Buying an Existing Business
Should you start a new business or buy an existing one?
There is no clear-cut answer to this question. Every business that you are considering has its own ‘plus & minus’ situation. There are several distinct advantages that one needs to consider. Here are some of these advantages:
- It will save you an extraordinary amount of time and energy and will save you money in the early setup and operations of the business
- The time consuming portion of researching, creating business plans and having the proper permits & Licenses plus zoning requirements have all been looked after.
- Since it is still up and running successfully, there is lesser risk factor then a New Business and good history shows there is a greater chance of future success.
- The business already has trading partners and suppliers and credit terms if any have already been established – it has a reputation.
- It probably has trained employees and an established client base
- It is also an indication that whatever product this business caters to and the client base that it caters to, is successful and it can only get bigger and better if the new buyer is aspiring to.
- It probably already has suitable financing in place and acquiring it will only be an easier matter of creating new financing on this established business
- If it is a manufacturing business, the buyer has an opportunity to evaluate the current business production limitations and capacity. Buyer can effortlessly re-structure or upgrade portions that need attention
- Since actual financials are available, the purchase price can be established easily.
- You can have positive returns on your Investment in the very first year.
- And yes, the Sellers are always keen to Train the new Buyer – if a Franchise, you will have the opportunity to be trained by the Franchisor
- The selling price can be a mix of existing financing and some vendor-take-back financing, depending on the Sellers circumstance for the sale.
However, whether it’s a new business or an existing one, it is a major decision. It is something you need to discuss with your family as it will affect you financially and change your lifestyle. It requires commitment and dedication.
So, if you have decided that now is the time to consider buying a business, we surely can provide you with the professional assistance necessary for a smooth and successful transaction. Search our business for sale listings for a business to buy or simply contact us to find the right business for you. Unlike buying a home, the sale of an on-going business is very confidential for both the seller and the prospective buyer. All inquiries are held in strict confidence. Meetings and information shared or observed are to be held in strict confidence.
Keep in mind that many businesses for sale are rarely Listed for Sale on the MLS. Most businesses are sold confidentially through Exclusive Listings.
To ensure continued confidentiality for all parties, most brokers including Royal LePage Vision Realty will require a confidentiality agreement to be signed. In return for granting you, the prospective buyer, access to investigate the operations of the seller's business and otherwise private information, the prospective buyer promises to use the information for the sole purpose of evaluating the benefits and risks of purchasing the seller's business in strict confidence.