Should I buy a business or start a business? Owning a business may be a dream, but the process of taking an idea and turning it into a viable organization is sometimes more of a nightmare. There is a lot of effort involved and most startups will not find enough funding to get off the ground. Many others do not make it past their first year in business. These facts do not mean that anyone should give up their entrepreneurial plans, they just need an alternative path to reach the success they desire. Should you or your company buy a business? Are you a private equity firm looking to expand your portfolio?
Why not buy a business that’s already successful?
One method that offers more security is taking over the reins of an established company. When you buy a business, you own something with a proven track record of success, and it’s easier to prove to lenders that the company can make a profit. A business acquisition provides the new owner with a company that already has brand recognition and a client list. If you’re a corporate executive, looking to buy a business, wouldn’t it be easier to put your years of experience and education to immediate use, rather than starting from scratch? A new business offers no track record of success, whereas an established business does. If you’d like more information on how to value a business, please check out our page on business valuation. We do provide business valuations for buyers who need to know what to offer on a business.
Ever think about acquiring another business to grow yours?
An existing business owner should also consider the possibility of expansion through acquisition. Acquisitions help to increase product lines, customer bases, and expand the menu of services you can offer. Buying another business may also offer cost-saving synergies that are realized over time. A merger with or the purchase of a competing company instantly eliminates the risk they once posed, increases client lists, and much more, without any undue effort. Through higher aggregate cash flow levels and the effects of multiple arbitrage, the potential value of the company can be boosted immediately, and the acquisition sends a strong signal to potential clients of the company.
What’s best for you?
Weighing the pros and cons of starting a new company or buying an existing one is an important decision. You should consider the time it will take to determine the potential market for your product, the dollars and time it will take to establish a new brand, and the employees need to hire to make your idea a reality. Even seemingly simple decisions like developing and registering a logo, a company name, and basic marketing plans could take months or longer to choose and there are no guarantees they will appeal to your target customer. Another benefit of buying a business is that you can will immediately have the guidance of the previous owner and usually an existing, trained staff that makes it possible to continue the daily operations without interruption. You’ll be able to make changes and improvements of course, but the foundation has already been established. For an individual buyer, if you’d like a list of small businesses to buy in your area, check out BizBuySell. For larger buyers, either strategic corporate buyers or private equity firms, please email us below and we will put you on our distribution list.
Confidential. Contact. Conversation.
Ready to talk? Let’s go.
The experts at CGK Business Sales are ready to talk to you about helping you buy a business. And it’s always 100% confidential.
While we certainly love when you call, we love it even more when you use this form to email us!
Greg Knox, CFA has spent his 20+ year career in investment banking, private equity, a hedge fund, and institutional trading, at institutions as Deutsche Bank, T. Rowe Price, and Wachovia. After his MBA at Cornell...(click Greg's picture to read more)
Derik Polay has over twenty years of experience in distressed securities and mergers and acquisitions and seven-plus years of upper-management positions at small and middle-market businesses. Derik’s previous ... (click Derik's picture to read more)
Eric Lewis has over 17 years of experience in the financial industry. He has worked for a breadth of companies ranging from investment banks to proprietary trading firms. Following his MBA at the University of Chicago, Eric... (click Eric's picture to read more)
Jason Clendaniel has been in “business” since he was seven years old. Whether mowing lawns, or delivering papers, Jason learned business from the ground up. After graduating from the United States Naval Academy... (click Jason's picture to read more)
Matthew Mistica has 13+ years of experience in finance and entrepreneurship. Matthew spent 7 years in Corporate Finance working for Chevron and Shell Oil. After his MBA at the University of Houston, Matt became... (click Matthew's picture to read more)
Wes McDonough has over 18 years of experience in M&A, corporate finance, and entrepreneurship. Previous to CGK, Wes held numerous positions, including accounting, payroll, billing, project management, and IT/Application Support at ... (click Wes' picture to read more)
Matthew Zienty has 20+ years of financial industry experience in areas ranging from institutional equity trading, currency trading, financial sales, RIA valuations, payout/loan negotiations & compliance. He has worked for ... (click Matthew's picture to read more)
David Smoot has 20 successful years working for Fortune 500 companies in sales and finance and owning his own small businesses. His leadership roles included sales, finance, managing multi-million dollar product launches, training new ... (click David's picture to read more)
Mr. Thomas “Jay” Lennon is an Air Force veteran, combat aviator, and distinguished leader with 26 years’ experience leading multi-million dollar projects, finance, and organizational transitions, inside and outside of the.... (click Jay's picture to read more)
Director of Business Development
Lance Hupfeld has over 25 years of experience in sales and business development management. With a broad array of valuable experience, Lance has deep knowledge in healthcare consulting... (click Lance's picture to read more)
Since 2020 small business owners have been on a wild ride caused by labor shortages, Covid surges, and supply chain issues. Many companies were hard hit, some were only mildly affected, and others prospered. These events have created new trends in the business world, prompting many owners to choose this time to sell. Professional guidance …
Building a successful business is an incredible accomplishment. It takes years for most aspiring business owners to get to that point, and many never make it. Now that you’ve accomplished that amazing goal, there may eventually come a time to start considering how to make an equally successful exit. Making a successful exit when selling …
Running a business can be challenging, to say the least. According to the United States Small Business Administration or SBA, roughly one in twelve small businesses close during a given year. While these numbers may be a bit disheartening, potential sellers can achieve success if they follow the right steps. Below, we’ll list a few …
2720 Bee Caves Road
Austin, TX 78746
San Antonio Office:
700 N Saint Mary's St
San Antonio, TX 78205
1200 Smith St
Houston, TX 77002
325 N Saint Paul St
Dallas, TX 75201
40 N Central Ave
Phoenix, AZ 85004
Colorado Springs Office:
102 S Tejon St
Colorado Springs, CO 80903
Denver, CO 80202
424 Church St
Nashville, TN 37219
312 S 4th St
Louisville, KY 40202
111 S Calvert St
Baltimore, MD 21202
Washington DC Office:
1050 Connecticut Ave NW
Washington, DC 20036