More About Buying A Business

Global Business Exchange has identified three main reasons that an individual or corporation may buy a business.

1. For Acquisition. Financial Buyers can generally be classified as investors interested in the return they can achieve by buying a business. They are interested in the cash flow generated by a business and the future exit opportunities from the business. They are typically individuals or companies with money to invest, and who are willing to look at many different types of businesses or industries. Their goals may include growing cash flow through revenue enhancement, expense reductions, or creating economies of scale by acquiring other similar companies. Global Business Exchange can identify targets in the "for sale" and the "quietly for sale" marketplace.

2. Strategic Buyers. Strategic buyers are interested in a company's fit into their own long-term business plans. Their interest in acquiring a company may include vertical expansion (toward the customer or supplier), horizontal expansion (into new geographic markets or product lines), eliminating competition, or enhancing some of its own key weaknesses (technology, marketing, distribution, research and development, etc.). GBE brokers assist the buyer to find companies that meet their criteria.

3. American Dream. Individuals who have made money for other people/companies and want to now make money for themselves, people who are no longer interested in being a cog in a corporate wheel, people who want to work from home, are semi-retired, and want a small retail or service business are typical buyers of businesses. They are interested in companies that allow them to get a return on their investment, service their debt, and take a salary. A location that is near to their residence is also important. Typically these buyers have never bought a business for themselves and need an experienced GBE broker to hold their hand through the process.