Use the following definitions to get accustomed to the lingo of the Small Business Administration (SBA).
“Which industry is best for
my business acquisition?”
Whether you are a corporate or individual buyer, one of your first questions in the process is likely that question.
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.
“I got an unsolicited offer on my business. What do I do?”
Not many things are more overwhelming or intimidating than when a business you respect approaches you asking that you consider selling your business. Whether you’re ready to sell or not, there is a rush of emotions: fear, excitement, trepidation, pride. Every fiber of your being wants this to work out for the survival of your business, for your employees, your family, your legacy.
How does the SBA 7(a) loan program compare to a conventional bank loan?
The Small Business Administration (SBA) has many resources for business owners. Money is one of them – certainly enticing for anyone looking to start, scale or shift directions in their business.
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.
Jason Andrews, current owner and CEO of GroupSource Group Purchasing, had spent much of his career in the medical device space. He had a lead sales job managing a remote team in a large geographic area. Jason’s job required a lot of traveling. He was expected to be continually growing and building the company for somebody else, for those above him in the hierarchy. He was ready for a change.
Most of us have a desire to make an impact, do social good, make a difference, contribute. Business owners have a unique opportunity to do that in ways that ripple beyond their direct sphere of influence.
Take a look at the statistics below about small business in the US, the individuals it impacts and the community that benefits.
You found the business you want to buy. Congrats!
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.
You have a deal you want to get done. You’re ready to buy a business. Or, maybe ready to sell. Or, looking for a business partner. Or, wanting to refinance. But you need help. Well, investment bankers are all about helping you with that deal.
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.
There are two main considerations when thinking about who would and could buy your business.
The first is your management team.
The second is the size of your business.
Why are these the two main considerations?
They’re the first two aspects of the business a buyer will go to in order to evaluate.
Your management team and the size of your business matter to buyers.
The distinction between a financial buyer and a strategic buyer is pretty straightforward.
A financial buyer acquires a company as an investment for returns.
A strategic buyer acquires a company to advance a business plan.
Buying a business is no easy task. When you make an acquisition there are real consequences for you and your entire team.
Before you set off down the road in pursuing an acquisition you should address the following five questions. Questions one and two are particularly vital and often overlooked.
I enjoyed my time talking to Bill Black about the buyer’s perspective in business acquisition. These insights might be helpful if you are a motivated seller and desire to be attractive to potential buyers of your business.
Check out more of Bill Black’s Exit Coach Radio interviews here.