Many find the idea of running a small business appealing, but lose
their motivation after dealing with business plans, investors, and
legal issues associated with new startups. For those disheartened by
such risky undertakings, buying an existing business is often a simpler
and safer alternative.
Advantages
The main reason to buy an existing business is the drastic reduction
in startup costs of time, money, and energy. In addition, cash flow may
start immediately thanks to existing inventory and receivables. Other
benefits include preexisting customer goodwill and easier financing
opportunities, if the business has a positive track record.
Disadvantages
The biggest block to buying a small business outright is the initial
purchasing cost. As the business concept, customer base, brands, and
other fundamental work have already been done, the financial costs of
acquiring an existing business is usually greater than starting one
from nothing. Other possible disadvantages include hidden problems
associated with the business and receivables that are valued at the
time of purchase, but later turn out to be noncollectable. Good
research is the key to avoiding these problems.
Services`We Offer for Buyers:
Buying a Business
• Letters of intent
• Due diligence
• Assist in packaging Small Business Association (SBA) loans and securing funds to complete a transaction
• Non-compete agreements
• Cash flow analysis
Buying or selling
• Determine fair market value of businesses
• Continuous transaction management
• Confidentiality agreements
• Purchase and sale agreements
• Work with accountants and attorneys to resolve transactional issues
• Analyze asset vs. stock transaction options
• Note to seller/earnout agreements
Running a business