Steps to Buy a Business
Buying a business is one of the major decisions made by any entrepreneur. This decision is directly linked with growth, expanding product lines, increasing market share, giving boost to your financial position. Buying a business is not a simple task. It requires lot of research and analysis of numerous options that can be judged upon the potential pitfalls. This job can be made easier through the help of a professional financial advisor.
Buying process that must be followed in order to get what is exactly desired
Industry Analysis should be done so as to get a feel of the industry that would be beneficial in expansion or associating with your business. Market research or analysis must be done on a thorough basis. Sources from where help can be taken are such as industry journals, market research reports, business information. Also help of a professional financial broker or advisor can be taken off. Make your own financial health analysis before moving ahead. This could be done by taking help of a professional financial advisor and other professionals.
You can associate yourself with a professional advisory and consulting group and enhance the value of buying a new business. This consulting group can provide you with all the relevant things required. All the industry and market research, business valuations and setting up first round of meetings can be done by them. So all the professional services will be provided under one roof.
Steps taken by the Advisory Group
1) First meeting with the buyer and understanding the specific requirements.
2) Getting an Expression of Interest (EOI) signed from the buyer just to judge the seriousness to purchase a business as it has to be provided to the seller for further approvals.
3) After the EOI is signed and approvals are taken then the buyer visits the unit / plant for further analysis and first of its kind meeting with the business owner
4) Then comes the Due-Diligence part and the Valuation analysis
5) Plant visit for the second time again
6) After all the research and analysis, Negotiations take place
7) Finalization of the deal terms with the business owner
8) Closing the deal.