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Changes in Businesses in 2021

Read About Changes in Businesses 2021

Hey have you heard that the big old restaurant that we used to go to has new owners? How did that happen? I just found out that our favorite repair shop was sold, I didn't even know they were for sale- Time Warner bought AOL, Ford acquired Volvo, and Daimler Benz merged with Chrysler. Berkshire Hathaway always is buying companies (Geico, Dairy Queen, etc),

It happens every day, businesses are being bought and sold and John Q Public doesn't have a clue. How does this happen? In most of these situations Business Brokers or "Intermediaries" are used. For most people and companies, buying or selling a business is something that needs to be kept a secret for as long as possible. This equates to an unusual challenge for Business Brokers. Have you ever tried to sell a secret? There is so much more that goes into business acquisitions than could ever be written into a single article.

All around the world in 2010 people are loosing their jobs, whole industries are becoming obsolete overnight while new technology and new industries are springing up every hour of the day. We are truly living in exciting times! But what does this mean for us here in the good ole South East USA? I can say it in one word "Opportunity"!

If your doors of income are closing or have closed, I believe that there are new ones opening up every day. The challenge is to position ourselves to recognize opportunities and be able to react to them when they come our way. If you have dreamed of being an entrepreneur then part of this positioning may be to find a Business Broker that knows your area, one that can guide you through the process of Business transitioning, or Mergers and Acquisitions. It may be that this is not a good time or this may in fact be the best time for you to buy or sell your business. The best way to find out is to ask a professional! Find the Best Business Broker in your area and start asking questions!

Buying v. Start-up
Purchasing an Existing Firm has Benefits

There are several options for owning your own business - start your own company-or buy an existing firm.

"There are pros and cons for each of those options," said Leo McKittrick of Best Business Brokers. "But if you do a careful analysis, you'll learn what many seasoned entrepreneurs have learned - the risk-to reward ratio is tipped in your favor when you purchase an existing business." Mr. McKittrick says purchasing an ongoing enterprise reduces the risk while creating opportunities for tremendous profit.

The benefits of buying an existing business include:

  • A proven concept - Buying an established business is less risky - as a Buyer you already know the process or concept works.
  • The company's brand - The on-going benefits of any marketing or networking the prior owner has done will transfer to you.
  • Existing relationships -With the purchase of an existing business, you will also be buying an existing customer base and vendor base that took years to build.
  • An immediate focus - When you buy a business, you can start working immediately and focus on improving and growing the business without delay.
  • People/staff - One of the most valuable and important assets with the purchase of an existing company is the people. With the right team in place, just about anything is possible and you will have an easier time implementing growth strategies.
  • Cash flow - Typically, a sale is structured so you can cover the debt service, take a reasonable salary, and have some left over to take the business to the next level.
Mr. McKittrick adds that finding the right business to purchase can be a daunting task without some assistance. Assembling a team of experts, including a Business Broker, accountant and an attorney to assist you in the process will help avoid many headaches.