Best Business To Buy
Whatever type of business you're looking at, they each present their own challenges. While some businesses can give you more freedom with your time, they may take some time to generate profits. Others might be immediately profitable but consume a huge chunk of your working hours.
best business to buy
We also explore some of the companies that, in our experience, present the best opportunity for investment. This list was originally compiled for 2022, but we've updated it with more recent statistics and expanded the industries we discuss. These sectors have continued to show growth and resilience in the face of economic hardships, and we believe they make some of the best acquisition targets on the market.
We have found that it usually makes sense to go after industries with many players. Simply speaking, the more businesses that operate in a specific industry, the more opportunity there is in the space.
Companies that take on leverage (like when using debt to finance a business acquisition) are particularly susceptible to economic downturns and fail at a much higher rate than during better times. This is why we specifically prefer focusing on buying businesses that can survive or even grow market share during a recession.
The Baby Boomers are an incredibly large cohort and they have money to spend. If you have a business that directly serves their needs, it can be a big windfall. Think home healthcare services like nursing, mobility services, hospice care, physiotherapy/osteopathy.
Moreover, some companies rely on certain extreme weather events to drum up business. This is increasingly true as climate change worsens. For example, many roofing companies have begun relying on hailstorms in certain regions, while plumbers may be waiting for a bump in calls to pump septic tanks after heavy rainfall.
For instance, if you have a background in electrical engineering, you may want to consider buying an HVAC/R business. The key is to determine what your skills are, what your interests are, and what you can bring to the table when you acquire a company.
Below, we've compiled a scorecard of some of the industries we're most bullish on. Each business is ranked on the various categories listed above. Green is above average, yellow is average, and red is below average. These businesses align well with Acquira's investment thesis.
Obviously all green is ideal, but keep in mind those businesses typically sell for higher multiples. We're okay paying 2x for a company with one red, or a couple of yellows. Our Accelerator Program has a significantly more complex calculator that outlines how much you should pay based on your own weighting of the criteria in your investment thesis.
There are a number of factors that make plumbing businesses an interesting investment option. For one, smart technology is making its way into the bathroom, with the smart bathroom fixture market expected to be worth $6.6 billion by 2027.
The Pest Control industry as a whole experienced steady revenue growth over the five years leading up to 2021. The scourge of bed bugs in many urban centers led to an increase in business, while fears over the Zika virus prompted more businesses to seek out professional help in eradicating their pest problem.
The ultimate goal of Acquira is to help Acquisition Entrepreneurs find great businesses in recession-resistant industries. We then want to help everyone grow their businesses so they can make a graceful exit, or expand their companies even more through roll-up acquisitions.
Acquira is a business acquisition in a box service. We help entrepreneurs buy businesses and we invest in them and their chosen businesses. We are here to help ensure that each business we work with is posed to make the biggest positive impact possible for its owners, employees, and community.
From our experience, the best businesses to buy in 2023 are Laundromats, Vending Machines, Car washes, Mobile home & RV parks, Ice vending businesses, Airbnb properties, and vacation rentals, Gym franchises, Recurring household services, Digital businesses such as content website, newsletters, E-commerce.
Before deciding what is the business to buy today, you would want to know what to look for & what to avoid when you are buying a business. Buying the wrong business will not help you get your financial freedom. You would want to buy a business that makes you profit from day 1 of your acquisition.
The rise of the sharing economy has made vacation rentals a business opportunity for ordinary individuals. Through an app like Airbnb, you can rent out your primary or secondary residence with few, if any headaches.
Small affiliate sites can be purchased for a few thousand dollars, which is ideal for a beginner. For a little more money, you may be able to find an affiliate site with top-notch systems in place, making it a business with a semi-passive income that only requires part-time attention. You may need a virtual assistant and content writers, but those can be found fairly easily on Upwork or other freelancer platforms.
SaaS solutions are often sold through monthly subscriptions. This arrangement is beneficial for both the business owner and the customer. The business owner gets stable and predictable monthly revenue, while the customer can pencil a dollar amount into their monthly budget for the foreseeable future.
Getting back to Rampal: the owner of East Meadow Wine and Spirits recognized an opportunity to expand his business during the pandemic. He was able to quickly get funding from Biz2Credit, allowing him to take his business to the next level.
You might be surprised to see restaurants as one of the best types of businesses to buy in 2022. At the peak of the pandemic, around 110,000 restaurants were temporarily or permanently closed. And according to a 2005 analysis done by Ohio State University researchers, as many as 61% of independently operated restaurants fail within three years of opening their doors.
Out of all of the online resources, BizBuySell.com is one of the most heavily trafficked sites by sellers and buyers. The company was founded in 1996 and they list over 65,000 businesses and franchises per year.
BizQuest.com was started in 1994 and has around 1500+ active business listings on their site. Unlike larger business listing sites, they do not charge buyers for memberships and offer free memberships instead.
Most business brokers and M&A firms have active listings posted on their site where you can inquire directly. And if you happen to be looking for a larger business, merger and acquisition company sites can be some of the best places to look.
Each of these methods and online resources can greatly aid your search for a business to buy. To get the best results and find a business easily, you can use multiple online resources to remain up to date on current listings.
One of the best ways to start a new business is by capitalizing on a franchise opportunity. Not only do franchise opportunities come with premade marketing collateral and high brand awareness, but you get extensive business support from the franchiser.
In fact, the US Census reports that 11.4% of all businesses in the US are franchises. While restaurants make up the bulk of franchise opportunities, gas and convenience stores, car dealerships, fitness, real estate, and hospitality sectors also make up a sizable chunk.
Great Clips has been in business for 30 years and provides its franchise owners with up-to-date technology and training. It has invested heavily in market research to provide customers with the best service and experience.
This quick-service restaurant brand has been around for 50 years and has developed financial stability and brand recognition. It has a proven operating system and gives you access to restaurant resources and a community of more than 350 franchisees who know the business.
JAN-PRO is a commercial cleaning franchise whose clientele is other businesses. They offer three options for franchising: international master franchise, executive business, and home-based opportunities.
If you're looking to start a low-investment, exercise business, a Jazzercise franchise might be a good fit for you. It offers various price points to begin a franchise and you can find the one that aligns with your budget.
Pure Barre is a popular, boutique fitness brand with nearly 600,000 clients. The business offers multiple revenue streams: bar classes and activewear. And it provides support and training for real estate, operations, consulting, marketing, and more.
In addition to dictating how your business runs, franchises also lack autonomy when it comes to finances. Your franchisor will most likely control all aspects of the franchise's financial dealings. Be prepared to routinely submit financial statements such as your balance sheet and income statements.
In addition to startup costs, franchise owners should budget funds for reinvestment in the business and other fees stipulated by the franchisor. These additional costs can come in the form of training fees, royalty fees or other services like advertising.
Small business loans are an excellent option for covering your franchise fee and up-front investments. Depending on your financials and your lender, you can qualify for hundreds of thousands of dollars, which will more than cover you during the setup phase.
This head start comes at a cost, however. And if your personal savings don't cover the cost of your purchase, chances are you'll be looking to apply for a business loan. Depending on a range of factors, you may be able to get a loan to buy an existing business, but first you'll have to size up your needs and requirements, prepare the right information and documents, and shop for the right lender.
When you're buying an existing business, lenders want to know about both you and the business you want to buy. That's fair: Up to this point, you and your prospective business have had two entirely independent histories.
As they would with any loan, lenders want to know about your personal credit history. Do you have a history of successfully managing debt? Do you handle credit responsibly? They'll want information about your income, your current business (if you have one) and any relevant experience that makes you a good candidate for running this new business successfully. Here's a short list of items to prepare: 041b061a72