Business Buying Considerations
What Type of Business Should You Buy?
West Midlands Business Advisors will help you at every stage of the buying process. You have made the decision to take charge and buy a business. We can help you find the right business which suits your circumstances and ambitions.
As well as defining your targets with regard to Turnover, Employees, Product or Service and Location, you may also wish to consider the financial status of the business.
Think about the advantages and disadvantages of buying a business in the conditions described below. What suits you and the current situation of your business?
- A Profitable Business – A business that given your circumstances and experience, you believe you can further improve profitability. This business will have a higher price tag, but will have all of the necessary ingredients to deliver your ambitions.
- A Stressed Business – The business is under-performing, the numbers do not look the best, and performance is on a downward trend. However, if you have the necessary skills and experience, it could be the ideal business for you. You will purchase at a reduced price and given your skills and experience, plus our help as required, this could give you a very quick return on your investment.
- A Distressed Business – This is a business that is either insolvent or on the verge of insolvency. You will buy the business for a notional amount – “Buy a business for a pound!” – and you will take on its liabilities. If you understand how to manage the liabilities and have the right professional support, you will be able to reverse those liabilities and restructure the business, leaving you with a successful purchase that at one time you may have considered to be out of your reach.