Why Buy An Existing Business?

November 5, 2023

For many entrepreneurs, one of the most important decisions is whether to start their own company or purchase an existing one. For those entrepreneurs who believe they have an original idea or perceive a need in the marketplace, building a new start-up is the solution. But for others, buying an established business is the better option. Here are five advantages to consider when you’re looking at acquisition.

Top 5 Advantages to Buying an Existing Business

Lower risk

Start-ups face an uncertain future where success depends on untested strategies and assumptions. An existing business comes with a track record of performance that you can examine. Many of the mistakes made by start-ups have already been corrected. What’s more, start-ups may take months or years to start showing a profit while an existing company can provide an immediate revenue stream. If you’re using a business broker, they can evaluate a potential company’s financials, customer reviews, and market positioning and determine its worth and potential for growth. This information helps mitigate risk. 

Read More: How to Find the Value of a Business You Want to Buy

Established customers and market presence

When you choose to acquire an existing company, you gain immediate entry into the marketplace. Your newly purchased company comes with an established customer base, operational infrastructure, and a sales department. The brand will have been developed and some level of brand recognition will exist. Sales will continue to flow in an existing firm as opposed to a new venture where you will fight hard for those first few customers. 

Established systems and processes

One of the most difficult tasks for new businesses is setting up internal processes and systems. These can range from organizational structure and workflows to supply chain management and vendor relationships. Purchasing a company with these structures already in place enables a smoother transition and reduces the learning curve. 

Workforce that is in place

A new business brings the need to find, hire and train employees for your business, which can be time consuming and risky. Inheriting an experienced workforce can be invaluable, as they bring industry knowledge, customer relationships, and operational expertise to the table. Buying a business with a skilled team in place saves time and resources.

Better finance options

Lending institutions will offer more favourable financing options for a business that is established for all the reasons listed above. Many financial institutions will not offer loans for start-up ventures. By choosing to purchase an existing business, you will have more options when it comes to the deal structure and how much you will need to invest yourself. 


Buying an established business is a short cut to success because it allows you to bypass a lot of obstacles faced by start-ups. Of course, considering a business in an industry where you have knowledge and experience will also help you achieve faster success. Finding the right business can be a challenge so using the services of a professional business broker such as Investiprise can shorten the time it takes to find the right one and lower some of the risk of doing it alone. Browse our listings to find the perfect opportunity for you! Contact us today to learn more about buying an existing business.

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