Brian Knight is the president of Country Business Inc., a thirteen-office business brokerage firm that specializes in the purchase and sale of small and mid-size companies. While Country Business sells mostly businesses with sales of less than $3 million, they are considered an excellent resource for individual buyers seeking to acquire companies in the lower end of the middle market, especially in Maine, New Hampshire, and Vermont.
Knight wrote the book Buy the Right Business - At the Right Price, however, the following information was delivered to the New York Venture Group during Knight's speech on "How to Find a Business to Buy."
The demand for small businesses far exceeds the supply. Screening telephone calls from Knight's Manchester Center, Vermont office, most inquirers are looking for small medium-tech manufacturers with a proprietary product and a proven record of increasing revenues and profits. The buyers would like to move to the Stratton, Vermont area and have a relatively short commute to the target manufacturing company. The only problem is that there are very few manufacturers in Vermont, particularly in the Straton area. What is available as businesses to buy in Vermont are hospitality and retail companies. The first lesson to be learned as a buyer is not to have unrealistic expectations.
Concurrent with the first lesson is deciding whether you should buy a company at all! Buying a company, much less finding a company to buy, does not suit everyone, nor does it assure financial success. Buyers can and will succeed if they buy an excellent book on this subject, seek professional advice, and take their time (maybe two years).
Knight emphasizes that buyers should:
- Be self-analystical of their capabilities.
- Write down their acquisition criteria.
- Carefully interview and select a buying intermediary.
- Work on interpersonal skills with a potential seller.
Country Business' mission is to find good and profitable businesses, not to represent unprofitable businesses. Knight believes that the key to success in finding the right business to buy is your ability to commit to the above items. If you can do so, success in finding the deal will be more likely.
