Articles on how to buy a business or how to sell a business
The saying “luck is what happens when preparation meets opportunity”, when used in the context of buying a business, is you’re more likely to find a business to buy if you acquire the knowledge, skills, and insights into buying a business; thereby priming yourself for a successful acquisition.
If you aim to buy a business sooner rather than later, and you’re prepared to take more risk, it’s better to be flexible with your sector choice. But on the flip-side, and if you’re happy to wait longer, and you want a reduced risk, it’s possible to buy a business too, but it may take longer.
The types of due diligence to do before buying a business include legal, commercial and financial due diligence. It’s important to do due diligence before buying a business, as it helps you assess whether to buy the company and reduces the risk of you incurring costs once you’ve bought the company.
What motivates you to buy a business might be that you hate your boss, or that you want to make more money than you do at present, or to have financial freedom. To keep your buying a business journey moving forward, focus on what you want, and not on what you don’t want.
The easiest way to double the size of your business in one transaction, is to buy another existing business of a similar size to your current company. If you buy a business, you instantly add customers, sales and profits to your business almost overnight.
To buy a business that pays for its own acquisition, you use the cash or assets it owns to fund the deposit, and you use its future cash flows to pay the balance over a period the business can afford. Buying a business in this way means you don’t need to use your own funds to buy a business.