Buying a business:
Deciding to buy
You can acquire a business in various ways, which we illustrate in the following example related to the business of estate agency.
- Setting up on your own:
A surveyor, having gained business experience as an employee, decides to set up on her own. - Buying your first business:
A surveyor, whilst working as an employee, discovers that the owner of a one office estate agency is planning to retire. She decides to buy the business. - Mergers:
A surveyor with a successful estate agency decides he wants to expand, and an acquaintance of his in a neighbouring town is in a similar situation. They decide to join together, considering that this would enable them to save on various costs and that they would, between them, be able to open a third office without needing to employ another surveyor.- Acquisitions:
A national estate agency considers that its presence in one particular geographical location is weak. It decides to buy out the main competitor in that area.
The difference between mergers and acquisitions is that if you acquire a business you end up controlling it whereas if you merge your business you will share control. |
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Listed below are some of the issues which you may come across when deciding to buy...
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