BUYING A Business Using An AZBBA Broker
The AZBBA comprises the largest single group of professional business brokers and intermediaries in the state of Arizona. Our members cooperate to offer for sale more privately held businesses on this website than will be found in any other marketing and advertising medium available in Arizona. Buyers not only have access to a diverse collection of businesses for sale, but also have the confidence they are working with a collective of highly qualified professionals to assist in the search for the perfect business.
The advantages of buying an existing business generally outweigh the disadvantages. Becoming your own boss obviously involves an element of risk. When you buy a business, the risks are more quantifiable thereby limiting the pitfalls and potential for failure due to many unknowns that come with a start-up business.
Buying an existing business may be an easier way to get into business, but it will likely be a more expensive way to get started in business. Existing business owners expect a premium for providing you with an existing customer base, location, brand recognition, relationships, focus, trained people, established cash flow, and far lower risk exposure. Further, existing businesses can often be financed through a lender via a SBA guaranteed loan because they have an established history, assets, and a proven business model. Sometimes the lender will require that the seller provide a portion of the financing in the form of a "carry-back" loan and hence assume some of the buyer's and lender's risk by doing so.