Buying a Business? Start Here

The possibility of career autonomy and unbounded creativity makes entrepreneurship enticing.

21st Century Bank understands business aspirations. We’re locally owned and family-run because we, too, had the ambition to chart our own course.

When you’re an aspiring business owner, you can take one of two paths—you can either start a business or buy one. Our last comprehensive guide covered the steps to build a startup, something all your own. This one delves into acquisitions.

For those seeking stability by buying a pre-existing business, you benefit from established relationships with customers, an existing cash flow and revenue stream, a proven business model, and trained staff who can support you.   

There are pros and cons to each option, and a substantial amount of risk is involved either way.

Mitigating risk is one of the most important actions you can take as a potential business owner—and this is done through extensive planning. Dig into your career experience and individual strengths. Conduct comprehensive research. Work through due diligence. And importantly, identify trusted advisors to help you make smart and thoughtful decisions. That’s one of the roles we play for our valued customers.

From the beginning, 21st Century Bank has been laser-focused on Small Business Administration (SBA) lending. We bring years of experience into the business acquisition process—over 105 years, to be exact. It’s extremely important to us that any business owner in our community, whether you’re a customer or not, is set up for success.

Visit 21stcb.com/tcb to get our business acquisition guide.

“Mitigating risk is one of the most important actions you can take as a potential business owner—and this is done through extensive planning.”

—Jon Dolphin, President of 21st Century Bank

A Seller’s Guide to Getting it Right

Selling a business is one of the most significant transactions a person can make. Beyond the obvious financial implications, the process also brings legal and emotional consequences.

Taking these four steps can help ensure that your business sale comes with satisfying results and as little stress as possible.

1. Assemble a team early. Having the right advisors is absolutely vital—ideally an attorney, investment banker, and accountant with deep M&A experience. Avoid negotiating on your own.

2. Get your records in shape. Make sure all contracts, corporate records, and financials are in order. On a broader scale, build confidence in your future cash flow by strengthening customer relationships and management teams.

3. Consider what you want for your employees. Some sellers stay involved post-sale to help guide the transition for employees. If your workers will not be retained, do you want to provide for them with a closing bonus or a share of the profits?

4. Think beyond the sale. Consider what result you ultimately want. Are the proceeds part of your retirement plan? What kind of lifestyle do you hope to have? What kind of buyer will you be comfortable with? Both monetary and non-monetary outcomes are important to consider.

Selling a business takes strategy—but with the right approach, it can lead to your next great chapter.