- Open the below link & watch the video to get more ideas
- Master Class on Mergers & Acquisitions (M&A) for Business Owners, HNIs, Corporates, Investors
Does the idea of buying or investing in a business excite you?
Welcome to the Club!
Thousands of first-time buyers and investors embark on this fascinating journey every year by putting their money in an existing business. For some, it is the idea of testing their entrepreneurship acumen in an existing business, while for some it is about making their money work hard. However, for many people, the decision is not easy to make – should you buy a business or invest in one?
We have worked with thousands of business owners, buyers and investors over the last few years and have closed multiple deals – both in business buying and investing. In this chapter, we will share a few practical insights from our team to help you understand the varied implications of buying and investing in a business. We recommend that you begin by asking yourself the following questions – the answers to these will help you lead the way towards the most suitable opportunity for you.
Are you looking for complete ownership, control, and a deep-dive into entrepreneurship? Are you excited about building your dream venture? Do you want to be your own boss? If the answer to one or more of the above is ‘yes’, then buying a business is more suitable for you. Investors are limited in terms of the amount of control and decision-making power they exercise in a business. Of course, there are various rights of an investor that you can exercise to significantly step-up the amount of control you have – but the owners are still going to have the final say and a much higher involvement in running the business.
Do you have some experience in the industry to which the business belongs? Do you have prior experience in running a business – either first-hand or through a family member? Do you have adequate network in the relevant domain? If yes, then buying and running a business on your own will be a lot easier and more appropriate. However, if you are not sure about your background and experience being a good fit for the business, then investing in it might be a less risky proposition.
Resources are critical when it comes to running a business. Does the business have an existing, well-established team, or do you have to build one yourself? Is there a loyal client base that you can rely on? Are the distribution networks on auto-pilot or will they require your constant supervision? Is the raw material coming steadily from an assured supply base, or is vendor management going to be a constant headache? If most of these pieces are sorted out, both buying and investing are lucrative possibilities. However, if the business is of high potential but still needs a lot of fixing, it might be better to invest your money and help the existing owners figure it out on their own.
In reality, the decision to buy or invest in a business is not isolated from other decisions in one’s life. Contrary to popular belief, there is no ‘right time’ to buy or invest in a business. There are no rules – anyone can put money in a business at any point in time, provided their existing commitments are in sync with the decision. Having a wonderful day job that you absolutely love? Invest in a business. Looking for a career transition? Consider buying your dream venture. Do you have significant financial commitments towards your family? Start by investing in a business – consider buying one later. Looking to build an enterprise that will sustain your family for generations? Go for buying a business. These are just a few examples – the best way to go about it is to map all your personal and professional commitments against the two options (buying and investing) and then arriving at the best opportunity for yourself.
We hope that these pointers have helped you decide whether you want to buy or invest in a business. In the next chapter, we explore the various preliminary considerations to be reflected upon before you actually begin the journey.
“Do Something Today That Your Future Self Will Thank You For”
Are you looking for new and exciting investment opportunities for your money? You are not alone. Investors all over the world today are on the lookout for something more engaging and entrepreneurial than traditional investment options like stock, bond, shares, deposits and mutual funds?
Did you know? Putting money in a business is the new age mantra to making your money work hard while experiencing a deeper and more fulfilling engagement in your investment. We have worked closely with thousands of business owners, investors and business buyers over the last 5 years, and in this article, we share with you the various ways in which you can benefit by investing in a small business or buying one.
At IndiaBizForSale.com, we provide first-time investors with thorough support and handholding and also help you connect with professionals to help you with the transaction and risk-management. We have thousands of businesses on our platform which can be filtered by industry, location, asking price, credibility and so on.
You may have just decided to buy small business for the first time, or maybe you are still toying with the idea of doing so. In either case, you would probably want to know what you should watch out for while buying a small business in India. In this article, we will discuss a few important considerations to be kept in mind while you are on the journey of acquiring a small business.
As a first-time buyer, it is possible that you will be overwhelmed by the businesses that are presented to you, and that you will take the seller’s words at face-value. It is important not to get ‘sold’ on a business or idea while buying, and to keep your professional judgment as objective as possible. Do intensive research and due diligence before you commit to anything. Have a team of professionals evaluate every business thoroughly, instead of giving in to the words of any friend, colleague or family member.
There are several tax implications associated with buying a small business in India. These include capital gains tax, previous year’s tax liabilities of the business, tax provisioning of the business for the forthcoming years, tax credit / refund, changes in taxable income of the buyer, and so on. Ignoring tax implications can land you in trouble even long after the transaction is closed. It is wise to have a Chartered Accountant or a Taxation Expert review the tax implications of your deal and advise you on the same.
Remember that investment in a business is a risky, long-term affair. It doesn’t come with the privilege of certainty unlike other options such as bank deposits – which is a fair game, as the returns of investing in a small business are much higher too! But the thing to keep in mind here is that you should not invest money which might be required by you or your family in the near future. Invest earnings that you can afford to have locked up for years, or may be even lose, in the worst-case scenario. The bottom-line is that your professional decision to invest in a business should not affect your personal life.
Are you exercising all the rights of a buyer? For example, as a buyer you have absolutely no responsibility to take on the liabilities of the business you are buying or that of the seller. You also have the right to restructure the business as you may deem fit post purchase. There are several other significant rights such as right to full disclosure of business information by the seller, right to seek legal help in case of any misrepresentation, and so on. Make sure you know your rights as a buyer and exercise them when needed!
Last but not the least, it’s better not to take it all on yourself the first time. Don’t have a way with words? Get a negotiator on board. Find it difficult to crunch numbers? Get your CA to do it for you. Unable to source good businesses? Get a consultant for deal sourcing. Feeling lost about the legal implications? Get advice from a lawyer. The idea is that your first-time buying experience should be as smooth as it gets, and you should definitely not end up losing money or sleep!
If you are looking for a one-stop solution for professional management of your deal, you can visit us at IndiaBizforSale.com and explore our services and success stories. To know more about what we do and how we can help you, please contact us on [email protected].
Indiabizforsale.com has now become your one stop shop for all your business selling, buying, investment, funding and allied needs.
We do not just connect you with your right business match but also help you in the end-to-end transaction services related to the same to ensure fast, smooth and reliable services to all our clients.
Although currently these services are provided to clients in a limited geography but soon it would be available to clients across the country at unbelievably affordable prices.
To be able to provide you these services sooner, we would require your constant support and trust and hence we are inviting the lawyers and CA’s amongst you to empanel with us and help us provide these services in their vicinity.
Evolution of Healthcare Sector in India
India boasts of healthcare facilities in its ancient time that were unbelievable and unprecedented for that era. Our scriptures of Ayurveda have mentions as well as cures for diseases that were believed to be incurable by most other continents and countries till a few decades ago.
Today, healthcare has become one of India’s largest sectors – both in terms of revenue and employment. Healthcare comprises of hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well private players.
Indian healthcare delivery system is categorised into two major components – public and private. The Government, i.e. public healthcare system comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of primary healthcare centres (PHCs) in rural areas. The private sector provides majority of secondary, tertiary and quaternary care institutions with a major concentration in metros, tier I and tier II cities.
India’s competitive advantage lies in its large pool of well-trained medical professionals. India is also cost competitive compared to its peers in Asia and Western countries. The cost of surgery in India is about one-tenth of that in the US or Western Europe.
The overall Indian healthcare market is worth around US$ 100 billion and is expected to grow to US$ 280 billion by 2020, a Compound Annual Growth Rate (CAGR) of 22.9 per cent. Healthcare delivery, which includes hospitals, nursing homes and diagnostics centres, and pharmaceuticals, constitutes 65 per cent of the overall market. The Healthcare Information Technology (IT) market which is valued at US$ 1 billion currently is expected to grow 1.5 times by 2020.#
Deloitte Touche Tohmatsu India has predicted that with increased digital adoption, the Indian healthcare market, which is worth around US$ 100 billion, will likely grow at a CAGR of 23 per cent to US$ 280 billion by 2020.
Over 80 per cent of the antiretroviral drugs used globally to combat AIDS (Acquired Immuno Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
There is a significant scope for enhancing healthcare services considering that healthcare spending as a percentage of Gross Domestic Product (GDP) is rising. Rural India, which accounts for over 70 per cent of the population, is set to emerge as a potential demand source.
India requires 600,000 to 700,000 additional beds over the next five to six years, indicative of an investment opportunity of US$ 25-30 billion. Given this demand for capital, the number of transactions in the healthcare space is expected to witness an increase in near future. The average investment size by private equity funds in healthcare chains has already increased to US$ 20-30 million from US$ 5-15 million.
A total of 3,598 hospitals and 25,723 dispensaries across the country offer AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy) treatment, thus ensuring availability of alternative medicine and treatment to the people.
The Indian medical tourism industry is pegged at US$ 3 billion per annum, with tourist arrivals estimated at 230,000. The Indian medical tourism industry is expected to reach US$ 6 billion by 2018, with the number of people arriving in the country for medical treatment set to double over the next four years. With greater number of hospitals getting accredited and receiving recognition, and greater awareness on the need to develop their quality to meet international standards, Kerala aims to become India’s healthcare hub in five years.
The hospital and diagnostic centres attracted Foreign Direct Investment (FDI) worth US$ 3.59 billion between April 2000 and March 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP).
Some of the major investments in the Indian healthcare industry are as follows:
India’s universal health plan that aims to offer guaranteed benefits to a sixth of the world’s population will cost an estimated Rs 1.6 trillion (US$ 23.72 billion) over the next four years.
Some of the major initiatives taken by the Government of India to promote Indian healthcare industry are as follows:
India is a land full of opportunities for players in the medical devices industry. The country has also become one of the leading destinations for high-end diagnostic services with tremendous capital investment for advanced diagnostic facilities, thus catering to a greater proportion of population. Besides, Indian medical service consumers have become more conscious towards their healthcare upkeep.
India’s competitive advantage also lies in the increased success rate of Indian companies in getting Abbreviated New Drug Application (ANDA) approvals. India also offers vast opportunities in R&D as well as medical tourism. To sum up, there are vast opportunities for investment in healthcare infrastructure in both urban and rural India.
[As written in: http://www.ibef.org/industry/healthcare-india.aspx]
Vibrant Gujarat 2017 & IndiaBizForSale.com
Vibrant Gujarat Summit 2017 saw a host of ups for many industries, business houses, small – medium sized businesses and startups. It boasted of international delegation from around 20 countries and MOUs worth 1000s of crores signed. It gave every visitor and exhibitor a different experience and opportunity.
IBFS was fortunate enough to be one of the exhibitors at the event and we had our own share of experiences, learning and opportunities that we have taken from the event. The event proved to be very educational not just for us but also for all those who visited us. Some of the key takeaways for us were:
Note from our Team member
Evolution is a constantly ongoing process to upgrade and become better versions of ourselves. My evolution story at Indiabizforsale has been quite aligned with that of the organization. When I had joined the organization it was just a listing platform with a 5 member team and with simple roles of understanding businesses and getting the two sides connected and 2 years down the lane we have evolved to serve end-to-end business transactions.
New Year Greetings from IndiaBizforSale.com
Managing expectations of the growing platform has thrown new opportunities as well as challenges. This year has been a great deal of learning for most of us at IndiaBizForSale.com. Our number one goal has become number of successful transactions, rest all are hygiene factors.
Impactful events of 2016
This year has given the Indian businesses both big and small its own share of reasons to rejoice and lament. The 5 biggest and most impactful events for the businesses in India have been:
1. Demonetization of Rs 500 & 1000 currency notes
As business owners and operators, we have already gone through the harsh reality of demonetization of the currency notes and the ripple effect it has caused in our day-to-day lives. A lot has already been said about its effects and the chaos it has created in our economy. Some experts have praised it while others have left no stones unturned to criticize it. In our opinion, the demonetization drive would help the semi-organized Indian economy to be organized and become more robust in its activities and outcomes (however, as always the common man would be the biggest sufferer).
2. Launch of Reliance Jio – the biggest telecom disruption
Launch of Reliance Jio has not just affected the small players like Telenor & Aircel and made it difficult for them to survive but even the giants like Airtel, Vodafone and Idea are facing the brunt of it and have lost not just in terms of revenue but their share prices are also on a constant dip. The almost free services offered by Reliance Jio has created a storm for people to either switch to it or expect their service providers to give better offers which most of them are unable to resulting in a massive loss of loyal customers as well.
3. Launch of Start-up India by PM to encourage innovation and entrepreneurship
The launch of startup India campaign by PM Narendra Modi acted as a feather on the cap. The initiative aims at encouraging citizens of the country to hone their skills, work for their desires and become entrepreneurs and reduce the bureaucracy that hinders people from following their dreams and discourages innovation and possible growth of the economy. To add to this initiative the Smart Hackathon Initiative has also been launched by the HRD Ministry of India in collaboration with various other ministries to encourage the students from various technology colleges to innovate and have their own startups.
4. Various government initiatives like Indian Enterprise Development Service (IEDS) for SME’s
Other than encouraging new innovations, initiatives and startups the government has also implemented various initiatives and plans for the SME and MSME businesses of the country, encouraging them in various aspects from embracing technology and becoming more advanced to providing them infrastructure and support to grow and flourish better.
5. Inclusion of 5 Indian companies in the Forbes list of 100 most innovative companies of 2016
Asian Paints (#18), followed by Hindustan Unilever (#31), Tata Consultancy Services (#66), Sun Pharmaceutical Industries (#73) and Larsen & Toubro (#89) are the 5 Indian companies that made their space in the Forbes list of most innovative companies of 2016 and made the whole country proud. Being in the same list as companies like Tesla Motors, Under Armour and Amazon is a clear indicator of the extent of inclination and dedication these companies have been putting towards innovation.
The Role of Advisors in an Evolving M&A Market of Small Businesses!
Is small beautiful?
Of course it is. And who would know it better than you! Whether you are a buyer or a seller of small business, you are in a unique position to appreciate the risks and rewards that come bundled in the process of owning, running, and exiting a small business. Until recently, deal advisors, brokers, and consultants were seen as gatekeepers of the high-stake strategic investments of large size. Clash of titans culminating into acquisitions, or hungry deep-pocket firms gulping down technology companies were traditionally the mainstay of investment bankers.
Today, however, the emerging trend of M&A in small businesses have carved out a fresh avenue for deal experts (Read More) – consultants and brokers are as much vested and needed when small businesses change hands today as they do for large businesses. In case you are wondering, M&A in small businesses are not as uncommon as they used to be! Recently, at IndiaBizforSale, a defense manufacturing company received strategic buyout offer from a Bangalore-based player in allied sector. How then does a transaction advisor fit into the microcosm of an SME? More importantly, how do you stand to benefit from their involvement in a transaction?
Negotiation – Leave it to the Masters
Let’s face it – many of us get cold feet in a board room. It doesn’t mean that we / our business are lacking in any way, it simply stems from the fact that we are not always the best people to argue, speak hard math, battle counter-points and get what we deserve against all odds. More often than not, a negotiation with a strategic buyer is best left to the experts – consultants who act as investment bankers and business advisors for parties. You will be surprised by how much ownership and sense is brought to the table by a seasoned advisor.
Transaction Terms and Structuring
An M&A deal can involve a range of transaction instruments such as cash, seller notes, equity, earnouts, and others which can be extremely consuming for a non-finance person to understand and follow, let alone decide the best for himself! A business consultant comes with professional background and experience in structuring deals and setting transaction terms. Focus on the core deal yourself and let your broker weave his magic on the peripherals!
Sale Preparation – He Who Sees it All
Who said consultants only add value to transactions? If you are unsure about getting the best value for your business from the current state of advisors, get an advisor to do an all-round assessment of your business and advise you on sale preparation. You will not regret it.
Facilitating Sales Process
New to M&A? Need a holding hand to walk you through each and every step of an M&A? Consultants and brokers are your best buddies. They come with rich legacy of several transactions, understand your plights, and have seen the situation from both ends of the table. Hire one today and soon M&A will be a cakewalk for your small business!
Is it a surprise that consultants, who come with a professional network of potential buyers (and sellers), can help you source prospective buyers? Not just sourcing – hired business advisors become brand ambassadors for your company, provide you with credibility and seek out buyers that match your needs. Leverage their network and maximize the chances of finding a buyer.
Managing Your Business
It can be a daunting task to balance managing business on one hand and taking care of an ensuing M&A on the other. Your business advisor is your partner – since no one can run your business better than you, ease of the transaction load to him while you keep your reins on the business. You will be amazed by how liberating it feels!
As you now realize, with the advent of M&A wave in small business, consultants and brokers have come of age and play a pivotal role in ensuring smooth transactions. Look for a consultant with experience in your industry and good reputation. If you have any queries on the role of advisors and how to find one, reach out to us.
Review of Business Verification Service
With increase in the number of businesses available for sale need has emerged to ensure the accuracy of the information provided and to fulfill this very need we started verifying the businesses available on our platform so as to ensure that both the buyers and sellers have a realistic view and get the maximum benefits of their presence on IndiaBizForSale.com.
The process of verifying a business has been very cumbersome but equally rewarding. Currently, we have selected a small pool (Read More) of businesses that are being verified and have received an overwhelming response from them. We have received all the requested information whether It be business’s last few years’ financials or pictures or any other confidential details and our team is meticulously checking all the information provided so as to ensure that only the verified information is available on the listing.
The enthusiasm demonstrated by the users towards getting their businesses verified and in wanting to connect with verified businesses also led to creation of a special filter just for the verified listings.
To add a cherry on top, 2 businesses listed on the platform got Sold within a couple of months of being verified and 1 more is in process of being acquired.
On the whole businesses with verified tag are getting 3-4 times more views and inquiries than others and hence more and more serious sellers and getting in the queue to get their business listing verified at Indiabizforsale.com.
How can we help you better?
We have been working scrupulously for the last 4 years to provide the best of both worlds. We would now love to hear your opinion on how can we help you better. (click to fill the 20 second survey)
If you have been typing ‘I want to buy a business in India’ in the search box of online search engines for a while now – you are not alone. However, legitimate information, let alone practical information, on buying a business in India are not easily found. Dedicated platforms are even rarer. We at IndiaBizforSale.com are exactly that – a dedicated online platform for buying and selling of businesses in India – and much more! Add to it the fact that over the last 4 years, we have closed over 19 business buying and selling transactions. This leaves us in a favourable position to address your doubts and queries about buying a business in India. Continue reading “Want to Buy a Business in India? Look no Further”
Now we are offering you a quick and easy way to connect with our registered and curated buyers.
Buyer information will be available to sellers (albeit with privacy settings)
We believe that privacy and confidentiality are very vital for successful deal closure especially for running businesses. As a reason, since the inception of IndiaBizForSale.com, we have never shared any identity details/ business confidential information with any users or third party.
In the recent past, many of our buy-side users shared that they would not mind sharing their details with the sell side. With this feedback, we are changing our policy, we will allow the BUY side (registered members of indiabizforsale.com) to share their details when they contact the SELL side listings. Obviously, there will be an option available for the buy side if they require their details to be kept confidential.
BizNews: Your Monthly Refresher for Buying and Selling of Business in India
Find Buyers To Sell Your Business
In last 2 years and 3 months, as a platform we have grown many folds. We have received the applaud from many users who have successfully closed transactions, earned mandates, formed partnerships etc. We are very glad to share below highlights
Successes so far –
12 Business Transactions Closed
15,000+ Sell-side & Buy-side Direct Introductions
1,150+ Business Opportunities: Sell-side Listings
1,850+ Businesses Wanted: Buy-side Listings
IndiaBizForSale.com is India’s largest platform providing easy solution for SMEs to find the counter party to a business sale transaction. Let us help you in connecting with the right Business Opportunities in India.