Why a buyer might not want to buy

Not all buyers are looking to buy a business.

Some buyers are looking for reasons *not* to buy.

Usually, that’s PE, or Private Equity. Often, they’re not looking for reasons to buy a business, they’re looking for all the reasons not to.

They don’t want to make a mistake, and they don’t want to buy a business with a bunch of red flags. 

They’re looking for things like whether the owner is the primary salesperson, whether there are solid systems in place to manage the company in the owner’s absence, and even whether you have a good marketing process.

That means, well ahead of time, it’s important to make sure your processes, your financials, your systems are up and running, and running smoothly.

So that when the buyer comes knocking, they like what they see.

Lots of Private Equity buyers might also want you to stay on for a year or two, so you’ll want to have a strategy for negotiating that with your buyer so you’re not signing up for more than you want or more than it’s worth to you.

We’re not business consultants, or profitability consultants. We’re financial and investment advisors. That allows us to be less transactional, and more long-term. We can establish goals and objectives that work for your timelines, and then help you work toward them.

A lot of people think that financial advisors just take money and invest it. But investing is about *growth*, which means managing risk and making sure systems are in place to grow sustainably. And that takes coordination and teamwork.

At HFM, we can find and coordinate all the other players on your team of advisors to make sure you have all these elements in place, even if we don’t handle some of those pieces ourselves.

We often see business owners missing that piece — the coordination.  No one is talking to each other, and they’re all working in their own silos.

Individually, they might be doing a great job, but the power of everyone talking together on behalf of you, the business owner, creates compounding efficiencies that you don’t see until you look backward.

And you think, “That was easier than I thought it would be.”

Because everyone was working together, on your behalf, and on your timetable.

When a PE buyer starts digging into everything, you want them to like what they find. So we want to dig first, and make sure your business is running with smooth processes, accurate financials, and systems that can last without you at the helm every day.

Remember: not all buyers are looking to buy. Some are looking for reasons *not* to.

We can help you understand those reasons, and how to take care of them ahead of time.

Let’s chat.

-Michael

Book a JobWalk with me and we can start the conversation.

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HFM Investment Advisors, LLC is a registered investment adviser. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. All investments involve risk and are not guaranteed. Information expressed does not take into account your specific situation or objectives and is not intended as a recommendation appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment advisor to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.