Reasons to buy a business

Why consider acquiring a company?

If you have the ambition to acquire a company, first ask yourself why you are considering this and what goals you aim to achieve. Once you have clarity, you can take the next steps to find the right company and proceed with the purchase. With 25 years of experience in business acquisitions, Marktlink is here to support you during this crucial phase of your life.

Reasons for acquiring a company as a starting entrepreneur

If you've been harboring the dream of entrepreneurship for a while, acquiring an existing company can be a significant step toward turning that dream into reality. Below, we outline the reasons for acquiring a company as a starting entrepreneur.

Good understanding of costs and revenue

An established company has a track record, existing revenue, brand recognition, and reputation. You can anticipate both the income and associated costs by examining past results, allowing you to assess whether the business is or will remain profitable.

Utilize an existing customer base

An existing company already has its own customer base that you can immediately leverage. These customers provide a solid foundation, ensuring you have immediate income to fuel further growth.

Easier financing

Obtaining financing for an existing company is often easier than for a new one. An established company has a track record, demonstrating its ability to generate income and growth potential, reducing the perceived risks for investors.

Practical matters are already settled

When you acquire a business, practical matters such as permits, existing contracts, and property-related issues are likely already settled. This streamlines the transition process.

More time to focus on business growth

Choosing to acquire a business allows you to focus more on growth. Unlike starting a business from scratch, where building takes significant time and effort, acquiring a business provides more time to concentrate on concrete goals and build a successful enterprise.

Lower risk

Acquiring an established business involves less risk than starting a new venture. If the business you are acquiring was successful in the past, there is likely substantial growth potential, providing new entrepreneurs with more financial security.

Experienced employees

The acquired business already has employees familiar with its operations. You can tap into their knowledge and experience, quickly gaining insight into processes, strategies, and the company culture.

Reasons for acquiring a company as an existing entrepreneur

If you already own a business, acquiring and integrating another company can be a strategic step to grow your current enterprise. Below, we discuss the reasons for acquiring a company.

Access to new markets

Acquiring another company can provide access to new geographical markets, target audiences, or customer segments that may be challenging to reach with your current business, thereby expanding growth opportunities.

Diversification

Acquiring another company can diversify your business, reducing dependence on one market or product and enhancing resilience against economic fluctuations.

Access to talent and expertise

By acquiring a company, you can immediately leverage talented employees familiar with the acquired business. Integrating these employees into your current business allows you to use their knowledge and experience to fuel growth.

Brand strengthening

Acquiring a well-performing company can strengthen your own brand identity and potentially improve your market position relative to competitors.

Improved financial performance

If the acquired company outperforms your current business, the acquisition can enhance overall financial health and profitability.

Engage the right acquisition specialist

Acquiring a company is a lengthy and complex process. It is advisable to engage an acquisition specialist. With over 25 years of experience in business acquisitions, Marktlink is ready to sit down with you, understand your motivations, preferences, and future plans, and find an acquisition target that perfectly aligns with your goals. Our specialists know exactly what to look for during the purchase process, ensuring you secure the best deal with the selling party.

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