The broker helps identify opportunities, negotiate and coordinate the transaction.
Michael Shea
What Happens After You Buy a Business? Your First 100 Days
You bought the business. Now what? Here’s a practical 100-day plan for stabilizing operations, learning the business and creating growth. Closing day isn’t the finish line. It’s Day One. Days 1–30: Learn Don’t immediately change everything. Listen. Meet employees. Talk to customers. Understand suppliers. Learn the numbers. Days 31–60: Stabilize Fix obvious problems. Establish reporting. […]
10 Signs a Business for Sale Is Actually a Good Business
What makes a business worth buying? Here are 10 signs of a fundamentally strong small business, including cash flow, customers, employees and systems.
1. Consistent Cash Flow
Consistency reduces risk.
2. Repeat Customers
Customers who return are valuable.
3. Strong Employees
Good employees make the transition easier.
4. Low Owner Dependence
The business shouldn’t collapse when the owner leaves.
5. Good Reputation
A strong reputation is an asset.
6. Diversified Customers
No single customer should control your destiny.
7. Good Suppliers
Stable suppliers protect margins and operations.
8. Reasonable Capital Requirements
You don’t want every year’s profits going into new equipment.
9. Documented Processes
Systems make businesses transferable.
10. Opportunities for Improvement
A good business with fixable weaknesses can be a great acquisition.
How Much Money Do You Really Need to Buy a Business?
Know your maximum comfortable investment before you start shopping.
And don’t fall for the “no money down” myth. I’ve written about why that idea is usually unrealistic in [Can You Really Buy a Business With No Money Down?]. Can You Really Buy a Business With No Money Down?
10 Questions to Ask Before You Buy a Business
1. Why Are You Selling? The answer matters. Retirement is different from declining sales. 2. How Long Have You Owned It? Long ownership can provide valuable history. 3. What Does the Owner Actually Do? This determines owner dependence. 4. Who Are the Key Employees? You need to know who actually runs the business. 5. Who […]