What is the advantage of buying an existing business?
Existing Businesses typically possess cash flow, established customer and vendor relationships, trained employees, and market proven products and services. Aside from organic growth, external growth is achieved through mergers and acquisitions. In many instances, purchasing a company which may not even be a competitor, but more complimentary, can provide the greatest growth potential. Through an acquisition, a company can grow revenues and earnings at a much faster pace in many situations, than an existing company relying solely on organic growth.
