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.
Fantastic growing embroidery and clothing printers company. This is a relocatable business opportunity. Extensive list of fixtures and fittings. Offers invited.
Upmarket restaurant and play centre based in Manchester. Affluent trading area. Beautifully presented throughout. Management team in place. Newly equipped in 2018. Offers invited.
Popular restaurant located in Media City, Manchester. Located close to BBC offices. Good public transport links. Offers invited.
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