How much should I pay for a failing business?

It all depends on the business, how much in revenue the business is doing, and what industry it is in. Be aware of the revenue multiple you’re paying when buying a failing business. 

How can I finance the purchase of a failing business?

Family and friends, self funding, or utilizing a tool like a small business loan or SBA loan can get you the funding needed

How long does it take to turn a failing business around?

This depends on the size of the current business and the owners plan for turning the business around, many factors can play into the timeline to turn a business around. 

What are some common mistakes to avoid when buying a failing business?

Be sure to understand as many facts as possible when purchasing a business as well as the reason it's failing. Also be sure to have a comprehensive strategy you’d like to bring to the business if you were to assume ownership. 

About the Author

Kal Salem

Kal Salem

MA Accounting - Arizona State University

A CPA and finance professional working with small businesses to educate owners and grow alongside their businesses. Kal started his career in public accounting supporting SEC, regulatory, and both internal and external audits. He holds a Masters in Accounting and a BS in Supply Chain Management. Owner at Salem CPA...

More about me

Related Articles

Show More