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International portal for buying and selling businesses and commercial assets
The most efficient way in Ashburn to profitably buy or sell own businesses and assets

Buying an existing enterprise or starting from scratch?

If you need a house, you have two opportunities. Firstly, you can buy a land parcel for building. You can get a permission, engage an architect and civil engineers, purchase materials and worry because of the result. Then you can move into the new house in 6-12 months, if everything is all right. Secondly, you can buy an existing house. The same situation is actual for businesses, but every coin has two sides.

Advantages of purchasing an existing business:

  1. Success story. The existing business has its own story, that helps to value it objectively. Such a business has already confirmed its vitality.

  2. Rooms and equipment. In general we are talking about the whole property, which is necessary for the function of the enterprise.

  3. Co-workers. Working enterprise has always a skilled staff.

  4. Vendors (suppliers) and channels of sales.

  5. Position on the market. The existing firm has already certain position on the market, so it is possible to forespeak business-development, swings of demand and competition development.

Disadvantages of purchasing an existing business:

  1. The equipment can be outworn and the technologies – unmodern.

  2. The lease can expire soon without an opportunity to elongate it.

  3. After the replacement of the leader personnel co-workers can retire.

  4. Often the buyer is forced to look for new vendors and clients, because the previous have co-operated with the owner of a business as relatives.

  5. You can find out unpaid taxes, penalties etc.