Is Buying a Business in Debt Worth the Risk?

Posted by SPCowan under Finance
From http://www.mibusinessmag.com 2483 days ago

Gary Edwards, Marketing Manager at Business Valuation expert Company Valuation Services, discusses whether buying a business in debt is worth the risk.

Who Voted for this Story

Top BizSugar Users

This week's most active BizSugar users. Join Them!

Comments

Written by BusinessExits
2477 days ago

Almost every business is in debt!

At any given point in time the chances are that the business owes somebody money, even if it's just the owner's salary that the business is going to be paying at the END of the month.

I was hoping the article would cover the different kinds of debt and discuss 'good' debt vs bad debt. It didn't.

Debt has other interesting uses - they could have touched on seller financing, for example, given this is an article about buying businesses.

Also, I believe their stats - share sales constituting less than 5% of businesses being sold and asset sales being over 95%) - are way, way out. It's a shame there wasn't a link to support the claim.

- 0 +

Written by SPCowan
2476 days ago

You are right re: every business being in debt, this tends to be an inevitable scenario even before said business even begins trading.

- 0 +