Tag archives for traditionally funded search - Page 2
Searching Mid-Career
When to start a search in your career can be a vexing and very personal question. Should you do it now, or wait? And if you wait, will "life" get in the way? Are you…
Wearing the coat
Being a CEO early in your career is the most significant benefit of the search process. However, the reality of taking over the reins of an established business may not live up to your imagined…
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…
Seller After Closing
Successfully transitioning the seller from being the "Most Important Person" (MIP) to a "Previously Important Person" (PIP) can have far reaching consequences on the success of the business you acquire. Anticipating this transition during the…
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…
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…
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…
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…