current depression/recession is has been a disaster for many
businesses.Â Companies, both large and small, are
unloading assets and cutting staff. This may be the perfect time to
start or expand a business to take advantage of some good
opportunities. Acquiring a struggling rival business, hiring talented
experienced people and growing your market share. A business resources
can focus on opportunities like these to improve its competitive
position at fire-sale prices.
Locating the right business ready to sell requires some research and
possibly hiring a good business broker and search firm. When you find
the right business, you might want to have a broker make an offer. Even
if the offer gets rejected, continue to negotiate because selling may
be he best alternative for the struggling business. Even if you the
owners do not want to sell, you may be able to buy part of the company.
The seller may be willing to sell distribution systems, factories,
machinery, and other assets not part of their core business at
Another alternative is to move into vacated
locations.Â Some businesses have a policy of going
after competitor's vacated stores. For example, Liberty Tax is known to
seek old H&R Block storefronts. In the restaurant and retail
industries, for example, taking over a closed site with the basic
fit-up in place can help a business inexpensively expand. The current
available space means this is a good time or expansion at reduced
A failed company's intellectual property may be a great bargain.
Systemax Inc (TigerDirectOnline) spent $14mil for the trademarks, brand
and Web site of bankrupt Circuit City. For a web business such as Tiger
Direct, the Circuit City bankruptcy purchase which followed last-years'
purchase of CompUSA, means a rapid expansion to large bases of existing
customers. Even though other competitors, such as Bes Buy are filling
the void for in-store retail sales, Tiger Direct has the online
Cappuccio, J.D., LL.M (Tax)