“Can I Afford to Buy a Business?” Two Frameworks to Help You Answer That Question

September 27, 2017

If you’ve ever considered purchasing a business, the thought right after, “I can be my own boss!” is likely “Can I even afford it?” Business ownership is rewarding in many ways- beyond finances. But it also brings lifestyle changes that impact those around you. It’s an investment you want to be confident in.

We won’t talk in absolutes about whether or not you can afford to buy a business. But, after a decade of seeing executives buy businesses, we’ve developed two frameworks that work in tandem for helping you answer that question.

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Are You Ready to Buy a Business? Six Questions to Ask to Find Out

September 13, 2017

Buying a business is hard work. Are you ready for that task? Below are six questions to help you find out. These questions are tailored specifically for the individual executive seeking to acquire a business (a different set of questions should be asked by corporate buyers). If that’s you, take some time to consider these questions.

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70-90% of Strategic Acquisitions Fail – Here’s How Corporate Buyers Kill Deals

September 6, 2017

Strategic acquisitions have a historical failure rate of 70-90%. That’s a pretty dismal stat.

So, what are you doing wrong? And, more importantly, how do you properly lead your team in an acquisition process when the cards are stacked against you?

Below are five of the most common mistakes we see corporate buyers make when going through the acquisition process. These mistakes can be costly – especially, if the deal dies after you chased it for months. We’ve included reminders of basic, yet vitally important, acquisition principles that will allow you to steer clear of failure and action items to help your team gain momentum in the right direction.

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The Best Industry for Your Business Acquisition

June 7, 2017

Whether you are a corporate or individual buyer, one of your first questions in the process is related to the business’ industry. Which industry is best?

Let me tell it to you straight – no industry is the best industry. And I’m not just saying that so I don’t hurt any of the industries’ feelings. You may have preferences and some industries may be better than others but, speaking from experience, there is not a golden ticket industry that will take you to the chocolate factory of ideal businesses.

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Buckle Up! 4 Ways Your Journey to Buy a Business Could Get Derailed

April 12, 2017

Are you properly settled in for the ride as a Blue-Chip Executive on the journey to buy a business?

The journey can be long and arduous, and you might get lost and never arrive, or crash on the way, or get distracted, or wind up at the wrong destination.

So, as you’re buckling your seatbelt, examine the ways your journey to buy a business could get derailed and then, take our tips to heart – they will help you stay on track.

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Letter of Intent: Crafting the First Step to a Successful Acquisition

March 1, 2017

You found the business you want to buy. Congrats!

Now what?

There are many things that need to happen before a deal closes. One of the first steps you’ll need to take is to write, sign and negotiate a Letter of Intent (LOI) with the seller. An LOI is a non-binding document, meaning there is not a legal requirement for things to play out exactly as the document states.

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Two Insider Tips for Picking a Bank for Your SBA Financing

February 1, 2017

SBA financing- particularly when used for business acquisition- involves very specific limitations and requirements. Because of its detailed and complex nature, using just any bank for SBA lending would be a mistake. Do your research and pick a bank that has experience and that you trust. This is not an exhaustive shopping guide but these two tips will get you well on your way to making a solid choice in your SBA lender.

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Don’t Fear the Acquisition Jump: How Nonprofits Acquire Private Businesses

December 20, 2016

As an executive at a nonprofit, you deeply and sincerely care for your organization’s mission. Fulfilling the mission is the pinnacle of your organization’s purpose. Whether that mission is employment services, environmental conservation or political advocacy, your mission is important and engaging to the community. And if you’re like other nonprofit executives, you consider your organization’s nonprofit status as an important piece of advocating for the mission. Carrying a 501(c)(3) status allows for distinct operations and means more money can go towards the mission. Therefore, you are understandably concerned about what acquiring a private entity could mean for that status.

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