The disadvantage of buying a company is that it requires a large investment. You will have to pay for the fact that the business is already established. If you are buying a limited company you should be aware that it may contain old debts and contracts which you inherit. You should investigate this thoroughly.

Sector conditions may also be such that it is better to build a company from scratch and create a new market profile.

Obtain the help of an expert

If you are considering purchasing a company, start by engaging an expert in corporate acquisitions. The company must be analysed and valued, and you will then need to negotiate the price. Engage the help of an established business broker, an experienced auditor or your bank contact. Almi also provides help with corporate acquisitions. Almi is owned by the state and offers financing and business development to small and medium sized enterprises.

Finding a company

The easiest way of finding a company for sale is to contact business brokers. Go to their websites and register your interest or make direct contact with them. However, bear in mind that the seller is advised by a business broker throughout the transaction. You can engage a broker to help you to actively find a company.

In their customer base, banks and auditors may have entrepreneurs who will be selling their company in the near future. Some of them welcome expressions of interest from potential buyers.

Advertisements in the daily press, business papers and trade publications often include companies for sale. Of course, you can always place your own advertisement.

If you have identified a company you would like to buy, you can always try making direct contact with the owner and expressing your interest.