Buying Into An Existing Business -
Before looking at listings, decide what kind of "buy-in" you are doing:
Are there documented processes? Who owns the intellectual property?
You are an outside manager who buys into the company and joins the existing management team. 2. The Search & Sourcing buying into an existing business
Businesses are usually valued as a multiple of or EBITDA .
Check for upcoming lease expirations, new competitors, or changing regulations. 4. Due Diligence (The Deep Dive) Before looking at listings, decide what kind of
Buying into an existing business is a high-stakes shortcut to entrepreneurship. You skip the "startup struggle," but you inherit the previous owner's history—both good and bad. 1. Identify Your Entry Point
Does one customer represent more than 20% of the revenue? 5. Valuation and Financing or changing regulations.
(Retirement and health are good; "the industry is dying" or "lawsuit pending" are red flags.)
