Company Registration in Delhi


Buy / Sell Existing Private Limited Companies

Purchasing an existing business offers significant advantages over starting a business from scratch. An existing business should have a history of sales and profits and processes and procedures that are already in place, as well as employees who are familiar with the operations. Existing businesses also have a customer base that can provide immediate sales. Because of these advantages, an existing business is usually more expensive to purchase. Fortunately, it is usually easier to obtain financing to purchase a business than to start a new company.

company registration in Delhi

For some entrepreneurs, buying an existing business represents less of a risk than starting a new business from scratch. While the opportunity may be less risky in some aspects, you must perform due diligence to ensure that you are fully aware of the terms of the purchase.

If you have decided to buy an existing business, you will want to be sure you are making the right choice in your new venture. Only you can determine the right business for your needs;

There are many different types of businesses to buy. Take these steps to narrow down the list of potential businesses you may want to purchase.

  • Profit and loss statements and balance sheets describing the company’s financial performance represent one of the first things to look at. Older guidelines suggested the buyer get at least a three-year history of income and expenses to determine the degree of profitability, and the list of assets and liabilities to see what changes have been made over the period being reviewed. Because of the recent dips in the economy, it now is recommended that the buyer review five to seven years' of history to gain an idea of the overall financial pattern for the business.

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