I will buy a company - even one with debts

15 june 2020 Kupię spółkę spółka zadłużona kupię zadłużoną firmę zadłużona spółka

“I'll buy a company” - many purchase offers on websites start with these words. Have you ever wondered why someone wants to buy a company, sometimes even one in debt? If you were to ask this question to an entrepreneur, he or she would probably answer that they would like a profitable business that would make a name for them. Buying a company is a challenge, just as important as the question; and if I buy a company, what next? The showcase of every entrepreneur is the business that constitutes his professional space, in which he realizes himself, of which he can be proud, which constitutes his livelihood. Therefore, when building your brand, you should pay attention to many aspects related to the basics of your own business.

Company purchase offers on the market

There is an unwritten market rule that every commodity will find a buyer. There is certainly some truth in this, although logically speaking, no one wants to deal with something that is not expected to be profitable in the long run. However, there are entrepreneurs and companies that see potential and future profits in such hopeless cases. There are many companies on the market that professionally buy upiling companies. They are the ones who post “buy a company” ads. They offer legal assistance and solutions that seem beneficial to business misfortunes who have already lost the strength and ideas to save their companies.

Legality of company purchase transactions

Purchasing a company is a legal transaction, even if it is in debt. The way the transaction is carried out is another matter. It happens that the sale is made for a pittance, but in practice a significant part of the sale proceeds goes to the seller through another, unofficial channel. It should be mentioned here that the sale may be mainly about getting rid of debt. The buyer will want to make a profit from it without thinking about repaying the company's creditors. Entrepreneurs selling their businesses usually do so unknowingly, but it happens that they also do it consciously, avoiding the consequences.

Buying a company at a profit

An example of an entrepreneur who has excelled in this area is the American billionaire Warren Buffett, a world-renowned economist, stock market investor and philanthropist. He became famous for acquiring undervalued companies and thus amassing a considerable fortune. One of the companies whose shares he bought in the second half of the 1980s was Coca-Cola. Today, it is one of the most important brands in the world. Buffett's strategy was to acquire large blocks of shares in well-known companies. Among other things, he used the discounted cash flow method. Today, Buffett owns shares worth 74.4 billion USD in the insurance company and through it, he controls about 12% of American Express, about 8% of Coca-Cola and 9.5% of Gillette (part of the Procter & Gamble group) and other companies listed on the New York Stock Exchange. He is undoubtedly a good investor and company buyer.

Buy a company - how brokers work

Many companies offering sales assistance offer their services. They act as intermediaries in this often complicated process, saving entrepreneurs from having to carry out difficult procedures themselves. They are happy to help with the change of management of the sold company and the transfer of company shares to the new buyer. The transaction process can even take place during a single meeting at the notary's office. It should be remembered that the sale can also be carried out online, but only if the company was established online. Companies that facilitate purchases also offer additional services, such as changing the company's address or business activity, negotiating debt repayments and helping to restore the company's profitability or liquidate it if this is not possible.

The company mediating the sale will be interested in, among other things, the average turnover, income and loss of the company being sold for the current year as well as for the previous year. When the company was registered, whether it has a website and how it functions on the Internet. The price offer will also be the most important.

Conclusion

Before buying or selling a company, think about how you want to do it. Sometimes quick and ill-considered decisions and acting on your own can result in a high risk of failure. Getting professional help can be a great solution or even a lifesaver. Regardless of our intentions, let's act wisely. With our proverbial back against the wall, let's do everything we can to minimize losses. When investing, on the other hand, let's find out everything there is to know about the item we are buying.

Categories: sell a company krakow, looking for an investor, sell a construction company

//M.K.

Illustrative photo

Photo: https://unsplash.com/photos/8i3n-EUCLqg

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