So you hear that your competitor in the area is planning to sell their business. The realization that new competition will soon take their place cuts your brief moment of satisfaction short. However, have you considered purchasing the business for yourself instead? Buying a business from your competitor poses a great chance to make some strategic changes. Here are some benefits of buying your competitor’s business.
Getting Rid of Your Competition
Firstly, a distinct advantage of buying a business from your competitor eliminates your competition in your local market! As well as your business can perform, there’s always room for improvement when more customers end up going to your business instead of someone else’s. In addition, you are doing more when you buy a business from your competitor than just getting rid of your competitors. Through purchasing their business, you’ve just increased your own assets. You can now run your former competitor’s business as your own. Best of all, you’ll already have the relevant industry knowledge to take over the new operations, such as restaurants or out-of-home entertainment businesses.
Opportunity to Expand
Buying a business from your competitors lets you expand your number of business locations. The deal could include equipment, inventory, and other stuff. But, you can expand on more than just the physical assets. Buying from your competition means you acquire their intangible assets too. This includes intellectual property, insider secrets, patents, customer lists, and other ideas and knowledge associated with your competitor. Buying a business transfers the rights to tangible and intangible assets to you. You can take the opportunity to offer your products and services at the new business location, or sell new products and services at your current location. You could just purchase the business for the rights to the intangible assets then sell the physical assets for your own gain.
Improve Operations at All of Your Locations
Now that you have additional business locations and bolstered your available products and services, you are primed to improve operations at all of your sites from your recent business deal. You provide your products and services to more people in your local market, meaning you are bringing in more revenue. Extra dollars can be spent on renovations or marketing expenses to boost your businesses. Further, buying a business from your competitor can entail bringing in that business’s employees. By combining your talent pool with the new, you are more likely to staff all of your enterprises with dedicated employees that can help your businesses thrive.
Buy With Atlantic Business Brokerage, Inc.
At Atlantic Business Brokerage, our mission is quite simple; we help sellers sell businesses, and buyers buy businesses! Over the past 30 years, ABBI has facilitated the sale of countless commercial properties, businesses, and franchised locations. With our unparalleled knowledge of the business purchase and sale industry and our network of contacts, we offer services to both buyers and sellers that no other brokerage firm can match.