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Looking to buy an existing business? |
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Buying a Business
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The quickest way to start a business or grow an existing one is to buy a bolt-on business (a complimentary product or service), or even a competitor. This can be an expensive way to go about it if you get it wrong.
You need to carry out research and get professionals involved at an early stage. Remember that financial accounts will often show what the state of the business for sale was 18 months ago, and if you are buying and goodwill (i.e. existing clients) are they contracted to use the company or are they just casual customers?
Real bargains can be had if you are in the right place at the right time, and occasionally larger businesses will want to offload non-core parts of the business at low prices, simply because they want to concentrate efforts in other areas. We recommend this you read this book on Buying and Selling Businesses from Amazon, before spending too much time looking in detail at businesses to buy.
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Buying an existing business
We had a competitor almost go bust and another company bought the business at a knock down price. The competitors product was cheap but not up to scratch, and the service wasn't much better. This is why they went under. They were losing clients left right and centre and didn't have much of a reputation. The only clients they ended up with were those with little or no money to spend. I'm not sure exactly what they bought, but they have a lot of work ahead and need to make sure that their reputation isn't dragged down too.
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