- Should a buyer purchase an existing business or start a new one?
- What does a business broker do?
- How are businesses priced?
- What should a buyer look for in a business?
- What happens when you find a business you want to buy?
- What happens when I make a purchase offer?
- What is done during the ”due diligence period?”
Should a buyer purchase an existing business or start a new one?
An existing business has a track record and has demonstrated that there is a need for that product or service in a particular market. Financial records are available along with other information on the business, its market and competitors. Additionally most sellers will not only stay and train a new owner but will also supply some financing. These last two factors are very important considerations. Having a knowledgeable person teach a new owner the intricacies of a particular business and who is also willing to finance a portion of the sale can make all the difference between success and failure. On the other hand, failures of start-up businesses occur largely during the first three years of their existence.