PROS For Purchasing a Company for Under $1M

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January 23, 2020

by a searcher from University of Massachusetts at Amherst in Boston, MA, USA

Pro: Depends on the industry and the margins. Platform...maybe depends on the type of business and market etc. If it an software based/ecommerce/services where you can scale digitally then being at $1M or less could be very profitable with limited staff, overhead etc. For example, you could purchase an retail/consumer orientated website/inventory with strong margins###-###-#### % recurring revenue subscription based that generates 20-25% net profit on $1M= $200-250K is A OK!

Thoughts: WHY YOU CAN?

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Reply by a searcher
from Massachusetts Institute of Technology in Colorado Springs, CO, USA
I looked at a small manufacturing business that might have been in that range. The main issue was that the owner was central to many important pieces, such as cost estimating, that there would have been a steep learning curve to take over. It can work for the right person and with the right transition plan in place, but there is a definitely a risk stemming from the lack of depth in the talent bench.
commentor profile
Reply by a searcher
from University of Bologna in Barcelona, Spain
Hello Karl i sent you a message with about an opportunity that perhaps could fit with your expectations.
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