Ready business - acquisition risks
The available funds of the company require investment in the business, because the famous saying goes: money makes money. So where is it more profitable to invest free capital and how to protect yourself from financial risks?
One of the investment methods is buying a ready-made business. Buying a business is not the safest way to invest, but a greater number of risks can be avoided even before making a purchase and, of course, it is better to entrust this not the easiest thing to professionals.
Mistletoe is a very beautiful, sophisticated and elegant flower that has long been considered witchcraft. These characteristics also correspond to people born in the period from 1 to 10 February. They are no less elegant, preferring the very best when it comes to clothing, restaurants or food. Therefore, x can often be found in various entertainment establishments. They prefer to swagger much more than to carry out orders from their boss. Naturally, such behavior cannot go unnoticed by others. As a result, the representatives of this sign have an army of fans and imitators. If we are talking about a representative of the beautiful half of humanity, then all the girls will envy her, and seducing even the most inaccessible gentleman will be a matter of a couple of minutes for her. As for the men of this sign, they, as a rule, are very reckless and ready to rush into the pool with their heads. Moreover, they are very popular among girls. Bad habits are not uncommon for them.
Unfortunately, the process of a normal civilized market for the sale and purchase of a ready-made business in the country is just beginning to develop. There are offers, there is demand, but there is no general safe approach to this issue.
So is it worth risking money and buying someone else's business. It is impossible to answer this question unequivocally, the risks when buying a ready-made enterprise are divided into risks that provide for criminal prosecution and are not criminally punishable. The natural goal of the seller or his authorized person is to sell the business as expensive as possible, so any information that may affect the price reduction will be silent. To minimize the risks, it is necessary to carry out competent preparation of the upcoming purchase, this is a rather difficult and time-consuming process that directly depends on what you are purchasing: a ready-made enterprise (with its own production facilities, selected and working personnel, in some cases with an established circle of customers) or a franchise. In principle, outwardly, both types of transactions do not have a significant difference, since both there and there the purchase of property rights and a certain production technological process takes place, but the essence of the final result of the purchase is completely different. To successfully conclude a deal, it is necessary to conduct a marketing and financial analysis of the purchased company, to identify the real income generated, to find out based only on accounting documents is simply impossible, since the gray accounting of even a really profitable company can reflect a zero or even negative balance. To check what kind of income the company actually generates, you can calculate the permeability of the object within a couple of weeks, but it is better to introduce a person you trust into the company for a short time to see the real picture of what is happening inside the business.
The second very important aspect is the location of the company, very often the location is the reason why the business is put up for sale.
A business owner can try to sell a company with debts, the so-called off-balance sheet obligations are especially dangerous when the past of the business being sold is too vague: frequent changes of founders, confusing ownership structure. In this case, it is necessary to correctly legalize the transaction, so that the contract clearly spells out the responsibility that the seller bears in relation to outstanding loan obligations. It is also risky to buy a business where the main asset of the company is the professionalism of its employees, and you should not buy a business in the case where only “irreplaceable” employees work. Changing the owner of a company is a risk of losing not only valuable personnel, but also connections, and the degree of its dependence on the influence and connections of the owner is different in each case. In any case, when concluding a sale and purchase of an existing business, it is better for the new owner to discuss with the seller in advance what kind of assistance he can provide for a normal entry into the business with the least financial and personnel problems.
And so to summarize: there is no doubt that buying a ready-made business as an enterprise is a difficult and risky project, but only if the buyer is not an active participant in the real estate market and does not have a clear idea of the specifics of such transactions. On the other hand, with proper and conducting pre-sale preparation and subsequent competent and professional legal registration, the buyer receives the rights to property, which, with minimal investment, can bring good dividends.
Перевод статьи:301 группа. Жарасова Сымбат
One of the investment methods is buying a ready-made business. Buying a business is not the safest way to invest, but a greater number of risks can be avoided even before making a purchase and, of course, it is better to entrust this not the easiest thing to professionals.
Mistletoe is a very beautiful, sophisticated and elegant flower that has long been considered witchcraft. These characteristics also correspond to people born in the period from 1 to 10 February. They are no less elegant, preferring the very best when it comes to clothing, restaurants or food. Therefore, x can often be found in various entertainment establishments. They prefer to swagger much more than to carry out orders from their boss. Naturally, such behavior cannot go unnoticed by others. As a result, the representatives of this sign have an army of fans and imitators. If we are talking about a representative of the beautiful half of humanity, then all the girls will envy her, and seducing even the most inaccessible gentleman will be a matter of a couple of minutes for her. As for the men of this sign, they, as a rule, are very reckless and ready to rush into the pool with their heads. Moreover, they are very popular among girls. Bad habits are not uncommon for them.
Unfortunately, the process of a normal civilized market for the sale and purchase of a ready-made business in the country is just beginning to develop. There are offers, there is demand, but there is no general safe approach to this issue.
So is it worth risking money and buying someone else's business. It is impossible to answer this question unequivocally, the risks when buying a ready-made enterprise are divided into risks that provide for criminal prosecution and are not criminally punishable. The natural goal of the seller or his authorized person is to sell the business as expensive as possible, so any information that may affect the price reduction will be silent. To minimize the risks, it is necessary to carry out competent preparation of the upcoming purchase, this is a rather difficult and time-consuming process that directly depends on what you are purchasing: a ready-made enterprise (with its own production facilities, selected and working personnel, in some cases with an established circle of customers) or a franchise. In principle, outwardly, both types of transactions do not have a significant difference, since both there and there the purchase of property rights and a certain production technological process takes place, but the essence of the final result of the purchase is completely different. To successfully conclude a deal, it is necessary to conduct a marketing and financial analysis of the purchased company, to identify the real income generated, to find out based only on accounting documents is simply impossible, since the gray accounting of even a really profitable company can reflect a zero or even negative balance. To check what kind of income the company actually generates, you can calculate the permeability of the object within a couple of weeks, but it is better to introduce a person you trust into the company for a short time to see the real picture of what is happening inside the business.
The second very important aspect is the location of the company, very often the location is the reason why the business is put up for sale.
A business owner can try to sell a company with debts, the so-called off-balance sheet obligations are especially dangerous when the past of the business being sold is too vague: frequent changes of founders, confusing ownership structure. In this case, it is necessary to correctly legalize the transaction, so that the contract clearly spells out the responsibility that the seller bears in relation to outstanding loan obligations. It is also risky to buy a business where the main asset of the company is the professionalism of its employees, and you should not buy a business in the case where only “irreplaceable” employees work. Changing the owner of a company is a risk of losing not only valuable personnel, but also connections, and the degree of its dependence on the influence and connections of the owner is different in each case. In any case, when concluding a sale and purchase of an existing business, it is better for the new owner to discuss with the seller in advance what kind of assistance he can provide for a normal entry into the business with the least financial and personnel problems.
And so to summarize: there is no doubt that buying a ready-made business as an enterprise is a difficult and risky project, but only if the buyer is not an active participant in the real estate market and does not have a clear idea of the specifics of such transactions. On the other hand, with proper and conducting pre-sale preparation and subsequent competent and professional legal registration, the buyer receives the rights to property, which, with minimal investment, can bring good dividends.
Перевод статьи:301 группа. Жарасова Сымбат