Existing Business

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Why Buy an Existing Business in Brazil

With the economy in recession, there are a lot of government grants and tax breaks for those looking to invest in businesses and jobs. There are also a number of low interest loans intended to stimulate new business development and job growth. If you have the money and expertise to do it, this is a great time to start a business. If you’re not really an idea person, but have a great business mind, you may opt to purchase a business that already exists. If this is the case, it’s a good idea to carefully weigh the positives and negatives of such a deal and to prepare yourself for the complicated process of business acquisition, whether in the US or in Brazil.

Consider the Risks of a Business Acquisition

Even if you believe you can make a lot of money through the acquisition of a preexisting business, you shouldn’t jump in to any deals right away. Instead, take the time to weigh the risks against the benefits to determine whether or not you are in a position to take on such a procurement. It is important to research all available opportunities, including international ones, so that you can choose the best one for your situation. This will take time and careful study. There will also be a fairly large learning curve when you first buy a business, so be prepared to work with the previous owner, perhaps even keeping them on as a consultant for a while, in order to keep things running smoothly during the transition. The biggest consideration as to whether or not to purchase a business though, is the financial one. Be prepared to spend money up front when it comes to:

  • Travel Expenses during the Research Phase
  • Inspection and Assessment Costs
  • Legal Advice and Contract Services
  • Purchase Price

Factor in the Benefits of a Potential Purchase

Once you’ve considered the risks and costs involved in a business acquisition, you can then weigh them against the potential benefits. Hopefully, the business you’re interested in purchasing has a great reputation and a history of turning a profit each year. This gives you better odds for having a successful company than when from starting one from scratch. If you are willing to use the expertise of the previous owner, the transition into benefitting from their previous success shouldn’t be too difficult. When you buy an existing business, you don’t have to go through the money and effort that start-up takes, because you are buying a company that already has:

  • Established Brand Recognition
  • Effective Business Formula
  • Consistent Profits
  • Existing Client Base

Find Experts to Assist with the Process

Once you have decided which successful business you would like to buy, it is time to get started on the legal side of the deal. Purchasing a business, especially one in a different country, is actually a very complicated process. There are many variables to consider, including details that affect your costs, adhering to local, state, federal, and international regulations, and creating a legally binding contract that both parties must abide by. In order to make sure every aspect of this process is taken care of properly, it is a good idea to hire business attorneys. At our law offices, we have attorneys who are versed in every aspect of business litigation and business acquisitions in Brazil.

Phone: 212-300-7174

Email: info@oliveiralawyers.com