PURCHASE OF EXISTING BUSINESS IN AUSTRIA

PURCHASE OF EXISTING BUSINESS IN AUSTRIA

ADVANTAGES

• Minimum time spent. The procedure for purchasing a business is much simpler than the procedure for registering a new company. However, it is worth considering that it is not always possible to quickly find a company that meets your criteria, as well as the factor of negotiations with the owners of the company.
• Established sales channels and client base.
• Ability to build a company activity plan based on data from previous years.
• Experienced employees.

DISADVANTAGES

• Significant efforts to ensure the company’s competitiveness, to retain and find customers, and to retain the company’s employees.
• Buying an existing business requires more significant financial costs than creating a new company. However, you need to understand that for these costs you get a company that owns property, experienced employees, customers, as well as a certain status. It is only necessary to assess the value of the desired

What we offer to customers for the purchase of a ready-made business in Austria:

• Formation of criteria and search for potential companies that meet your expectations.
• Establishing relations with business owners: contact with business owners, getting to know and building trust between the buyer and the owner, signing a non-disclosure agreement (NDA).
• Thorough examination of all documents (due diligence) and assessment of the company’s value.
• Price reconciliation, tax optimization measures and clarification of financing.
• Preparation and detailed agreement of the terms of the sales contract.
• Signing the sales contract and its notarization.
• Transfer of funds and transfer of the company to the new owner.

What do we pay attention to when buying a ready-made business?

• Responsibility for reputation: each formed company that has worked on the market for a certain time is evaluated in a certain way by counterparties and A positive assessment of the acquired company by the above-mentioned subjects will greatly simplify the process of business scaling;
• Liability to creditors: you are responsible for the obligations to the old creditors of the company.
• Liability for contributions to the authorized capital: after purchasing the company, you will be jointly and severally liable with the previous owner for the contributions to the capital that have not been paid;
• Liability for tax debts: as a transferee, you are responsible for all tax liabilities of the previous owner incurred during the calendar year prior to the transfer;
• Responsibility for salaries: you assume all employment relationships with all rights and obligations. This may include pay above the standard pay scale or a special holiday agreement. Liability also extends to salary arrears for the past twelve months.
• Liability for warranty service. As a assignee, you are also responsible for products and services provided to customers prior to their purchase.

How to determine the price of the company that I want to buy?

There are several basic methods of estimating the value of a company:

• Net asset value method: the main focus is on the value of the individual components of the company, which then form the total value.
• The capital cost method, which helps determine the value of current investments based on projections of how much money they will bring in in the future.
• Market Value Method: Industry common multiples are generally used. For example, EBITDA (earnings before interest, taxes, depreciation and amortization) is multiplied by a factor of x, which forms the purchase price.

There are non-quantifiable factors that must be considered. This could be, for example, the degree of potential for process optimization or know-how that has been developed but not used yet.

We operate in accordance with Austrian law. What does this mean specifically for you? Fast processes that ensure the quality and safety of buying and selling a business in Austria, because we know what it takes to start a business even in difficult times.