Buying An Existing Business

Purchasing an established business can lighten the burden of start-up costs, lag time without a salary, establishing markets, and other costs associated with the creation of a new business. Established businesses may have existing good will (intangible assets such as reputation or historic value).  The decision to buy a business requires careful evaluation of many factors including pricing and financing your purchase.  The potential buyer must understand their criteria for selecting, their motivation for wanting to purchase the business and the motivations of the business owners.

 Consideration should be given to the following:

• What is your experience with the industry and/or management?
• Does the business match your strengths?
• Is the business what you enjoy doing?
• Is it in a desirable location?
• What are you willing to invest?
• Can you get financing?
• What size business do you desire in terms of sales, profit and employees?

If the business under consideration has a product or service outside your area of expertise, it is important to make certain that the key employees will stay after the sale or that you can hire someone with similar experience.