Why Buy Instead of Start From Scratch

This lesson explains why many entrepreneurs choose acquisition entrepreneurship instead of building a company from zero. Students compare the risk profile, timeline, cash flow, financing options, and operational realities of buying an existing business versus launching a startup.

The lesson does not argue that buying is always better. Instead, it shows when acquisition can create a stronger path to ownership: when the buyer values proven demand, existing infrastructure, immediate revenue, and a clearer due diligence process. Students also learn the tradeoffs, including legacy problems, seller dependence, culture issues, and the need to pay for value that has already been created.