Realities of Buying a Business

Top Ten Tips by Lou Vescio for buying a business, www.IBBAUniversity.com with comments, in italics, by Griggs Business Brokers

Aspects to think about when looking at buying a business;

  1. There is no perfect business

And the best ones will have a lot of suitors.

  1. You learn more meeting with the seller

It’s important, when you want to put an offer on a business, is to meet with the seller. In this meeting you will learn a lot about the business you may one day own.

  1. Ask the business broker any and all questions

If we can’t answer the question for you when you ask, we will find out. We want to make sure your set up for success. That’s what makes Griggs Business Brokers one of the best brokers in the business. www.griggsbb.com

  1. Picture yourself as the owner of the business you’re considering

If you can’t see yourself telling all your friends about it then you might want to pass on that one.

  1. If you find a business you like – make an offer

Currently it’s a seller’s market, so don’t procrastinate if you think that’s the one. See graph image.

  1. Make you offer based on your valuation and risk assessment

You’re the one who has to live with your decision so make sure you’re comfortable with it. Also, highly recommended you get your trusted advisors to look at the deal, and your bank, and make sure they agree with the valuation.

  1. Know your investors

If you’re having to use outside sources for equity make sure to spell out roles and expectations in your Ops Agreement. Get a good lawyer to draft.

  1. Make sure acquisition criteria are realistic

Work within your core competencies and within your financial means. If you’re borrowing money the lending party will probably make sure you have enough for working capital. Always a good idea to have a bit more on hand for any unforeseen rough spots. Can you say COVID?

  1. Plan for future working capital

Ditto…and then have a contingency.

   10.  Use “deal-maker’ advisors

Owning a business can be one of the most rewarding endeavors personally, professionally and financially. It will probably be one of your most difficult endeavors. Putting your best foot forward with a well thought out plan will ensure the straightest path possible.

Reach out to Griggs Business Brokers when you’re thinking of selling or buying a business. Link here for more information.

20 yr study showing that only 2% of buyers actually buy a business

Only 2% succeed!