Buying A Business
WHY USE A BUSINESS BROKER?
A professional Business Broker like LNT Global is instrumental in connecting you to the businesses you desire. LNT Global has substantial stocks of businesses-for-sale in various fields, thus saving your precious time, energy and resources in finding the right businesses that fit your financial goal, experience, aspiration and lifestyle. LNT Global is an experienced facilitator between you and the business owners. We can effectively relay offers, discuss terms and conditions, as well as negotiate win-win transactions, ensuring smooth completion of all deals. In addition, LNT Global has psychologically prepared the sellers for the sale of their businesses and takes special care of the emotional attachment the sellers may have formed with the businesses that they have painstakingly built over the years. Moreover, since you will most likely need the sellers to train you after the purchase, it is a good idea to use an expert broker like LNT Global to ensure cordial relationships with business owners. Most importantly, owners are usually more transparent when dealing with a professional business broker in comparison to dealing with direct buyers.
Any business purchase requires a tremendous amount of negotiation, coordination and documentation. LNT Global makes it easy for you to make your decisions as we pre-qualify the businesses in our stocks. We assemble detailed information about the businesses, prepare complete financial statements and organize the necessary legal documents for your reviews. LNT Global is the only place you need to visit to find the right businesses and fulfill your dreams, as we provide complete assistance in business buying from start to end.
WHY BUY A BUSINESS INSTEAD OF STARTING A NEW BUSINESS?
The decision on whether to start a new business or buy an existing business pivots mainly on both financial and personal issues. New start-ups almost always encounter countless stumbling blocks that slow down the company’s progress and may even put its future in jeopardy, creating a great deal of stress for the management team. Obtaining financing to purchase an existing business that has assets and cash flow is often easier than securing capital for a start-up venture.
When you buy an existing/established business, you know the accomplishments of the business and you have an income from the day you take over. You can immediately focus your energy on running and improving the business. The sellers have already taken care of the heavy lifting associated with starting the business. They’ve built the infrastructure with operational necessities such as computers, phone systems, and furniture. They have developed operation procedures and policies, and they have forged intimate relationships with suppliers, customers, and various legal & financial experts. These are all things that take an enormous amount of time, money and energy and don’t always generate direct or immediate cash flow. Additionally, there may be other intangible benefits associated with buying an existing business, such as an established brand, trademark, copyrights, as well as a proven customer base, business model and a team of trained employees. If you start a new business, you face a lot of uncertainty over the success and desirability of your products or services. Buying a business takes a lot of the initial risk out of your decision.
WHAT IS THE BEST BUSINESS TO OWN?
Most buyers want to own a well-managed, profitable business in an industry that holds a personal interest for them. On the other hand, some buyers may look for opportunities that offer great potential, where they can apply their special skills. In general, there is no particular industry that is better than another. However, there are specific businesses that are more successful than others – even in the same industry.
HOW IS THE OFFER STRUCTURED?
There are many ways to buy and offer a desired business. Sellers generally prefer to receive all cash at closing and some buyers are able and willing to accommodate them. However, buyers usually try to get the best leverage over their capital into the biggest business they can buy. Buyers always try for a no-money or low-money down offers; however, it is very rare that they will succeed. This is because the lender, whether it is the seller or a bank, wants the buyer to show his commitment to the business by having vested financial interest in its success.