Key Problem for the First Time Buyer - No Clue

It is often said that the first step in learning is realizing what you don’t know. The typical first-time business buyer usually has little or no idea of what they are doing and the situation is not much better for those who have looked at a few businesses and made an offer or two. As such, few business buyers have actually achieved even the first step in learning, “realizing what they don’t know,” before they begin the process of purchasing one. Buying a business is a complicated process, and one in which it’s relatively easy to waste great deal of time and lose substantial sums of money, so it’s essential that a buyer choose a knowledgeable guide to educate them about the business buying process. It is only after learning about the basics of buying a business that a buyer can begin to formulate the appropriate questions and obtain answers that will allow them to mitigate risk and facilitate an optimal outcome for him / herself in making the acquisition.

The lack of relevant knowledge problem is magnified if the prospective buyer is dealing with an owner, who is selling a business without representation of an intermediary. In that situation, it is typically a case of “the blind leading the blind.” The first time buyer has insufficient knowledge about how to buy a business and the “for sale by owner (FSBO)” seller typically has little or no knowledge about how to sell a business. 

A knowledgeable and experienced guide is invaluable in reducing risk and achieving an optimal outcome for a buyer. At Business Acquisitions Advisors, we have over 32 years of experience in the sale, acquisition and valuation of closely-held businesses and we look forward to sharing that knowledge for the benefit of our clients.