Again, not all costs associated with regulatory compliance are transferable; this is by design to keep a barrier to entry. Many accreditations/certifications ha

Again, not all costs associated with regulatory compliance are transferable; this is by design to keep a barrier to entry. Many accreditations/certifications have a reset clause when something significant in a business changes (like owner), or have a not widely available cheaper streamlined version for long-standing businesses. This is even assuming that selling the whole businesses is the best way to exit; taking over the whole business rather than just the machinery (for example) is a restriction that might be detrimental. The thing you are not understanding, is that you have to be able to loose money for longer than the competition; it either requires an investment on the same scale as the total valuation of the incumbent, or a string of failed attempts from others to set the stage... And you can estimate ahead of time how long you can operate for, and how long the competition can, so you can likely tell before you start that you are going to be one of the failures.