This manual is specifically written for the individual who is contemplating the acquisition of, or investment in, a business either independently or with another individual or group of individuals.
It should be noted that the acquisition of a publicly traded company requires that both the seller and buyer follow very specific rules and regulations imposed by the SEC in the U.S. and other similar regulatory bodies in other countries. The use of qualified legal council (securities lawyers) throughout all phases of the acquisition, to ensure that you follow all the rules and regulations, is almost mandatory.
If you are acquiring a division or business unit of a publicly traded company that company has the sole onus of filing any and all documentation required by regulatory bodies pertaining to the divestiture.
What this manual will not do for you!
- It will not make you a millionaire in 30 days or less.
- It will not alleviate the need to have proper legal representation.
- It will not alleviate the need for you to work hard.
- It will not guarantee you success.
What this manual will do for you!
- It will assist you in acquiring a business that suits you, your family and your lifestyles.
- It will explain the due diligence process and make you aware of methods used by unscrupulous sellers to make their businesses look far better than they actually are.
- It will assist you in making a rational evaluation of the business that you are considering acquiring.
- It will assist you in making an offer for the business at the lowest possible price under the best possible terms.
- It will help you to identify a business that you cannot truly afford to acquire.
- It will make you think and ask questions before you sign on the dotted line.
It is impossible to create one set of guidelines for the acquisition of each and every business type. There are substantial differences in the acquisition guidelines for a local retail men’s apparel store with three employees and a manufacturer of electronic equipment with 175 employees and a global market or a business that is based exclusively on ecommerce. Hence, many of the statements, comments, ideas and suggestions that I make and discuss may be totally irrelevant to the specific business that you are considering acquiring.
I would however recommend that rather than throwing the manual in the trash or using it to prop up a short leg on a table that when you come to areas within the manual that are not relevant to the business acquisition that you are considering just skim over them and continue on to the relevant subjects.
It should also be noted that I intentionally repeated some areas because the information is important and valid under more than one heading and I know that many individuals will not read the manual cover to cover but will read specific sections and search out specific information. I felt that it was important that certain pieces of information were not inadvertently bypassed. For those who read the manual from cover to cover, I thank you and I apologize if reading the same information under a different heading has a frustrating or discomforting effect.
Because the manual concentrates so heavily on the negatives and pitfalls of buying and owning your own business you may get the feeling that I am completely against anyone acquiring and owning a business. This is absolutely not the case. I am a huge supporter of business especially small businesses as they are the backbone of the North American economy. The intent of this manual is to do nothing more than to make you aware of what acquiring and owning a business will mean to you and your family and to try to ensure that the you are fully aware of what you are buying before you buy it, not after! After all, deciding to own your own business is probably one of the most important decisions that you will make throughout your entire life.
If after reading this manual, you do acquire a business, it is my hope that you will never have to say, “If I had only known!”
To those of you who do buy a business I welcome you to the brotherhood of entrepreneurs and wish you tremendous success in your endeavors.