Should you start your own company or buy an existing business?


So you are thinking about starting your own business? What is that business going to be? If you have the capital you might think about buying out someone else’s business. But which would be best for you?


Advantages /disadvantages of starting your own business


Advantages of starting your own business


If you start your own business you can really make it your own from the ground up. You can work on creating your own unique brand.  It is also, generally speaking, much cheaper to start your own business.


Disadvantages of starting your own business


The disadvantages are that starting your own business is very risky and it is a lot of hard work.


Advantages /disadvantages of buying an existing business.


Advantages of buying an existing business


Some of the advantages of buying an existing business are that it will have (or should have) a proven track record. It will be well established and already have a loyal clientele.


Disadvantages of buying an existing business


The main disadvantage is the cost. The business will also always feel a little like someone else’s because you haven’t developed the brand yourself.


How to buy an existing business


Once you’ve found a business that you are interested in buying you need to let the agent know. We will contact the seller’s solicitors and request the Asset Purchase Agreement if you are buying Goodwill and Assets. If you are buying a Limited Company it is a purchase of shares and your solicitor will need to draft the Share Purchase Agreement.


If the offer is accepted, the buyer’s legal team will conduct due diligence to make sure there are no unforeseen liabilities.


Once your solicitor is satisfied with the due diligence enquiries we can agree on the sale contract and complete.


So whatever you decide – contact Kaiser solicitors for advice.