Archives for Searching
Roll Up Strategies
Acquiring multiple businesses within the same industry is a dream for many searchers, but it’s far from reality in actual practice. While the acquisition process is very similar to Entrepreneurship through Acquisition (EtA), the additional…
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…
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…
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…
Buying a Franchise
An old proverb reminds us that if you are searching for a jewel, it too often may be hiding in plain sight! Most searchers discount the opportunity to become the CEO/owner of a franchise for…
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 & Intermediaries
Brokers, M&A advisors and other intermediaries may stand between you and your ideal seller or they may facilitate the process. Developing the skills to manage this source of prospects is critical to the success of…
Making Offers
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 an EtA (Entrepreneurship through Acquisition) business will be bank financing. A quick survey of two dozen searchers finds they have raised between 35% to 75% of their transaction…