Below we have discussed some of the common reasons why people look to acquire a business and what items are useful to take into consideration when making your decision.
You may already have an established business and are looking to generate a new revenue stream or expand your current operations. Having an established business allows you to apply your skills and knowledge to increase the profitability of the business you are acquiring.
When acquiring a business to add to your current business structure, some items to consider include:
Acquiring a business as a passive investment allows you to focus on growing the business instead of getting wrapped up in the daily operations of running a business.
Fundamentally, you are buying a business with an established management team with the view to analyse and identify what areas of the business require fine tuning.
Given that you would be relying on a management team, some of the aspects you may consider include:
Are you looking to buy a business in the industry that you currently work in? This allows you to have control over the work that you do, but also be the person who benefits from the growth and profits of the business.
Practically, you should be looking to buy a business with the intention to earn beyond what you were as an employee and ensure the business is an asset you can sell in the future. After all, you are taking on the risk of owning your own business.
Do you need help with analysing the business you are considering acquiring? BLG Business Advisers have assisted many clients in this situation. Talk with us to gain some direction and determine if we are the right fit for you.