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Buyers
"What we can do for you..."
Security
A big advantage in buying an ongoing business is that you as the new owner have an immediate cash flow and an established customer base. You do not have to build a business; you simply take over an existing successful business with the present owner’s assistance.
Financing
We assist you in obtaining financing. Banks are reluctant to finance business purchases for several reasons. One, all small businesses attempt to minimize profits shown on financial statements to reduce tax liability. Also, a bank cannot come in to manage a business if foreclosure becomes necessary. Therefore, over ninety percent of business purchases are financed by the owner himself, which demonstrates his confidence in the business.
Confidentiality
Unlike the sale of real estate or franchises, the sale of an ongoing business is very confidential for both the seller and the prospective buyer. All inquiries are held in strict confidence. Meetings are confidential, and we are available after hours and on weekends.
"Things a buyer should know..."
We at Barr Group Associates, Ltd. are advocates of finding a business that you like and feel comfortable managing. You, like every other prospective buyer, have a vision of being your own boss and calling your own shots. An old saying in the real estate industry is … “The three most important things a buyer should look for are location, location & location.” While location is important to a business buyer, be aware that track record and management round out the three components of a successful business. Let us assume that you find a business that you like and its location is fine. But because of poor management, the business may not show the greatest record of accomplishment. Purchased for the right price and terms, this business could become more successful with proper management making it a good way to achieve your vision of being in business for yourself.
THE 90% RULE: FACTS ABOUT BUYERS
- 90% of all buyers are first-time buyers. In other words, they have never been in business before.
- 90% of all buyers will finance the purchase of their business.
- 90% of all buyers do not know what kind of business they want or best serves their needs.
- 90% of all buyers are terrified and/or uneducated in the business buying process.
- 70% of all sales will be financed by the seller.
- 90% (or more) will not buy the business that was advertised or the one that they called in on.
Advantages of Buying an Existing Business
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Actual results rather than pro-forma.
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Immediate cash flow.
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Trained employees in place.
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Established suppliers and credit.
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Established customers and referral business.
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Existing licenses and permits.
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Training by the seller.
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The availability of owner financing.
Advantages of Buying A Franchise
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Known name means instant recognition.
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Proven product or service.
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Ongoing support means you are in business for yourself but not by yourself.
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Better than 90% of new franchises are successful.
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Operating system in place all the mistakes have been made!
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Opportunity to add additional units within the franchise system.
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Training by the seller.
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The availability of owner financing.
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