Buying a business
Ad Astra Equity
Buying a business can be a life changing event for many! Owning a business gives you the freedom to control your destiny. Work with those who you want to work with. Create a balanced lifestyle between personal and business. Reap the rewards of the risk. Challenge yourself to new heights. Etc.
However, because Ad Astra Equity is sell-side representation only, we partner up with buy-side firms & tools to connect you with.
Getting started with buying a business can consist of understanding your geographical focus, service/products, size, role within the business, types of customers, technologies, personnel, etc. Once these items are more defined, the buy-side team would begin the candidate search.
Once you have an idea of the type of candidate you want to search for, buy-side reps will begin to tap into their database, industry associations, networks, and other methods to find your candidate. Providing a list of candidates to your buy-side rep will not only have a clear defined target, but may also give you your time back while the rep attempts to make contact.
Using a third-party for the initial contact with these targets can be critical. As most businesses and entrepreneurs are aware, target companies frequently receive calls from investment bankers, business brokers and competitors inquiring about their availability for sale. These outreaches usually lead nowhere and make targets skeptical of entertaining a sale process. Having an experienced advisor help with this process should help sellers feel more comfortable when these initial stages begin.
The buy-side reps job is to then gather pertinent information on target companies so they can evaluate those opportunities against your acquisition profile.
Following this initial screening, the rep will present suitable candidates to you and your management team for further evaluation and internal discussion. If the target is approved, the rep will request additional diligence information from the resulting target list to further refine the viable candidates.
If you’re looking to buy a business, reach out to us. We will do what we can to help you find the right team.
Many times when a buyer begins the search, they may not be seeing all the deals, as many deals are not listed for sale, but require a warm intro. Among that, they need to make sure they have the correct targets, correct process, correct documents, funding, and the right team in place to handle an acquisition.