In spite of popular belief, and in spite of the fact that 1.5 months have passed since I took my first step (first entry) in searching for a small business , I am sincere in my desire to buy a business. Since that time I have completed the book "How to Buy a Business", and a short course on "Buying a Small Business". For that course I explored how to find a distressed company, and what is required to turn it around. If I find a such a company, and feel up to the challenge, I may later on this Blog go into what I found out. For now I will share what's next... my search plan for the month of April.
April Plan
1. Complete self assessment
2. Determine scope for search:
3. Develop purchase criteria / A model of business
4. Create a “Why Me?” statement
5. Make a list of investors I would call for a combined total of $100K
6. Find 20 Businesses that look interesting enough to pursue
7. Perform non-financial & financial/valuation analysis on 20 businesses
8. Share Analysis with Babson Professor, Professor Mulvaney
9. Narrow down the 20 to those that are the best fit
10. Develop a short guide sheet for broker calls
11. Call the brokers for each business of interest
12. Narrow deals down even more
13. Determine best structure for deal – Meet with Prof Mulvaney
14. Talk with 2 different types of bankers
15. Write “Letter of Intent” – hopefully on several deals
16. Negotiate
17. Due Diligence on at least one business
18. First Draft of Purchase Agreement
19. Negotiate
I will do everything in my power to make it through all 19 steps, but realize how difficult it will be to get past step 14. It goes without saying that a "Letter of Intent" will not be written unless I am confident that I have found something that is a good fit, and matches my career aspirations. With the confidence that I have found a high potential opportunity, it will thereafter just be a matter of putting in long hours and putting my education to use. I have found this is never a big deal for things I really want.
