Starting and running your own business in the healthcare, medical, beauty, and wellness industries can be an exciting and rewarding venture. Although you can start your own, buying a business is an easier, quicker, and safer option. Business mergers and acquisitions can act as a massive growth engine but can be more costly than starting your own.
Here are some advantages of M&A
You can obtain quality staff for your business. In fact, you can get staff who have additional skills, knowledge of the industry, and other business intelligence.
You can get a business with a ready good management system that can actually improve your own. It is good to buy a business with a system that compliments your own.
You have access to valuable assets in the business you want to buy. You can use these assets for new developments. Businesses with large unused capacity can be profitable.
Access to a wider customers base and better production/distribution systems
If you have a ready distribution channel, then you can get a good target business that has the products/services that you want to supply
Reduced costs through the shared marketing budget hence giving you more purchasing power.
To buy a successful, reputable business, you may need to look into finance options like loans and investments to help you finance the acquisition. Catheryn wants to help you finance buying that business by explaining to you the most popular methods to finance the acquisition.
Popular Finance Options to Buy a Business
If you’re wondering how to raise the funds to buy a business in Sydney area, one in the healthcare and wellness industry, you have several options. Each option comes with its pros and cons, while some are riskier than others.
1. Business Loan
This is the most popular method and the quickest. You can simply apply for a loan and in fact, some financial institutions offer business acquisition loans. These are loans that are specifically designed for financing the purchase of an existing company.
There are two types of loans; secured loans and unsecured loans.
Secured Loans: This happens especially if you’re borrowing large amounts. They are backed by collateral (e.g., commercial property or equipment). They often come with lower interest rates than unsecured loans.
Unsecured Loans: They don’t require collateral. Instead, you need to have a good credit score to be approved. The amount is based on the expected business cash flow.
2. Equity Investments
This method involves partnering with a private investor who will finance the purchase partially or fully. Catheryn has connections with great investors that are ready to partner with you. In return, the partner gets shares in the company and the profits. You can source a silent partner or those that have a say in how the business will run.
3. Seller Financing/Owner Financing
In this method, the current business owner lends some or all the funds to buy their business. In return, you’ll have an agreement which will be a document in the legal contract concerning the repayment terms. This happens especially for investors who don’t qualify for a bank loan.
This is the practice of funding the acquisition or venture by raising money from a large number of consumers. Consumers pledge money towards your business venture and in return get an eventual reward. This can be a free product, discount, or early access to the service/product. It is also a great way to spread brand awareness.
Where to find a business to buy in Sydney Area
Once you have decided the best method to finance buying a business, the next step is to find the acquisition opportunities. Contact Catheryn to get started. Partner with Catheryn to assist you to negotiate the price and the contract terms on your behalf and determine the strategic fit for you, assess your expertise, your goals, and motivation based on your financial capacity. From there, you only progress with sellers ready to sell their turn-key businesses in Sydney Area. Catheryn is committed to finding a golden opportunity for you at a fair price.