Why African-American Female Entrepreneurs Successfully Acquired Existing Companies

Women have dramatically changed the business landscape over the past five years. The American Express State of Women-Owned Business says women-owned businesses have grown at twice her share of the overall population.

But no entrepreneurial base has grown faster than African-American women. Black female entrepreneurs are more than four times as likely to start a business as women in the general population.

Black women are the largest demographic of women starting businesses, but many struggle to make ends meet. Only 3 black women-owned businesses are mature and have been in existence for five years or more % am. As a result, many black women entrepreneurs have found greater success by acquiring existing companies and scaling them up.

buy a company

Buying an existing business is a great way for black female entrepreneurs who are eager to start and launch their own careers. When an entrepreneur buys a business, she may own an already established company and generate income. The selling price of a business is based on the expected profit that the company will generate in the future.

Giac Capital CEO James Giacopelli said: “Financially, we only consider actual profit and loss records, not rough estimates. See a clear history of previous sales. Acquired businesses can also acquire valuable copyrights and patents. Finally, you can lead a declining business in the right direction with your creative ideas.”

There are several factors that affect the selling price of a business. For example, companies that generate high profit levels are generally more valuable than those that do not reach breakeven. Similarly, a large, established business is usually more valuable than a small, new business.

Makisha Boothe, owner of Sistahbiz Global Network, said: “While the company you buy won’t be highly profitable right away, it does avoid the hurdles of building a business from scratch. Plus, you can save resources, time, and money by inheriting an already profitable revenue model.” , don’t underestimate the cost, turnkey system, predictable sales funnel, and more.”

buy affordable companies

Crystal Covington is the founder of Women of Denver, Colorado’s largest private women’s organization. As a leader in this extensive networking her community, Covington met several businesses her broker and learned the value of buying a business over starting from scratch.

In 2022 she purchased Bella Virtu Organics. Bella Virtu Organics provides clean, organic products for women and families that are non-toxic. At the time, the company was barely profitable. This allowed Covington to buy the business at a low price.

When Covington bought the company, she aimed to grow it into something new, giving families more passive, intergenerational wealth. Today, Bella Virtu Organics tripled her profits by utilizing her email marketing and search engine optimization tactics to increase the number of units per order. As someone who already has marketing experience, I thought these were easy tactics to deploy and optimize to increase sales volume.

“If I could tell myself as a struggling entrepreneur, it would be to buy a business,” Covington says. “Bella Virtu Organics had strong roots, but there was still a lot to build and create. As a result, it doesn’t look like it did when you bought it. , made the building process much easier than I could have imagined.”

Potential barriers for African American women

Access to funding can be a significant barrier for African American women looking to buy a business. can.

One option that can help anyone looking to buy a business is Seller Finance. In this case, the company seller agrees to accept payment over time rather than demanding the full purchase price up front. This makes it easier for buyers to afford to prepay their business.

Another option is to seek funding through the Small Business Administration (SBA). SBA offers a variety of financing programs to help small business owners obtain the financing they need to start or grow their business.

Grants can also be a useful source of funding for Black women looking to buy a business. offers., and Amber Grant. Additionally, according to the Accion Opportunity Fund, some nonprofits and businesses maintain lists of large grants and other resources for black women entrepreneurs.