Why am I considering buying a business for a million euros

Why am I considering buying a business for a million euros

It sounds a little crazy and I admit it. Yesterday the idea came up and I posted it in a post. Maybe tomorrow I’ll already think differently.

Things of life. Months ago i was talking about business purchase as an alternative to creating from scratch. I put the subject aside because I saw that it was too complicated to perform an operation at least from my point of view.

  1. Obtaining financing is not easy. You must enter with 10-20% of the capital in the operation. Capital that I do not have available today.
  2. There is a very high risk of having a surprise after the purchase. Many important details are picked up when it is too late.
  3. The optimum is a sale where the sellers and buyers carry on the business for a period of time together. The basis is a relationship of trust that does not arise from day zero.

Why have I changed my mind if the capital issue has not changed?

I’ll tell you now. Points 2 and 3 have changed. I have an Amazon customer who wants to sell their business. Until now, nothing else was in mind to help him find a buyer. Now I have a better idea. I will be the buyer.

With this client, there is a relationship of trust and I know their figures. He makes a profit of 230,000 euros per year. It is a company that is not bad at all, especially since it has enormous potential for growth (I only work with her for two months).

  1. There is no Pan-Eu.
  2. You don’t invest in Amazon Ads.
  3. She manufactures her product in Germany.

Before, I always saw that three out of three points made a possible trade difficult, so I ruled it out as an option. Today “nothing else” remains the small detail to find the capital to make the purchase.

How to find the figure of 1 million euros as the selling price? In terms of profit, this price is still not justified. Yesterday I had a meeting with the founders where we agreed to start a growth process where we went hand in hand to find a buyer after 18-24 months. As a buyer as a business I started it as a bromine plan but today I see it more as an option to consider.

At this point, I am. The same tomorrow I throw it again but for now it seems like a good idea. We will see how the subject evolves.

Stay tuned.


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