Buy a company for free?

by a searcher from Harvard University - Harvard Business School

3 months ago

Anybody ever buy a company for free? Any pitfalls associated with buying a company for zero or $1? Tax consequences?

0 likes
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13 comments

professional from Bishop's University

While this can happen, the biggest danger I've seen is people wasting years of their lives looking for these deals and trying to make them happen.

3 months ago | like reply | 1 like

intermediary from University of Oxford

Yes we once bought a business for a dollar. The owner operator passed away and the business had deteriorated for a few years as the owner grappled with health issues. The family owned the real estate and felt that was where the value resided. It was a built to suit property which would receive a higher rent from this particular business than it would for any other user. In exchange for signing a 10yr lease we were able to purchase for $1. However, a significant working capital injection was required and there was some overdue CAPEX.

3 months ago | like reply | 2 likes

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