted to take the game winning shot and missed. I致e failed over and over and over again in my life. And that is why I succeed. 邦ichael Jordan
  6. Life is what happens to you while you池e busy making other plans. 褒ohn Lennon
  7. We become what we think about. 胞arl Nightingale
  8. Twenty years from now you will be more disappointed by the things that you didn稚 do than by the ones you did do, so throw off the bowlines, sail away from safe harbor, catch the trade winds in your sails.  Explore, Dream, Discover. 邦ark Twain
  9. Life is 10% what happens to me and 90% of how I react to it. 砲harles Swindoll
  10. The most common way people give up their power is by thinking they don稚 have any. 泡lice Walker
  11. The mind is everything. What you think you become.  烹uddha

 

FRAUDULENT (IRD) PHONE CALLS

IRD have reported that they've been made aware of fraudulent phone calls where the caller claims to be from Inland Revenue.

Treat any phone call as suspicious if you're:

If you receive one of these phone calls you should hang up and not call the number back. If you have concerns call IRD on 0800 227 774.  IRD will never ask you to pay money or supply your credit card details to claim a refund.

If you've given money or provided personal details to a suspicious caller, please contact your bank or credit card provider immediately.

McLEAN AND CO KNOWLEDGE CENTRE AND ARTICLES ABOUT TAXATION AND BUSINESS IN GENERAL PRESS HERE FOR BUSINESS STARTUP KNOWLEDGE CENTRE PRESS HERE
FOR INFORMATION ABOUT COMPANY INCORPORATION PRESS HERE FOR PREVIOUS MONTH EMAIL NEWSLETTERS PRESS HERE

FOR PROPERTY INVESTMENT AND TAX INFORMATION PRESS HERE

FOR FRANCHISE INVESTMENT AND TAX INFORMATION PRESS HERE


The information provided in this email newsletter is for informational purposes only.   McLean and Co. accept no responsibility for the opinions and information expressed in the information provided and it is provided "as is" without warranty of any kind.    The user assumes the entire risk as to the accuracy and use of this document.   Readers are asked to seek professional advice pertaining to their own circumstances.    The McLean and Co. email newsletter may be copied and distributed subject to the following conditions:
  • All text must be copied without modification and all pages must be included.
  • This document must not be distributed for profit.    

 

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