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Entrepreneurship

Entrepreneurship. Delivered in: Islamia University Bahawalpur Presented By: Tasawar Javed. Buying an Existing Business. Buying an existing Business Is the right type of business for sale in a market in which you want to operate?

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Entrepreneurship

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  1. Entrepreneurship Delivered in: Islamia University Bahawalpur Presented By: Tasawar Javed

  2. Buying an Existing Business • Buying an existing Business • Is the right type of business for sale in a market in which you want to operate? • What experience do you have in this particular business and the industry in which it operates? • What is the company’s potential for success? • What changes will you have to make? And how extensive will they by-to realize the business’s full potential? • What price and payment method are reasonable for you and acceptable to the seller? • Will the company generate sufficient cash to pay for itself and leave you with a suitable rate of return on your investment? • Should you be starting a business and building it from the ground up rather than buying an existing one?

  3. Buying an Existing Business • The advantages: • A successful existing business May continue to be Successful • An existing business May already have the Best Location • Employees and Supplier are established • Equipment is installed and productive capacity in known • Inventory is in place and trade credit is established • The New business owner hits the ground running • The new owner can use the experience of the previous owner • Easier Financing • It’s a Bargain

  4. Buying an Existing Business • The Disadvantages: • It’s a looser • The previous owner may have created ILL will • Employees inherited with the business may not be suitable • The business location may have become unsatisfactory • Equipment and facilities may be obsolete or inefficient • Change and innovation are difficult to implement • Inventory may be outdated or obsolete • Accounts receivable may be worth less than face Value • The business may be overpriced

  5. Buying an Existing Business • The Steps in Acquiring a Business • Analyze your skills, abilities, and interests • Prepare a list of potential candidates • Low profile companies that might be for sale but are not advertised as such • Investigate and evaluate candidate business and evaluate the best one • Explore financing options • Ensure a smooth transition

  6. Buying an existing business • Make sure you shouldn’t be starting a company instead • Determine the kind of business you want-and whether you are capable of running it • Consider the location you want • Reconsider life style again • Cozy up to lenders in advance • Prepare to sell yourself to the seller • Once you have defined the kind of business you are after, find the right company • Choose the right seller • Do your research before agreeing to a price • Make sure your letter of intent is specific • Don’t skimp on due diligence (don’t believe everything) • Be skeptical • Don’t forget to assess the employees • Make sure the final price reflects the company’s real value

  7. Thank You!!!! • Q&A

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