Buying an existing business can have many advantages over starting one yourself. A built-in customer or client base, pre-existing vendor and third-party relationships, as well as employees who are already familiar with the ends and outs of said business can all give you a major head start as opposed to building it from the ground up.
But the professionals at Hallmark Business Brokers also want you to be aware of a few things that you need to look into before jumping in with both feet. Here are 5 essential questions every prospective business investor should ask before finalizing any deals:
What is the Reason for Selling?
This is very important, and probably should be your first question. Is the owner simply ready to retire or move on to a new challenge? Or is there another underlying reason?
How Much Debt Does the Company Have?
This can literally make or break any deal. Remember, when you buy a company you also acquire its debts.
What is the Company’s Track Record?
How has this company performed in the past, not only with its customers and profits but also with its reputation in the community?
What is the Business Structure?
Is this a viable business model, or a sinking ship?
What About a Non-Compete Agreement?
You certainly don’t want to purchase a business only to turn around and have to compete with someone who already knows your books and your system.
To learn more about the many facets of buying or selling a business, give the experienced and knowledgeable folks at Hallmark Business Brokers a call today. You can reach us at 941-445-4726. Even better, stop in and speak with us in person, we are always available to help our friends and neighbors out. Our offices can be found at 230 Tamiami Trail, Suite 2, in Venice. Don’t make the biggest decision of your life without first speaking with the experts who have helped countless people just like you.