Dr. John Psarouthakis, Executive Editor, www.BusinessThinker.com.
Founder and former CEO, JP Industries, Inc, a Fortune 500 industrial corporation. Adjunct professor, Strategy and Acquisitions, Ross School of Management, University of Michigan
This is the first of a series of short articles that I will be posting regarding Acquisition of a business.
Buying a company is by far one of the most complex business 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. And 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 he or she won’t be taken seriously. Fair or not, age provides a rough yardstick by which many prospective buyers are initially measured by the broker and banking community. 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.