Archives for Searching - Page 2
Customer Concentration
How much customer concentration is too much? Less than you might think! For a searcher, the best-laid plans to acquire a business with low customer and market concentration, recurring revenues, healthy margins, and industry tail…
Why deals fall apart
Much of the company search process is about failure; deals will fall apart, and the more you understand why, the better prepared you will be to recognize the warning signs, anticipate them, and even avoid…
Reaching out for help
The quest to become an entrepreneur by purchasing a business is about learning and continuous improvement. No search is the same, nor is any searcher, therefore you have to seek out solutions to the challenges…
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…
When your LOI falls apart
Having a transaction fall apart can be devastating in a number of ways to a searcher. Since it takes an average of LOI's, and many months, to get to closing (See blog post Getting to…
Getting to Closing
Getting to the closing date is a lot more challenging than most searchers think. Many things can happen that cause deals to fall apart. Just knowing what to expect during the closing time-frame is helpful…
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…
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…
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…
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…