For AIM, the term acquisition encompasses a lot more than simply buying or selling a business. As a mentoring company, our position in the acquisition process is not usually that of a traditional business broker. In many, if not most, transactions, the broker, de facto, works for the seller. The broker only gets paid when a successful sale is made. Therefore, although they may be nominally working on your behalf, in reality, they are working to broker the sale and may not always have your best interests in view.
To understand the difference between using a traditional business broker or an AIM Group mentor or business coach, we need to look at the different phases of the business acquisition process.
What exactly are you buying?
The business broker will not care whether the business that you are trying to buy is a good entrepreneurial fit or not. The AIM Group, on the other hand, will work with you to determine exactly what is the best type and size of enterprise that best matches your needs, abilities and resources. What’s the point of buying a business where you do not have the best chances of success. These are evaluations that most business owners or entrepreneurs are not able to objectively make for themselves. The AIM mentor or business coach will work alongside you every step of the way and will always remain objective, since they have no bias or hidden agenda.
Why are you buying it?
We are all different and have different skills, abilities and motivations. Over the last 15 years, AIM has helped many would-be business owners determine whether they are in the best situation to accomplish a given task or goal. Buying a business, next to getting married or buying your first home, is one of the most important steps that you will likely make in your life. An AIM mentor or business coach will make sure that you know all the pros and cons of any potential acquisition and whether you are adequately equipped to succeed.
Due Diligence
The due diligence phase of the purchase process is probably the most critical one. This is where AIM can really make a difference. Although you will generally only be working with a single executive mentor, they will have access to our entire network of professionals, so whether you are buying a hamburger joint or widget manufacturing plant, we have team members with expertise in any specific area.
Negotiating the price
Many individuals either do not like or are not very skilled at the art of negotiating. When buying or acquiring a business, however, good negotiation skills can save you thousands of dollars. Here too, AIM can make a significant difference to your bottom line. Better still than the years of experience that our mentors have under their belts is the fact that they negotiate from a position of strength. Although they are on your side, their only interest is in obtaining the best deal for you.
Closing the deal or walking away!
Knowing exactly when to close the deal or walk away can be a very difficult decision for a prospective buyer or seller. Each side will usually have a great deal of time, energy and resources invested in bringing a deal to this point. Once again, it is a good idea to have an AIM Mentor at your side because they will always tell you the truth rather than what they think you might want to hear. Even if you have devoted time effort and even money into the deal, it could still be the wrong decision to accept an offer that is less than optimum.
How The AIM Group can help during the business acquisition process
Don’t wait until the day that you are about to actually buy the business before enlisting AIM’s assistance. We can help with every phase of the acquisition process: Identify a target business or enterprise, determining a good fit, due diligence, negotiating and financing or funding the purchase.
If you are considering acquiring, buying, purchasing or starting a business, use our contact form to arrange a no-cost, no-obligation, introductory session with one of our mentors.
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