Are you a corporate buyer? – How do you communicate what you’re looking for to the professionals who can help you at this stage?
- The down payment – the one that’s real and available in the next 3 months in cash. We’re all professionals, and we know all about the leverage of banks and financial institutions. If additional equity may be available to you, it’s also a good idea to indicate this. This information allows us to position you as a buyer and see what size of business is feasible for you – and that’s far more useful than an EBITDA target!
- Geography – The more specific you are, the more it can help us – Greater Montreal is less specific than Granby-Drummondville – Mirabel-Vaudreuil as neighboring cities.
- Stage of development – Are you ready to invest in a start-up or a restructuring company? Or companies whose assets are worth more than their EBITDA multiple?
- Industry and business model – Service, distribution, manufacturing? – do you import or export? – do you manage sales or costs, or both? – is customer concentration a criterion for not proceeding? do you know how to manage R&D, or do you know this industry? – what do you do on a daily basis?
- Skills – It’s imperative to be able to replace the current manager if necessary, and to be able to complete, recruit or retain the team. Are you more of a plant manager, a sales developer, or a product development specialist? – what are your strengths? A copy of your CV will support your experience.
Avoid vague comments such as :
- A company in excellent financial health.
- An enviable market position.
- Will sell at a price commensurate with profitability, which will be established over several years.
- Protected by barriers to entry.
- Whose incumbent entrepreneur wishes to retire gradually and will teach us.
- We are very good managers.
- We are ready to study any company in Quebec.
- Capital outlay will be available depending on the project…