Construction, Manufacturing, Business Services & More
Minerva Equity is a lower mid-market investment company. We invest in good businesses run by great people.
Our typical investment is to acquire 40% – 60% of equity in US based businesses. These businesses can be in construction, manufacturing, agriculture services, business services or potentially another industry.
We look to invest in businesses in the mid-market, meaning that they are generating upwards of $1 million in profit per year.<!– wp:a8c/post-contentM in revenue and under M.–>
We use a leveraged buyout procedure that has a twist on it. Instead of acquiring 100% of the company like a typical LBO, we ask that the seller retain a portion. We also grant a portion to the management team (existing and potentially new) and to the employees.
We have developed a network of supporting businesses that assist in the management and growth of the companies that we invest in.
Buying an existing business is exactly what it sounds like. The buyer typically takes over full ownership of the business. The largest advantage is having an existing blueprint that can include important factors like an established customer base, defined operating expenses, and fully trained employees. Regardless of business type, almost any kind of business could be bought or sold.
When you buy an existing business, you typically get complete control over its direction. However, with no set vision, infrastructure, or external guidance, your business could struggle as you figure out the best way to run things.
Once you know whether you want to franchise or buy a business, you’ll need to evaluate each specific opportunity. In short, it boils down to this: do your due diligence.
Your research should help you understand the business from both a financial standpoint and in the overall landscape.
If you’re interested in franchising, you should explore the following:
Once you’ve found a franchise or business to buy, it’s important to conduct a thorough, objective investigation.
At this stage, you’ll probably want professional help. Consider hiring an attorney and an accountant. The tax rules surrounding franchises in particular are often complex. A specialist in franchise law can assist you with evaluating the franchise package and tax considerations.
If you think you have the chops to be an entrepreneur, but would rather not start with a new idea — or just plain don’t havea new idea worth starting — you may be a great candidate to buy an existing business instead.
While buying an existing business typically involves more upfront cost, it also presents less risk than starting from scratch. Financially, you’re looking at actual profit and loss records rather than rough estimates, and there’s a clear history of sales to point to. You may also acquire valuable patents or copyrights, or have the opportunity to drive a stagnant business in an exciting direction with your expertise.
It’s a common misconception — a cultural stigma, even — that if a founder decides to sell a business, there must be something wrong with it. Either it’s about to go under, or the financials are in bad shape, or the founders must know something you don’t, right?
In reality, founders sell their businesses for a myriad of reasons. They may be in a different life stage, and the needs of the business no longer match their lifestyle. Or maybe they’ve grown bored with the existing business model, or they’re excited about a new idea. The business they started may be a great one, just not one they are passionate about running day-to-day anymore.
But even when a founder is ready to move on, the decision to let go of something they built from the ground up isn’t an easy one. By finding the right buyer — someone with the passion to take the business to new heights and the strategic mind to make the business perform well into the future — a founder can move on comfortably, knowing the business they built is in good hands.
How to buy an existing business
Do you want to be the buyer that ushers an existing business into a new era of success? Follow these steps to move forward.
Buying a business is a big decision—but when you pull the trigger on buying an existing business, you get the opportunity to become an entrepreneur without starting a business completely from scratch. Every year, more than 500,000 businesses change hands, and that number is expected to skyrocket in the next several years as millions of baby boomers begin retiring and selling their businesses.
Buying an existing business is so popular because it lets you skip past some of the pain points and costs of starting a new business. But the journey from finding a business for sale to closing the deal can be long and complicated.
Before you begin the journey of buying a business of your own, find out everything you need to know to avoid buyer’s remorse. Our buying an existing business checklist will give you a step-by-step guide. We’ll also cover the pros and cons of buying a business when you’re still just thinking about the idea, and end with how to buy a business when you’re ready to close the deal and get the keys. Here’s a rundown of how to buy a business, from start to finish, starting with a quick video overview of the steps involved:
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