Buying a ready-made business in Bulgaria

So that the investment is not wasted, the purchase deserves close attention. First of all, you need to choose the right line of business. Here it makes sense to be guided not only by personal preferences, but also by the specifics of the market.

In resorts and large cities, buying a restaurant or café, a currency exchange office, a shop, a beauty salon or a tanning studio will pay off. Keep in mind, however, that on the coast or in the mountains the business will only be operating during the holiday season, while in a big city it will generate profit year-round.

It is advantageous to locate production facilities in small towns, where labour is cheaper and prices are lower. In this case, logistics should be thought through so that products can be delivered to potential buyers quickly and inexpensively.

A promising option is to acquire an operating hotel that already has all the necessary permits and licences, as well as regular guests. In this case the new owner only has to maintain the service at the proper level and grow the business.

Advantages and disadvantages of buying a business in Bulgaria

The upsides of buying a ready-made business in Bulgaria are obvious. They are:

• the company’s operations are already up and running, the difficulties inevitable at the initial stages have been overcome;
• the necessary permits and licences have been obtained;
• a client base has already been built up, there is a sales market;
• contacts with suppliers are established;
• the business generates a stable income;
• an established company finds it easier than a new one to obtain the loan needed for growth.

The disadvantages are less obvious, but they exist too.

Entrepreneurs rarely seek to get rid of a business that brings a stable, good income. It is therefore quite likely that the purchase will not be as profitable as it seems at first glance.

The reason for selling a business may be low profitability, difficulties in finding qualified staff, competition, sales problems, or any other difficulties that the former owner considered serious enough to abandon the project and sell it.

It is not always possible to identify such problems on your own. It makes sense to turn to a consulting company staffed by specialists with a thorough knowledge of Bulgarian legislation and the specifics of the market.

The staff of Bulgarian Expert will help you reduce the risks when buying a ready-made business, assess whether the investment makes sense in each particular case, and avoid being deceived by unscrupulous sellers.

Due diligence and paperwork

Before buying a ready-made business, you must carefully check all the documentation provided by the seller. It is worth entrusting such a check to specialists who have the appropriate powers. Lawyers, for example, can request and quickly obtain information from various sources.

You need to establish the company’s current status, find out whether taxes have been paid, whether licences have expired, and whether contracts are still in force. The company’s financial position must be checked without fail. You need to find out whether the property is pledged and whether the legal entity has any obligations that the seller did not see fit to disclose.

The specialists working at Bulgarian Expert will help you check the business you are buying and complete the transaction correctly, so that you do not lose time and money.

You can get a free consultation by phone at +359898766005 or by writing an e-mail via the “Contacts” section.

Company registration in Bulgaria

Accounting support for a company

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