A Comprehensive Guide to Buying a Business – Entrepreneur

by | Nov 8, 2022 | Business

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One of my first jobs in corporate America, and a remote one at that, was for a rather obscure, not well-known to the average American, yet it was a very large and complex software conglomerate called Trilogy Software. For over a year, I worked on an agile mergers and acquisitions (M&A) team that was responsible for assisting in due diligence, data warehousing management for all due-diligence materials pre-acquisition, restructuring and eventually operationalizing the acquisitions into completely remote organizations using internal playbooks. I was involved in close to 10 acquisitions over the course of a year and a half’s time. I knew early on after working in M&A that I wanted to be involved in purchasing businesses later on in my career in some way, shape or form. I’m slowly closing in on that goal as of the writing of this article here!In one of my previously published articles, I talked about all of the reasons why you should purchase a business instead of starting one. There are a number of inherently compelling reasons to do so:Existing businesses typically produce cash flow.You’re purchasing a proven business model (product/service or both).You can potentially purchase at a discount.A customer base is already built in.The fact that you’re reading this article is a pretty strong indicator that you’ve more than likely decided to take the next step on your path toward business acquisition. Before we get too far into things, it’s important to understand that not all businesses for sale are created equally. Every single business is going to require an individualized approach to create and tailor an analysis of its operation, financial health, growth projections, etc.I’m going to walk you through what it’s going to take for you to purchase a business hypothetically, using my personal and professional experiences as well as my knowledge.Related: Why Start a Business When You Can Buy One? Here’s What You …

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