Things A Business Buyer Should Know
At Alliant Capital Advisors, we recognize the importance of finding you a business that you are comfortable with.
A business must fit your desires and financial needs to be successful.
You probably want to know why the current owner is selling. This can be a variety of reasons. Perhaps, it’s health, divorce, or retirement. In any case, it could present a good buying opportunity.
Why Buy An Existing Business
According to author Michael Gerber, 40% of new businesses fail in the first year.
On the other hand, purchasing an existing business reduces an entrepreneurs risk while creating opportunities for tremendous profit.
Buying an established business is less risky since you know the process already works and you have an immediate cash flow plus an established customer base. Also obtaining financing is easier for existing business vs. startup since historical data is available.
You are buying a known name and product. The ongoing benefits of any marketing and networking the prior business owner conducted is passed to you.
When you have an established name in the business community, it’s easier to attract new business than with an unknown start up. That’s an intangible benefit that’s difficult to put a price on.
You are acquiring an existing customer base and vendor base that took years to build.
It’s very common for the seller to stay on and transition with the business for a short time to transfer those relationships to the buyer.
Also, you are acquiring one of the most valuable assets, the employees. It took the current owner time to assimilate and develop the employees into the company culture.
With the right team in place you will have an easier time implementing growth strategies.
How do you start?
Well, the first step is to contact our office and we will assist you in taking the first step.
After identifying your interest, we will counsel you as to a type of business, location, price, financing and the other very important aspects of owning the “American Dream”.
CONGRATULATIONS– YOU ARE ON YOUR WAY!.