Tag archives for search fund - Page 2
Cost of searching
One of the key decisions in buying a business is how to pay your bills while you are searching for it. You will have search expenses, living expenses and perhaps some substantial personal debt to…
Preparing your search brochure
Creating a "leave behind" document for a prospective seller is a very personal and unique opportunity to get your message across to a business owner. A single page presentation is also useful for the intermediary…
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…
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…
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…
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…
Quality of Earnings
During the final stage of your search, while under LOI, you will need to verify what the seller has provided as to their financial health. This level of accounting diligence is best done by an…
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…