‘Regardless of what it does, every business, like every fruit tree, is unique.’ An interactive analogy.

Whether intended as a stand-alone entity or as a launch pad for group expansion into the Spanish market, there are many advantages of buying a business over setting one up: you will save time, the business will normally have established customers, a known brand in the Spanish market, stable supplier relationships, and experienced employees; you will be in a better position to project future results as the business will have a history of performance; you may be able to bring improvements, create synergies and increase profitability.

But is the asking price to high? And are there hidden risks and liabilities that might come back to haunt you? At least with setting up a business from scratch, you know exactly where you stand.

We like to use the analogy of a fruit tree. A fruit tree grows, gives fruit (or not!) and eventually, dies. It doesn't matter what shape the tree takes, or what type of fruit it produces, it has certain requirements for it to be able to bear good quality fruit and to continue bearing fruit. Just like a business.

To be comfortable that these requirements are fulfilled, and that the price you will be paying for a business matches its future earnings capabilities, you will need to ask some pretty searching questions.

To explore some key areas of due diligence analysis that can assist your decision-making process, firstly, pick your fruit: orange, lemon, olive, plum