As a business owner looking to sell a business, one may wonder who buys businesses and if they can be approached directly instead of waiting to find an interested buyer with no way to tell how long that would take. There are different parties who actively look for businesses that they can buy. Individuals There are always individuals looking for businesses to buy. Some people opt to buy a business that is already up and running rather than starting one from scratch.
This has several advantages, including having a ready-built customer base that one can build on and investing in a business that is already profitable rather than spending the first months trying to break even. There is also the advantage of investing in a business whose name is already known and trusted as opposed to starting to build one from the ground up. Investors There also also investors who actively look for viable businesses to invest in. They are acquisition and venture capitalists who look for a good place to put their money. Some of them are companies who look for profitable business ventures on behalf of companies who are looking to expand and grow through acquisitions.
The companies analyze the viability of a business with the view of adding it to the portfolio of a company that is looking to open new branches in different locations or offer new products or services. There are also individuals who look to invest in businesses as silent partners. They also analyze the viability of a business and if the numbers look good, they finance one who wants to buy a business and leave it to them to run while they remain in the background as silent partners. Such an arrangement has enabled many to become business owners and has pushed the businesses forward thanks to the business acumen of the silent partner, who is usually adept at maximizing returns.
Franchise holders Sometimes franchise owners will also buy a business. They will do this with the intention of re-branding it and finding an investor. Franchises will do this if the business that is for sale is in an excellent location, has good amenities like parking and security and can be modified to suit the standard structure of a franchise. Moving things along A business owner can choose to go it alone in getting someone to buy their business. This can be done by putting advertisements in the paper and online. However, this can be a long route to finding a buyer.
There will be costs in the form of a commission, but it is advisable to use business brokers to try and find a buyer. A professional broker who has been in the business for a while will have a network of investors and capital raising companies that they can approach about buying a business. Going through one can significantly shorten how much time it takes to find a buyer. A broker can also help in completing the purchase transaction. One can also take the initiative of approaching a capital raising service company and letting them know that their business is on the market.
They can match a financer to a buyer who is looking for such a business to buy. However, it is best to engage a commercial attorney and an accountant. The accountant can perform audits that prove the viability of a business and that there are no liabilities in the form of debts and unpaid taxes. An attorney will draw up the paperwork for the sale transaction or review the ones drawn up by the broker. He will ensure that a seller’s interests are protected and that the legal procedures to close the sale are followed. It is important to take the time to do some research on any party one intends to work with, be it the attorney, broker and/or accountant.
Ask for references and look them up, and look at the website of the Better Business Bureau to see if there have been any complaints about a company. This will ensure that once the business does find a buyer, the transaction and everyone involved will be above board.