As a business broker, I have a wealth of experience interacting with potential buyers who are interested in businesses that I have listed through my brokerage. Potential buyers range from the beginner to the expert. No matter where you sit on the spectrum … you have an equal chance of closing the transaction and leaving the 9-5 behind for your dream of becoming an entrepreneur.
Navigating the process for buying an existing business can be a bit overwhelming, especially if you haven’t purchased a business in the past. Transactions vary significantly in complexity based on their value, operations, type of sale (asset vs share) as well as the personality of both the buyer/seller and their respective teams.
There are, however, 8 key steps involved in the process and we are outlining it below in a simplified infographic format. The better you prepare, the higher the likelihood that you will find your ideal business, evaluate it’s potential and close the transaction.
Regardless of where you are in the process – it is in both your best interest and the best interest of the seller to be decisive. Invest time up front to determine your purchase criteria (including budget). This will help significantly during the process because you will have the ability to test if a business measures up to what you are looking for. If the opportunity is not a good fit based on the criteria that you’ve established – move on. There will be other opportunities.
Equally important is to ensure you have a good team working for you from a legal and accounting perspective. A business intermediary (business broker) can be a helpful addition to your team but it depends on the size of the transaction.
Wishing you the best of luck with your search for an ideal acquisition!
Taryn Herritt a high volume seller on BuyAndSellABusiness.com (check out her listings here) and a licensed business broker who is passionate about entrepreneurs and entrepreneurship through acquisition. She works with the industry leading M&A team at Beacon Brokerage in a variety of verticals and brings over a decade of experience in commercial real estate, business valuations and multi-million dollar business line management. Check out her site here. Also, make sure to follow her on Instagram.
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First published under our former name, BizON.
