Buying an existing company can be an attractive alternative to starting a new one from scratch. It offers the advantage of established infrastructure and business history, which can save time and effort. However, this process also presents certain peculiarities and risks that must be carefully considered, especially when dealing with a limited liability company (LLC).

Advantages of Buying a Company as an LLC:

• Access to existing infrastructure and operations: Avoids the process of creating the company from scratch, including searching for premises, hiring staff, and setting up operating systems.
• Business history: The company already has a trade name, customer base, and reputation in the market.
• Possibility of expansion or diversification: Purchasing can be a quick way to expand into new markets or diversify the range of products or services.
• Access to licenses and permits: If the company operates in a regulated sector, the purchase can facilitate obtaining necessary licenses and permits.

Issues and Aspects to Consider:

• Due diligence: It is crucial to conduct thorough research on the company to identify potential financial, legal, or management issues. This includes reviewing annual accounts, contracts, licenses, and ongoing litigation.
• Company valuation: It is important to determine the true value of the company before making the purchase. Professional valuation that takes into account assets, cash flow, growth potential, and other relevant factors is recommended.
• Liabilities and debts: Buying a company involves assuming its liabilities and debts. It is essential to understand the extent of these obligations to avoid unpleasant surprises.
• Cultural integration: If the company has an organizational culture different from that of the buying company, careful integration planning is important to avoid conflicts and ensure the success of the operation.

Situations Where Starting a New LLC Might Be Advisable:

• No suitable company to buy: If a company that fits the needs and goals of the buying company cannot be found, it is better to create a new one.
• Desire for greater control: If complete control over the company from the start is desired, creating a new one is advisable.
• The buying company has a unique organizational culture: If the buying company has a unique organizational culture, integrating it with an existing company's culture may be difficult.
• High acquisition costs: In some cases, the cost of buying a company may be similar to or even higher than creating a new one.

Conclusion

Buying a company as an LLC can be a great opportunity to access an established market and gain a competitive advantage. However, conducting thorough analysis and taking necessary measures to minimize the risks associated with the operation is essential. In some cases, starting a new LLC may be the best alternative.