Buying an existing business can provide something that starting from zero cannot: existing customers, employees, revenue, operating history, systems and market presence.
Miami’s economy includes restaurants, healthcare, professional services, construction, logistics, automotive businesses, retail, hospitality and many other industries.
But a business being profitable today does not automatically make it a good acquisition.
What Should You Look for?
Start with the fundamentals:
How long has the business operated?
Why is the owner selling?
How much revenue does it generate?
How much cash flow remains after legitimate operating expenses?
How dependent is the business on its current owner?
Are customers concentrated?
Is the location important?
Can the lease be transferred?
What employees are essential?
What capital expenditures may be required?
Verify the Numbers
Never purchase a business solely because an advertisement says it earns a particular amount.
During due diligence, buyers may review tax returns, profit-and-loss statements, bank records, payroll, merchant-processing statements and other documentation appropriate to the transaction.
Understand What You’re Actually Buying
A transaction can include some combination of:
Goodwill, equipment, inventory, intellectual property, customer relationships, contracts, licenses, websites, telephone numbers, trade names and other assets.
The exact structure matters.
Financing a Business Acquisition
Depending on the business and buyer, acquisitions may involve buyer equity, conventional financing, SBA-backed financing, seller financing or combinations of capital sources.
Financing availability depends on the individual transaction and borrower.
Don’t Ignore the Lease
For location-dependent businesses such as restaurants, salons and retail stores, the lease can be critical.
A profitable operation with a poor lease or very little remaining term can create significant acquisition risk.
Search for Businesses for Sale
WeSellBiz.com™ connects business sellers with buyers seeking acquisition opportunities in Miami and throughout Florida.
If you’re looking to acquire an established business, register with WeSellBiz.com™ to receive opportunities matching your acquisition criteria.