3 Key Tips to For Acquiring a Business
Although the rewards that come with searching can provide self-fulfillment and create exciting challenges, searchers must remember that the process can be long and difficult, with many false starts and dead ends. Here are three key tips for enjoying the search process.
Stay Motivated – Searching for a business takes a long time and can be quite the slog. It’s very easy for searchers to become frustrated and lose faith within that two year time period.Finding ways to stay motivated (e.g. connecting and meeting up with other searchers and/or your investors on a regular basis) can help make the last few months of searching not seem as bad and could lead to a larger drive to get a deal done.
Get to Know Your Seller – Many search fund targeted businesses have owners who have never sold a business before. Oftentimes these business owners have grown the business from the ground up across the span of many decades. Establishing a strong relationship with the seller could not only help motivate them to offer the company to you, but at a good price, too. Many business owners who trust searchers even will help the searcher get started after acquiring the business. Even if this is not the case, working with a seller who you get along with makes the process of the deal much more enjoyable.
Don’t Rush into Big Changes – Taking your time to make big changes can alleviate many potential issues post-acquisition. Typically with lower to middle market companies there are only 10-50 employees. Drastically instituting changes in technology, sales, and people could create confusion within your workforce. Taking smaller steps to initiate these changes over time can help current employees get the hang of new systems more effectively