Buying a Business
Odin will lead the process of buying a business at the best possible price and conditions, assisting you in making a life-changing decision to purchase a business. Purchasing a business involves taking part in someone else’s selling process. This means we are not in control of how the process unfolds, but we can greatly impact the success with strong navigation tools.
Buyers may be motivated by many reasons to purchase a business:
- Securing a livelihood for or family
- Utilizing entrepreneurial skillsets
- Time and energy to build a larger company or add to existing company
- Having sold a business or lost a job
- Desire to be make money and hit the ground running
- Work-life balance goals
Odin is selective in its buyer representations. We look at:
- Experience and skills
- Reputation and professionalism
- Urgency to buy
- Access to capital
- Realistic value expectations
There is no such thing as a perfect business to buy. As a buyer you have to be open to accept that the current owner or seller has done things his or her way and made his or her imprint on the business.
Building good communications and rapport is critical to starting any business purchase process on the right foot, and it will facilitate the exchange of actionable information.
Odin will be on your side during the entire process, advising you on how and what information to request as part of due diligence, and guiding you on offer terms.
Maintaining a disciplined, respectful and professional approach is key during any buying process. We try to be an unemotional sounding board and provide advice to help you stand out as the best buyer amongst competition by presenting your ability to operate, financials and business acumen to the seller and selling broker while simultaneously paying the correct price as it relates to value.
There is a fine balance between paying a premium for a quality assets to get into a business and earn a living to overpaying for a business and having to deal with issues relating to that later.
Odin earns a fee by upfront retainer for buy-side representations. This fee may be offset by a commission earned in the closing of a sale transaction.
We understand the importance of making the right decision when acquiring a business and that it may represent years of hard work and savings to make the purchase. After an initial meeting with Odin Capital to discuss your goals, our capabilities and assess whether there is a mutual fit, you can expect us to guide you through your business purchase following our proven methodology.
Odin's Business Purchase Methodology
Step 1 - Evaluation of Goals
Step 2 - Education on Process
Step 2 - Education on Process
Understanding your desires, skills, limitations, capital and timing considerations. This will help us advise you on what category and size of business you can realistically pursue.
Once we have had an open exchange of key information we can begin to formulate the process and search parameters.
Step 2 - Education on Process
Step 2 - Education on Process
Step 2 - Education on Process
Most people do not have experience in buying or selling a business. Understanding the process is critical to manage expectations and can have a big impact on success. Odin will educate you on how to engage optimally with sellers, agents, lenders, accountants and lawyers, when applicable.
Many buyers make classic errors early on and we work with you to coach you as to what and how to communicate to maximize your chances of becoming a successful buyer.
Step 3 - The Search
Step 2 - Education on Process
Step 3 - The Search
Odin will evaluate businesses actively marketing themselves for sale within in our network. We will help guide you through steps such as non-disclosure agreements and due diligence, obtain and review detailed financial information and schedule and prepare meetings with selling owners. It is critical that you are honest with yourself in regards to what business you can find and purchase, and we will work with you in an iterative way to refine the process to improve chances of getting to the closing table.
Step 4 - The Offer
Step 6 - Closing & Future
Step 3 - The Search
Making an offer for a desirable asset should be done professionally with the view of becoming the successful bidder. How an offer is presented, the rapport achieved with seller, the quality of communications with the seller and its agent and making sure that an offer is solid and that financing is secured are all important if you want to be chosen amongst a sea of competitive buyers.
Odin will ensure you put forward key considerations in any offer while protecting any funds you may need to put down as a deposit while you perform your due diligence.
Step 5 - Due Diligence
Step 6 - Closing & Future
Step 6 - Closing & Future
Due diligence is about getting your hands dirty. In the due diligence period agreed you will need to request and review all information necessary to understand the business, and do your best to verify that all representations made by the seller are accurate. You will review financials, equipment, inventory, legal documents, customers, suppliers, lease arrangements, the real estate that may be included in the transactions, to mention a few due diligence agenda items.
You may discover some wrinkles, but hopefully remain interested in, and committed to purchase, the business. Finding weaknesses may alter the value you are prepared to pay and may represent opportunities in future value creation, and Odin can guide you through this.
Step 6 - Closing & Future
Step 6 - Closing & Future
Step 6 - Closing & Future
At this point you have decided that you are committed to purchasing the business, and Odin will advise you through how and when you may need to contact an attorney in order to prepare documentation in preparation for a closing. We will advise you on transferring key customer and vendor relationships and contracts, finalizing financing, checking and making financial adjustments for inventory and working capital.
Ensuring a smooth transition is critical. We will provide guidance during the negotiation phase to ensure the seller remains available for a transitional period which can critically impact your future success.
Odin can remain a partner assisting you with capital needs and strategic advice as you grow.