Benefits of Buying a Business

• Strengthen your market position.
• Utilize existing capacities.
• Increase your profitability due to combined overhead reductions.
• Expand into neighbouring product/market segments.
• Diversify your risk.
• Eliminate a competitor.
• Access additional management and / or skilled labour.
• Become a company owner through a Management Buyout/Buy-in.
   

Key Factors toward a Sale Decision

• Improve liquidity. A company (or the owner) is interested in generating liquidity. This situation can arise when an owner is seeking to exit the business or if the company needs resources for other investments.
• Succession. Many companies may not have a defined transition or succession plan for the business when the current owner seeks to exit the business (particularly relevant with family-run businesses).
• Dispose non-core assets. For a company that has grown or has changed its strategy, there may be one or several components of the company that are no longer considered to be of strategic value. In order to focus on and invest in the company’s core business, the company may choose to divest its non-core assets or operating segments.
• Re-capitalization. A company may seek to recapitalize its ownership structure to attract outside investors or take out existing shareholders, or bring new shareholders.
• Diversification. A shareholder may desire to diversify his or her personal asset holdings when the value of a business represents a significant portion of total net worth.