I am looking for an investor – how not to be scammed

Countless advertisements with the content I am looking for an investor can be found on specialized websites that offer their users the opportunity to bring two parties with business interests together. I am looking for an investor is the main topic, which is not surprising because investors with capital are often the only available alternative for failing companies and their owners. The latter simply cannot afford loans, which they will not receive anyway. The lack of credit options and lack of own funds encourages business owners to look for help in the pockets of investors. I am looking for an investor. How can I avoid being scammed, stay on the market and not close my business? What should I know?

You need to know how to act wisely so as not to simply be deceived or bring additional financial problems on yourself, which can cost you the loss of a large amount of assets, even up to the loss of your company and personal assets.

Dishonest investor - consequences of wrong decisions

Having a clear head and business acumen is probably necessary to avoid being deceived. There are many record holders on the market who invest in failing companies or those looking for investors. They have fraudulently taken over many entities in this way, which did not save their owners at all. So why do they get involved in such deals and why is it still profitable to buy and take over businesses under the pretense of alleged assistance? The buyer offers to buy the company from the owner, who is in financial trouble. The buyer promises to take over the existing liabilities, of course for a fee. It then turns out that the owner is left with the debts and the new buyer collects the (considerable) fee for buying the debts along with the company.

Law firms have a lot of work because the purchase contract does not release the former management from their obligations towards creditors, administrative bodies and former employees. The purchase transaction further depletes the already scarce financial resources of the former owners who want to get rid of the trouble.

The new, dishonest buyer can act as the CEO in many companies without having any assets, often not even a residential address. The point is that the administrative bodies, such as the Social Insurance Institution (ZUS) or the tax office, cannot find funds in such persons to satisfy the claims arising from the company's activities. The law also obliges the company to file for bankruptcy when its debts exceed its assets. In the event that bankruptcy is not filed, the members of the management board are liable for the company's debts.

In the case of tax authorities, the old management cannot escape liability. With the new one, however, it is more difficult to enforce financial arrears for the benefit of contractors. Collecting debts owed to creditors by a company in debt is very difficult, but not impossible. We must remember that an investor who promises to free us from debt and ensure the safety of board members is simply a fraud. We need to make the public aware that this is not profitable. I am looking for an investor and the question of how not to be deceived is a thought that should always accompany us in our search for a reliable business partner.

Lack of reliable knowledge and experience is the reason for financial trouble

Earning millions easily is only possible for a few. There are many stories about how you can become rich without investing your own time, energy and resources. Many people fall for this illusion, but the financial market is a field for tough players.

There are several reasons why it is worth looking into to see why a business can go completely bankrupt. The first reason is a bad idea and bad investments made in its implementation. Another reason is payment backlogs. These arise in situations where expenses have been miscalculated or funds have been spent on non-strategic purposes. Knowledge, or the lack thereof, is also a major obstacle to business success. However, in this situation, you can always rely on the skills of advisors who are well-versed in the matter.

Incompetent management or lack of such skills means that the company does not operate properly and everything gets out of hand. Poor management and mistakes made by these people contribute to the failure of our activities. The staff who carry out the tasks is also an important element. The lack of competence of these people can also result in the loss of orders or other activities carried out for clients. This results in them not returning to our company with further orders or purchases. The use of ineffective marketing policies is another reason for the lack of orders or sales market. It is then not difficult for the company to become insolvent and have to close down.

Lack of knowledge and experience is usually the main reason for the failure of our activities. If we are looking for an investor, let's do it right and consult our decisions with people who know the subject. There are many professional consulting firms, consultants, lawyers who share their knowledge and experience so that we can make the best choices. Looking for an investor investor - how not to be deceived? Let's be smart and anticipate the effect of our actions!

Categories: sell a construction company, sell a zoo company, sell a company in Greater Poland

//M.K.

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