A lot of people think that when you own a company, it needs to be built from scratch - pulled by the bootstraps from the ground floor up to the executive suite.
But the reality is that many business owners end up acquiring a company after it’s already been operating for some time. This comes with its own pros and cons, but buying an existing company is a great way to step into an ownership position right away.
You may also be looking to expand a business you already own, or acquire a company that can complement your offerings in a unique way. Whatever the reason, our business buying guide should help you on your journey.
The entrepreneurial urge is a powerful one. Entire tomes have been written about people who have started their own businesses and risen to the heights of success.
But the simple fact is that not everyone has the time, dedication, or wherewithal to build a business from the ground up. Fortunately, there's another way.
One of the more common ways to scratch the entrepreneurial itch is to acquire a company that already exists. There are actually a number of advantages to buying an existing business.
If you’ve spent even half an hour looking for businesses to acquire, you know that their prices are usually determined as a multiple of EBITDA.
EBITDA (earnings before interest, taxes, depreciation, and amortization) is a common metric used to compare profitability between companies and industries but it does very little to explain how much money you, as the owner, will have in your pocket at the end of the month.
In this article we discuss how to figure out how much you'll have in your pocket at the end of each month as a new business owner.
There’s no such thing as a perfect company when it comes to acquisitions.
Whether you’re looking to expand your operations by buying a similar business to your own, or you’re looking to diversify your core offering, it’s almost guaranteed that whatever you find won’t be a perfect fit.
When assessing a business beyond just its financials, it helps to break them into different archetypes. It’s a way to create a scorecard for each company and determine what’s missing from their operations so that we may make improvements.
In this article, we explore the different archetypes we use to evaluate deals. These archetypes help us analyze businesses to determine whether they're a good deal or whether they should be disqualified outright.
The first few days after acquiring a business can be daunting. There’s so much to do and so much to learn, it’s difficult to wrap your head around.
When you first take the helm of a new company, the first week is critical. Done right, it will set you up for roaring success, but missteps can be costly.
Quinn Huffman recently took the reins of Plumb-Tech, a Missoula, Montana-based plumbing and heating company. While challenges certainly existed, he knew that if the business was to succeed, he would need to get to work right away.
We sat down with Quinn to discuss his first week on the job and his process. He shared his successes, failures, and some advice.