Now, let me just say this before I dive into this topic—My wife made me promise that I wouldn’t buy another business—but if I were to break that promise? Hypothetically, of course—don’t worry, Katina! With my experience in business acquisitions and background in turnarounds, I now understand what’s most important to focus on and what can genuinely add value. So, here’s a breakdown of what would catch my eye and why.
1. Investing in a Manufacturing or Business Services Company
I’d focus on manufacturing or business services because these industries have consistently high demand and a solid track record. Manufacturing businesses, especially in regions like Northeast Ohio, are built to last with a skilled workforce and long-standing customer relationships. On the other hand, business services companies often have recurring revenue through long-term contracts, making them appealing from a stability standpoint. Both types of businesses provide a solid foundation for long-term success, and that’s a big deal when looking to invest.
2. Finding a Business That Needs a Bit of Fixing
I wouldn’t go for a high-performing, picture-perfect business. Instead, I’d seek out a company with “a little hair on it”—something that’s not perfect but has the potential to be. With my turnaround experience, I’ve seen firsthand how identifying the right areas for improvement can significantly boost a business’s value. Whether it’s refining operations, tightening up financial controls, or rethinking strategy, I’d look for opportunities where my skills could make a real impact. The goal wouldn’t just be to maintain the business but to elevate it to a whole new level.
3. Bringing in a Partner with Complementary Strengths
One of the biggest lessons I’ve learned is the value of a great partner. I wouldn’t want to do it alone; I’d bring on someone who adds significant value to the table, whether it’s through industry expertise, strategic connections, or operational skills I might lack. A strong partner can challenge your thinking, add new perspectives, and help you navigate the complexities of running and growing a business. The right partnership isn’t just an asset—it’s a game-changer.
Final Thoughts for Aspiring Business Buyers
If you’re looking to buy a business, consider these aspects. Look for companies with potential, even if they’re not perfect. Understand the industry’s resilience and choose one that matches your strengths. And most importantly, don’t underestimate the power of the right partnership. I’ve been down this path before, and these are the lessons that have shaped my journey.
If you’re thinking about investing in a new business but need guidance on what to look for or where to start, let’s talk. I’ve been in your shoes, and I’d be happy to help you figure out the best path forward. Let’s hop on a call!
