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Three Mistakes Buyers Should Avoid |
Moving ahead too quickly with the purchase
Many times a buyer will be highly motivated and emotionally driven to make an acquisition. The Independence Group insures that key stages of the acquisition process are not overlooked. The process of due diligence, negotiation, value analysis and closing are all very important. Our team will take the emotion from the transaction and add the expertise necessary for the buyer to make a good business decision.
Believing seller responses without investigation
The seller is motivated to sell. Accordingly his/her goal is to provide the most positive outlook on the sale of the business. The buyer must look beyond this sometimes unrealistically positive outlook. The Independence Group can act as the independent advisor to assess the advisability of making the acquisition with an unbiased, non-emotional view.
Not understanding the total financial commitment
Many businesses are acquired, but quickly encounter financial difficulties. The Independence Group assists in assessing the total financial commitment that a buyer is entering into. This may include, but not be limited to:
- Down payment
- Working capital requirements
- Capital expense requirements
- Personal guarantee
- Collateral on personal assets
- Buyer financial resources to cover personal needs until
business can provide adequate cash flow
Each area will be evaluated by The Independence Group, providing advice to the buyer throughout the transaction.
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