Buy a Business

Buyer considerations

• When looking for a business to buy, it is best to focus on industries that you feel comfortable with and perhaps have experience in.
• Where the business is located is an important consideration. If it is too far away to make regular visits, then you must rely on local management.
• In advance of buying, meet with lenders to determine what kind of business support they can offer you. Different businesses will attract different types of lenders. Their willingness to offer good terms will vary.
• You need to decide if you are going to be an owner/manager or investor. If you are an investor, the business will require a general manager.
• An investor buyer may wish to buy a majority of a business, keeping an in-house manager as a minority shareholder partner who manages the business.
• If you currently own a business, will a new acquisition offer synergies with the current business? Also, do you have the time to learn a new business without harming your current one?
• As a buyer, you will have to look at many businesses before you find the best fit.
• You should have an adviser assist you with a purchase.

How the Summit Group can assist a buyer

• The Summit Group has a broad network of lenders and investors from which they can bring the optimal lender into the deal.
• The Summit Group can analyze a business’ cash flows to help you determine the optimal debt structure of a purchase.
• On an anonymous basis, the Summit Group can approach a seller or prospective seller to determine their level of interest in selling their business.
• The Summit Group can estimate the value of a business to assist you in determining a fair price and purchase terms.
• The Summit Group can assist in performing due diligence and negotiating the transaction.