Rochester, Minnesota
2020 2nd Street SW
Rochester, MN 55902
(952) 303-3202

3 Popular FAQs Answered About Buying a Business May 28, 2018

Rochester, Olmsted
3 Popular FAQs Answered About Buying a Business, Rochester, Minnesota

Deciding to purchase an existing business requires conducting in-depth research on its operation, finances, and future viability. After all, potential buyers want to know if their investment will be worth it in the long-run. For those who have been considering buying a business, there are several key factors to consider. 

What to Know Before Purchasing a Business

1. Is It Better to Buy a Business Instead of Starting One?

One of the main benefits of buying a business is that there is a financial track record. You know if the operation has been profitable and, if so, how much revenue has been generated. Because the building, inventory, and the employees are already in place, there's not as much upfront capital needed compared to starting a business from scratch.

2. What Is an Ideal Business to Buy?

buying a businessThe answer often depends on whether the business is in an industry that generates consistent profit. It is also important that it is something you have an interest in. The key is to conduct extensive research to determine if the investment will be worth it.

3. How Can a Business Broker Help?

A licensed and experienced business broker has the expertise and background to do thorough research on a company so that everyone involved in the transaction can make an informed decision. A business broker is able to do a business valuation so the buyer has a detailed understanding of the financials and state of the business from past years. Depending on the complexity of the sale, they also work with attorneys, accountants, and financial advisers to ensure the transaction meets the client's standards.

 

It is crucial that a business broker is involved in the transaction of buying and a selling a business. There are negotiation techniques involved in buying a business, such as agreeing to offer a larger down payment in exchange for additional inventory, etc. There is also a lot of paperwork that only a skilled business broker understands. In order to buy a business that is right for you, contact a local business broker to get the conversation started.  


Murphy Business of Minnesota in Eden Prairie, MN, has a team of expert brokers who specialize in the fine details of buying a business. They continue to help clients throughout Minnesota and Wisconsin secure deals that result in long-term success. To learn more about how the agency can help you realize your dream of becoming an entrepreneur, call (952) 303-3202 for a friendly consultation. Visit the website for extensive information on the firm's suite of services.
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