- Immediate cash flow
- Proven products, services, location and markets
- Customers are already spending money with the company
- Brand and market awareness
- Employees in place – hired, trained and proven
- Proven equipment, installed and working, with maintenance records
- Established systems, procedures, policies, inventory levels, licenses and permits
- Established suppliers and credit
- Base your financial projections on actual results, not wishful thinking
- More financing options
- Training by the seller
- Reduced financial risk
When you purchase a successful going concern, you may avoid a long stretch of losses, save months or years of time and avoid many costly, even fatal mistakes.
One major advantage, in most cases, is that you have immediate cash flow with which to finance the acquisition and repay the investment. A business with consistent profitability usually has substantial value in its customer base, product/service offering, employees, contracts, systems, suppliers, policies and procedures, and other intangibles.
Finding a quality business for sale, investigating and understanding the company and its value, securing financing, negotiating agreements, conducting due diligence and successfully transferring operations is a more strenuous and complex journey than most business people realize. And there's a lot at stake. According to industry statistics, over 90% of those who set out to acquire a business fail. Even worse, the average buyer tries for 18 months before giving up. Acquiring a business is a major undertaking that takes time, skill and experience.
Exit Strategies offers many services for buyers.
