FAQ.
What are the Advantages of Buying an Existing Business?
The main advantage of buying an existing business, versus start up, is that there is existing positive cash flow. Additionally, there is existing infrastructure in place, business operational processes, people and resources in place from day one after closing. While these aspects may be improved by an incoming buyer, the fact that they exist in some fashion accelerates the potential ROI opportunities. Additionally, existing businesses are typically easier to finance. One should also consider the potential of buying a franchise, whether existing or new.
1.
Why Business Owners need Business Brokers?
When a company owner needs to sell a business, he/she cannot just display a for sale sign in the window. The Business Owners need the professional assistance of a Business Broker or M&A Expert to find and evaluate potential Buyers. Buyers also rely on Business Brokers or M&A Experts to facilitate the business purchase transactions.
2.
Why Troy Business Advisors?
We are focused on assisting business owners in making educated decisions about selling their business. Whether your company has $2M in annual revenue or $20 million, our experience, expertise and resources will assist you in accomplishing a successful sale. We’re entrepreneurs just like you. We have successfully operated various businesses, and we sold our own companies, so we have first-hand knowledge necessary to guide you every step of the way to resultative acquisition deals. Last, but certainly not least, we are extremely detailed, highly ethical and will work diligently to minimize a sellers liability. We do not charge any upfront fees; we are only remunerated at the closing upon completion of a successful acquisition transaction.
3.
How Are Most Acquisition Transactions Financed?
Business transactions typically consist of a combination of the buyer’s equity, third-party financing and some seller financing, depending on the buyer’s personal investment capability, Additionally, specific business’ dynamics and economic trends are taken into account. Generally, Small Business Administration (SBA) loans are the most effective third-party financing for small businesses. Many buyers don’t realize that they can use their retirement funds such as 401ks, IRA’s, Company Pension Plans, without penalty, as equity to start a business. Contact Troy Business Advisors for assistance and a clear and true introduction to SBA sources!
4.
How much is your business worth?
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