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Eric Siu walks through how to buy a business without getting burned. Do proper due diligence on the people and the target, don't let brokers rush you, and plan for a 5 to 6 month process that includes talking to key employees and customers.
Eric Siu walks through how to buy a business without getting burned. Do proper due diligence on the people and the target, don't let brokers rush you, and plan for a 5 to 6 month process that includes talking to key employees and customers.
Doing acquisitions is great, but I think you have to do them correctly. You have to spend more time doing due diligence on key hires. You have to spend a lot more time doing due diligence on the acquisitions. And we had a broker that was trying to push these deals through very quickly. And I remember talking to someone else that sold through the broker and they're like, yeah, there's all this weird pressure. Like, why do we need to sell the company in 2 weeks? Why do we need to sell in 4 weeks? If you don't really have a strong M&A team around you, you should be taking probably 5 to 6 months on it. You should be talking to key employees. You should be talking to key customers. You know, a couple of them, you should be talking to other potential stakeholders as well. We didn't get to do that. Had we learned a lot about how these companies operated, we probably wouldn't have acquired them.
