Searching with Interns
Your search process has to be as efficient and effective as possible to achieve the result of owning a business in two years or less. Interns can be used to scale up many of your…
Seller Profile
Finding and buying the right company is the prime objective of your search, yet it is often the seller who is essential to your success. Working with an unsuitable seller can drain your most precious…
Company Profile
Searchers often make the mistake of searching for a “great” business. The search model would classify a great business as one with 3 years of expanding profits, recurring revenues, a simple…
Establishing seller trust
The relationship you build with the seller, between the initial contact and your running of that business, is much more important than the "transaction" that you conclude with them. Like any relationship, it is based…
Proprietary Prospecting
Your proprietary search for prospective sellers should be viewed as a carefully scripted marketing campaign. Your "pitch" should quickly capture the attention of business owners and trigger a conversation about turning their legacy over to…
Brokers and Intermediaries
Brokers, M&A advisors and other intermediaries may stand between you and your ideal seller. Developing the skills to manage this source of prospects is critical to the success of your search. Since about 40% of…
Making offers (IOIs and LOIs)
Making offers quickly and often in your search is critical to buying a business. As in sports, taking frequent "shots on goal" is always better than waiting for the "perfect" opening. After all, the offer…
Working Capital
In many ways, search is all about the details. A detail that cannot be overlooked is the treatment of working capital in the transaction. If saved until the final drafts of the P&S agreement, the…
Bank Financing
The most substantial source of financing for your acquisition will be bank financing. A quick survey of two dozen searchers finds they have raised between 35% to 75% of their transaction price through bank debt…
Seller Financing
Seller Financing is one of the most significant source of funds that a searcher uses to finance their purchase. It demonstrates the seller's confidence in the future of the business under new leadership, and gives…