Could Buying A Distressed Business Be A Good Option For You?
“At any time, but particularly now, there are a good number of distressed businesses for sale. Could buying one and turning it around be the opportunity of a lifetime? Maybe. ”
Throughout our Buyer’s Section, we reviewed the types of business that could possibly be a good match for your skills, abilities and past professional experiences, and discussed the valuable role that a professional business broker can play in helping you find a business for sale in Tucson that closely matches your purchase criteria. But until now, you may not have considered the possibility of buying a distressed business. We think you should.
As far as your thought process about the industry, business and the match with your skills, there is nothing fundamentally different about buying a distressed business. After all, distressed businesses are just like any other similar business except for the fact that they may:
- have lost money for several consecutive years
- be carrying a considerable amount of debt
- show a seriously declining sales trend
- be in an industry that is facing fundamental challenge
But none of these circumstances means that a distressed business is not salvageable. The way a business has been managed vs its underlying potential are two different questions entirely, and even declining industries are full of winning firms. In fact, what a distressed business often needs more than anything is a fresh tart and a new set of eyes, which is exactly what you as a new buyer would bring.
Buying a distressed business could be a unique opportunity to acquire an otherwise promising business under special circumstances through working with a business broker and a motivated and cooperative seller. While you may be building on a less established base, your potential upside is the same, and your return even greater
By now, you should have completed an initial Buyer Consultation with one of our experienced brokers, in order to learn about the role of a business broker and answer your questions about anything that came up during Steps 1-4.
You should also have completed the questionnaires from Steps 1-3, and have those available for reference. If you have not, please return to those prior steps in the process and complete them before continuing.
If you are you are really ready to buy a business then you may be just as ready to consider the alternative of a distressed business. In order to get a better handle on what some of the differences are between distressed businesses themselves and other similar businesses, and the process of acquiring one, schedule a consultation today with one of our experienced brokers to go over the details.
Just complete the form below, and one of our brokers will contact you shortly to schedule your confidential and free consultation.