Buying a ready-made company with established turnover can be a profitable strategy for many businesses.
Below we look at why this can be useful, how to do it, how to avoid common mistakes, and how a law firm can help in the process.
Why buy a ready-made company with turnover
Buying a ready-made company with established turnover can be profitable for various reasons:
- Instant start. A ready-made company already has an existing business, customer base, regular customers, and turnover. This means you can start generating revenue and turnover almost immediately after purchase, without having to build a business from scratch.
- Possibility of expansion. Buying a pre-owned company can give you the opportunity to expand your business into new markets or industries that were previously unavailable to you.
- Less risk. The ready-made company has a history and has already passed through initial difficulties. You can assess its financial stability and profitability before purchasing, which helps to reduce the risk compared to starting a new business.
- Availability of established processes. A ready-made company often already has established processes, a team, suppliers, and management systems. This allows you to save time and effort, which is usually required to organize a new business.
- Ability to reduce competition. Instead of competing with existing players in the market, you can acquire them and become stronger by pooling resources.
- Improving the market position. Buying a ready-made company can help you move up the market faster and take a bigger share.
Of course, when buying a ready-made company, it is important to carefully analyze its financial condition, legal documentation, and business model, as well as take into account the individual needs and strategies of your business.
It is also important to do this under the guidance of professional consultants and lawyers to avoid possible problems and mistakes.
How to buy a ready-made company in Ukraine
Buying a ready-made company with established turnover is a complex process that requires a careful approach and compliance with legal and financial standards.
Here’s a step-by-step guide on how you can do it:
- Definition of goals and criteria. Before you start looking for a ready-made company, define your goals and criteria. What you are interested in industry, company size, location, profitability, degree of automation, etc.
- Search for companies. Use various resources to find ready-made companies that meet your criteria. This may include brokers, online platforms for selling businesses, professional networks and connections, market research, and expert recommendations.
- Evaluation of potential companies. Before choosing a company to buy from, do a thorough analysis. Consider aspects such as the financial health, turnover, assets, and liabilities of the company. Assess industry competition, identify growth opportunities, and identify potential risks.
- Establishing contact with the owners. After choosing a potential company, make contact with its owners or representatives. Express your interest in buying, and ask about the possibility of meeting and discussing the terms of the deal.
- Negotiations and agreement of conditions. Begin negotiating the terms of the deal, including price, payment terms, terms, inventory, and other important aspects. It is important to follow a professional approach and consider the interests of both parties.
- Study of legal documentation. Immediately after agreeing on the terms of the deal, the proposed company provides legal documentation, including a sales contract, asset inventory, and other necessary documentation. For this stage, it is important to hire a professional lawyer with experience in the field of corporate agreements.
- Financial planning. Prepare the finances for the purchase. This may include financing through a bank, investors, own resources, or a combination of these factors. Consider the tax implications of the transaction and ways to optimize.
- Completion of the agreement. After agreeing on all the conditions and studying the documentation, sign the sales contract, make the payment, and complete the transaction. Having an attorney or law firm can help you at this point.
- Transfer of ownership and management. After the end of the agreement, the process of transferring ownership and management of the company will take place. You should organize this process and ensure the smooth operation of the business after the acquisition.
- Planning for further development. After buying the company, develop a strategy for further development and optimization of its operation.
Completing the process of buying a ready-made company requires a lot of preparatory work, analysis, and professional support.
It is important to pay attention to all aspects of the deal and get it right to ensure a successful outcome and maximum return on your investment.
How a law firm can help
Turning to our law firm in the process of buying a ready-made company with turnover has a number of advantages and valid reasons.
First, our legal team has extensive experience in the field of corporate deals and financial planning, which helps our clients avoid legal pitfalls and optimize deals.
Secondly, our company finds an individual approach to each client, adapting our services to the specific needs and strategies of the client’s business.
We have a wide range of expertise and resources to help you deal with various aspects of a deal, including financial, legal, and tax issues.
Our team is ready to help you at every stage of the buying process, from selecting a potential company to the transfer of ownership and business development after the deal.
Buying a ready-made company with turnover can be profitable, but requires careful analysis, professional support, and avoidance of common mistakes.
A law firm can be an important partner in this process, helping to ensure a successful and secure transaction.
For consultation or calculation of the purchase price of a ready-made company with turnover – fill out the form below.