I've been searching as an individual investor (after reading your book) for a company that I can put 1/3 down, finance 2/3, and still get paid a salary. When I do find these opportunities, invariably an Investor Group or established company is competing with me and has much more leverage to make the deal happen. Any suggestion as to how I can create a win-win in this situation and not lose out?
Thank you for your questions and I appreciate you purchasing my course. The good part is that you have located a number of opportunities that meet your investment criteria. Losing out to a bigger group is always a possibility but there is a way to avert this somewhat.
Without being reckless, the best ammunition you have on your side is timing. Often, large investors/groups have a very specific process they must follow before producing an offer on a business. Some will be quick, but many will be extremely slow at least in the early stages. In order to compete with these groups you have to move fast but, again, NOT recklessly.
In today's business for sale marketplace, it doesn't matter who is looking at the deal; good businesses sell fast!
As such, when you come across a business of interest, assemble as much information as you can but be prepared to pull the trigger and submit an offer. You can always include language that will provide adequate protection for you so as to not jeopardize any down payments until certain deal contingencies have been satisfied. The idea here is that while the investors are satisfying their internal processes, you can lock up the deal.
This should not be taken as a strategy to submit offers on businesses you cannot afford or are not seriously interested in acquiring. The objective is that once a solid opportunity comes onto your radar screen, move quickly to tie it up so you can progress to the next stage of the deal.
|Get more expert advice in Richard Parker's How To Buy A Good Business At A Great Price - the most widely
used reference resource and strategy guide for buying a business.
|Richard Parker is the author of: How To Buy A Good Business At A Great Price, the most widely used reference resource and strategy guide for buying a business. He has purchased ten businesses in his career and has helped thousands of prospective buyers worldwide learn how to buy the right business for sale. He is also founder and President of Diomo Corporation - The Business Buyer Resource Center.|