Paying a Premium

Paying a premium or paying top dollar for a business is not always a bad idea. Quite often businesses or property are listed for sale and considered to be highly priced, and often people walk away from these opportunities on the advise of accountants and friends only to find that in two years down the track they are still looking or decided to stay in their job and the opportunity is back on the market for a much higher figure, a lot higher than the amount in dispute.

Most times storage complexes are built in stages and quite often there is a stage still to complete or vacant land that can still be utilised for a rental return, the owner has identified this and wants some return. This does not show up in financial accounts, so from a simple multiplication of income, this business appears to be overpriced. But is it?