To Buy a Horse Business...or to Buy its Assets?

Have you seen certain websites (like Equestrian Life) or blogs (like Dappled Grey Equestrian Style) close up shop, but as they do so, pitch an offer to sell the business to an interested party?
Or perhaps your local hay seller or barn construction business has put up notice that they are "Under New Ownership."

If you work in the equine industry you may find it more efficient to buy a business rather than start one from scratch.

For example, you may buy a training stable rather than starting your own barn.  You may buy a tack shop rather than putting up a shingle on your own.  And as we have seen, this also applies in the digital world of buying an online site rather than building and growing one of your own.

Why would this be a good idea?  Wouldn't it be more economical just to save the cash you would spend to buy the business and put it into building your own business? It might be, but there are also many benefits to purchasing a horse business.

When purchasing a horse business you should evaluate whether you are purchasing the business, or whether you are just purchasing the assets of the business (a BIG difference!)
To illustrate:
Tacky Tack Shop has one store in California, one store in Florida, and a parent company in Germany.  You may buy the Tacky Tack Shop business, which would prevent the present owners from doing business under that business name, OR, you may buy just the United States assets of Tacky Tack Shop and not the business itself. 
 Assets of the business may include:
  • Ownership of the Tacky Tack Shop trademark (and other intellectual property rights)
  • Current inventory
  • Customer lists
  • Social Media accounts
  • Account Receivables (and may include the liability of Account Payables)

When you buy a business you can save an enormous amount of time, energy, money, and risk by buying into an existing customer base.  Sales are everything in business, and by taking the reins as the new owner of Tacky Tack Shop (in our example), you have access and rights to all the data of best selling items, top buying customers, wholesale and retail licenses and rights, and more.
The same applies to buying a training business- when you continue to operate under the existing name of the business there is a continuity of business flow that allows you to step into the shoes of a (hopefully profitable) business so that you can already know the estimated monthly cash flows of the business and avoid the time and cost building a business with unknown results.

Have you ever been at a barn that sold to a new owner?  This just happened at one of my previous barns, and by all accounts, my friends (the boarders) LOVE it!  There is a fresh perspective by the new owners, a little more money coming in to spruce up the facilities, and it appears to have all gone smoothly.  I imagine, however, there may be some horror stories out there as well (drama in boarding barns?! Impossible!)


Own a business, selling a business, buying a business? You may have seen the recent Equine Entrepreneur Mastermind post.  We're a group of equestrians that network to grow each other's businesses, provide a sounding board for questions, and support each other push for greater business growth.  We have decided to briefly open the doors to a few other motivated people in the equestrian business (online business, physical business, products or services!). There is a nominal fee to join, which is currently discounted for the next few weeks.
If it sounds like something you, or someone you know, would like to be a part of...check out the page linked at the top of this blog!