I’m buying an existing business

Taking over a company? Buying a competitor? Purchasing a strategic vertical partner? As with any major purchase, buying a business requires some careful foresight. Thoroughly evaluate the situation so you don’t end up with an expensive mistake. Before you request that loan or investment, ask yourself these 5 questions:

Top 5 considerations for buying an enterprise:

  1. Which company should I buy? This is the biggie. There are many things to consider: What is the company’s relationship with its customer base? How healthy is the brand? What does this business offer that you don’t?
  2. Where should I buy? Maybe you’re expanding through mergers and acquisitions. Maybe there’s a competitor who dominates a geographic market and you want in. But before you buy a business in another area, think about the logistical constraints of running a company where you aren’t.
  3. What should I buy? Make sure you or your team understands the industry or vertical that you’re entering. Is it truly growing or just trending? Too many failures happen when entrepreneurs purchase companies they don’t fully understand.
  4. When should I buy? Ideally, purchasing a company is a strategic decision. The best time to buy is often during economic downturn. Save your money. Be patient. Wait for an opportunity to purchase a company when valuations are low but future outlooks have potential.
  5. How much should I pay? Determining value is a difficult thing. Get an objective valuation from an expert, but also consider what a company is worth to you. Does the company add intangible value or strategic positioning to your current list of products or services?
When you’re buying an existing business, it helps to map out your objectives, expected revenue, marketing channels, and so on. You need a well-crafted business plan to serve as your guide. That’s where we come in. At Masterplans, we draw upon more than 20 years of experience to develop compelling financial forecasts, exclusive market & industry analysis, growth strategies, and more. With thousands of business plans under our belt, we can help your new business acquisition go as smoothly as possible. Give yourself the best shot at success!
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