Buying a business is one of the most slow-moving transactions business buyers, and sellers go through. The process of buying a business can be overwhelming and time-consuming due to the nature of the transaction. Some of these transactions take longer than others, and it all comes down to establishing an effective process that will make the process easier and less burdensome.

There are many ways of structuring the transfer of business ownership in a transaction. There are a variety of unique structures that attempt to allocate risk and implement financial terms that are agreeable to both the seller and buyer. Below are a few insights on some of these and setting expectations in the process.

Many preparations should be completed by business owners and their sell-side advisory firm before the official transaction process begins. These preparations include Preliminary Due Diligence and a Benchmark Valuation. Completing these is imperative to ensuring a successful transaction. The following list breaks down the Preliminary Due Diligence and Benchmark Valuation and is intended to educate business owners on the key processes that should be executed by their sell-side advisory firm prior to starting the transaction process.

A strategic buyer is a competitor or industry peer that wants to grow through acquisition. Strategic acquisitions provide many advantages to the seller and typically yield the most attractive financial terms.

Efficient internal operations can add immense value to your business during an exit event. Below are a few ways you can evaluate your current processes and identify areas of improvement:

Surviving the challenges of due diligence is a critical step in the process of selling a company or raising capital. Unfortunately, many business owners do not make it through the process because they are not prepared or understand buyer/investor due diligence challenges.

Both the buyer or investor and the seller’s attorneys play a critical role in the transaction - and most importantly - in getting a transaction completed! Good transaction attorneys understand that while their role is to protect their clients, the most important objective is getting the transaction completed to the satisfaction of all parties. Read more about the role of an attorney in a transaction.

Transitioning from Home Garage to Home Depot. Jay Steinfeld the owner and founder of Blinds.com has been a successful entrepreneur who started a business from his garage and then later sold it to Home Depot.