When we are talking about entrepreneurship somehow by default we think that a person has to start his business from scratch. Of course we have heard that there are some investors who have bought other companies but in most cases we relate this to investment funds not so much to entrepreneurs.
In some cases if you are an entrepreneur the perspective of your business to grow organically is not very optimistic. Perhaps the industry is not growing very much or the market is fragmented. Sometimes a business needs a scale in order the business model to be successful. This applies not only to the traditional businesses but also for the startups. We can take for example platforms like Facebook and LinkedIn. They should have some critical mass of clients in order to be successful. In this case to buy another business is the fastest solution to reach the necessary scale. If you an owner of a family business to idea to sell or buy another business intimidates you a little bit. The reason is that this is a very important step and very often entrepreneurs do it only once in their lifetime. They don’t want to make a mistake. Of course most of them are not financial experts but it will be beneficial if they have some initial knowledge about a valuation of a company, when is the right moment to sell the business, what problems to be aware of when buying another company, etc.
There are many books and information in internet which can help you to get familiar with the topic. If you want to get more detail information then we can recommend this video course with over 60 videos which is designed for entrepreneurs and owners of small and medium businesses.