Money

Issue No. 32 - December/January

Do homework before SME investment

by Paul Holman

Investing in a small to medium-sized enterprise can be an exciting opportunity but taking the time to research the business can save a lot of heartache, according to Paul Holman, a partner at business advisory firm mhm.

Paul says there are several key considerations that need to be taken into account before buying or investing in a small business to ensure it will be viable in the long term.

“With any business investment, it’s all about determining whether a particular enterprise is the right fit for you,” Paul says.

“This means gaining a full understanding of the business as well as its potential.

“In addition, the personality of the investor should be taken into account and weighed against the demands that owning part or all of an SME will place on them.

“It’s not enough to walk in to a business with a view to ‘just making it work’. (Investment) is a strategic decision that should be considered carefully in terms of the b...

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