Buying a company is by far one of the most complex purchase activities most individuals ever undertake. A far broader array of skills and knowledge is required than for any other purchase, certainly much more so than purchasing a house or an automobile.
Although an infrastructure exists, the prospective buyer is expected to be familiar with many of the rules of the game before undertaking such a venture or they won’t be taken seriously. Fair or not, age provides a rough yardstick by which many prospective buyers are initially measured by. Younger buyers must overcome issues of credibility. Senior buyers must deal with the concern that they lack the energy and/or are too close to retirement to take the project seriously and must overcome their own hesitancy to start over with a new company.
In spite of these obstacles, adults in a very wide range of ages successfully purchase and run their own companies. Strong drive or desire, among all the personal characteristics is perhaps the single, most important ingredient in assuring their success.
This article is an overview of step one that is explained in further detail in “How to Acquire the Right Business” by John Psarouthakis and Lorraine Uhlaner; Published by Xlibris, 2009. This book covers the 15 key steps involved in the complex and demanding process of buying the right business. It includes the search, selection, evaluation, pricing, negotiation, closing and managing the start of an acquired business. Buy this book.