Defining Your Acquisition Criteria
A clear picture of what you want makes your search more focused and your conversations more productive.
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Industry and type of business you are interested in, and any you would rule out
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Location, such as Omaha, Lincoln, or a surrounding community
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Price range that fits your budget and financing
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Your role: will you run it day to day or bring in a manager?
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Size and stage, such as number of employees or revenue range
Preparing for Your Search
Financing readiness. Know how you plan to pay for a purchase before you start making offers. Buyers may use personal funds, bank loans, SBA-backed loans, seller financing, or a combination. Talking with a lender early helps you understand what you may qualify for.
Your advisory team
Most buyers work with an accountant and an attorney during a purchase. They can help review financial information, deal structure, tax questions, and legal documents.
Personal readiness
Business ownership takes time and energy. Think about how a purchase fits your goals, finances, and family.
Evaluating Opportunities
Confidentiality agreement. Sellers protect their business details. Before you receive detailed information on a listing, you will be asked to sign a confidentiality agreement.
Information kit. After signing, you can request a more detailed information kit about the business.
Financials. Look closely at revenue, expenses, and trends over several years. Your accountant can help you understand what the numbers show.
Earnings measures. You may see SDE (seller’s discretionary earnings), often used for owner-operated businesses, or EBITDA, often used for larger companies. Both help estimate earning power, but each needs context.
Listing information is provided by sellers. Always verify details through your own due diligence.
The Buying Process
Every purchase is different, but most follow a similar path. Here is a general overview.
1. Share your goals
Tell us what you are looking for and your general budget.
2. Review opportunities
Browse current listings and sign a confidentiality agreement for those that interest you.
3. Evaluate the business
Review the information kit, ask questions, and, where appropriate, meet the seller.
4. Make an offer
Work with your advisors on price, terms, and financing.
5. Due diligence and closing
Verify the business’s information and finalize the purchase with your attorney, accountant, and lender.