Simple & Good Reasons to Acquire a Business. (it’s a sexy & smart strategy)

At BuyAndSellABusiness.com, we’ve been on a journey to make buying & selling all types of businesses less difficult, less stressful and more fun and simple. Entrepreneurship through acquisition is going to gain more and more momentum in 2018 and beyond. Why? It’s simple; BuyAndSellABusiness.com will continue to spearhead conversations exampling that entrepreneurship is not only about starting something from scratch, but also about identifying an existing business and growing it. Two of my favourite success stories (aside from Amazon Indoor Playground & Party Centre – click here to read their case study) are those of Howard Shultz of Starbucks and Liz Whitehurst of Owl’s Nest. See below…

(mind blown, right?)

Buying an existing business (small or large) can be even more sexy, smart and exciting than starting your own business. Most people will rebut that statement saying; “It costs a lot to buy an existing business.” My answer to that is simple; “You’ve obviously never tried starting a business from scratch!” Moreover, the point of this blog is to showcase the reasons why businesses become acquired or the reasons why people acquire businesses, which is actually quite simple to understand, so don’t sabotage it and make it more difficult than it has to be! Let me break it down for you.

1. The company is simply too cheap to be ignored.

2. There are an ample number of opportunities for growth.

3. Making the acquisition would not put a dent in your balance sheet or personal account.

4. The company is coming off consistent and profitable Year-over-Year growth.

5. Company culture and customer experience is positive.

6. The business ignites you with passion and a new found purpose.

To sum up the points mentioned above, the business in question is operationally doing the best that it has been doing in years, and it is too much of an asset and too cheap for a number of suitors to ignore.

Sometimes, when looking to acquire an existing business, you shouldn’t always look at it from a traditional acquisition perspective, applying multiples to sales and earnings. Sometimes all you need to do is take a look at how much it would cost to acquire the business, and if you truly believe in the vision and potential to make 10x that. Then, just go for it!

What do you think? Comment below.

Nunzio Presta, Founder & CEO, BuyAndSellABusiness.com

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Opinions expressed here by Contributors are their own.