Buying a Company vs. Starting One

There are many advantages to purchasing an existing company as opposed to starting your own. By buying an existing company instead of starting one from scratch, you reduce your risk for a number of reasons. First, you will probably also be purchasing an existing client base and a decent reputation. Secondly, you could significantly reduce your costs because starting a business can be much more costly than buying one.

It also makes sense to purchase an existing company because it has the potential to result in much faster growth. This is especially true in the transportation industry, so we’ll use trucking companies as an example. Swift Trans, one of the largest and most successful trucking companies in the world, has built its business almost exclusively through acquiring other companies.