One of the single most important pieces of information you need when buying a business -- any business, big, medium or small -- is the truth about why the owner(s) is selling the business.
Now, one of the most common "reasons" why almost always has to do with the health of the owner. But I'm here to tell you, that is not always the case. In fact, when someone says ill health, nine out of ten times thats not the real reason.
And what you have to do is find out what the real reason is because it could be something thats going to screw you up when you buy that company -- in which case you may not want to buy it.
Another important thing you need to find out as soon as possible is what the price is. Now, there are a lot of cutesy brokers around the country thatll talk to their clients about the fact that if they dont give the buyer a price, the buyer will pay even more money.
However -- and I'm here to tell you this is always the case, after 50 years of buying businesses and dealing with every type of broker and seller you can imagine -- you're going to find that when a broker tells you theres no price on it, or the seller says he doesnt know, you're better off not even going across the street to talk to him.
Why?
Because theyre trying to play a game with you. And if they want to play games, let them play with somebody else. Don't let them waste your time. There are plenty of good businesses out there to buy without having to play any games. Dont invest even a second of your time with people trying to play this game. No matter how sweet the deal may seem on the surface. It'll suck you dry of time, patience and sometimes...even money. |
