Many entrepreneurs decide to buy a company to buy or create their own job. There are several factors to consider if you want to conclude a successful transaction.
- The business sector – Do you know the business sector? Are you prepared to invest long hours in developing your business in this sector?
- Geography – Do you want to work close to home, or are you willing to travel for a company that meets your requirements?
- Company size – How much can you afford? Your available capital, sources of additional financing – all these factors will influence the size of the business you can envisage.
- 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?
- Skills – You need to be able to replace the current manager. You’ll need to be surrounded by a competent team, either existing employees or new recruits. What skills do you have? Production skills? Sales skills? Human resources management skills?
According to some of the buyers we spoke to, you also need:
- A good dose of flexibility to deal with the unexpected
- Financial leeway for surprise expenses
- A lot of time to ensure proper management, especially in the first few months.
But all are unanimous… they don’t regret their choice and are very satisfied with their decision!