I was having lunch with a client the other week and he mentioned that he wanted to buy a business within the next 5 years. I found this to be an intriguing thought because it was suggested to me by another client earlier in the year to buy a business for one of my kids who is looking for direction.
The amusing part in all of this is that a number of CPA small practitioners consider their business as owning a job and not a business. I guess this was me a decade or so back, when I worked out of the house and had fewer clients.
So I had to ask was the client looking to buy a job or buy a business. I was surprised by how much thought he had actually put into this idea. He is looking for something located in the 294 corridor. He wants there to be 3-5 sales people with gross revenue in the $3.5 to $5mm range. With about 20 – 30 employees.
When asked about the industry, he was open, but finding the right fit will probably take 5 years. But with the Baby Boomers looking to retire and family not interested in taking over there is a chance that he can and will find what he is looking for.
I mentioned these conversations to an M&A attorney and he recommended that I forward mbbi.org to the client. This is a website listing businesses for sale.
Whether starting a business, buying a business or just buying an income, make sure you have all of the information needed to make a good decision. Make sure you involve your CPA, attorney and financial advisor. It also would help to have a banker and insurance guy lined up as well. Call for assistance.