29 Best Businesses To Buy If You’re Looking To Grow Via Acquisitions
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Growth through acquisitions can be a fantastic way to leverage your resources more efficiently. Some businesses, however, are better than others for acquisition. So, to help you make a more informed choice, here are the best businesses to buy - both online and offline.
Contents
- What Are The Best Businesses To Buy?
- 1. Niche and Authority Websites
- 2. eCommerce Websites
- 3. Dropshipping Websites
- 4. Print-on-Demand Businesses
- 5. Food Trucks
- 6. Mobile Car Wash Company
- 7. Virtual Assistant Agency
- 8. Social Media Agency
- 9. IT Support Business
- 10. Language Tutoring Company
- 11. Electronics Repair Shop
- 12. Catering Business
- 13. Web Design Agency
- 14. Business Consulting Firm
- 15. Cleaning Services
- 16. Warehouse Storage
- 17. Property Management Company
- 18. Digital Marketing Services and Advertising Agency
- 19. Tax Preparation Service
- 20. Real Estate Firm
- 21. Vacation Rentals
- 22. Funeral Homes
- 23. Digital Products Business
- 24. Mobile Locksmiths
- 25. Rubbish Removal / Crime Scene Cleanup
- 26. Pest Control Business
- 27. Last-Mile Logistics
- 28. Plumbing Companies
- 29. Roofing Companies
- Five Tips For Buying a Business
- Which Of The Best Businesses To Buy Are Right For You?
What Are The Best Businesses To Buy?
The best businesses to buy share a few common traits that make them better strategically to buy than others. We’ll cover what exactly you should look for further in the article. However, here is a complete list of 29 businesses that can be good to buy.
Not all of these businesses will be perfect for every individual; you will need to look at your own risk tolerance and available capital when evaluating each prospective business.
1. Niche and Authority Websites
Niche websites and authority websites are a type of online business where you manage a site focused on a specific topic. Sometimes, these terms are used interchangeably, however, there is a slight difference.
A niche website is focused on a highly specific topic within a broader niche, such as Callaway golf clubs within the golf niche. Authority websites are authoritative sources on broader topics such as beginner golf.
Why is it good to buy:
Niche and authority websites are some of the best businesses to buy because of their location independence and high sales value.
Look for undervalued websites that you can grow and flip. Digital assets often sell for much higher multiples than traditional hard assets making for a very profitable business.
A great place to start with this is MotionInvest.
Check Out MotionInvest2. eCommerce Websites
Many of the fastest-growing businesses are niche eCommerce websites. This is the new frontier allowing business owners to leverage the internet to increase their potential user base and reach a wider audience.
The one downside with eCommerce businesses is you will need to carry inventory. However, this can be mitigated using services like Amazon FBA or similar fulfillment services.
Why is it good to buy:
eCommerce websites have much greater growth potential than traditional brick-and-mortar businesses due to their potentially greater reach. As with other websites, look for undervalued websites with room for growth.
Consider taking a course that will teach you how to build an eCommerce store if you're interested in this business idea.
Instant eCommerce Course3. Dropshipping Websites
Dropshipping is a type of eCommerce that allows you to sell products that you don’t physically have in your inventory. Instead, you are responsible for taking orders with the manufacturer or a wholesaler responsible for order fulfillment.
While dropshipping websites sport lower margins than carrying inventory, they do allow greater flexibility. One thing to note is the dropshipping environment is much more competitive as the barrier to entry is lower than in traditional eCommerce.
Check out our post What Is Dropshipping? for more information.
Why is it good to buy:
Dropshipping websites are some of the best businesses to buy if you want greater flexibility without the need for inventory. Further, you can increase margins by pivoting to an inventory-based business for your better-selling products.
4. Print-on-Demand Businesses
Print-on-demand companies are a type of dropshipping service for custom-printed items such as t-shirts, hoodies, mugs, etc. These companies allow you to place orders as they come in for printed items to be fulfilled and shipped by the POD business (find out more about the business model in our comparison of Printify vs Printful).
Why is it good to buy:
As with dropshipping, print-on-demand companies provide better flexibility than traditional retail or eCommerce. You have less risk as you don’t need to spend money upfront for inventory, so this is amongst the most profitable business ideas on our list to get started with. However, there is much more competition as more people jump on the best small business ideas like this because the barrier to entry is lower.
Check out Printful if you're interested in this business idea.
Learn about Printful5. Food Trucks
Food trucks can be a highly profitable alternative to traditional restaurants with much lower overhead and greater flexibility in terms of location (check out these food truck slogans to start brainstorming). Another advantage is you have more control over what you serve and can quickly adapt to changing tastes.
Make sure you understand the laws surrounding food trucks in your locale as these are different in each city and county.
Why is it good to buy:
Unlike traditional restaurants, you don’t need hundreds of thousands to millions of dollars to get started. You will also benefit from higher margins and lower overhead. However, make sure you understand all local laws surrounding food trucks to avoid potential issues.
6. Mobile Car Wash Company
Mobile car washes, like food trucks, allow for greater margins than a traditional brick-and-mortar car wash. The one downside is these are labor-intensive, so your opportunity for profitable business growth is smaller unless you hire employees.
Why is it good to buy:
While you will need a fairly substantial upfront investment in many cases, you can quickly recoup this in the right location. Margins are also higher since you aren’t required to rent or own property and can move around to your customers.
7. Virtual Assistant Agency
Virtual assistants provide various services for online business owners such as digital marketing agencies, eCommerce businesses, and more. These assistants serve as a sort of jack of all trades doing tasks such as order fulfillment, email outreach, scheduling, and more.
A VA agency can be a good business to acquire due to the lower overhead and ability to leverage teams worldwide. Your primary concern would be bringing in new business.
Why is it good to buy:
Virtual assistant agencies can operate in a decentralized way decreasing your overhead and improving margins. Look for an agency that already has secured contracts and solid systems in place.
8. Social Media Agency
Social media agencies, similar to a VA agency, can be operated from anywhere in the world, allowing for decreased overhead. You can work with companies globally to manage their social media marketing.
This type of business can be great if you are already working in social media and digital marketing services and want to move to the next step of business ownership. Look for agencies that already have solid processes in place and secure contracts.
Why is it good to buy:
For the right person, a social media agency can be highly profitable with solid growth potential and lower overhead when run from a remote location. You can work with companies globally and utilize contractors to keep overhead lower.
9. IT Support Business
Companies worldwide need reliable IT service providers that can help them maintain their networks and ensure security and consistent uptime. That’s what makes an IT support business an attractive acquisition for the right person with an understanding of the landscape.
The one downside here is the level of knowledge needed provides a much greater barrier to entry. You also won’t be as location-independent here if you have technicians that work on-site.
Why is it good to buy:
The demand for reliable IT service providers is high and is expected to increase. This means there are plenty of opportunities to grow your business.
However, the barrier to entry is much greater owing to the highly technical nature of the business and the skills and knowledge necessary to run the business.
10. Language Tutoring Company
Language tutoring is a multi-billion dollar industry worldwide. This is especially true of the English language tutoring business, with people around the world willing to pay good money to tutors.
A language tutoring company can function online or offline, and host classes for students or connect students with teachers for one-on-one lessons.
Why is it good to buy:
Many language tutoring companies benefit from low overhead with their primary expenses being labor and rent. This can be further decreased by operating online only or through a hybrid model to increase the potential customer base, making for a profitable business opportunity.
11. Electronics Repair Shop
Electronics are a dominating force in virtually all parts of our lives. This also means the need for reliable electronics repair services is greater than ever before and a good option as a profitable business.
If you understand how to repair various electronic devices such as computers, cell phones, games systems, etc., this could be a good business to acquire. One downside is the higher overhead due to parts, advertising, and tools.
Why is it good to buy:
Even though overhead is much greater for an electronics repair shop, the volume of potential business is high which can ensure long-term stability. Make sure you understand the industry and have the skills before looking at a business like this.
12. Catering Business
Catering businesses can be highly profitable depending on what’s being served, the location they operate in, and how well organized they are. One upside is the margins can be quite high for things like BBQ, pasta, etc.
The major expenses you will have as a catering company are advertising, food, labor, and transportation. However, the margins are significant enough to more than make up for the greater overhead.
Why is it good to buy:
Purchasing a catering business that’s already making money and has a good reputation can be a great investment. These typically have high margins and, due to the nature of the industry, are usually in high demand throughout the year for events, weddings, parties, etc.
13. Web Design Agency
I have a bit of experience here as the owner of the web design agency, eXcelebrate Web Solutions. This isn’t a solid choice for everyone. However, if you have design experience and can work through the initial rejection while growing your business, the margins are solid.
One thing to note is that the landscape is highly competitive. As web design becomes easier through page and theme builders such as Elementor, more people are able to create great-looking websites.
Why is it good to buy:
A web design agency that has a solid reputation and large customer base can make for a great investment. Make sure the agency has contracts for ongoing services such as hosting, website maintenance plans, or retainers from clients for regular updates. These are where the majority of profit is made with a design agency.
14. Business Consulting Firm
Companies and individual entrepreneurs spend hundreds of billions of dollars globally each year on business consultants that can help streamline operations, increase revenue, improve productivity, and more (and we have an in-depth guide on how to start a consulting business).
If you are looking to get into consulting and dread the prospect of building your own firm, you can purchase an established consulting firm.
Why is it good to buy:
Margins for business consulting services are quite high. For consulting firms that can drive consistent and impressive results, there will always be clients willing to work with you.
When looking at a firm to buy, make sure that the company isn’t tied too heavily to the reputation of any one individual. You don’t want all of your clients to leave once the previous owner sells the company.
15. Cleaning Services
Private and commercial cleaning companies are another type of business that is always in demand and benefits from high margins. The barrier to entry is also much lower when compared to some of the more technical industries on this list.
Also check out our list of ideas for vacuum cleaner company names.
Why is it good to buy:
Both commercial property owners and individuals are willing to pay for cleaning services in order to keep their property clean and free up their time, ensuring a steady stream of potential clients.
Look for companies that have a solid reputation and built-out marketing channels that bring in consistent business. This can be an especially solid business in growing cities.
16. Warehouse Storage
Warehouse storage can be a great business due to the potentially low overhead and solid margins. The upfront investment for this can be quite high, depending on the city you are buying in. Another downside is you are tied to one location and not as location-independent.
You will need a catchy name for your company - check out our list of 1051 storage business name ideas.
Why is it good to buy:
Local companies need storage space for products and usually depend on outside warehousing and logistics companies to provide this service (if you're interested we have a huge list of logistic company name ideas). Depending on the city you are located in, you can benefit from a large potential client pool and economic growth.
17. Property Management Company
Entrepreneurs who own large numbers of rental properties are typically reliant on property management companies to handle day-to-day operations. Depending on the city, this can be incredibly lucrative, with companies taking a percentage of the rent for each managed property.
Typical responsibilities include servicing the property, collecting rent, finding tenants, and handling repair requests.
Tip: If you are seriously considering buying such a business and would want to rebrand it, take a look at our list of 901 ideas for property management company names.
Why is it good to buy:
In larger cities especially, reliable property management companies that can decrease a property owner's responsibility while ensuring steady profits will never be short of work.
Because these companies are paid per property, you can net a healthy amount each month with a large enough client base.
18. Digital Marketing Services and Advertising Agency
Marketing and advertising agencies are responsible for helping businesses connect with potential clients and customers and shape the conversation around brands.
Because this is such an integral part of how a company makes money, reliable marketing agencies are highly sought after and can command high prices.
Why is it good to buy:
For someone who understands the industry, buying an established marketing agency can help to decrease the time it takes to turn a profit (and you can always check out our guide on how to start a marketing business for reference). Conduct proper due diligence and look for companies with ongoing contracts for services and solid systems in place.
19. Tax Preparation Service
It’s an unfortunate reality but taxes are something that few people manage to get out of. To ensure they don’t make mistakes and to ensure maximum returns, many people are willing to work with professionals each year.
One thing to note about this industry is it becomes more complex each year. At the same time, online software is making it easier for individuals to do their taxes which is increasing the stress and decreasing the potential customer base.
Why is it good to buy:
For the time being, tax preparation companies can benefit from a captive audience of people required to file taxes each year. However, the industry is rapidly changing, which may lead to this being removed from the best businesses to buy list in the future.
20. Real Estate Firm
Everyone, regardless of where they are located, needs a place to live and most businesses need places to operate. This keeps real estate firms in business helping to connect buyers and renters to property owners.
One thing to note, the market is incredibly competitive with many cities over-saturated with realtors. So, when looking at buying a company, stick to established firms with a solid reputation.
Why is it good to buy:
The demand for property may fluctuate at times, but there will always be people needing to buy or rent a property. One thing to note is companies such as Zillow are making it easier for property owners to rent out or sell their property without the help of realtors.
21. Vacation Rentals
Many families, couples, and individuals globally are willing to pay premium prices for interesting properties in sought-after vacation destinations. If you can purchase properties in popular tourism destinations, you can potentially earn a tidy profit through daily and monthly rentals through sites like Vrbo.
Be aware though that these types of businesses are often seasonal and maintaining the property between tenants can be time-consuming.
Why is it good to buy:
Depending on the destination, property owners can charge high daily rental prices and expect to keep their property full throughout the high season.
Be aware though that the business is not without risks. Everything from natural disasters to changing tourism preferences can impact your business.
22. Funeral Homes
One business that will always have a steady client base is funeral homes. It’s a morbid thought, but it’s one of the only businesses that every person on the planet will be a customer of at some point.
If you understand the industry and can stomach the subject, funeral homes can be a lucrative business to acquire. However, there is typically very strict licensing so make sure you understand and comply with local laws.
Why is it good to buy:
In short, you will never run out of potential customers. Also, unlike accounting and taxes, there is no software that can replace burials and cremation of the deceased. It’s an evergreen business that can’t be outsourced or automated through technology, at least not yet.
23. Digital Products Business
Digital products cover a wide range of industries and services and can range from eBooks to online courses to photography, music, and so much more. A digital products business can be a great purchase as a profitable business if you want something location-independent.
One thing to note is that this is an incredibly competitive industry. Because the barrier to entry can be lower, and the upsides of success are so attractive, many people have entered the market for small business ideas such as this.
Why is it good to buy:
Digital product businesses typically benefit from low overhead and high margins, making them some of the most profitable business ideas on this list. Because the product can be replicated an infinite number of times, most of your expenses will be upfront involving the design, hosting, and marketing of the product.
24. Mobile Locksmiths
Mobile locksmiths help individuals who have locked their keys in their car or who are locked out of their homes. This can be a profitable business with plenty of customers, especially in larger cities.
Another benefit is that overhead is quite low once you’ve purchased your equipment, and margins can be high. However, the landscape is quite competitive.
Why is it good to buy:
An established mobile locksmith business can cut down the time it takes to profitability and makes it easier to move past your competition (and there are lots of other mobile business ideas you can profit from). Look for companies that have their own marketing and are not reliant on lead generation websites.
25. Rubbish Removal / Crime Scene Cleanup
Ever seen the show Hoarders? There are companies that do this every day and make quite a bit of money. These types of businesses can also do crime scene cleanup, which involves going into homes or businesses to clean up biological material.
Because not many people are willing to do this type of work, there is often less competition to deal with.
Why is it good to buy:
If you can purchase a business that’s already established, you can benefit from low competition and high margins. You should be aware of any local laws dealing with waste disposal and be prepared to come across potentially grotesque crime scenes.
26. Pest Control Business
Another business that benefits from consistent clientele is the pest control business. Especially in tropical locations or during the summer months, insects are a constant problem.
If you don’t mind working around chemicals, you can benefit from the potentially consistent business available.
In case you want to re-brand the business, have a look at our list of 1451 ideas for pest control company names and our list of pest control company slogans.
Why is it good to buy:
Purchasing an established pest control business can cut down the time it takes for you to see a profit. Make sure that you’re aware of any laws dealing with the chemicals commonly used by pest control companies.
27. Last-Mile Logistics
Last-mile logistics is a supply chain management term that refers to the handling and delivery of packages during the last leg of the journey. This typically involves delivery from a logistics hub to a business or consumer.
It’s estimated the last-mile delivery market is worth over $30 billion just in the United States. As more companies move online, this number is expected to increase.
Why is it good to buy:
The market for last-mile logistics is expected to increase. If you can find an established company to buy, you can benefit from high growth potential. One thing to note is that overhead for this type of business is typically more as you need vehicles and labor.
28. Plumbing Companies
Plumbing companies present a great opportunity to turn a significant profit for people with the right experience. The key is to look for companies that are underperforming and instill a culture of picking up the phone to turn them into profitable small businesses.
You may want to re-brand once you have acquired a plumbing business - check out our list of 851 ideas for plumbing business names.
One thing to note is that overhead for plumbing companies is much higher and you have zero location independence. The upside is that if you have a good reputation, you can expect consistent clients.
Why is it good to buy:
Plumbing is one of the many businesses that will never go away and isn’t threatened by technological advancement. Make sure you understand the industry and look for underperforming businesses that you can improve and increase revenue.
29. Roofing Companies
Similar to plumbing companies, roofing businesses can benefit from implementing a culture of answering the phone. Many of these service-type businesses suffer from employees not answering calls. Just increasing the number of phone calls answered can improve potential job numbers and turn them into profitable small business ideas.
As with plumbing, this can be a high-overhead business, so you should understand the industry to avoid potential issues.
Why is it good to buy:
Roofing companies can benefit from a large potential client base, especially in areas where there are lots of heavy storms. The key is to instill a culture of people answering the phone and keeping overhead low.
Five Tips For Buying a Business
Not all businesses are good to buy and not all businesses that are good to buy will be perfect for everyone. There are a few tips that you should understand to help you make the right choice when buying a business.
Look At Your Unfair Advantages
It’s very likely that you have experiences professionally and personally that you can leverage to improve a business that you purchase. Before buying a business, figure out how you can use your experience to streamline operations and improve a company's profitability.
Find The Right Financing
Unless you have savings, you will likely need to borrow money to turn your small business ideas buying established businesses into a reality. Make sure to explore all options for financing, including SBA loans, bank loans, crowdfunding, etc.
Understand The Competitive Landscape
Before buying any business, you need to fully understand the landscape and whether you can realistically compete. This includes knowing potential customer numbers and how much it will cost to compete with other businesses.
Evaluate Risk in Small Business Ideas
You need to completely evaluate the risk involved with any business you enter into. This means looking at all possible reasons that a business could fail and conducting proper due diligence.
Comply With Legal Requirements
Make sure you are clear about any legal regulations or licensing requirements necessary to operate your business. Licensing and regulation can greatly increase the cost of operating a business and failure to understand these rules can increase your potential overhead.
Which Of The Best Businesses To Buy Are Right For You?
Becoming a business owner can be an incredibly rewarding experience with numerous benefits, so long as you know what you are getting into and conduct proper due diligence. Don’t just rush into purchasing profitable small businesses without understanding the competitive landscape and pitfalls of the industry.
Becoming a business owner can be an incredibly rewarding experience with numerous benefits, so long as you know what you are getting into.
Assuming you conduct proper due diligence, and if you can secure the necessary funding for your business, you can purchase a business that can lead to long-term profitability and growth.
You may also be interested in these lists of low-cost business ideas with high profit margins and the best online businesses to start.
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