How to buy an advertising and marketing agency?
Click here if you want to download a business sale agreement for purchasing an advertising and marketing agency.
The UK is one of the largest advertising and marketing industries in the world. The industry has seen massive growth and an increase number of people choose digital advertisement over the traditional mediums. This has opened up space for people looking to get into this industry.
However, in order to build a successful business in this sector, you will have to be prepared to keep up with the fast-paced changes this industry is known for. Read on to find out what you need to know.
Which type of agency
There are a lot of opportunities and you want to pick the right type of business.
- Creative agencies – such agencies are charged with coming up with a big idea.
- Media agencies – they coordinate the last stage, identify the best and most effective media to reach the most number of customers.
- Digital agencies – these agencies can be creative or media or a mixture of both. They focus on digital technologies, use internet marketing, interactive TV and mobile.
- Brand agencies – help businesses identify and develop their own unique brand and USP and provide the client with graphic design services.
This is not an exhaustive list. However, there are many more types of agencies; however, this list comprises those types of agencies that most entrepreneurs choose.
Overview of the sector
Marketing agencies have become more relevant with companies and business realising that marketing is essential to make their businesses successful. If you buy the right marketing agency, it would position you to snap up the business this creates.
However, it is quite challenging to run a cost-effective agency. You will have to diversify and be completely up to date with the market and trends of the sector.
Finding the right business
At this point, you should have a fair idea of which kind of marketing and advertising business you want to buy. Whilst making your decision, you need to keep in mind your budget so that you can find the ideal business.
Additionally, you want to find a business that has a good reputation as it can be tough to wash off any bad reputation the business has. Further, you want to look at the existing customer base, consider who the competitors are, and how you will make that business stand out.
You do not need a very elaborate office space. Having cheaper premises will put you in a position where you will have more money to put into the business's online presence.
The process of due diligence is one that provides a thorough investigation into a proposed investment transaction. It means you check the investment worthiness, and assess the full claims made by the owner. This check is usually performed by a solicitor and accountant who act on behalf of the buyer. A large portion of due diligence will involve checking financial statements and accounts.
Click here to find more about due diligence.
If you buy wisely and do a thorough research of the background and potential of the business which attracts your interest, you will get immediate access to the existing base of customers and suppliers. This will ensure that you know what you are getting into.
You need a solid contract
You, as the buyer, will have to produce the sale document. This agreement will have to cover the mechanics of the deal – what is being sold, where it is, how it is to be transferred, and so on. This is where warranties come in. Click here to download a business sale agreement if you are purchasing a nursery school.
Warranties which are legally binding promise as facts about the business, which provide information relating to the business. Click here to know about how warranties work and why they are important.
Other documents you need
Additionally, you may need assignment and novation agreements to transfer contracts the seller is a party to.
If company shares are being sold, then you will need directors service agreements, board minutes to document approvals to changes, and possibly, a new shareholders agreement and new articles of association.
We can help you find exactly what you need for your circumstances if you contact us and ask.
Last but not the least, you also need to be aware of the legal considerations on the purchase or sale of a business.
Please note that the information provided on this page:
- Does not provide a complete or authoritative statement of the law;
- Does not constitute legal advice by Net Lawman;
- Does not create a contractual relationship;
- Does not form part of any other advice, whether paid or free.
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