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The boomer generation spans many years creating a
unique situation in the business world. Aging boomers are looking
toward retirement, while many younger boomers find they're ready to be
their own boss. For those younger boomers, and others looking to be a
business owner, buying an existing business is a great option.
But be aware that buying a business is a timely
process. Some buyers never find the right opportunity, while others
spend too much time exploring too many options. Consider a step-by-step
approach to get you where you want to be - owning your own business.
Ask yourself some important questions
Why do I want to be an owner? What types of activities do I like? What
lifestyle is important for me? You'll also want to be sure to include
your family as part of the assessment.
Line up a team of professional advisors
Alert your attorney, accountant and financial advisors that you are looking for a business.
Consider your financial situation
Be sure to carefully consider how much money you need and how much you
want to earn. Your expectations need to be realistic and something that
can be achieved by the type of business you are searching for.
Develop a personal financial statement
The
personal financial statement should show your assets and liabilities
and possibly include a supporting statement from your banker or
accountant. Be prepared to share this document with the business
intermediary who is working with the seller. If you are planning to
work with other investors, identify them and create a group financial
statement.
Create a profile
Sellers want to be sure their business will continue to be successful.
They want to find a buyer who has experience and will take care of the
company's employees. Really, you are selling yourself to the current
business owner(s) and the professional team that represents the seller.
Establish your criteria for acquisition
It's important to define the parameters of your search. Include
geographic requirements and criteria on the transaction size. Having
set criteria will help you demonstrate your commitment to finding the
right business for you.
If you are interested in buying an existing business,
you want the business intermediary to be selling you to the seller.
It's important that you demonstrate that you're a qualified, motivated
buyer. Being prepared and serious about your search is an important
initial step.
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