Interested In Buying A Business?
We Can Help!
Buying an existing business represents less of a risk than starting a new business from scratch. By buying an existing business many of the bumps and challenges will be resolved prior to your ownership. In addition, most businesses purchased will come with some existing level of monthly cashflow. While the opportunity may be less risky in some aspects, you must perform due diligence to ensure that you are fully aware of the terms of the purchase.
If you have decided to buy an existing business, you will want to be sure that you are making the right choice in your new venture. Here are some things to consider when it comes to acquiring the business of your dreams.
The Steps to Starting
There are many different types of businesses to buy. Take these steps to narrow down the list of potential businesses you may want to purchase.
1. Identify Your Interests If you have absolutely no idea what business you want to invest in, first eliminate businesses that are of no interest to you.
2. Consider Your Talents Being honest about your skills and experience can help you eliminate unrealistic business ventures.
3. List Conditions for Your Business Consider if a business has a condition that is unfavorable to you, such as location and time commitment.
4. Quantify Your Investment Finding profitable businesses for sale at reasonable prices can be difficult. Ask yourself why this business is for sale in the first place.
We’re here to help you take those steps!
With over 30 years’ experience in business growth, development, strategic planning and execution, we have helped hundreds of new and experienced entrepreneurs buy, sell and run successful businesses. We understand the high level of commitment involved in these processes and are dedicated to serving our clients with confidence. Read below to learn more about the many aspects of buying a business.
- Business searches
- Qualifying potential sellers
- Appraisal/valuation services
- Offers, IOIs and LOIs
- Range values & Industry Value Dynamics
- Negotiating the deal
- Finance options
- Deal structure
- Non-compete
- Asset purchase price allocation
- Taxation issues
- Due diligence
- Coordination of tax, legal and estate experts
- Mine sweeping to keep the deal on track
- Pre-close process
- Closing
- Post-close issues
Buy-Side Representation
Selling your business is different from selling your house, as a result many businesses for sale may not be accessible for buyers through traditional channels. The reason behind this occurs due to a large number of well-known businesses hiding in their own special market; meaning that you, a potential buyer will not see their business for sale due to reasons of confidentiality and reputation. Many of these hidden opportunities are viable and often more valuable, but only M&A intermediaries and business brokers have access to these offerings.
Buy-side representation can prove beneficial to business buyers because of the professional experience critical for a successful M&A deal. By engaging an intermediary at Array in both the search process and deal negotiation, the buyer opens a new door of opportunities that would not have otherwise been available to him or her. Whether the buyer has never before purchased a business, or frequently invests in private equity, buy-side representation with someone who knows what they’re doing helps ensure that the M&A process will run both smoothly and effectively.
Although potential buyers may have some concerns regarding the cost of buy-side representation, in the end, many have found that the financial and intellectual advantage that an M&A intermediary gives them proves priceless.
