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Small Business Investing

Investing in a Small Business

Why can acquiring a company be a great investment?

Acquiring a company can be a great investment for a multitude of reasons. If the business has a proven track record of adapting to all market conditions, consistently generating profits, distributing those profits, and growing its client base over time, the downside risks can be reduced, and high returns on the initial investment can be realized. The valuation of the company and the price paid for the initial investment materially affects the investor’s returns, so you should base the sales price such that the investor does not overpay for the equity, as it may stretch the time it takes to earn a decent return by months or years.



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