Posted by Kelli Matonak on Tue, Oct 20, 2009 @ 03:50 PM
The March Group, a leading, private mergers and acquisitions advisory firm specializing in the sale of middle-market companies, wants businessmen and women to know that if you have ever wanted to own your own business, you should seriously consider buying a company as a way to achieve your dream. Here’s why:
1. Buying is better than launching a startup.
Starting a new business from scratch can be time consuming and expensive. Many successful businessmen and women will tell you they failed once or multiple times before they finally made it.
But why fail at all? If you know the field your business is in, why not skip the agonizing startup phase and buy an established, profitable company?
With your new acquisition — a business with viable, working assets and a proven staff — you can immediately implement all those ideas you have wanted to put into practice and begin steering your company toward promising horizons of future growth.
2. Buying an existing business is better than purchasing a franchise.
Franchises may look tempting, but they tend to come with onerous corporate regulations and restrictions. You may not be allowed to open the franchise where you would like. The territory or location you are given may not be a profitable one; if it is, headquarters may allow another franchise to open close to yours, eating into your customer base and earnings.
If the franchise system is relatively new — and you're buying in early to get a good price — it may not have a proven business model. Hundreds of franchise concepts are launched every year, according to the Wall Street Journal, and many don't grow beyond several units before they “fade away.”
Don't you want a business where you are the boss? Why buy a franchise where a portion of your hard-earned profits are sucked away to pay for advertising that you only partially benefit from?
With an existing, nonfranchise business, all of the assets are in-house — long-term employees, established profit-making processes, the great location(s), the proven market – and they are all yours. You run the show.
Best of all, once your existing business grows to a certain size, you can do something franchisees can't do: sell franchises of your own!
3. Buying a company is within your means.
You don’t have to be a billionaire to buy a business. Yes, it takes capital, some of which you will have to come up with yourself, but there are plenty of ways to get financing. Here are three:
(a) Use the seller's assets as collateral. When you approach banks and financial institutions for a loan, show them a list of the assets of the firm you intend to own.
(b) Buy co-op. Find someone with similar goals and interests and partner with him or her to share the costs of buying a business. You can always buy your partner out later, should you wish to.
(c) Secure an SBA loan. The Small Business Association is there to help potential business owners such as you. More details can be found at sba.gov. Loan and investor information is available through their SBIC program.
The March Group does not offer financing, but we may be able to connect you with companies and private equity groups that assist individuals and small businesses in obtaining financing or SBA loans. Please note, however, that some require a percentage of the loan amount as their fee.
4. Now is a great time to buy.
Interest rates are low and the economy is recovering. It's true that credit remains tight, but things are improving. According to a July 2009 survey conducted by the National Small Business Association, 53 percent of small-business owners took out a traditional bank loan over the last 12 months; that's up from 44 percent in December 2008.
The nonpartisan Congressional Budget Office projects that the U.S. economy will grow by 2.5 percent in 2010, 3.8 percent in 2011, and 4.5 percent in 2012–2013.
Get in on the ground floor now. Buy that business you've always wanted and position yourself to profit from rising demand as the consumer-driven engine of this economic superpower revs up to its full potential.
Posted by Michelle Segura on Fri, Sep 18, 2009 @ 08:46 AM
Despite the global recession, certain countries have maintained high levels of foreign exchange reserves and continue to build up strong consumer demand.
If you know where, when and how to invest in the US markets, these global hot spots could protect your business in the recession and significantly increase your international market share in the upturn.
The March Group, a private middle-market mergers and acquisitions firm, announced its participation in the Institute of Directors (IoD) Hot Spots in a Cold World Conference. The 23-year-old-firm will be presenting principles on investing in North American main street businesses in the poststimulus, recessionary economy. Attendees of the meeting will also have access to The March Group's exclusive client inventory of North American businesses.
Held on October 20, 2009, this one-day conference focuses on the benefits of international investment as a viable option for business diversification and prosperity. Whether investors or entrepreneurs are interested in buying a business, selling a business, or just growing their business, The March Group suggests making the investment this year to increase market share on a global scale.