Buying AnExisting Business

The advantages of buying an existing business include:

  • The purchase of an already established business with an existing track record;

  • The existence of consumer “goodwill”;

  • An existing record of sales and license requirements;

  • The existence of fixtures and inventory, meaning that the new owner does not usually have to replace these items — at least in the time immediately after the purchase when cash may be tight;

  • Possibly a greater willingness on the part of suppliers to extend trade credit to the new business purchaser.

Starting from scratch has its own advantages which include:

  • Not inheriting any consumer “ill-will” that might exist in a going business;

  • The ability to lay out the facility in a way that the purchaser feels will be most conducive to doing business;

  • Purchasing will new fixture, if desired;

  • Choosing surveyors and suppliers on the basis of negotiation rather than inheriting them;

  • Purchasing inventory based on the new owner’s perceptions and knowledge.