Have you ever experienced looking at a company’s accounts and thinking “how on earth do they make such a big profit?” The answer is, in many cases, the acquisition of bankruptcy-affected companies. I’d like to tell you a bit more about this. When a company goes bankrupt, a number of legal things happen. One of them is that a trustee takes over ownership of the estate and must try to get as much money back as possible to the company creditors. Why can it be the best business you’ve ever done? This may be because bankrupt estates often sell out of inventories, furniture, machines, tools, means of transport and other things that can be sold from the old company. You can often buy these items at a much lower price than what you can sell them to. It can be a great deal for example purchase of stockpiles from companies hit by bankruptcy. In addition, you can buy furniture for your shop, clinic, restaurant, workshop, warehouse, office or whatever you need it for, even at a significantly lower price than normal.
Is it immoral to profit from others’ bankruptcies?
Of course it is a personal matter if you think one or the other, but in reality it is better that it is bought and sold so that the old owner can first get the creditors back, and secondly, so that inventory, Stocks, etc. are recycled and not just thrown out. There can be many different reasons why a company goes bankrupt but common to all bankruptcies is that it is not fun for anyone. Both owner, employees, customers and suppliers are in a bad situation after a bankruptcy. When you buy items from a bankruptcy estate, you actually help many of these parties.
Where to buy assets from bankruptcies?
In saxis you can buy on-going companies that are still running. At the time of writing, there are several other options for buying bankruptcies. There are also several Facebook groups related to the topic.