There would be accounting fees and there is also potentially tax depending on how you purchase it and depending on which state you purchase the business in. For instance in Queensland, if you were to buy a business/asset sale or purchase, you pay stamp duty on that but New South Wales has a zero stamp duty.
In terms of transaction costs, it depends what advisors you want to get on board. You might want to do a technology audit or an HR audit. There are clients who go in and have many multiples of acquisitions. Some will have a technology audit, others will have someone who’ll look at the equipment list and look at the valuation of that.
There might be those sorts of costs. But other than that, legals, accounting, any costs related to due diligence or confirming the value, it’s really that purchase price. Consider the time cost of your own time down that path and then the integration of the business into your business.
Watch the full webinar, ‘Acquiring a Business’ at https://learning.benwalker.com/courses/acquiring-a-business
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