Where real estate is all about location, three things are important in an acquisition for a good return on the acquisition: management, management and management!
After all, a business has to be managed. A business cannot be run without management. Not without an entrepreneur who is a good fit for certain phase, which comes in handy. Because what exactly do you have to offer that other potential buyers-such as strategic parties or investors-don't have? Indeed: management!
Profile MBI candidate
As long as you know very well where you fit and can add the most value with your (management) qualities. As an MBI candidate, it is of utmost importance that you:
- Have relevant experience in the market segment of the particular business you want to invest in
- Fit in phase and role required within the company.
If you know very well what you have to offer as an entrepreneur, you can distinguish yourself enormously. The following situations are then ideally suited for you as an MBI person:
#1 Looking for co-entrepreneur
For example, an entrepreneur may be looking for a co-entrepreneur, to work as partners to take the business a lot further. The entrepreneur will then be looking for someone who has certain competencies that are currently lacking within the business. It is also possible that with several shareholders, one of the partners would like to sell his interest.
#2 Point on the horizon
Or the DGA, although looking for succession in the long run, still wants to make a move with his business in the coming years. He sees the potential of his company, but is not getting it done himself. This kind of owner is often interested in a partnership, an entrepreneurial collaboration with a suitable MBI partner. With the ultimate goal of selling all his shares to his co-entrepreneur, or through a joint exit to a third party.
#3 Latent need for succession
Business that is actually ready for succession, but has not yet taken the step to an intermediary and is not actively selling its business. If you as an entrepreneur, with your suitable management qualities, manage to win the DGA's trust, you often remain the only party at the table.
#4 Working with an investor
The above businesses may also be too large for a private buyer to finance alone. However, this need not be a problem at all, as long as you are the right entrepreneur for the business in question. After all, as mentioned above, it is all about Management! Finding an investment company will come when the business is a good fit for you in terms of market, size, role and a decent price has been negotiated.
#5 No strategic buyers
There are also businesses that cannot (or will not) be sold to a strategist. This may be in the dependence on the DGA or the size of the company, for example. Both are not insurmountable for MBI-ers in most cases, provided:
(*) a clear transfer period is agreed upon and have experience in the relevant market;
(*) certain bv technical issues are secured;
(*) and in the case of size: if you can achieve that growth.
It remains important in all (MBI) cases that you stay close to yourself. To your specific experience and added value. Besides being an investor in the business, that is what you have to offer. And that, above all, is your strength. Another buyer cannot offer this. So management, management, management!
Actively searching
And above all, actively look for businesses that suit you. Make use of a professional party. Only in this way will you encounter the above situations. Don't wait for that investor who turns it into a job application or for a selling intermediary, who only has 100% sales projects and puts them broadly on the market. In an auction process, you are not going to beat a strategic party!
We are happy to help you formulate your personal buyer profile and create the above opportunities through our proven method of active approach.
