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.
Well-established company operating for over 30 years. Sells a wide variety of accessories used in the care of reptiles and exotic animals. Sells products on e-commerce platforms such as Amazon and eBay. Offers invited.
A market-leading designer and manufacturer of chiller units for UK supermarkets of all sizes. A long-established business, this company offers UK supermarkets a unique single-source solution for all their chilled display needs. A multi-accredited bus...
Providing designs that are practical but creative and often innovative, to meet the specific needs of its clients. Supporting sustainable construction methods and experienced in eco-friendly structures such as PassivHaus. Offers invited.
Sign up to receive our acquisition alert emails to get your FREE guide
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources