One of the consequences of buying a job by buying a business is that when it is time to sell, there may be nothing viable to sell.
Because you forgot to BUILD a business by putting in SYSTEMS, Relationships and Stewardship.
In Buying a Business, 10 Critical Factors Your Lawyer and Accountant Don’t Know there are several questions to help you protect your investment.
Key Areas to Examine?
- What the business is really doing and how does it do it?
- Who does what in the business and the behaviour of people including the clients and suppliers and what will be the effect of the sale on the on-going behaviour of all the people dealing with or in the business?
- What is happening in the marketplace?
- What are the legislative changes happening?
Failure: Choice or Option?
Donald Trump has failed in starting and buying businesses. In Donald Trump’s 13 Biggest Business Failures the list shows both purchases and new product introductions where even the “boss” failed to do the right amount of due diligence,
Globoforce talks about culture killing mergers in the 6 big merger mistakes. Remember that large successful companies get the process wrong too.
Fortune magazine revisited the AOL-Time Warner Merger 15 years later. A couple of the comments in this article suggest that more due diligence and asking better questions about the market and the culture might have led to different decisions and there would not have been the financial losses that exist today.
But can you afford to get it wrong when you buy or sell a business?
If the answer is no then the questions and information you need is more that what your accountant, lawyer or business broker provides.
- Find out the answers to the questions above.
- Understand your reasons for buying or selling
- Look at the culture of your business, even if it is only you.
And most importantly remember that what you are ultimately selling is the systems and processes that make the business work. Without good systems and methods, repeatability and growth is unlikely to be an option.
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Contact us if you would like to discuss your business purchase or sale or even to check you systems are working for your growth.