In most cases, buying an existing business is less risky than starting from scratch. When you buy a business, you take over an operation that's already generating cash flow and profits. You have an established customer base, reputation and employees who are familiar with all aspects of the business. And you don't have to reinvent the wheel--setting up new procedures, systems and policies--since a successful formula for running the business has already been put in place. Bankers and investors generally feel more comfortable dealing with a business that already has a proven track record. In addition, buying a business may give you valuable legal rights, such as patents or copyrights, which can prove very profitable. Of course, there's no such thing as a sure thing and buying an existing business is no exception. If you're not careful, you could get stuck with a business that is not at all what you expected or told by the seller. To make sure you get what is advertised when buying an existing business be sure to perform adequate due diligence and get a professional valuation, so you don’t over pay. At Vendere Advisors we have expertise in due diligence and stand ready to assist you with the tools, processes and years of experience in acquiring and selling businesses and are available to assist you with the process of acquiring a business that meets your expectations.
