Buying a Business

ABI works with both small businesses and mid-sized companies.

Buying an established business can offer a more secure path compared to starting one from scratch. With an existing business, you step into a structure that already has a proven track record, a customer base, and cash flow, significantly reducing the risks associated with a startup. This allows you to focus on growth and innovation rather than survival.

But when it comes to buying a business, there are many important factors to weigh to ensure that the decision aligns with your personal goals, financial capabilities, and long-term vision.

Things to Consider Before Beginning the Search Process

Understand the Reality

Even a well-established business will require initial active involvement to make an impact. Rather than stepping in as an employee, your role will be to maintain a strategic overview—focusing on making decisions, identifying growth opportunities, and setting the course for the business's future success. This involvement is key to ensuring that the business thrives and aligns with your vision under your leadership.

Industry Fit

It’s crucial to choose a business within an industry you are passionate about and familiar with. Prior experience can ease the transition and help with staff relationships and customer interface.

Business Size

Compare and contrast the value of a small, family-owned business or a larger firm. Bigger companies may offer higher profits but come with more complexities and responsibilities.

Location

Consider whether you’re willing to relocate for the business and how the location will impact your lifestyle and the business’s success. Factors like local taxes, labor costs, and market demand should be part of your decision-making process.

Personal Circumstances

Reflect on how owning a business will impact your lifestyle. Are you ready for the commitment and potential lifestyle changes that come with business ownership?

Can you afford it?

Choosing the right financing option depends on your financial situation, the size and type of the business you’re purchasing, and your long-term goals. It’s important to consult with financial advisors, lenders, and even legal experts to ensure that the option you choose aligns with your vision for the business and your ability to manage the financial responsibilities that come with ownership.

Consider Investment Partners

Joining forces with friends, peers, or other investors can be a smart way to pool resources and share responsibilities in buying a business. Collaboration with partners can provide access to larger opportunities, reduce financial risk, and leverage diverse expertise. Just make sure you're aligned on vision and goals, ensuring that the partnership enhances the business’s success while meeting everyone’s expectations and contributions.

Understanding the Markets

The Public Market

These are generally businesses openly advertised for sale. The listings are readily accessible through various platforms, including online marketplaces, business broker websites, and classified ads.

The Semi-Private Market

Business opportunities are often marketed discreetly to a select group of potential buyers. These opportunities are typically managed by business brokers or M&A advisors and are not openly advertised to the general public.

The Hidden (Private) Market

Many firms are not actively listed for sale but potentially available if approached. This market often represents the majority of acquisition opportunities and requires proactive strategies to uncover.

Understanding the Buying Process

1. Define Your Vision

Start by clarifying what you’re looking for. Having a clear set of criteria will guide your search and help you stay focused on what matters most to you.

2. Identify the Right Market

Focus on identifying the specific market segments where the greatest opportunities exist. This involves understanding which industries are ready for growth and aligning your acquisition search within those areas.

3. Understand Value and Market Trends

This step goes deeper into analyzing the financial value of a various businesses. Evaluating market trends helps to determine the right price and ensure the business is a good fit for long-term goals.

4. Find a Good Your Position

The way you present yourself as a buyer can make a big difference. Developing a strategic approach to engage with sellers not only enhances your credibility but also improves your chances of securing the deal on favorable terms.

5. Manage the Transaction Carefully

Once a target is identified, the transaction process begins. This phase involves due diligence, negotiating terms, and closing the deal. Working with an experienced advisor. Being thorough and detail-oriented is key to avoiding surprises and ensuring a smooth transition.

6. Secure Smart Financing

Securing the necessary funds are essential. An experienced advisor is connected and will make introductions to explore different lending options and ensure a buyer is prepared to meet the financial demands of the acquisition.

How ABI Helps You Find the Right Business

Define Your Vision

We'll collaborate to identify clear acquisition criteria, aligning our search with your aspirations and ensuring we target businesses that match your goals.

Uncover Hidden Gems

Our managed search process dives deep, identifying and evaluating potential acquisitions beyond the public listings, opening doors to exclusive opportunities.

Position You for Success

We'll showcase you as the ideal buyer, arming you with market insights that give you a decisive edge in negotiations.

Navigate Complex Deals with Ease

From crafting the initial offer to sealing the deal, we'll steer you through negotiations, due diligence, and closing, ensuring you're informed and confident at every turn.

Secure Smart Financing

Need funding? We'll connect you with the right lenders and support you throughout the financing process, helping you structure a deal that sets you up for long-term success.

Maximize your chances of finding the ideal business match

Preserve your time and energy for your current priorities

Empower you with expert market analysis for informed decisions

Guide you confidently through complex transactions

Enhance your prospects for post-acquisition triumph

Three Types of Buy-Side Clients

Entrepreneurs

Buyers interested in replacing a job or other source of income fall into this category.

Investors

Investor clients, such as private equity groups or high net worth individuals, are interested in acquiring companies which can provide attractive financial returns on their investment such as through making operational improvements, or by providing increased access to capital. Many times an investor-acquired company will serve as a platform for growth or as an add-on to a platform company. Platform companies within institutional investor portfolios can also be considered strategic buyers where the goals of the strategic buyer ultimately accrue to the financial benefit of the investor.

Companies

This group of buyers consists of corporate or smaller-company clients seeking to acquire a company to achieve growth or other strategic objectives

Client Services and Benefits

While large corporate or investor groups may have teams dedicated to searching for and acquiring companies, most smaller organizations or individuals do not have the resources or ongoing need to justify that level of commitment. The aim of ABI’s Buy-Side Advisory Services offering is to support this second group. We do this with the following services:

Acquisition Criteria Development

A profile of a desirable ‘acquisition target’ must be drafted together with the client which will ultimately guide the managed search

Opinion of value and market analysis

Help the Buyer determine the value range of targeted businesses

Buyer Positioning and Mentoring

Develop a positioning strategy to place the buyer client in a favorable light and continue in an ongoing advisory role

Managed Search

Identify, contact, screen and evaluate acquisition candidate companies, arrange confidential introductions, help structure the offer and negotiate terms

Transaction Management

Oversee and support due diligence and closing of the transaction

Financing Assistance

Introduce Buyer to lenders and guide through process of loan application, required seller documentation, approval, securing of funds.