Buying a small business
Starting and managing a completely new business are definitely not easy tasks, since they involve significant risk-takings and decision-makings. There is a wide range of options in terms of business structures, the size of the business, and the industries or markets that may be of your interest. An alternative to setting up a start-up is to purchase an existing business. This may provide advantages for several reasons.
First, existing businesses have established foundation bases of plant and equipment, procedures, trained staff and existing customer base. This will spare you of the headaches of setting the basic conditions that bears a start-up, allowing you to focus more on growing and enhancing the business. Secondly, buying an existing business means immediate cash flow and turning a profit sooner whereas most start-ups may take up to several years to start making profits. This is why purchasing a business appears more attractive to many investors.
Buying an existing business may nevertheless give rise to some issues if you are unfamiliar with the operating environment and external factors that can influence your business’ success such as legal and regulatory framework of the industry in which the business operates, contractual agreements with suppliers and subcontractors or any other existing liabilities related to the previous owner. In addition, other questions in regard to leases, franchising, licences and permits can also be crucial to the management and enhancement of your business operations. Lastly, buying a business may also entail different types of risks since the initial cost of investment is most likely higher than the cost of starting a small business from scratch. There are different costs associated with the sale of a business, which requires close examination and good understanding from multiple perspectives to make a sound and safe decision when investing your resources.
It is highly recommended that you seek advice from professional legal and accounting advisors, who are capable to provide a useful guidance and insights into risk management and decision-making in your best interest. The extensive experience and knowledge of Nevile & Co. in this area will help you in your decision-making processes. Our lawyers have acted successfully for many local and offshore clients in selling and buying businesses, from small private companies to big corporate groups. For assistance, please contact us so you can discuss your concerns personally with our team and experience our legal services in four different languages!