Tag archives for traditionally funded search - Page 2
Searching as a Couple
Husband-and-wife teams searching for, purchasing and then running a business, is a special variation on selecting a partner for a search. Searching with a partner (See Blog Post: Searching with a Partner, or not!) is…
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
Latest Revision: February 7, 2022 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…
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…
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…
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…