Small business – is only the initial stage on the way to big money. And of course, at once it comes an idea to an entrepreneur to expand it to a large one. It is possible to realize it, for example, by entering into mergers and acquisitions of smaller companies. True, there is a risk to buy a pig in a poke, because only the seller knows the pros and cons of his goods, the buyer may be mistaken.
Today, according to experts, attempts to limit the potential buyer for information about the true condition of firms are observed in 85 percent of cases, even at 10 cases we can say about the blatant fraud. It turns out that only 5 percent of the businessmen buy the product, which had hoped for. The statistics is sad, is not it?
By the way, often unscrupulous sellers use the following tricks. Firstly, they overstate the revenues and financial results for the organization. Secondly, they underestimate the commitment by improper or untimely reflection. Thirdly, they withhold information about significant claims of tax inspection, suppliers or customers. Oh, and fourthly, to keep quiet about available sponsorship of any third party or the credit agreement concluded with the pledge of fixed assets of the reporting date.
It is no secret that almost all entrepreneurs wishing to sell their business place messages in the newspapers of free ads or ads in the department lowercase local periodicals, in any business magazines or newsletters on relevant websites. Another source of suggestions – companies brokers specializing in selling businesses. However, please note I said “almost” not in vain. Some entrepreneurs do not like to declare “popularly” the sale of their business. The reason – is in the need for compliance with the strictest confidentiality, because such a message could cause a stir among customers, employees and suppliers. As a result, these potential sellers prefer to use a network of personal contacts to find buyers. And by the way, it is much safer to carry out the transaction with them, for obvious reasons. So before buying a new business make inquiries among friends, acquaintances, employers, lawyers, bank employees, accountants, consultants and colleagues. You can also interrogate suppliers or distributors, working in the business you’re interested in.
Once you have decided on the candidates for the acquisition, determine the reasons for the sale of selected companies. The former owner may have several reasons. Firstly, a change of residence, and because of this an inability to directly control and governance process. Secondly, the differences between the owners, for example, on ways of further development of the company. Thirdly, loss of interest in this type of business. Unfortunately, after six-eight years of activity business sometimes ceases to bring satisfaction. Fourth, the reasons for selling a business can be a disease or achieving a ripe old age. In this case, the owner must ask whether he had successors or rightful claimants on the matter. Fifth, a person could simply want to invest in another project that is why he decided to sell the business.
Understandably, buying a company is only viable if the owner of the company is guided by the considerations included in this list, of course, if he said the true, and it suits you.
Business is a dream for lots of people. But nowadays business has become not only a kind of activities and occupation – it has turned into goods. It is often today when someone buys and sells businesses just to earn money on it. Whereas another part of businessmen sells their businesses because of some troubles or inability to conduct it any more. In any case when selling a business it is better to address to experts who deal with it. And here business for sale site is of much help because there one can find much details related with this process. Canada residents are advised to visit toronto business for sale or vancouver business for sale experts.
And keep in mind that before dealing with any issue it is smart to learn some info about it. And today it is quite easy to do as web technologies provide you with a nice opportunity to find anything you require.