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Buying a Business

Looking for a bargain?

Deal activity has shrunk by almost 50% in the last 12 months, so you might have thought it was a bad time to be considering buying a business.  Or, you could be savvy enough to realise that it’s actually a great time to possibly pick up a strategic goldmine!

When should you think about buying another business?

• If you want to grow quickly, growth by acquisition is certainly quicker than organic growth.  But it comes with its risk, so talk to us about the steps you need to take to ensure you are paying the right price, and you can deal with the integration of the two businesses efficiently;
• If you have a particular challenge in your business (e.g. difficulty obtaining quality staff, wanting to spread your customer base, needing a better location, or if you wish to have more buying power with suppliers) then buying a business that doesn’t have those issues, can be a good way to solve them;
• Merging with a similar business can provide economies of scale, as you could share certain overheads or fixed costs.  If you know other businesses in your sector that are struggling, it may be worth approaching them with this possibility;
• If you’re running a great business, and just want a new challenge – there are plenty of opportunities out there, whether in the same sector or a completely different one!

There are some real bargains to be had & it’s definitely a buyers’ market out there.  We can discuss the options for financing any acquisition, so don’t think you need to be already sitting on a pile of cash to do it!  But taking good advice is critical to avoid wasting a lot of time & money. 

Please contact Philip Munk on P.Munk@twpaccounting.co.uk, if you require any more information, or just want to chat through the various options in your circumstances.

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