The finishing line to buying your business is in sight— you want to get there ASAP. But you can’t shorten due diligence, an important and complex part of the purchasing process. As described in Due Diligence in Buying a Business (part one), our goal is to identify any fatal flaws, verify that the information is reasonably accurate and confirm that this business will really work for us. And so, it's essential we keep to the plan our broker has set out for us.
We have successfully negotiated agreement upon an offer to buy a business based on the information our business broker and the seller have provided. This offer included many conditions that we must be satisfied with prior to closing or the offer becomes null and void and our deposit, refunded. We must now plan and execute a reasonably thorough analysis of the business and the information provided.
Guided by our business broker, we have made a conditional, non-binding offer to purchase a business at a price (below market) and terms that would work for us. We set out a time for response, a closing date, financing, training and transition, what was included and excluded, and provided a deposit for the broker to hold in trust.
We have talked about how to go about selecting a business. You get that none are perfect and that you will never have enough information to feel 100% confident about your choice. You have decided that all things considered—after reviewing the documentation provided by your broker, your meetings and discussions with the business owner and your personal visit to the business—a business will work for you.
Seller financing is a gate you want open on your road to business success. You may have made it past all the other checkpoints, but if you’re unable to secure financing for the business you want to buy, your journey ends here.
What makes one business better than another for you when you are buying a business? Some of the considerations are obvious. Others are not. As you explore the business landscape, keep these 12 markers for choosing a business in view.
You have a good sense of the size and type of business you want to buy and how such a business will help you accomplish what you want in life. You’re ready to make your vision a reality.
So what are buyers looking for in a business? Whether it’s their first purchase of a business or their 10th, buyers are looking for an ongoing income. Not surprisingly then, they’ll be attracted by businesses with a proven track record of consistent financial performance with solid, growing revenue and earnings.
The evidence is out there: more women in Canada now own businesses and more women in Canada are now engaged in starting businesses. The count varies according to who reports what and where.
