Take off your shoes. Go on! It’s time to step into someone else’s.
Selling a business – from the perspective of the buyer. Ruthless, clever, efficient, and thorough. At least, that’s how they may seem like when you first meet them. Let’s shatter that barrier of the unknown, and understand what areas you need to cover in order to put your business out to tender – it’s time to examine the behaviours and processes of ‘the buyer’.
Picture this, Mr or Mrs Buyer: you’ve found yourself in a position where you have a good amount of capital behind you, and you want to start running your own business.
You have two options.
The first is to start your own business from scratch – a cheaper, but slower and much riskier endeavour.
The second is to purchase an existing business and capitalise on its already established profitability and structure.
You opt for the one that is more likely to bring you a quick, consistent income. You opt to buy-in.
2. Who are you?
And so, Mr or Mrs Buyer, what are you looking for? Chances are, you’re after a business that:
- Is in an industry you’re very experienced with
- Is in a situation/environment that you find quite favourable economically
- Is the best performer around (i.e. the best deal you can find)
If you’re really clever, you will have also engaged an experienced broker to aid in the purchase of your business, because you know their commission will be well-offset by the difference in result.
Want to read the next two steps? Jump onto Part 2 now!