What and why?
At the conditions of open market almost each thing or process has its own value and can be evaluated and sold. Similarly the business unless it is appropriately executed becomes a product and can be both sold and bought.
By the name of business we understand commercial activity in the wide sence of the word (from individual occupation to wide manufacturing, from a little market place to supermarket network, from a little bar and architecture bureau to commercial real estate and reloading warehouses). It can be any kind of business with a legal opportunity of yield and the legal form that is executed in accordance to laws and regulations.
In Latvia the open market which gives chance to everyone to become an owner of the company exists less than 20 years. It is a small period for filling all market segments, but enough for the competition to raise, besides the entrance of the new company in many business fields becomes almost impossible.
There are usually 2 solutions in such situation:
- To establish a new company.
- To buy an appraised and approved business.
Comparing these solutions there can be made a conclusion that the existing business comparing to already unexisting has its advantages and disadvantages:
Advantages of the existing company are:
- The company has already passed the stage of the beginning of business, which usually is very labour-consuming and requires the time, and has its own place in the market;
- It is much more easy to acquire the financing;
- There is formed circle of loyal customers and providers who trust the company;
- There is developed business plan and experience in marketing;
- There is no need to search for and instruct the employees;
- Many problems are already revealed and resolved;
- Usually the price of the company is lower than the amount of assets that are required for establishing similar company right from the start;
- There is not always a need for advance experience;
- Starting with the next day after the drawing up the documents, the new owner is beginning to earn back the commited finances.
Disadvantages of the existing company are:
- Not always there is a possibility to check the history of all company’s deals, therefore when buying the company it is important to check it carefully by using of financial and legal means in order not to become a victim of fraudulence;
- Some of businesses that are for sale are experiencing difficulties. It is important to find out the real reason why the company is going to be sold.
At the same time the companies which are for sale are not always going to be sold at the moment when they are incuring losses since selling a company is the most profitable when the company is the most successful.
The most popular reasons of selling a business:
- Problems that occurred to owner concerning his health, age or his death;
- Changing the place of residence;
- Establishing of the business was targeted on its reselling;
- A need for financial assets to invest them in some other field of activity;
- The owner owns several companies which makes it difficult to control them;
- A conflict among several joint owners;
- A business was achieved as a gift (usually a business that is connected with cosmetics and beauty saloons) or a legacy and the new owner does not want deal with it, etc.
What is a BIZON:
- The first and at this moment the only one company in Latvia with a main type of activity specialized only in organization of the process of buying and selling small and middle sized companies.
- The widest structured data base of companies, requirements and comparable deals in Latvia.
- Qualified and experienced employees that are specialized in evaluating the business and supporting the business take over deals.
- Complete confidentiality.
You can buy:
- The company as a possession in enterity;
- Shareholdings of the company;
- Shares in the share capital of the company;
- Corporate property without forming separate legal person.
The deals should be made with the support of the BIZON because of the following reasons: Deals of buying and selling the business essentially differ from deals with real estate and other market deals, since:
- The business before the selling must be prepared – professionally prepared company is much more interesting to buyers, it can be sold more faster.
- There must be established the most acceptable price to sell the business for, taking into account the situation in the market, peculiarities and condition of the company so that the deal would be intelligently reasoned. The company must be evaluated.
- There must be a proficiency in targeted providing of the information exactly to the persons that could be interested in this proposal.
- There must be provided the confidentiality of the deal.
- In the case of need there must be an opportunity to find additional financing to complete the deal, even in the case when the buyer does not have all necessary assets.
- Without having a professional partner in the deal one can get in big trouble.
- There is a need for a chief negotiator which can find mutual interests and to bring the deal to successful conclusion.
- There is a need for particular documentary execution of the deal.
Exactly the BIZON specialists in selling small and middle sized companies will help You to conclude the deal! Please contact with us!