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The Logic Behind Buying Companies

Here is a bit of conventional wisdom. If you eliminate some of the unknowns associated with starting a new business, you'll get a jumpstart on staying ahead of the competition. And one of the best ways of doing that is to eliminate the excess risk associated with starting a new company. Especially considering most new small businesses fail in under three years. Here at Pluribus Technologies, it's the primary reason behind our acquisition philosophy. We focus on buying businesses that are doing well in their segment and then investing in them for the long haul. Here are some of the primary reasons underlying our investment strategy.

1. Profits come faster

Most entrepreneurs start a business with a clear goal in mind: to make money. And yet what most don't realize is that starting a company is likely to cost more money and time than you may realize. Instead, when you buy companies that already have a clear path to success and then invest in that success, profits come faster. Buying an established business means we'll be able to profit immediately and be well on our way to finding and initiating our next acquisition. As a result, we can spend more time working on the business instead of in it and thus increase our profits even more.

2. Much of the hard work has already been done

Another reason why we buy established businesses is that someone else has already laid the groundwork. Just like a home, a business must have a strong foundation to survive. Standard operating procedures, policies, and the right employees are only a few to name. All of these pieces take years to build from scratch. When you purchase a company that is already standing out in its market, these factors come built-in. We're buying a fully operational ecosystem with all of the important pieces in place. We can step in as the new owner knowing the most time-consuming groundwork has already been done, and the business is already profitable. As a buyer, we conduct our due diligence to make sure we have all the necessary information before we buy. It is important our board, investors, and others within the company are confident in our buying decision.

3. People want to sell their business

Here's as good a reason as any to buy a company. People want to sell it to you! The truth is, there are thousands of wildly successful businesses for sale at this very moment. Owners are desperate to cash out and start over. Curious as to why someone would want to sell their company? Well, there are a few reasons. It could be they're looking to retire, their kids don't want to inherit the family business, or they simply no longer want the stress that comes with owning a business. These are all legitimate reasons to offload your company, and many people are ready to do so. With so many business owners ready to hand over a successful operation, why not invest in one? That's our philosophy.

We focus on purchase and growth

Once we acquire a company, we take a close look at what it will take to grow the organization. For many businesses, growth signals success. It creates new opportunities, brings in more customers, and generates greater profits. That's why we focus heavily on investing in the companies we buy. It is important that our family of companies achieve high levels of growth with minimal interruption.

Are you an investor looking for somewhere safe to park your money? Or perhaps you are a business owner who wants to sell your company? Learn more about how we can help you at our website!

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