We are in the process of buying our first business. We have terms, LOI and would love advice on best next steps to think about as we move forward.
I'd say that market knowledge is incredibly important. You can buy a business at any revenue point, but if you don't know much about the market it's in or the industry, you could very well tank it.
Do your due diligence and understand your exact plan and intentions of what you'd do with the newly bought asset to make sure that it has the resources needed to continue doing it's best and growing.
Good stuff here already -- I would add three things:
1. Why is the other party selling?
2. How does the purchase valuation compare with other deals in the industry/space/community?
3. What are the trends in revenues, sales, margins and production (if relevant)?
If you wish to discuss, send me a PM through Clarity for 15 free minutes.