Buying a Company

There are many good reasons to buy a company. For those starting a business, acquiring an existing company is a viable option. When the transaction is handled professionally, there are no surprises, and business operations begin immediately. The customer flow and billing continue uninterrupted. The money spent on buying a company could easily go towards marketing, purchases, and startup costs of a new company, with uncertain results. In fact, starting a new business is not significantly cheaper compared to buying an existing one, considering that the future of a new business is entirely uncertain, and all customers must be acquired from competitors. The business risk of a new company is, therefore, higher than continuing an existing one.

In addition to the customer base, as a buyer, you immediately gain valuable information about competitors, purchasing, advertising, customers, etc., through the acquisition. At the same time, many intermediate steps are eliminated, making the start-up process quite easy and quick. A professional broker can help with business planning and development ideas, and often the selling entrepreneurs are willing to assist in many matters to ensure the new entrepreneur's success. A business acquisition is successful when all parties are satisfied with it even years later.

Business acquisitions are often multi-stage and multi-layered processes where expert assistance benefits both the seller and the buyer. Unlike real estate transactions, business acquisitions involve factors that are often subjective, such as tax planning, payment methods, transaction practices, or even future projections. Only a few factors influencing business acquisitions can be measured or defined unambiguously. Companies might contain unknown risks at the time of sale, which the buyer can mitigate through well-drafted contracts. The broker's job is to make the transaction transparent and honest.

From the broker's perspective, the satisfaction of the buyer, seller, and financier is equally important. Today's buyer is tomorrow's seller. Without financiers, deals don't happen, and a satisfied seller is the best reference among those considering selling. To minimize the risks in business acquisitions, the brokers of Suomen Yrityskaupat (Finnish Business Sales) leverage the expertise of the entire brokerage organization when necessary. This ensures that neither the buyer nor the seller has unanswered questions when the deal is finalized, making the transaction secure.

Practical, well-developed agreements suitable for business acquisitions and thorough preliminary work also ensure transaction security. Did you know that a significant part of the broker's fee comes from familiarizing with, analyzing, and preparing the business for sale? This work is done specifically to protect the buyer.

A professional business broker guarantees mutual reliability in the transaction. The broker is involved from planning the exit strategy, setting the price, tax planning, arranging transaction financing, to business development. For example, the price is set so that the entrepreneur continuing the business can reasonably afford it.

The broker's valuation is always based on a situation where the business acquisition is genuinely possible. If no deal is made, the broker cannot sustain their livelihood, especially when the business valuation is unrealistic. Therefore, the broker must strive for realistic valuations. The commission-based brokerage fee motivates the broker to find the best-suited buyer for the business.

The biggest risk for an entrepreneur is to buy a business without expert help, directly from another entrepreneur. These transactions often result in the most unpleasant after-effects. There are numerous aspects in business acquisitions that, if overlooked, can become stumbling blocks for the entire operation. The broker's role in the transaction is to refine the business to a state where both parties know what they are relinquishing and committing to. Additionally, the broker has a better insight into the business's price than sellers with sporadic transaction experience. The broker also keeps you away from fraudsters.