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Entry in India through Business Opportunities in India

Invest in India is the mantra for lot of multinationals since India’s GDP size to cross $3 trillion in five years in 2019. This year India is set to become a $2 trillion economy. Currently India is the tenth largest economy in the world. Improving GDP will make India seventh largest economy in 2019 as per IMF’s latest world economic outlook.

A sharp increase in M&A activity in India since the new government assumed office in May 2014. 19% increase in value and 12% in volume over 2013, it is a positive trend this year, the activity of M&A has jumped 16.5%. As per a recent study by Thomson Reuters, the value of announced M&A deals involving India businesses reached $26.1 billion during the same period.

At $11.1 billion, domestic M&A was up 206.6% over a year ago and average deal size (disclosed values) of $75.2 million vs. last year $63.1 million. Healthcare sector has seen the massive M&A activities with total value of $6.1 billion (23.4% share of M&A).

A Grant Thornton study indicates energy and natural resources sector has been active this year with 25 deals aggregating $4.1 billion so far. Though IT and ITES companies continue to top the charts both in M&A and PE space.

Competition Commission of India suggested recently that fair trade regulator has seen steady increase in receiving an average of 10 notices a month since May 2014 for seeking approval for M&A deals vs. average 2 notices in 2013.  The informal guidance requests by law firms and companies have also increased reflecting the confidence in economy and future growth in India.

Technology sector is showing sharp increase in M&A league tables, reflecting a strong focus on services and solutions around Healthcare, IT, Pharmaceuticals, Medical, Biotech and Consumer industries.

The global businesses are trying to increase their share in India market. This is just a beginning as growth picks; interest rates will go down and more tax clarity will only help to further fuel this kind of activities.

There is a lot of interest from medium sized global companies to enter into India while acquiring/ share of local companies. Domestic big companies are also using the market sentiment to further grow their shares of the market via acquiring right fit companies and also diversifying.

In August, the government announced relaxation in foreign direct investment (FDI) norms in many sectors including multi-brand retail and telecom. There is inherent macro-economic pressure and heavy debt pile for some large domestic companies and which are looking to divest non-core businesses. This has created a large opportunity for global companies vying for a greater role in Indian market.

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Reminisce 2014

2014 has been the year where we found our start up journey all about perseverance and passion. There have been days where we felt at the top of the world and there were days where nothing seemed to work. We faced issues with hiring, website development, hosting server and many other petty office issues like the Internet connectivity, telephone, water supply, etc :)

But, eventually “going” got only better with the wonderful team, website development and the amazing network. We especially enjoyed the attention from the users of IndiaBizForSale.com. We have been receiving loads of praise and positive feedback from across the country and abroad. The testimonials we received from our clients who successfully sold (although few decided not going forward selling their business after receiving offers) and many who have managed to come across serious inquiries which otherwise would not have come. We believe in the cycle of doing good with good intent and this year has proved our belief.We have received remarkable support from CIIE, eChai, MICA, CII, GCCI, Economic Times, DNA, Divya Bhaskar, VCCircle, Money Control, Microsoft Azure, various business Bloggers, etc.

This year we had presented our business concept at IIM Ahmedabad, Gardi Engineering college – Rajkot, Venture studio Ahmedabad, MICA incubator, IDEAPAD at CIIE. We exhibited at Gujarat Manufacturing Show 2014, Rajkot Big Show 2014, E-tailing Conclave 2014 Ahmedabad and now gearing up to exhibit at the big summit Vibrant Gujarat 2015. We also attended events and workshop held by IIM Ahmedabad, VCCircle, LetsVenture, visited offices of Snapdeal, Infibeam, TOI, DNA, MoneyControl, IL&FS, Everstone, etc. The learning has been continuous and so has been the support from professionals and companies we interacted with.

Not only we received number of requests and offers from companies and individuals to get associated with IndiaBizForSale.com but had two initial offers on investment into our business.

Apart from our users who want to Exit from the business or Enter into business, we learned that the services we provide possess lot of value for mid-size companies abroad who are looking to enter into India market via acquisition/JV. We learnt that financial institutions (NBFCs, Banks), chartered accountants, business advisory firms, event management companies are also interested in partnering with us for financial needs of users of IndiaBizForSale.com. We have now worked on the delivery model for these interests, which will open different revenue streams for the company apart from our nominal listing charges for our Premium clients.

We are upbeat about 2015 – surely we will advance further in our journey, as we have confidence and support from the market along with the right team in place. We have a right product mix and we believe the timing is perfectly right. And above allour perseverance and our continual passion will flourish the business in 2015, this year is ours to make.

We thank you for believing in us, stay the same awesome you have been always !

Always Wishing Best,
Bhavin Bhagat & Priya Bhagat

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Are You Really Ready to Buy a Business?

Buying an existing business is becoming a practical choice for seasoned professionals who prefer not to start from scratch. These professionals generally would have worked at various positions in medium to large organizations for most of their working professional life and now they are looking to start something of their own.

These professionals understand the time and resources it takes to build a business from scratch, instead they prefer spending time and resources to further build the business they have acquired. Generally, these middle-aged professionals (mostly) who have years of experiences and the skills they have garnered, either have some sizeable funds of their own and/or have access to funds via their network to finance the purchase of an existing business.

IndiaBizForSale.com receives good number of inquiries from such professionals on a regular basis. We aim to qualify interests from these interested buyers by asking series of detailed questions. These include; their past experiences in a similar industry, profile background – qualifications, their future plans (reasons on why they want to buy a business), preferred industry and location, what is the ideal investment budget, whether the purchase will be self-funded or external finance, etc. After careful evaluation we help them with their search to reach out to a relevant genuine business opportunity for sale.

We also help the interested buyer to communicate with the seller, assist them with signing of NDA, the top line Business Valuation, and as and when required, arrange a site visit for buyer and seller to meet directly. This interaction requires a serious amount of time and resources from our end to ensure that we only bring Genuine Seller and Serious Buyer on our platform to meet each other. Our secured messaging system enables communication between interested prospects with the business seller without revealing the business or the seller identity (unless preferred by the business owner).

Our seasoned professionals generally have an investment budget in the range of Rs.50 Lakhs – Rs.10 Crores to acquire a running business for sale. Generally, these are either self-funded or have a network of HNIs who would fund this business investment.

No doubt, the opportunity cost for these professionals is higher but at the same time with the amount of experiences, skills and contacts one has all the right to become his/her own BOSS.

Click here to check out some of our latest businesses for sale.

If you are planning to invest into an existing business, Call us NOW on +91-8000422133 or connect with us through website – http://www.indiabizforsale.com. We promise unbiased advice for your interest and concerns.

Always Happy to Help!!!

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How To Know A Prospective Buyer Is Serious to Buy Your Business?

Selling a Business is a serious business, as a reason it is of utmost important to understand how serious the prospective buyer is when inquiring into a business opportunity for sale.

So, how does a seller find out if a buyer is serious or a time-waster?

Buyer

A Serious Buyer will- 

tickmarkKnow what he/she wants

A serious Buyer will know the type of business he/she wants to acquire. First off, it should match their skills and experience. The buyer will also have some realistic expectations on the location, the investment budget and the size of the company he/ she is looking to invest into.

tickmarkNot waste time

A serious Buyer targets businesses, does research on the business, and is ready to make contact, set up appointments and visit these companies. They meet with potential financial partners. They discuss with the seller or broker important considerations. They focus on businesses that are suitable for their background.

tickmarkBe “Transparent” to the seller

A serious Buyer is always ready to disclose his/ her identity (profile and background) to the seller. The buyer needs to reveal his interests and the reasons why he/ she wants to get into this business. The buyer should emphasize his/her understanding of the industry and  the qualification they have to operate a similar business. This will build an initial trust as the transaction proceeds to advanced stages.

tickmarkHave resources available to buy a business

A serious Buyer will have sorted the financing to fund the purchase of the business. A ready proof such as an income statement, banking references, and borrowing capacity should be in place. A serious Buyer will have a substantial amount to pay for the down payment and should disclose the plan on how will the deal be financed. Funds from investors or partners should be formally committed.

tickmarkBe ready to sign a non-disclosure or confidentiality agreement.

Signing an NDA speeds up the process as the buyer can get the information required to make a decision about buying the business. And gives the seller the trust and confidence that the information shared will not be leaked out.

For a Buyer, who wants to be taken seriously, be prepared before beginning the search for businesses for sale. Business brokers and sellers can easily spot whether you are a “time waster” or a “serious buyer”.

For a Seller, asking some basic questions to qualify a buyer is important – at times this can be a provocative issue as some buyers get offended that they are being pre-screening but this process ensures that you are dealing with a qualified inquiry and a serious buyer. Serious buyers will appreciate this approach by seller though.

My two cents – continue running your business and don’t get obsessed with couple of enquiries even if they are at advanced stage. One thing you don’t want is to lose focus on your business and the business starts to run down.

So, stay focused on running your business till the deal is closed and keep your options till you get the money in the bank.

Post Source : http://www.indiabizforsale.com/blog

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How to Value an E-Commerce Business for Sale?

You may have a trendy website or a not so user-friendly website. You may have other business requiring priority so not able to give earnest attention to your website. Perhaps you have increased competition for your e-commerce business or you just want to cash it out and invest that money into something else. While you have your own reasons to sell out your e-commerce business, you still want the best price from the buyer. But let’s face it! Determining the value of an online business for sale is not easy because of its intangible nature.

How much is your e-commerce business worth? It is certainly not determined by the number of hours you have put in or the SEO and promotion you have done or the growth potential it has. Buyers of an e-business are interested in the profit that a website generates. The other activities are ultimately focused on increasing the profits and hence do not increase the value of your e-business. Continue reading

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Seven ways to sell a Manufacturing Business

Business owners invest a lot of time, energy and money in a business to make it a grand success. However, at times situations come when owners put the Manufacturing Business for Sale. It is a gigantic task that needs a lot of efforts.

Tips to sell a manufacturing business profitably;

1.  Find companies who are interested in consolidation: Consolidation offers the best way of expanding market size. For middle-market companies, it is a great chance for selling themselves.  For large companies, it is much easier to consolidate with small manufacturers rather than spending huge money in setting-up fresh units.

2.  Lower the potential risk and boost the asset value: Once you decide to close down the unit, prepare the Business for Sale by increasing the asset value. By redeploying sale of goods, revamping the budgets, and tracking inventory you can achieve good control over the situation. Continue reading

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Things to Consider When Buying an Existing Restaurant Business for Sale

Buying a business can be difficult; the buyer needs to consider innumerable factors that decide if the business is worth buying or not. But when you try to buy a restaurant business, the decision is much simpler. The food industry is one of those industries that will never go out of business and will always have a dedicated customer base. That solves the most important issue of a business selling-buying scenario – loss of customers.

Take for instance – Chami’s Restaurant and Caterers, it’s a small but well-established restaurant. This business was established about 3 years ago and provides home cooked style food to its customers. The restaurant currently attracts about 40 dine-in customers in addition to 20-25 customers daily who order tiffin. With a dedicated customer base of these many customers, the business makes a turnover of more than Rs.2.25 lacs per month. When this business is sold, the new owner inherits the customers, staff and equipment and will also have the turnover right from the start. Buying a business doesn’t get simpler than this. Continue reading