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A: It’s a long process. A person has to be pretty determined to get to the finish line, and that weeds out a lot of people who aren’t cut out for it. There are stops along the road for the gut check. That’s one way that you prevent the catastrophe. Another way we do that is we really focus on listing businesses that are profitable, that are good businesses. We’re not setting anybody up to buy a lemon. And we always advise people to bring in their own attorneys, their own CPAs. We want to make sure these people are doing all their background work to make sure it’s all good for everybody involved.
Q: What are some red flags?
A: If it’s losing money. It’s a hard situation, because a business maybe had been making money in the past. A seller will come in and say we’ve had a tough few years but I know it can be something. But the hard fact is, buyers will come in and look at it and say, I’m not going to pay for that. Our emphasis is really on profitable companies. Other issues are old or declining technology, dated practices, or an industry that’s hit hard or becoming obsolete.
Adam Belz • 612-673-4405 • Twitter: @adambelz