Buying a Business

Discussion in 'Growing and Managing a Business' started by Jerlene, Feb 19, 2012.

  1. Jerlene

    Jerlene
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    Have you ever bought an existing or established business, online or otherwise? Have you ever ran into any legal problems because of it? What was the experience like?
     
  2. sigma

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    No, i dont like to buy business from others because i dont have a big management team to mange the business. I found it is hard to make charge on the management system of the established company, i prefer to set up a new company
     
  3. Jerlene

    Jerlene
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    I'm skeptical when buying established and existing businesses because I never know what kind of reputation they have.
     
  4. Business Attorney

    Business Attorney
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    I haven't bought a business myself but I am a business lawyer and have represented scores of buyers and sellers of businesses. There are many good reasons to buy an existing business, and of course many reasons why starting a business in some cases is better.

    Buying an existing business often gives you a big head start. It gives you an existing infrastructure, customer base, product or service and brand, among other things. It allows you to concentrate on improving what already exists.

    On the flip side, any existing business also probably has done some things differently than you would have. You either need to change those differences or live with them. That is part of the decision process when you think about buying a business.
     
  5. amit

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    Hello,

    I don't like buying other business because of existing business is big head pain. Different types of problem like that customer quires,product or services not good etc.......
     
  6. ArcSine

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    Similar to Business Attorney's post previously, I've participated in a number of buyouts and acquisitions in an advisory capacity. To your question, Jerlene, there can exist legal problems not found when starting a biz from scratch. As someone once put it, most closets have a skeleton or two. The only way to guarantee a skeleton-free closet is to build the closet yourself.

    The reason for this is primarily because certain types of liabilities are deemed to remain with the assets, even if the assets' ownership changes hands. The extent and details will vary with the jurisdiction in question. It's also due to the fact that many liabilities are merely contingent--or perhaps even hidden--at the time of the buyout, and they don't surface until after the seller has long since vanished, leaving the buyer holding the bag.

    This is not to imply that buying an existing biz is to be avoided. Acquiring an established Balance Sheet / P&L is superior to building from scratch in certain situations, and in other cases it's the other way around. It's just that it's important in an acquisition to have on your team an attorney who's familiar with these "carryover" types of liabilities, and knows how to structure a deal so as to mitigate their potential impact.
     
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  7. Sahil

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    Well, if it's offline business then before buying we often do some research about the company in market and by that we come to know about the reputation of the business. I haven't have purchased any business till now yet but I've helped several friends of mine in doing so and they have been successful in acquiring the business without any big troubles.
     
  8. Jerlene

    Jerlene
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    You can do as much research as you want but you will never find out everything you need to know, especially about a business' reputation. This is something you get by word of mouth.
     
  9. firstchoicecar

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    Well It never come this thing in my mind, Buying a business will really need a high capital.
     
  10. Bharat Book

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    Buying business is not an easy task.We need to do research for buying means we need to conduct thorough objective investigation.we have to find the reason for buying particular business.we need to study each and every aspect of business.first we must know the value of business that we are buying.Through research we come to know
    the reputation of business.
     
  11. glorystar1

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    Every thing start from zero is the easily to manage a company
     
  12. jitu1819

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    Buying a business is never be an easy task.It required smart business skills and knowledge of current business trends.
     
  13. coloradospring

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    If you are going to buy new business first look at their partners and share holders. It could be little costly but could be worthy.
     
  14. seorahulchauhan

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    Hmm i never buy a running business but one of my relative buy a running business and getting good revenue from that business. even he earn that much money he invested in that business.
     
  15. nanda27

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    thanks for sharing..Whenever i'll need this i'll consult you....
     

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