Archives for Searching

Reporting on Search Progress

Reporting on Search Progress

As you move along the Search path, you may feel the sense of autonomy and independence that motivated your quest to run your own business. However, you are still accountable for your activities, decisions and…

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What to Expect While Searching

What to Expect While Searching

The path of searching is an experience full of surprises, disappointments and lessons. Throughout the process, there are many highs and lows. While the goal of finding a seller to turn his or her legacy…

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Due Diligence

Due Diligence

Reaching the due diligence stage in your search is an opportunity for celebration; you have found a willing seller, negotiated acceptable terms, signed an LOI and are “driving to close.” Yet, even amidst some optimism…

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Company Profile

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 business model, low customer…

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Seller Profile

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…

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Managing Professional Support

Managing Professional Support

It takes a team to acquire a business. The professionals that surround you provide significant support toward achieving your success. Selecting the right mix of professional advisors is important. Unlike the situational specialists who can…

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Raising Equity Capital

Raising Equity Capital

At some point in your search process, you will need to raise capital from investors and, more importantly, propose how to pay it back with a favorable return. Raising funds can create a high level…

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Proprietary Prospecting

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…

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Life After Winding Down Search

Life After Winding Down Search

Winding down your search is a difficult decision to make after devoting so much time and energy in pursuit of your dream to run your own business. However, searchers do move on to leverage their…

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Searching Efficiently

Searching Efficiently

The search process is very time constrained; you will inevitably run out of your own money or, for funded searchers, your investors’ money. Two years might seem like a long time, but it goes by…

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Posts – Most Recent

Posts – Contemplating a Search

Posts – Launching a Search

Posts – Conducting your Search

Posts – Being CEO/Owner

Random Quote

45-“Strategic partners” are very important to the business searchers.You want to rely on some trusted providers to support your business, you can’t do everything yourself!(See Blog Post-Strategic Partnerships)

42-Start early on legal documents, they often delay closings while under LOIBoth the searcher and the seller are plowing new ground and it takes a while to comprehend the meaning of all of the legal details .(See Blog Post-Getting to closing)

63 Searchers make promises they can meet to build trust with sellers. It is important to provide incremental opportunities to show that you can be counted on to deliver.(See Blog Post-Building Trust with Sellers)

34 Searchers who get access to employees before closing are more likely to close. Once the seller begins to confide in their employees about the sale of the business and introducing you as the “new owner”, they are more likely to proceed to finalize the transaction than to change their mind at the last minute.(See Blog Post-Getting to Close)

07-You are not a PE firm, don’t act like one!
Potential sellers resonate with your taking over their legacy, a PE firm is simply adding to their portfolio. Make sure your website looks personal and non-intimidating.

04-Fight Seller Fatigue in Due Diligence!
Sellers get worn out in this process. It is highly emotional for them, probably their first time at relinquishing their “baby” to someone else. During LOI stage, make it a practice to communicate with them, in person or by phone, every 2 days.

53-Holding monthly “all-hands” meetings indicates your transparency. Trust employees with what is going on with the business and they will trust you more .(See Blog Post-Communicating with Employees)

06-Use metrics to drive decisions
Track what is most important for your search – getting in front of prospective sellers to make offers to buy their business. Track the number prospects, IOI’s, LOI’s and set goals for yourself! If you measure it, you can improve it.

22-When in conflicts arise, remind professional advisors they work for you.
Inevitably, you will disagree with some advice you are getting. After checking multiple sources, do what feels right to you and move forward. You will have to “live” with your own choices, not the professionals!(See Blog Post-Professional Support)

18-Every day that goes by during Due Diligence raises the chance that you won’t close!
Time is of the essence when it comes to moving from a signed LOI to closing on your business. Seller fatigue sets in as the closing date gets extended and the seller constantly re-evaluates their motivation to sell. Only you can push the process along.(See Blog Post-Due Diligence)

44-Plan ahead, give thought to the small details of how you present yourself as the new owner. The first introduction to the employees of the business has a huge impact so you want every word to be rehearsed!(See Blog Post-Taking over the business)

50-Don’t expect immediate “loyalty”, the previous owner earned it, it takes time. You will need to earn the trust of your employees by your actions, not your words. (See Blog Post-Seller Tranisition)

35-Searcher CEO’s need to be prepared to walk away from volume orders if margins will decline. It takes a forward thinking CEO to seek out higher margin, value added opportunities to grow profits, not revenue.(See Blog Post-Wearing the sales hat)

09-Learn from others – read case histories
Over 40 case histories have been written about funded and self funded searchers in a variety of industries and historical settings. Each have great “lessons learned” and are worth the $10 cost to read them. Searchers are learners!

39-The business seller is “hiring” you to run their business. The owner trusts you enough to turnover the “legacy” of their business to you. (See Blog Post-Searcher Profile)

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