25 Jan Around the Web: A Week in Summary
The following information has been sourced by Business Brokerage Press for the benefit of the business brokerage community. The views of these articles do not necessarily represent the views of Business Brokerage Press. We hope you find this information helpful.
A recent article from Forbes entitled “Should You Buy A Business? What You Need To Know” discusses the considerations and pros and cons associated with buying an existing business versus starting one from scratch for aspiring business owners.
The pros of buying an existing business includes immediate access to an established customer base and revenue stream, allowing for quicker profitability. Acquiring a business also comes with the benefit of having experienced staff, established suppliers, and existing operational processes, saving time and money.
There are cons to consider as well. For example, businesses may have hidden liabilities such as unpaid taxes which can lead to legal and financial challenges. There is also the risk of acquiring a business that is poorly managed or not as profitable as you had hoped.
To make the best decision, it’s important for potential business owners to thoroughly evaluate the financial statements and operations of the business. It’s also crucial to follow the guidance of experienced professionals to ensure that you are getting a good price and have proper financing secured. Buying a business can be a smart and profitable decision, but careful consideration of benefits, risks, and costs is essential.
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A recent article from San Diego Business Journal entitled “Business Owners Ready to Sell May Find Increased Interest in 2024” discusses the potential increased interest for business owners looking to sell their companies in 2024, attributing it to stabilizing economic conditions.
Business owners who are considering selling their business should have a well-prepared exit planning and wealth management strategy in advance. Owners might also want to consider starting merger and acquisition planning well in advance. Additionally, business owners should assemble a team of experienced professionals, including tax attorneys, CPAs, and even value accelerators.
By having strategies in place ahead of time, business owners can help ensure a smooth transition when it comes time to sell.
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A recent article from Entrepreneur entitled “Buying a Business? Make Sure It Checks The Boxes On This Checklist Before You Pull The Trigger” provides a comprehensive guide for aspiring entrepreneurs embarking on the journey of buying a business.
When buying a business, there are several factors to consider. This includes the current income of the business as well as potential opportunities to grow the income stream in the future. Buyers might also want to focus on businesses who have been operating for at least five to ten years, as this signals a strong customer base.
Other factors that buyers should consider include the location of the business and its impact on the overall value of the business. It’s also a good idea for buyers to seek businesses with a strong track record within an established market, growth potential, and a solid business model
It’s nearly impossible to find a perfect business to buy, but this checklist can assist buyers in selecting a business aligned with their goals for a rewarding entrepreneurial journey.
