Buying a business can be a ton of work. Finding the right business, negotiating, due diligence and financing are just a few things that business buyers spend a lot of time on. This can lead to business transition items being neglected. Professional business buyers like Private Equity Groups look at these items very closely and you should too. Here are 4 critical transition issues that buyers neglect:
Bookkeeping: If the current owner or their spouse has been doing the bookkeeping you may need to fill this role. This is not a full-time position and is ripe to be outsourced to bookkeeping companies while you concentrate on running and growing the business.
Insurance: It could be years since it has been reviewed professionally and the insurance market changes from month to month. Make sure you get quotes from multiple providers and understand what your insurance covers.
Merchant Processing: How does a customer pay you? Merchant Processing companies are constantly updating their processes and technology and there are deals everywhere. Take a recent bill from the current merchant processing company and see what another company may offer you.
Human Resources and Payroll: You just acquired a business, announced to the employees, everyone is excited, and the payroll gets messed up. Don’t let this happen to you. Understand the current payroll system or service provider. Additionally, having an outsourced HR Company handle employee benefits, PTO, and other backend office work can help get you back to working on the business and out of the back office working on scheduling and other tasks that don’t help your company make more money.
About Sunbelt Business Advisors of Minnesota
The Sunbelt Business Advisors Minneapolis office is the largest office in the Sunbelt network with a staff of over 50 advisors, associates, analysts, and business development representatives. In 2021 the firm was recognized by the International Business Brokers Association as the #1 firm in the country and the first firm in history to sweep all three first-in class awards. Sunbelt provides services to business owners interested in selling their businesses, assistance with merger and acquisition activities, complimentary business value assessments, and advice to business owners seeking to maximize their life’s work when they exit. The firm provides business brokerage and mergers & acquisitions services for companies with revenues from $500,000 to $150 million. More information is available at www.sunbeltmidwest.com (<Under $5 million revenue) and www.tnma.com ($5 – $150 million in revenue).
