Shahul Hamid is planning to buying an existing frozen food distribution company. However, he is a little sceptic on his decision as he isn’t very sure of the issues involved in buying an existing frozen food distribution. Therefore, Shahul Hamid approached you to advise him on the advantages and disadvantages buying this business. 

Explain the advantages and disadvantages below with Shahul Hamid before he decides to buy the existing company. 

Advantages

a. Immediate operation 

b. Existing intangible assets 

c. Established group of employees and suppliers 

d. Quick Cash Flow 

Disadvantages 

a. Cost 

b. Location may have become unsatisfactory 

c. Inherited employees may be unsuitable 

d. Outstanding Contracts