Every business decision carries an element of risk. It's understandable, then, when looking to acquire a new business, some entrepreneurs are less confident about purchasing companies that are already in debt.
For those buyers who may instinctively stay clear of such a purchase, the fact that a business may be distressed or come with outstanding debts should not be a reason to discount it.
With careful planning and research, such expansions can lead to prosperity and financial growth.
Expansion and growthPlans to expand your business dealings always require mindful considerations over what the future will look like, and whether your current or projected revenue allows for the coverage of operational costs and interest payments on financing. This is especially true when considering making a deal with a debt-laden company.
Buying the businessThere are several ways to buy a company with debt. You can either acquire a company along with its debts, in which case the seller may set a higher price for the company and settle the debts in the process of the sale, or they will set a lower price and pass all responsibility for them onto the new buyer.
Turning liability into leverageThe key is the ability to take calculated risks.
Has invested in plant, buildings and training initiatives, enabling the company to expand both its home and overseas markets and provide an exemplary service. Operates from freehold premises. Offers invited.
This is a superb opportunity to purchase a multi-faceted local business which operates as a newsagent and convenience store. Excellent reputation. Loyal customer base. Huge growth opportunity. Spacious premises. Offers invited.
Specialises in bespoke joinery products, including doors, windows, conservatories, staircases and oak frames. Continued investment in CNC machinery and traditional equipment ensures that all products are manufactured to a high standard 200 active cli...
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