Find Established Business or Existing Franchise for Sale

Buying an Established Business on Sale

If you are interested in starting a business, buying an already established business for sale or an existing franchise for sale can be one of the best ways to start your own business. Buy an established business or company on sale with a customer base and earnings. It is very hard to get financing for a new or startup business especially, if there is no substantial revenue or assets. If you approach a local bank or small business financing company for a startup business loan, they will want a collateral and/or a large down payment. However, if you are buying an already established company or an existing franchise business with revenue and cash flow, you may be able to qualify for a business loan from local banks or obtain financing from small business lenders, which will allow you to buy and expand an existing business with your own ideas or rebrand it. Many large companies have used this method to buy established small businesses or shell companies to get a foothold and obtain startup financing and to go public.

Buying an Existing Franchise on Sale

Most people are aware that buying a franchise can be advantageous when compared to starting a business from scratch. While franchising is a great way to start a business because of established and proven methods and franchisor training that can make a new business venture successful, it can be costly to start or buy a new franchise. Hence, buying an existing franchise on sale at a discounted price may be even a better option when compared to buying a normal business. Many existing franchises may be offered for resale as the owners may be looking for other opportunities or to retire but in some cases because of the lack of experience or commitment of the previous owner or other operational issues, and such existing franchises are offered for sale at great discounts while new franchise opportunities may be sold at a premium. If you can find an already existing franchise business at a discount price it may be a great option to buying in to a new franchise opportunity or starting your own business. Also, since you are buying an already established franchise business, you may be able to finance the existing franchise with a small down payment, instead of financing a new franchise which may require a higher down payment. Find great already established biz on sale listings and existing franchise listings in almost every category below to start your search and to be your own boss.

Buying an Established Business from a Business Owner vs Broker

Despite websites and marketplaces like our's which facilitate any independent small business owner to sell a business directly, most small Automotive businesses are still sold through brokers and hence no FSBO websites & marketplaces have been successful. Also a very few businesses listed by owners eventually get sold because most sellers price it higher than what it is worth or do not use real valuation metrics, whereas an experienced broker in the Auto Repair - Automotive related industry will price it based on the market metrics and valuation, so that they can sell it quickly because keeping it on market for too long can be counter productive. There are also other advantages of dealing with a qualified and experienced broker but in the end whether it is an FSBO business or listed by a broker, everything depends on the real value of the business, current market conditions.

Whether you are buying a Auto Repair business from an independent small business owner or form a broker, the most important factor or the first step is to evaluate the business to make sure the business is priced right or at a discount. You can either use an evaluation software or in some cases you can find valuation metrics online or you can hire an accountant, CPA, professional appraiser or a broker who can use provide a good valuation. While the valuation metrics differ with the type of company, industry and current market conditions, the most used metric for valuation is based on EBITDA or SDE ie Seller's Discretionary Earnings. Buying a small business can be once in a lifetime event for most people and before you put your hard earned savings in the business, always seek advice from a qualified business professional such as licensed broker, M&A advisor, consultant, small business accountant or a lawyer with regards to verification of finances, drafting contracts and price negotiation.