Chapter 2 - What is The Right Business to Buy?
What really matters is what is the best business for you, the individual Buyer. As everyone is different with different backgrounds, skills and desires, this is specific for each individual Buyer. So it is worth considering who you are and what type of situation would work for you. Notice that we are not going straight to some kind of discussion on verticals, financials or growth sectors (although they are very important and we will get there later) as we believe that ‘cultural fit’ and the nature of the people really make transactions successful so this needs to be discussed/understood in the first instance. We estimate over 90% of people that try to buy a business never will successfully close for many reasons. Of those that do, over half will struggle to run it successfully. So who are the Buyers that are in the 10% that will be successful? This is an important question as getting it right can save an enormous amount of time and money. Firstly, it is worth considering why the person who owns and built the business you are trying to Buy has been successful. We believe much of this success can often be summed up in a blanket term we call X- Factor Leadership . This differs from management, which involves the day-to-day running of the business. This is actually the aspect that has guided and provided inspiration for the business to get where it is today. An X-Factor leader also navigated the business through the ups
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