Preparing to Meet Sellers, Finding Businesses Flashcards
What criteria is considered when looking for a business?
- Annual Sales
- Cash Flow
- Industry
- Equipment Intensive
- Service Business
- Intellectual Property
Why are businesses sold on a secret market?
- To maintain the value of the business.
- Customers may think the business isn’t doing well if they find out.
- If employees find out, they may think they need to find new work because the new owner doesn’t want them.
- Vendors may think it will make their product look bad if it is being sold by a company up for sale and end their relationship with you.
- Banks may cut or reduce your credit lines.
- If competitors find out your business is for sale, they can use this information against you.
What are the non-owner stakeholders afraid of when they hear that a business is for sale?
The business isn’t doing well and won’t be around to honor their agreements.
Which reason for sellers to sell is the least time-sensitive?
Retirement
What other reasons have you heard for someone wanting to sell?
- Burnout/fatigue/boredom
- Retirement
- Divorce
- Poor Health
- Relocation
- Under Capitalized
What does the acronym BANTA stand for?
B Best
A Alternative
T to a
N Negotiated
A Agreement
What are the items that define one’s BANTA?
- Savings in the bank:
- Working Hours:
- Vacation/Year:
- Earnings:
- Prestige of your position:
- Living Arrangements
What are the steps of the buy side acquisition process?
- Contact
- Questions
- Due-diligence
- Letter of Intent
- Verification
- Firm offer
- Closing
How can we show sellers you are a serious buyer?
Create a marketing document that sells you:
1. Work/management/ownership experience
1. Family background
1. Support System (Deal team)
1. Financial Elements (Who you bank with, who your banking advisors are, confirm their support of you acquiring a business)
Where can you think to look for businesses that are not for sale?
- Yellow pages
- Internet
- Listing brokers
What are the steps of the sell side acquisition process?
- Viewing
- Assessment of information provided
- Conditional offer
- Due diligence
- Closing
Where are businesses for sale?
- Business brokers
- Realtors
- Word of mouth
- Networking
- Kijiji.ca/Craigslist.org
- Websites (bizquest.com/acquisition.biz)
- Newspaper
What is the top global website to find businesses for sale?
www.Businessesforsale.com
Who are some of the people who try to sell businesses?
- Brokers
- Realtors
- Sellers
What are the advantages of a good intermediary?
Seller expectations are realistic; the business is sold in a timely fashion.
