Why Buy a Business?
Should I BUY a business or start one of my own? Have you ever thought about owning your own business, but considered it too much of a risk? Think again… Starting a business is a scary proposition. Why take such a chance with your future? So what’s the solution? Buying an existing business or franchise is the answer.
- It is a proven Business
- It has a Proven Product or Service
- Immediate Cash-flow
- Trained employees in place
- Established suppliers and credit
- Established customers and referral business
- Existing licenses and permits
- Training by the Seller
- The availability of Owner Financing
Where Does a Buyer Get Money to Buy a Business?
In pursuing the acquisition of a company you must first determine your options for paying for it. Although the simplest answer is to pay all cash, there are other options for leveraging your money so that you can acquire a larger company than you could otherwise do by paying all cash.
Why do people Sell their Businesses?
This is a very common question. Because, if the business is so ‘wonderful,’ why sell it? Will this mean that I will buy a ‘dud’? In reality, there are many reasons why a business owner might want to sell his/her business, many of which may have little to do with it success. These might be:
- Desire to start a new business
- Partner dispute
- Health issues, etc.
But whatever their reason to sell, it is ALWAYS important for you to examine your own reasons for buying and for affording the purchase. And above all, DO YOUR HOMEWORK – Due Diligence.
This where I come in:
Because I have bought and sold many of my own businesses, and I have brokered over 75 businesses first-hand, I have seen so many of those ‘unforeseen issues’ (or ‘gotchas’) that can become the deal-breaking obstacles that a first-time buyer may not recognize in advance. My responsibility is to guide your purchase through to your satisfactory conclusion before I can walk away.