It happened again today.
I’m at a meeting with one of my trusted colleagues and she advises that a close connection of hers has money to spend and then proceeds to supply the shopping list! Quite specific? Yes. Makes it much easier to know, when one fits criteria, who to call doesn’t it!
This is just another in a growing list of interested parties in, what appears to be, an increasing reemerging trend of growth through acquisition.
Many more businesses are realising that in order to grow quickly (over a year for example), buying another business is probably the quickest option. Sure, it presents its own challenges but… the difference to the numbers in a very short time frame is well worth the effort.
The same applies to first time buyers as well. If you want to walk straight into a revenue producing position from Day 1 then buying an already established business is the most likely way of doing so.
You know how they say when talking home renovation “live in it for 12 months first before you renovate, so you really know how you want your home to work”… buying a business is no different. Work in it for 12 months to really get a handle on how it works an d then look at rolling out your grand plans.
Whether you’re looking to acquire or buy, no matter, determine your shopping list and then talk to the people who have the relationship with the seller. That’s as hard as it needs to be…
Had a 5:30 meeting today between a seller and a potential buyer. Thought this will be OK, out by 6:30 max, no problem.
7:30, still standing in the street with potential buyer, attempting to ask more questions…
Got to thinking, why this was so?
Was the Information Memorandum not detailed enough?
Was the potential buyer not prepared enough?
Neither of these are the case. In fact, there was probably too much detail and prep!
What it is… a potential buyer, who as an experienced buyer at that, is looking to buy into a market he does not understand.
Actually, let me be more specific. It is not the whole business he does not understand, it was only part of the business, ie the Online component. He knows its a market he should be playing in but knows enough about it to b e dangerous!
I envisage a whole lot more questions to come yet…
Business Owners, soon-to-be past or present, you must have a handle on Online and how it impacts your business.
If you have not started this journey already, please do so now…
Lots of activity yet again!
BS2 = much interest generated for this Online Retailer
Meetings #1 and #2 set up with the owners went well, with the potential buyers have gone away to think about it. Meetings #3, #4 and #5 are scheduled for next week.
BS5 = potential seller very interested
Proposal developed and offered for consideration
BS7 = a number of inquiries came in next week
Meeting #1 set up for next week
BS8 = potential seller very interested
Proposal discussed but on hold for 4 weeks.
Had signed with someone else but isn’t happy with them so seeing out
BS9 = first meeting with potential seller set for Feb 18
BS10 = first inquiry about a new one for the market
Plus 2 new Sellability Score reports completed with meetings set for next week
and development of process around the incoming
“Sellability Score” inquiries and generated reports and how to best serve them once the report is done…
It’s all happening!
Onwards and upwards…
ESTABLISHED ONLINE RETAIL BUSINESS for SALE
I would suggest not!
We have this business listed for sale and first did so in December 2012. Whilst there was certainly interest, the timing made it too hard for anyone to seriously get their head around it. Now that we’ve all had an end-of-year break of some sort and are now well and truly into work mode, that interest is now converting into a number of parties keen to meet the owners.
Note to self: Do lots of parties at Christmas and forget about trying to finish off the year with a sale!
entrepreneurial mothers, please pay attention…
New research has found that women have an average super balance of $92,000 at retirement – 40% less than the average male retiree, with $154,000.
…one fifth of Australian female small Business owners do not have a super fund.
- At 65 the average woman’s super balance is $112,000
- A 5 year career break means $45,200 less in savings than taking no career break
- A woman who retires at 65 needs to save $55,300 more than a man due to her increased longevity
Want to read more about this issue, click here.
We have to be in charge of our own destiny… how’s yours looking?