30 Jul Purchasing a Business Video Series
Do’s and Don’ts of Buying a Business
Are you an owner who is considering the sale of your business? Or a prospective buyer? Both need to start with understanding the do’s and don’ts of selling or buying a business, per Tom Arndt, Oak Capital Principal, per https://www.youtube.com/watch?v=_1GTb5NWhbA&feature=youtu.be , one of the videos in a series by advising buyers and sellers by Oak Capital Advisors.
Both the buying and selling process start with three basic questions:
Why is the business for sale/why do I want to buy a business?What is the company worth/what can I afford to spend for a business?What support do I need to execute a timely successful transaction?
Buying or selling a business is a challenging process with multiple steps demanding experienced leadership, integrity, confidentiality, and customer service. Oak Capital Advisors will help answer your questions, lead the process, develop a strong support team, provide critical insight, and ultimately help create value.
Managing the Due Diligence Process
One key feature of Oak Capital Advisors as a business broker is to successfully manage the due diligence process while the owner (the seller) focuses on operating and hopefully growing the business during the transition. As Tom Arndt, Oak Capital Advisors Principal explains in https://www.youtube.com/watch?v=cwr7B288lDA&feature=youtu.be, a second video in Oak Capital’s series regarding the purchasing of a business, a potential buyer will want to analyze both the operations and financial results of the business for at least the last three years. Oak Capital Advisors will use its expertise to calculate and verify the seller’s discretionary cash flow and assist with answering basic questions regarding the business. How will the current staff react to the transition? And customers? Are sales dependent upon existing personal relationships? Is there a lease or commercial property considerations? There are many questions that need to be addressed during due diligence that the business broker, such as Oak Capital Advisors, will help to resolve on a timely, efficient basis.