Most people think about starting a cheap sportsbook software bookie business from scratch.
But others also explore the idea of buying an existing sports betting and gaming operation.
First-time pay per head sportsbook software entrepreneurs have to deal with a number of difficulties related to a brand new business.
However, this can be avoided by acquiring a price per head bookie software company with an existing client base.
Cheap Sportsbook Software: Buying an Existing Business
Chances are that it is less risky for you to buy an existing cheap sportsbook software business than to start a brand new one.
This is because when you buy an operational bookie software operation, the business is already generating profits for you.
Let’s also not forget that an existing business comes with an existing and established client base.
And what’s best, you count with the good reputation of the bookmaker software operation you acquired.
Since this is the case, you avoid having to reinvent the wheel. In other words, you don’t have to deal with a number of procedures that are already in place.
Now, on the downside, to acquire an existing cheap sportsbook software business can be costly.
With that said, it is actually easier to get the necessary funding to acquire an existing company, than to start a new one.
The reason is because investors and prospective partners are more comfortable dealing with a wagering and pph poker business with a proven track record.
The Right Choice
If you want to buy an existing business, be careful when making your final choice.
Think about the size of the business you want to acquire:
Do you want a large company, or are you more on the conservative side and want to go for a small sports betting and gaming operation?
Also, consider the costs involved in doing business in your area of interest.
Once you have a clear idea of the size of the company and the costs required, start looking for your pay per head bookie software business.
Now, just because someone is not openly selling his business, it doesn’t mean it’s not for sale.
This means that if there is a cheap sportsbook software operation that you like, you can make an offer for it.
If you make the right offer, chances are that many sports betting and gaming entrepreneurs may consider selling.
If necessary, use your networking abilities, and bring the assistance of business contacts that can help you close the deal.
Using a business broker can be of a lot of help.
They work for a commission, and can help you with:
- Prescreening a pay per head bookmaking software business for you.
- Help you identify your main interests, and use the data to get you the best business prospects.
- They can also help with the negotiation process. Although you may be the one with the last word, a broker can help you with the preceding negotiation stages.
A Closer Look
Now, whether you decide to do things yourself, or get the assistance of a broker, you definitely need to put together “an acquisition team.”
This includes a personal accountant, and an attorney.
These are essential advisors that can help you review the current circumstances of a cheap sportsbook software business.
When your accountant and your attorney are done doing their job, you will know exactly what you are getting, and from whom.
The main question to ask the seller is: why is this business for sale?
You also need to verify that the price per head bookie operation has a good reputation and no large outstanding debts to investors or customers.
Another factor that is determining is the outlook for the future: can the sports betting and gaming business stay profitable long-term?
In order to have an idea of the company´s anticipated returns and future financial needs, ask the current owner for the following data:
- Balance sheets.
- Income statements.
- Cash flow statements.
With this information in your hand you will be able to determine if there are any underlying problems.
Also, don’t forget to check the business relationships related to the bookmaking and pph poker company you are interested on.
After a preliminary analysis, if you consider that the wagering and gaming business looks profitable, then give your acquisition team the green light to move to the next stage.
The Art of the Deal
The next stage is to negotiate a good deal that can benefit both you and the current owner.
With that said, avoid being the one that brings up the subject of price.
Allow the seller to figure this out, and then move on from there.
When buying a cheap sportsbook software business, you have two options:
You can work an asset acquisition deal. Here you only acquire the assets that you want.
This option is good because you are only spending cash on the assets that can bring you some kind of return in the future.
On the other hand, when you get picky, you have to pay extra for it. This means that asset acquisition can be expensive, and can also turn into a complicated process.
You also have the option of buying stock. Here you can buy the full stock for a company, or a number of it and become a partner.
If you buy a pay per head bookie business that is ready to go, then chances are that your transition is going to be fairly smooth.
However, if you acquire only part of the assets of the company, such as its employees or its customer list, then you will need to make a number of changes.
And this means that the transition period can be a bit more challenging.
Whatever the case may be, try to be as open and available as possible during the early stages of the business acquisition.
This is because you want to immediately stablish a positive relationship with your new employees.
And also because you want the clients of your new cheap sportsbook software company to get to know you better.