Finding the right business to buy - Ask a professional | BDC.ca

I want to buy a business and am thinking of looking for one where the owner is retiring. How do I find the right one? 

Buying a business outright, or buying into a business as a partner or investor, is a legitimate method of entrepreneurship for those who want to operate a business but do not want to undertake the difficult process of launching one from scratch. A variation of this involves franchising, in which a turnkey business operation is formed by a franchiser and then sold to various small business owners. 

However, there are dangers in buying or buying into a business. It could be failing. It may involve a partnership situation, and the partners may have differing visions of the business's future or not get along. The business may not meet your long-term needs or be what was promised. 

To find a business for sale, you should first look within an industry you know. On the other hand, some distance from the day-to-day skill sets used in a specific business may allow you to take a more business-like approach and avoid the "self-employment" trap.
Once you have decided where to look, you can:

• Approach your contacts within the industry. Tell your network of advisors and business associates what you are looking for, and ask for suggestions.

• Approach business owners. You may find that a business appeals to you and you would like to operate it. If so, why not approach the owner and offer to buy it? The owner may not have been planning to sell, but an offer is a great motivator.

• Approach industry associations. If you know the industry in which you want to operate, consult associations concerned with that kind of business. Attend trade shows and conventions, and chat with various vendors for some business intelligence. You may discover they know someone who is interested in selling.

• Join business networking groups. Local Chambers of Commerce, or in bigger cities Boards of Trade, are usually nerve centres of business and therefore good places to find out if a business in your chosen industry and region is for sale. Similarly, other business networking groups usually can supply intelligence on other businesses.

Finally, when considering buying a business, also consider the needs of the seller so that you can strike a deal in which everyone is happy. Generally, sellers are concerned about the business's valuation, the emotions involved in relinquishing what is often a life's work, taxes, potential disruption of the operation, and post-sale risks such as failure of the business to provide a retirement income.

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For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.