4 reasons why taking over a business is a good idea
- Jelle van der Walle
- How to
- Edited 18 November 2022
- 1 min
- Selling and takeovers
You have always dreamt of opening your own shop, starting your own manufacturing business, or working as a self-employed professional. Turning that dream into reality can take a lot of work. Have you ever considered taking over an existing business instead? As it happens, many companies out there do not have a successor. Acquiring a business can have a wide range of benefits for new business owners. We have listed four big advantages below.
If you have always dreamt about starting your own business, taking over a company often seems like a bridge too far. But the reality is often different. Businesses are usually taken over by family members or employees. But there are wonderful companies that quit because they cannot find a buyer.
Many people think that acquiring a business is expensive and that you need a lot of money. But because there are special financial options for and tax benefits to acquiring a business, it is often easier than you might think. The main reasons for taking over a business:
1. Future expectations are less uncertain
Research has shown that business owners who acquire an existing company are often more successful than startups. This has everything to do with the fact that you are effectively jumping onto an up and running train. The company already has turnover, customers, brand awareness, and a reputation.
Because of this proven track record, you have a clear picture of what costs and income to expect. So, you can estimate the company’s profitability pretty well.
2. Easier access to finance
Existing companies will often find it easier to get financing than startups, as they already have a proven track record. There are several ways to obtain financing for a business acquisition. It is common for the seller to remain financially involved in the company, for example by requesting payment in multiple instalments.
3. Expert knowledge within reach
You can tap into the knowledge, experience, and network of the seller to learn the intricacies of the job or to grow into the culture of the company.
4. Much has already been taken care of
The current owner will have already arranged lots of practical matters. Permits have been issued, the building meets all requirements. There is a customer system and running contracts. For example, you can to take over the rental contract through subrogation. This will save you a lot of time and energy. Important: some permits and licenses are issued to individuals rather than businesses, such as in the hospitality industry.
In a nutshell, there are plenty of reasons to consider acquiring a business.
Video: What to look out for when taking over a business?
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Waar moet je op letten als je een bedrijf overneemt?
The importance of an acquisition consultant
External advice is essential when taking over a business. An acquisition specialist can help guide and streamline the acquisition process. You can also choose to bring in a legal or financial expert. Working with specialists will help you make the right choices, and they will help uncover hidden problems in advance. To help you out, we have drawn up a list of acquisition consultants (in Dutch).
Want to know more about business acquisition? Check out our page ‘acquiring a business' for more information and inspiration.