What are the pros/cons of buying a company for <$1 million?

by a searcher from State University of New York (SUNY)

4 years ago

What are the pros/cons of buying a company for <$1 million and using it as a platform?

6 likes
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26 comments

searcher from University of Toronto

Pro: Nimble. Con: Focused on survival.

4 years ago | like reply | 1 like

searcher from University of Massachusetts at Amherst

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!

4 years ago | like reply | 2 likes

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