Frequently Asked Questions: Buying a Business
What are the major considerations when looking for a business to acquire?
Buying a business can be a major undertaking that you will want to consider carefully. Some key considerations include: (1) Industry (2) Location (3) Business size/scope (4) Financing method (5) Growth potential (6) Exit potential (7) Macro/Micro economic outlook While this is not an exhaustive list, these are some of the key areas to consider when assessing a potential acquisition.
I'm located in Wisconsin - should I work with a real estate agent or a business broker?
In the State of Wisconsin a Real Estate Sales License is required to broker the purchase of businesses unless the buyer is engaging directly with a seller.It is also legal for a realtor to represent a buyer in this type of transaction, however, we recommend working with a broker/agent who has experience with business operations, financials, sales and marketing, and other areas that benefit from understanding business on an intricate level.
How do I assess the strength of a business?
There are many indicators and metrics associated with assessing the strength of a business. Some of these include: (1) Gross Revenue (2) Net Operating Income (3) Cash Flow (4) Market Share (5) Revenue Growth (6) Competition (7) Industry Segment Outlook This is not an exhaustive list, but are important indicators to weigh during the acquisition process.
Where do I find businesses to buy?
There are many online resources to located businesses listed for sale: Google, LoopNet, and local online directories. We can help you expand your search by tapping into the Multiple Listing Service (MLS), gated online brokerage listings, and assist with locating off-market opportunities using advanced Data Anaytics and Search capabilities.