- How one Acquisition Entrepreneur (AE) used Acquira’s training and processes to buy a business
- How Acquira’s preferred vendors provided support as the AE navigated the negotiation process
- How “putting in the work” improves your chances of buying a business
The business acquisition journey is long. It requires patience, hard work, and attention to detail in order to find a truly great business. There aren’t many Acquisition Entrepreneurs that Acquira has worked with over the years that exemplify this better than Tania Rempert.
Through Acquira’s training, Tania learned how to appraise companies, source a business, and navigate all of the difficulties of the process on her way to business ownership. As of the publishing of this article, she has now owned her new company for approximately six months.
In this video, Tania discusses her acquisition experience from beginning to end and what she learned from working with Acquira.
The Road To Acquira
Before working with Acquira, Tania was the founder and president of a nationwide nonprofit that helped other nonprofits identify and measure, define, and improve outcomes. “I was really in the business of helping nonprofits better meet their mission,” she explains. “So what that meant was often looking at all of their content services, as well as their back-office work and trying to make it all aligned, more efficient, and more targeted.”
After years with the organization, Tania retired just as the pandemic hit. That left her with a lot of time on her hands to decide what she wanted to do with her life. That’s when she found Acquira.
Everything that I was reading in the Acquira paraphernalia made me say, ‘yes, yes, yes!
“Finding an organization that was already doing what I had in the back of my head was really good timing for me,” she shared. “Everything that I was reading in the Acquira paraphernalia made me say, ‘yes, yes, yes!’ So really it was a synergy of timing.”
From there, Tania signed up and threw herself into Acquira’s training. “I read every single book, I did every single spreadsheet. And I was doing it because I saw how it was all applicable,” she said.
Tania was able to connect the training to her past business experience, which was actually able to show her why her previous organization had been so successful. Then she took what she learned and applied it to her business search. “Going through all the classes was very affirming that all the things that I had done in the past were correct and also, all of the steps to go forward were also laid out in black and white.”
“I might not be the smartest business person in the world but I'm a very good student,” she laughed.
Buying A Business: The Search
Tania took the knowledge she’d gained and began her business search, signing up for online services like BizBuySell. For each platform, she entered her specifications and parameters and then went through every listing that came her way.
“I put down the parameter of price a little bit higher than I can actually afford because I figured that they were shooting high so I'd shoot low,” she said. “I didn't want to knock any out, I still wanted to review them.”
She used Acquira’s calculators to determine how much money she had, how much she wanted to make, and how much she could afford. She used that calculation to look at every business that came through the automated emails she was receiving from brokerage sites. If the numbers all aligned, she would ask to see the company’s financial information for the last three years. If the numbers didn’t align, she was quick to disqualify the deal – one of the processes we provide at Acquira.
“If the three numbers didn't work, then [that deal] went away. If I asked for the three years of financials and those didn't work, then it went away. If I did the research on the company, and it didn't work for some reason, then it went away,” she shared.
Throughout the process, Tania made use of Acquira’s list of preferred vendors, having lawyers and accountants look over the documents that she didn’t understand.
“I was very pleased that I did not have to find a CPA to do the cash proof of the business… I felt so confident that Acquira had already vetted those folks for me and I knew that they had used these people on several different projects,” she said. “I knew that they were trustworthy, and that they weren't taking advantage of me, and that I could believe what they were saying.”
It wasn’t completely smooth sailing for Tania though. As we said, the business acquisition journey is long. New issues will often pop up unexpectedly and if you don’t deal with them promptly, they can set the process back months.
For example, Tania made use of an Acquira-vetted lawyer to handle her side of the deal. That lawyer had extensive acquisition experience. But the lawyer for the seller was a general business attorney who, in Tania’s estimation, was not completely forthcoming with the seller. In fact, this is a lesson that can be extended to all AEs: ask the business broker upfront if the Seller has a legal counselor and whether they are professional.
“I just feel like he didn't hold the seller’s hand very much,” she said. “So the seller kept being surprised by things along the way.”
This issue became especially apparent with the APA (Asset Purchase Agreement). Under the terms of the Letter of Intent (LOI) that Tania originally presented, she set out that she would be using SBA loans to pay for the business. As part of that loan agreement, the seller had to hold 10% of the loan himself until the SBA loan is repaid.
“But when it came time to sign the APA he said, ‘Oh, I didn't know. If I had known that, I never would have signed it,’” explained Tania. That led them to create a second agreement that, after two years, Tania would ask the bank if she could pay the seller back early.
“It just seemed like something that like a lawyer might have reviewed with him, but also he should have just read it before signing it.”
Tania closed on the business in September. Since then, she has been working to grow the company and improve the lives of its employees. There were bumps along the road and unexpected detours but with Acquira’s help, Tania was able to complete the business acquisition journey. Now, the real work starts.
If you would like to learn how Acquira can with your business buying journey, schedule a call with us today. Someone will be in touch within 24 hours.
- Buying a business takes hard work but it is not rocket science – it can be done by an average entrepreneur with some business acumen.
- By applying the skills learned through Acquira’s training and processes, Tania was able to disqualify bad deals quickly.
- By using Acquira’s preferred vendors, Tania was able to avoid legal roadblocks.
- By using Acquira's coaching, she was able to navigate successfully to complete her acquisition.
Acquira is a business acquisition in a box service. We help entrepreneurs buy businesses and we invest in them and their chosen businesses. We are here to help ensure that each business we work with is posed to make the biggest positive impact possible for its owners, employees, and community.