Things are changing around the world. The concepts we once got used to and got familiarized with are no longer the same. New inventions and creations are modifying our surroundings; business concepts and flow are changing.
Can this be said also in the investment world? Is it subject to new concepts?
In this article, we will tackle an idea that has been present for some time now that will impact what is known as PE or Private Equity.
To accomplish this, it is essential to:
Differentiate between PE and Flippa
What is PE?
In simple words, PE stands for the investment made in a company that is not publicly traded. Investors each for private companies that have growth potential and invest in it for the possibility of getting a fair amount of money in the future in return for their contributed investment.
Such investment is made by accredited investors who are considered wealthy and large enterprises such as insurance companies.
What Is Flippa?
Flippa is an online store from which you can buy and sell e-commerce businesses.
Through Flippa, you can buy a digital store that was already established and become an acquisition entrepreneur.
What are the common points between Flippa and PE?
- Invest in a business: both Flippa and PE aim to invest in a business. Through PE, you have the chance to acquire shares in a company, and through Flippa, you can acquire a new business.
- Risk: whether you invest in a company through PE or buy a business through Flippa, there is always a risk of failing and losing the money. There are plenty of businesses on sale and several companies to invest in, and the chances to get a good deal are tricky.
- Good study: to make a good deal and reduce the risks as much as possible, having good research on the company or business you are interested in is a core element.
What are the uncommon points between Flippa and PE?
- Market: Flippa offers businesses exclusively online, but PE can be in online stores and brick and mortar stores.
- Shareholders: in PE, the company is owned by shareholders, who, upon investment and according to the terms of investment, will include investors in the shareholding structure and decision making. Flippa offers stores for sale. Therefore, when you buy a store, you will be its sole owner, and the decision is made at your sole discretion.
- PE firms are open to accredited and wealthy investors. When we say accredited investors, it means investors who meet the securities law and requirement to have a minimum wealth of 1,000,000$, for example. On the other hand, an entrepreneur can buy a store on Flippa.
What is more feasible?
To invest big amounts of money in companies requires significant wealth, which not all of us have. Therefore, it is not accessible, if not impossible.
Flippa, on the other hand, doesn’t require this massive amount of money. There are price ranges, and it’s on you to do your research and buy the most suitable business you find.
Flippa made the ability to acquire a business easy.
Need more information on how and from where to start with a new business?
Visit lexyom.com and let us help you out!