Buy a Business in Florida

New business

Why buy an existing business instead of starting one from "scratch"?

Michael Gerber points out in his award-winning book "E-Myth Revisited" that 40% of new businesses fail within the first year of operation and 80% within the first five years of activity. Every promoter of a new company must be prepared to assume the risks that arise during the first years of operation, coinciding with the learning curve. The alternative of creating a business from “scratch” is opposed to the option of acquiring one that has already reached maturity and shows figures of reasonable profitability. The risk, in these cases, is substantially reduced. The main advantages of acquiring a running business are combined in the following factors:

History: It is a business concept that has been successfully tested. The company has a history supported by accounting, administrative, operational and market documents.

Tradename: The business name, trademarks and other intellectual property rights that are acquired are already for public use and are planted in the minds of customers and the community.

Portfolio of Clients and Suppliers: It takes years to build a significant portfolio of satisfied customers by offering them quality products and services at reasonable prices. Likewise, forming a team of reliable suppliers is only possible through a trial and error process that the company for sale must have already successfully overcome by the time of closing. The purchase-sale contracts generally include a clause that obliges the Seller to remain during a reasonable transition period that allows the smooth transfer of commercial relations to the new administration.

Concentration: The new owner will be able to start the business immediately, without having to go through the process of requesting permits, installation, hiring personnel, searching for suppliers and other pre-operational procedures.

Staff: The process of recruiting, selecting and training staff is substantially reduced when a going concern is acquired.

Income Generation: When a going concern is purchased, the owner will immediately hear the sound of the cash register and have the satisfaction of feeling that the payback process has begun.

Risk: Even when the risk is substantially sublimated with the acquisition of an ongoing business, it is important to bear in mind that the evaluation process prior to the purchase must be carried out with the utmost seriousness and precision. The review made by an Accountant of the accounting and administrative books; the check by a lawyer of the encumbrances that may weigh on the assets for sale and possible pending litigation against the company; and the feasibility of assuming the lease, are some of the aspects to consider. Every contract must include a clause that prohibits the Seller from performing acts of competition during a determined period and territory.

Support: For more than 25 years, the leadership of our Organization in the sector has set the professional standards by which most of the companies in the competition are governed. With its unique experience, extensive support resources, and highly-skilled team of business brokers, VR has sold more business in North America than any other company.

Check out our list of businesses for sale where you can access the search engine with more than 3.500 available businesses.

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