Whether it is possible to buy good business?
In our country it is considered to be that to buy good business it is unreal. Logic conclusions allow to assume that the sane person will not begin to sell business which makes good profit. Let’s try to understand, whether so it actually and whether it is possible to buy really profitable business?
If to speak to the point, idea of business sale in our country is far from reality, especially at those who reflects for the first time on its acquisition. The main criteria of good business are not only prospects of development of the company, but also generated cash flows. Actually the seller of business performs the main work, and the seller receives a stable source of profit. But purchase of profitable business at all does not mean that the buyer should not apply efforts on his development. If you consider good the business which is not demanding the appendix of efforts, address to the broker who is engaged in purchase sale of currency on Forex. The buyer of small business should know that all loading will fall only on him whereas in big business by its development the hired personnel is engaged. From the aforesaid the conclusion arises that the company which will allow you to get only profit and not to be engaged in its development, you really do not buy. Even if to you will offer such business, its cost considerably will exceed profitability. Therefore the buyer of business needs to be adjusted for serious work to avoid disappointments.
Upon purchase of business pay attention to the price and find out market cost of similar offers. As a rule, the reason of low cost of the company is absence of its further development and as a result — bankruptcy. The price for the good operating enterprise is formed of the profit sum for the last 2-5 years, and taxes here are not considered. In the price of big business real estate and equipment cost is in addition put.
If you decided to get good business, work not only to learn the true reason of its sale, but also to find faults. Properly weigh everything pros and cons and start price discussion. For example, if for this business quoted price at a rate of the current 2-year profit will count, what is the time it is required to you independently to base the same business. If by your calculations to turn out year or a little more, can safely carry on negotiations on business purchase. First, having begun business from scratch, you should spend money, secondly, where a guarantee that you receive desirable result, and thirdly, purchase of ready business will allow you to receive back a half of investments of all in a year.