Common Buyer Questions
Q: Why is confidentiality important?
It is critical that you maintain confidentiality throughout your business acquisition. You want to buy a stable businesses. If employees learn that their employer is for sale, they may seek other employment to protect their income. Customers may begin to favor other sources for your products or services. Key suppliers may begin seeking alternate channels to the market. Any of these events can erode business performance and stability, which translates to increased risk for you and the seller.
Q: I previously completed an Exit Strategies confidentiality agreement. Do I have to complete another to review a new opportunity?
Yes. We require that you submit a confidentiality agreement that is specific to the business of interest.
Q: Why must I fill out a buyer Questionnaire?
This helps us understand the match between the business for sale and your requirements and ability to finance a transaction. To protect the business, we only give out sensitive, confidential information when we see a fit. It saves everyone valuable time. Also, understanding your desired business characteristics can help us match you with future acquisition opportunities.
Q: I registered as a buyer, but don’t recall my username or password.
Contact Us to request the username and password.
Q: I read the CBR and I am interested. Now what?
The last page of our CBR suggests next steps for the specific business.
Q: How can I be informed of new acquisition opportunities?
Register by completing the appropriate Questionnaire (at right). You receive Email notifications as we add opportunities that match your specifications. You can opt out at any time.
Q: What if I’m still not seeing the right acquisition opportunities?
Contact us regarding a Strategic Acquisition Search.
Q: Is it practical for me/us to acquire a business at this time?
There are many factors to consider, but here are two basic tips. First, you must have adequate capital to purchase and operate the business (down payment, closing costs, working capital and growth capital) and maintain some cash reserves in case things don’t go exactly as planned. Second, don’t expect to sit behind a desk and work on business plans. Be prepared to put in long hours. Successful buyers learn every aspect of a new business and do whatever it takes to succeed.
Q: How can I be sure I don’t overpay for a business?
First of all, be prepared to pay a fair price. And don’t make the mistake of automatically assuming that a business is overpriced. Some are and some aren’t. No two businesses are the same so it’s wrong to apply a simple price rule of thumb to every business – even though that’s exactly what many people will tell you to do. If your target business is represented by a broker with an asking price, ask how that price was determined. If we represent the business, with our client’s permission we can share our analysis with you, or refer you to independent value analysts. Be sure to use an appraiser that is objective, and has the appropriate experience, credentials and data to support their conclusion. If you intend to obtain acquisition financing from a bank, the lender will probably require an independent business appraisal.
Q: Do I need an attorney?
We advise you to have an attorney review or prepare legal documents and examine the legal aspects of the business you acquire. It is critical that the attorney has experience handling business sale transactions, and the time available to respond on a timely basis. When an attorney doesn’t have the right experience, you pay to educate them, and, worse, pay to have your deal spoiled. We know several experienced business transaction attorneys who know how to get deals done and mitigate risk. Your attorney will be, and should be, looking after your interests; however, remember that the seller's interests must also be met for a deal to occur. Transactions get done when a balance is struck, a win-win achieved. Also, keep in mind there is no such thing as a risk-free business acquisition. Every buyer makes a make a leap of faith to acquire a business.
