Considering starting a business?

Buy a Business in Pirkanmaa

Acquiring an established business can be a faster and less risky alternative to starting a new one. However, it’s important to avoid potential pitfalls along the way.

How to Ensure a Successful Business Purchase

Learn about the business buying process and discover the right strategies to avoid common pitfalls and ensure a successful transaction.

How the Ownership Transfer Process Proceeds from a Buyer’s Perspective

The ownership transfer process can be divided into clear stages: before, during, and after the transfer. While every process is unique, understanding the basic principles will help you plan your purchase effectively.

Before the Ownership Transfer

Before the transfer, the intention to buy arises, potential targets are identified, and financing options are explored.

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  •  Familiarize yourself with the buyer’s guide: Learn what to consider when buying a business.

  • Explore online marketplaces: There are several platforms for buying and selling businesses online. Business brokers may also have businesses for sale under the radar, so it’s worth reaching out to them.

  • Preliminary funding options: Research different financing alternatives to understand your possibilities.

During Ownership Transfer

During the ownership transfer, the buyer and seller meet, explore the company for sale, and conduct purchase negotiations.

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  • Ensure you receive enough information to support your purchasing decision.
  • Decide on the direction you want to develop the business.
  • Also, preliminarily investigate employee arrangements and the transfer or continuation of contracts.

  • At this stage, we strongly recommend using an external expert to ensure all perspectives are taken into account.

After Ownership Transfer

After the ownership transfer, it’s time to take over the business and begin developing its operations. The previous owner can still act as a mentor to the new owner.

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  • Ensure you receive comprehensive orientation on the company’s operations, processes, and customer relationships.
  • Take advantage of the previous owner’s expertise and knowledge.

  • Actively contact the company’s key customers and stakeholders. Ensure they are aware of the ownership transfer and build trust.
  • Get to know the company’s employees and make sure they feel secure during the transition.
  • Open communication and support are crucial.

  • Evaluate the company’s current strategy and make necessary adjustments.
  • Ensure the strategy supports the company’s long-term goals.
  • Review the company’s processes and identify opportunities for efficiency and improvement. This can enhance profitability and competitiveness.

Avoid Pitfalls in Business Acquisitions!

There are several pitfalls to watch out for when buying a business. Here are some of the most common ones.

Insufficient Due Diligence

The buyer must conduct thorough research on the business. This includes reviewing financial data, contracts, customer relationships, and potential liabilities.

Overly Optimistic Expectations

The buyer must realistically assess the company’s future prospects and opportunities. Unrealistic expectations can lead to disappointments and financial difficulties.

Poorly Drafted Contracts

Purchase agreements and other contracts must be clear and comprehensive. Poorly drafted contracts can lead to legal issues and disputes.

Low Cash Flow

The adequacy of the company’s cash flow must be ensured. Low cash flow can lead to payment difficulties and affect operations.

Employee Issues

The status of the company’s staff must be clarified. Potential employee issues, such as dissatisfaction or key personnel leaving, can impact business operations.

Competitive Situation

The buyer must understand the company’s competitive landscape and market position. Underestimating competitors can create challenges in business development.

Insufficient Financing

The financing of the business acquisition must be carefully planned. Insufficient financing can cause financial difficulties and hinder business growth.

Misaligned Objectives

The buyer’s and seller’s goals must be aligned. Divergent objectives can lead to issues during the transaction and in the future of the business.