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.
A good starting point is what kind of business you want and where you want it. The ‘where’ of it is not too difficult anyway – search strings like ‘buy a business near me’ or ‘buy a business in so-and-so area’ are easy clues to that. Now, the ‘what’ of it –Do you come with background in a particular industry Or, you may be looking at this as an opportunity to about a new industry all together? In that case, ask yourself – what fascinates you? Dairy or Fashion? Power or Healthcare? Have fun with this little exercise, and when you have narrowed the list down to two or three, move on!
Next, ask yourself questions like, what is the size of business I am looking to buy? Don’t confuse yourself with labels like ‘small’, ‘medium’ and ‘big’. Instead, talk numbers to yourself – how much turnover? How many employees? How many products? How much net worth? And so on. What else matters to you, apart from size? Do you want to go global, and therefore, are eying businesses that have already forayed into exports? Keep asking yourself until you run out of questions. Every time you come up with an answer or a set of answers that reasonably justify a question – jot it down. Don’t worry, you can change your answers later, we just need something to begin with.
At IndiaBizforSale, we have over 1800 businesses listed for sale, and counting. The confidence of business buyers in us is reflected in the fact that there are currently 4000 buyers listed in our platform. Being a dedicated platform that we are, our processes ensure authenticity, anonymity and relevance. Take for example, our team of experts who actively seek out businesses for you based on your criteria, apart from our robust algorithms. When you work with us, we become your eyes and ears out there. There are other options too – the conventional offline listing in local magazines and trade journals – and it might be useful to create some noise and attract sellers. Once you have chosen your go-to option for sourcing businesses, you can start filtering the businesses that are up for sale, and also get yourself listed as a prospective buyer to attract others. Again, a professional team like the one at IndiaBizforSale will be indispensable. It is not enough to communicate what kind of business you want, you must know how much to say, and how to ensure anonymity, if needed. What next?
It will probably be a while before you finally zero-in on a business or two. What next? For starters, you will have to invest in thorough scrutiny of the business (due diligence). Your due diligence results will guide you towards pricing the business (valuation). Depending on the negotiations, the discussions will then steer towards decisions such as amount of up-front payment, amount to be paid in cash, post-purchase involvement of previous owner and such issues (purchase terms and conditions). Finally, there will be legal compliances to be taken care of at both ends. For the above steps, it is imperative to have a professional team consisting of Chartered Accountants, Company Secretaries, Valuation Experts, and Lawyers. At IndiaBizforSale, we also help buyers and sellers secure such services from industry experts.
Congratulations! You now have a bird’s-eye view of buying a business in India. Let’s get started. Contact us if you have any further queries, don’t forget to stay tuned to our blog for more!