It’s Business, And It’s Personal

Buying a business may be better than starting one

On Behalf of | May 9, 2019 | Buying & Selling Businesses |

Those who are thinking about being a business owner in North Carolina may choose to start a company from scratch. In some cases, it may be best to buy a company that already has a track record of success. Buying a company that is already profitable means the new owner will be able to see a return on investment in less time. Furthermore, important infrastructure is already in place such as key employees and a known product or service.

It can take a lot of money to start a company from the beginning. However, the person selling the business may allow a buyer to make payments each month until the company is paid for in full. The monthly payments are usually a percentage of the company’s profits during that time period.

As long as the business is healthy and strong, it should continue to profit for many years into the future. While past performance is not indicative of future results, companies that have been profitable in the past are likely to be profitable into the future. Businesses that sell staple items such as food or medicine are likely to remain strong during recessions or other economic slowdowns.

To purchase a business, a prospective buyer needs to perform due diligence. This helps to ensure that the buyer is acquiring a company that will make money and that the buyer is the right person to run that organization. An accountant, an attorney and other professionals may be able to help with the due diligence process. If a deal is struck, an attorney may review it to ensure that it is structured favorably for a business owner.

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