Are you a private buyer looking for your first business acquisition?

How to find the right business

The biggest challenge private buyers face is gaining credibility and traction with sellers.

If you are relying on funders to assist with the purchase of the business, they will need a reasonable amount of capital to be invested by you, proving that you can afford the transaction

Some owners don't necessarily want to sell to PE or a trade buyer for the highest price, they would rather see continuity of trade at the existing site, full staff retention and "business as usual" once the deal has completed. This is what you, as a private buyer, can offer. Similarly, a company where the seller is considering retirement and has a paternalistic view may wish to leave some form of legacy for their past efforts. The process of finding the right business can take many months to achieve. You may need to view several businesses before finding the right one and have an offer accepted by the sellers. To make this easier you need to research carefully what you can afford, and what sectors you can be successful in.

Preparation

To find the right business it can help to register with a portal such as Valius. You will have to sign an NDA to obtain further information about businesses. Portals, sellers and brokers will not supply this information unless you submit details about yourself including your experience and funding. Have a CV and your financials ready.

What happens once my offer is accepted?

Auxilium works with you, and liaises with the seller, to ensure a smooth transaction and completion. You may need support with funding, due diligence, tax, and legals along the way.  

How long does it take to purchase a business?

We would normally expect this process to take 6-12 months from offer to completion.