New Brunswick's Business Transition Specialist - Since 1998

For Buyers

Buyer Preparation

Individual buyers as well as many corporate buyers frequently find the process of searching for a business acquisition to be a frustrating and ultimately disappointing experience.

In order for prospective buyers to be taken seriously by people who wish to sell their business and by the people who represent those sellers, individual buyers have some work to do. At a minimum the buyers should:

Consider what role they expect to play in the operation of the business. Do they want to be an investor, management only, work actively in the business on a day-to-day basis?

Do some preliminary research and choose one or two industries that are of particular interest.

Analyse their skill set, education and work experience. Would some formal training be required before acquiring a business? Should the present owner be retained for a lengthy period for training purposes? Would key employees have to remain with the business?

Realistically understand their financial needs and set goals and expectations. What is their comfort level concerning how much of their own money they are willing and able to invest in the purchase of a business.

How much income do they need (not want) to take from the business during the first few years of ownership?

Keep spouses fully informed and ensure that they support the goal of buying a business.

Consider location. Are there family ties, spouse’s employment, or other factors that limit the area in which businesses must be located in order to be of interest?

Set a realistic time frame for an acquisition to take place. This will vary according to personal circumstances, but set a goal and stick to it.

With the proper preparation buyers can move forward with confidence and with the full expectation that the search process will ultimately be successful.

Buyer Representation

In this process the Buyer retains CBI Business Transitions (“CBI”) to identify and present opportunities to acquire businesses meeting criteria defined by the Buyer, and assist the Buyer in pursuing such opportunities.

The CBI Buyer Representation and Search process:

CBI will develop an agreed-upon acquisition plan, conduct research to develop a database of acquisition candidates and will make initial contact with the database.

It will contact selected acquisition candidates and provide assistance to the Buyer in market evaluations, the establishment of proposed acquisition pricing and terms, as well as with actual negotiations and the preparation of a letter of intent.

CBI will then assist the Buyer’s other professional advisors with the due diligence process to bring about a successful closing.