Master Class on Mergers & Acquisitions (M&A) for Business Owners, HNIs, Corporates, Investors

Enabling Growth of Pro-active Companies

Master class on M&A I How to Grow Retail Franchise I
Top Business Opportunities & Investors

 
   
  • V C Karthic is a serial entrepreneur, angel-investor, leadership coach, startup mentor and contributor to the startup ecosystem in India. 
  • Among the highlights of his exciting journey is founding Buzzworks in 2001 (IT solutions company), which has more than 15,000 employees on payroll with multi hundred crore turnover in a short span.

Recently, IndiaBiz had invited him to address a Masterclass where he talked about “Acquisition and Investment as a Growth Strategy”. Major aspects covered were:

M&A Mythbusting > Investment thesis > Large Pipeline > Management Meetings > LOI –  Negotiations  >  Closure

Reply to this email now to receive a link to this Masterclass session by V C Karthic.


 
 
Hearty Mart Supermarket (started in February 2004 by Mr. Nadeem Jafri) has grown into a chain of retail stores operating under the brand name of Hearty Mart. Standing amidst the bigwigs operational in the Indian market, Hearty Mart is a name that is emerging and focusing on tier 2 and tier 3 cities in India and making inroads into the rural sector. With access to very limited capital, learn how Mr Nadeem Jafri grew Hearty Mart into many franchises and different verticals. Click to read more

Top Buyers & Investors


Latest Business Opportunities

Should You Buy a Business or Invest in One?

Does the idea of buying or investing in a business excite you?

Welcome to the Club!

Thousands of first-time buyers and investors embark on this fascinating journey every year by putting their money in an existing business. For some, it is the idea of testing their entrepreneurship acumen in an existing business, while for some it is about making their money work hard. However, for many people, the decision is not easy to make – should you buy a business or invest in one?

We have worked with thousands of business owners, buyers and investors over the last few years and have closed multiple deals – both in business buying and investing. In this chapter, we will share a few practical insights from our team to help you understand the varied implications of buying and investing in a business. We recommend that you begin by asking yourself the following questions – the answers to these will help you lead the way towards the most suitable opportunity for you.

1. What is your Primary Objective?

Are you looking for complete ownership, control, and a deep-dive into entrepreneurship? Are you excited about building your dream venture? Do you want to be your own boss? If the answer to one or more of the above is ‘yes’, then buying a business is more suitable for you. Investors are limited in terms of the amount of control and decision-making power they exercise in a business. Of course, there are various rights of an investor that you can exercise to significantly step-up the amount of control you have – but the owners are still going to have the final say and a much higher involvement in running the business.

2. What is your Professional Background and Industry Experience?

Do you have some experience in the industry to which the business belongs? Do you have prior experience in running a business – either first-hand or through a family member? Do you have adequate network in the relevant domain? If yes, then buying and running a business on your own will be a lot easier and more appropriate. However, if you are not sure about your background and experience being a good fit for the business, then investing in it might be a less risky proposition.

3. What are the Resources at your Disposal?

Resources are critical when it comes to running a business. Does the business have an existing, well-established team, or do you have to build one yourself? Is there a loyal client base that you can rely on? Are the distribution networks on auto-pilot or will they require your constant supervision? Is the raw material coming steadily from an assured supply base, or is vendor management going to be a constant headache? If most of these pieces are sorted out, both buying and investing are lucrative possibilities. However, if the business is of high potential but still needs a lot of fixing, it might be better to invest your money and help the existing owners figure it out on their own.

4. What are your Existing Commitments?

In reality, the decision to buy or invest in a business is not isolated from other decisions in one’s life. Contrary to popular belief, there is no ‘right time’ to buy or invest in a business. There are no rules – anyone can put money in a business at any point in time, provided their existing commitments are in sync with the decision. Having a wonderful day job that you absolutely love? Invest in a business. Looking for a career transition? Consider buying your dream venture. Do you have significant financial commitments towards your family? Start by investing in a business – consider buying one later. Looking to build an enterprise that will sustain your family for generations? Go for buying a business. These are just a few examples – the best way to go about it is to map all your personal and professional commitments against the two options (buying and investing) and then arriving at the best opportunity for yourself.

We hope that these pointers have helped you decide whether you want to buy or invest in a business. In the next chapter, we explore the various preliminary considerations to be reflected upon before you actually begin the journey.

 

 

Buy a Small Business – Make a Big Investment

“Do Something Today That Your Future Self Will Thank You For”

Are you looking for new and exciting investment opportunities for your money? You are not alone. Investors all over the world today are on the lookout for something more engaging and entrepreneurial than traditional investment options like stock, bond, shares, deposits and mutual funds?

Did you know? Putting money in a business is the new age mantra to making your money work hard while experiencing a deeper and more fulfilling engagement in your investment. We have worked closely with thousands of business owners, investors and business buyers over the last 5 years, and in this article, we share with you the various ways in which you can benefit by investing in a small business or buying one.

  • Multiplier Effect – Invest in the equity of a small business to get attractive capital gain. What does this mean? Essentially, an investment made for capital gain does not pay out a steady stream of income. Instead, it waits for the value of the business to multiply so that the value of the investment made by the investor also multiplies proportionally. This implies a longer gestation period, but also a much larger return potential. For example, you can invest in a small business whose value will potentially double or even triple in a few years. When this happens, your investment also doubles!
  • Periodic Returns – If you are interested in immediate, periodic payments instead, go for debt investment in a small business. A debt investment is like a loan, but an investment all the same. A predefined interest rate is agreed upon between the business owner and the investor, and annualized pay-out streams of repayment are disbursed periodically. The upside? You do not have to wait for the business to start minting good money, and a debt investor usually has preference above all other investors! This post can help you decide if you should buy a business or invest in one.
  • Diversified Portfolio – As Warren Buffet once said, when it comes to investment, “one should never put all one’s eggs in one basket.” Instead of only sticking to the conventional investment options, bring a fresh flavor to your portfolio by investing in a high-growth small business. Let your money work hard for you as you reap the benefits of a diversified investment basket.
  • Network Effect – Not all returns are tangible. Apart from the direct monetary rewards of investing in a small business, you can also grow your professional network through your interaction business promoters, consultants, deal professionals and co-investors in the business. Unlike other investments which tend to be passive, investment in a small business is a high-involvement one that also makes your journey exciting and the returns manifold. Don’t miss this interesting post that tells you why business partnerships matter.

At IndiaBizForSale.com, we provide first-time investors with thorough support and handholding and also help you connect with professionals to help you with the transaction and risk-management. We have thousands of businesses on our platform which can be filtered by industry, location, asking price, credibility and so on.

Why Deals Fall Apart?

If it is important to you, you will find a way. If not, you will find an excuse.

Whether you are a business buyer, investor or a business owner, you must be wondering, what are the conditions that can make or break a deal. We have worked closely with thousands of users over the last few years in buying, selling, growing and fund-raising for businesses, and one of the most common questions we get asked is: What can make or break a deal? In this article, we bring to you our exclusive insights on keeping a deal smooth and hassle-free. Over the last few years, we have helped thousands of users on our platform to discover the best deals to buy, sell, grow and fund businesses, and this is a common question we get asked. While there are no hard-and-fast rules about stopping a deal from collapsing, there are, however, a few important principles that both parties in a deal can follow which can make or break a deal.

  1. Transparency and Honesty: This is a no-brainer. Would you ever like to enter into any transaction with someone whose ethics, integrity and morals are in question? Most likely not, and the same holds for the other party. The best deals are those in which expectation settings are clear right from the beginning. This is not to say that you must lay bare all the sensitive information about your business on the very first day. You can take your time and qualify buyers as per their seriousness and interest in your business before giving out critical information. However, do not lie, misrepresent or miscommunicate, and encourage the other party to do the same.
  2. Trust and Confidence: Sometimes, it is not enough to be just honest yourself. You have to give a chance to the other party to demonstrate honesty and commitment to you. We have seen a number of deals fall apart where either one or both the parties refused to walk the last mile with each other despite long discussions and no visible breach of honesty. There are a number of legal tools available to enforce understanding between two parties even before the deal actually takes place. But, in the end, these are just tools – you will have to cultivate the trust by yourself. Seasoned deal moderators and mediators often come handy in developing rapport between parties and getting the deal through.
  3. Realistic Negotiations: An important thing to remember is that, negotiations on aspects like valuation, payment terms, rights and obligations, etc. are meant to bring out a fair deal structure, and not to solely serve the interests of any one party. For example, a common mistake that business owners make is to overvalue their business. Get your business valued by an independent valuation expert to avoid unnecessary conflict. Have a seasoned negotiator on-board to help you get the best out of the deal without undercutting the other party.
  4. Seamless Communication: A deal is never just a piece of paper. It happens between two people, or two parties, and to bring the deal to closure through a long journey, it is important that communication between them is regular, well-timed, and two-way. Take out time to listen to the other party and voice your own concerns. Rope in your consultant when needed, but stay connected to the deal at its core by getting regular updates. Technology has made life easier today, but it won’t harm to meet each other once in a while and iron the kinks out. It is also important that you talk about things outside the deal such as your work experience and professional background, future plans, and so on.

So, what are you waiting for? Discover the perfect business opportunity that matches your preferences and get the deal of your dreams with Indiabizforsale.com, the most preferred network to buy, sell, fund and grow businesses in India. To know more about who we are and how we can help you, write to us at [email protected].

Should You Buy a Business or Invest in One?

If the idea of buying a business or investing in one excites you – you are not alone. Thousands of first-time buyers and investors join the crowd every year. For some, it is the idea of testing their entrepreneurship acumen in an existing business, while for some it is about making their money work hard. However, for many people, the decision is not easy to make – should you buy a business or invest in one?

We have worked with thousands of business owners, buyers and investors over the last few years and have closed multiple deals – both in business buying and investing. In this article, we will share a few practical insights from our team to help you understand the varied implications of buying and investing in a business. We recommend that you begin by asking yourself the following questions – the answers will help lead the way towards the most suitable opportunity for you.

  1. What is Your Primary Objective?

Are you looking for complete ownership, control, and a deep-dive into entrepreneurship? Are you excited about building your dream venture? Do you want to be your own boss? If the answer to all of the above is ‘yes’, then buying a business is more suitable for you. Investors are limited in terms of the amount of control and decision-making power they exercise in a business. Of course, there are various rights of an investor that you can exercise to significantly step-up the amount of control you have – but the owners are still going to have the final say and a much higher involvement in running the business.

  1. What is Your Professional Background and Industry Experience?

Do you have some experience in the industry to which the business belongs? Do you have prior experience in running a business – either first-hand or through a family member? Do you have adequate network in the relevant domain? If yes, then buying and running a business on your own will be a lot easier and more appropriate. However, if you are not sure about your background and experience being a good fit for the business, then investing in it might be a sound proposition.

  1. What are the Resources at Your Disposal?

Resources are critical when it comes to running a business. Does the business have an existing, well-established team, or do you have to build one yourself? Is there a loyal client base that you can rely on? Are the distribution networks on auto-pilot or will they require your constant supervision? Is the raw material coming steadily from an assured supply base, or is vendor management going to be a constant headache? If most of these pieces are sorted out, buying is a lucrative possibility. However, if the business is of high potential but still needs a lot of fixing, it might be better to invest your money and help the owners figure it out with whatever you can.

  1. What Are Your Existing Commitments?

In reality, the decision to buy or invest in a business is not isolated from other decisions in one’s life. Contrary to popular belief, there is no ‘right time’ to buy or invest in a business. There are no rules – anyone can put money in a business at any point in time, provided their existing commitments are in sync with the decision. Having a wonderful day job that you absolutely love? Invest in a business. Looking for a career transition? Consider buying your dream business. Have significant financial commitments towards your family? Start by investing in a business – consider buying one later. Looking to build an enterprise that will sustain your family for generations? Go for buying a business. These are just a few examples – the best way to go about it is to map all your personal and professional commitments to the two options (buying and investing) and arrive at the best opportunity for yourself.

So, what are you waiting for? Choose the option that is best for you and take the plunge! We have helped thousands of business buyers and investors in choosing the right business opportunity through our platform. We help you get matched to the right businesses, communicate confidentially with business owners, and much more. Register with us today to kickstart your journey, or write to us at [email protected] to know more about what we do and how we can help you.

How to Identify a Potential Buyer and Go About the Deal-Making Process

As a small business owner, it can be challenging and confusing to understand how to sell your business, especially if this is your first time. Over the last few years, we have supported thousands of business owners in the journey of selling their business, and have found that one of the most common questions that business sellers have is this – how to identify potential buyers for their businesses?

In this article, we bring to you the key insights we have gained through our platform on the essential aspects to be kept in mind when identifying a potential buyer for your business, and how to go about the overall deal-making process.

Identifying Your Target Buyers – Streamline Your Efforts

When it comes to buyers, we have seen many sellers waste their efforts by reaching out to the wrong target audience. It is advisable to start your buyer-identification process by profiling the ideal buyers from your business. For example, are you looking for individual buyers, institutional buyers or both? Are you only looking for buyers within your industry or are there related / complementary industries you are willing to explore? Are you looking for buyers in a certain location? This will help you streamline your outreach campaigns (online and / or offline) and reach out to the maximum possible buyers in the shortest possible time.

Being Discoverable – Critical to Reaching Your Target Buyers

Sellers often spend time and money putting advertisements anywhere and everywhere. Focus on the being discoverable – identify options that give the maximum visibility for your sale proposition, but make sure your confidentiality is not compromised. Dedicated technology platforms like IndiaBizForSale are excellent for making your sale proposition searchable and discoverable by potential buyers. No matter where you advertise, make sure you create an attractive business brief to catch the buyers’ attention.

Handling Buyer Inquiries and Qualifying Prospective Buyers – Do’s and Don’ts

The real process of identifying a potential buyer for your business actually begins when you start receiving inquiries (interests) from buyers. Try to ascertain how serious the buyer is – Does he respond to your communication on a timely basis? Does he ask the relevant questions about you and your business? Is he ready to sign a Non-Disclosure Agreement (NDA) before you share any critical or sensitive information with him? Does he understand the deal-making process? Classify buyers by their genuineness and credibility and share detailed information only with the buyers who are qualified according to the assessment criteria set by you.

Handling Due Diligence and Getting Your Business Valuation Right

Once you and your buyer have established trust between yourselves, it is important to understand the process of Due Diligence. The buyer will usually have a team of professionals who will investigate your business extensively. It is important that you prepare for this stage right from the day when you decide to sell your business. Make sure your books of accounts, business incorporation documents, title and ownership documents, process documents and policy documents are all in place. Having said that, Due Diligence is so much more than just documents – a seasoned buyer is likely to analyse your business’s reputation, position in the market, customer satisfaction, and technology aspects, as applicable. For valuing your business, it is always advisable to take help from an experienced, expert valuer with credible track record. This will help in negotiating with the buyer and also give you a realistic expectation about the asking price of your business.

Negotiations and Deal Structuring – Get the Best from the Deal

At this stage, it is important to have a seasoned deal negotiator on board who can negotiate on aspects such as transaction modes (cash vs non-cash), payment timelines, title transfer timeline, distribution of part-payments (if any), and your post-sale involvement in the business. Apart from this, you will also need to discuss legal and compliance implications, such as tax liabilities, licenses, and so on.

Closing the Deal and Managing Transition

The final leg of the deal-making process is closing the deal – i.e. receive your due payment from the buyer and give the ownership of your business to the buyer through transfer of title. While it is usually a simple process, sometimes there are minor hiccups along the way to watch out for. For example, we have seen a few deals where last-minute conflicts have arisen due to the buyer / seller not fulfilling certain pre-defined terms and conditions. We usually mediate in such situations on request, and help the buyer and the seller reach a consensus through discussion.

Selling your business doesn’t necessarily need to be an overwhelming experience. With our wide network of thousands of buyers, experience, and expertise, you will be in a better position to pursue a deal successfully. To know more about what we do and how we can help you, visit IndiaBizforSale.com.

The First-Time Buyer’s Tips for Putting Money in a Small Business

You may have just decided to buy small business for the first time, or maybe you are still toying with the idea of doing so. In either case, you would probably want to know what you should watch out for while buying a small business in India. In this article, we will discuss a few important considerations to be kept in mind while you are on the journey of acquiring a small business.


1. Don’t Be ‘Sold’ While Buying


As a first-time buyer, it is possible that you will be overwhelmed by the businesses that are presented to you, and that you will take the seller’s words at face-value. It is important not to get ‘sold’ on a business or idea while buying, and to keep your professional judgment as objective as possible. Do intensive research and due diligence before you commit to anything. Have a team of professionals evaluate every business thoroughly, instead of giving in to the words of any friend, colleague or family member.

 


2. Taxation Consequences


There are several tax implications associated with buying a small business in India. These include capital gains tax, previous year’s tax liabilities of the business, tax provisioning of the business for the forthcoming years, tax credit / refund, changes in taxable income of the buyer, and so on. Ignoring tax implications can land you in trouble even long after the transaction is closed. It is wise to have a Chartered Accountant or a Taxation Expert review the tax implications of your deal and advise you on the same.


3. Don’t Invest Money That You Can’t Afford to Lose


Remember that investment in a business is a risky, long-term affair. It doesn’t come with the privilege of certainty unlike other options such as bank deposits – which is a fair game, as the returns of investing in a small business are much higher too! But the thing to keep in mind here is that you should not invest money which might be required by you or your family in the near future. Invest earnings that you can afford to have locked up for years, or may be even lose, in the worst-case scenario. The bottom-line is that your professional decision to invest in a business should not affect your personal life.


4. Know Your Rights


Are you exercising all the rights of a buyer? For example, as a buyer you have absolutely no responsibility to take on the liabilities of the business you are buying or that of the seller. You also have the right to restructure the business as you may deem fit post purchase. There are several other significant rights such as right to full disclosure of business information by the seller, right to seek legal help in case of any misrepresentation, and so on. Make sure you know your rights as a buyer and exercise them when needed!

 


5. Get Professional Help


Last but not the least, it’s better not to take it all on yourself the first time. Don’t have a way with words? Get a negotiator on board. Find it difficult to crunch numbers? Get your CA to do it for you. Unable to source good businesses? Get a consultant for deal sourcing. Feeling lost about the legal implications? Get advice from a lawyer. The idea is that your first-time buying experience should be as smooth as it gets, and you should definitely not end up losing money or sleep!

If you are looking for a one-stop solution for professional management of your deal, you can visit us at IndiaBizforSale.com and explore our services and success stories. To know more about what we do and how we can help you, please contact us on [email protected].

Want to Buy a Business in India? Look no Further

If you have been typing ‘I want to buy a business in India’ in the search box of online search engines for a while now – you are not alone. However, legitimate information, let alone practical information, on buying a business in India are not easily found. Dedicated platforms are even rarer. We at IndiaBizforSale.com are exactly that – a dedicated online platform for buying and selling of businesses in India – and much more! Add to it the fact that over the last 4 years, we have closed over 19 business buying and selling transactions. This leaves us in a favourable position to address your doubts and queries about buying a business in India. Continue reading “Want to Buy a Business in India? Look no Further”

Are You Really Ready to Buy a Business?

Buying an existing business is becoming a practical choice for seasoned professionals who prefer not to start from scratch. These professionals generally would have worked at various positions in medium to large organizations for most of their working professional life and now they are looking to start something of their own.

These professionals understand the time and resources it takes to build a business from scratch, instead they prefer spending time and resources to further build the business they have acquired. Generally, these middle-aged professionals (mostly) who have years of experiences and the skills they have garnered, either have some sizeable funds of their own and/or have access to funds via their network to finance the purchase of an existing business.

Continue reading “Are You Really Ready to Buy a Business?”

Things to Consider When Buying an Existing Restaurant Business for Sale

Buying a business can be difficult; the buyer needs to consider innumerable factors that decide if the business is worth buying or not. But when you try to buy a restaurant business, the decision is much simpler. The food industry is one of those industries that will never go out of business and will always have a dedicated customer base. That solves the most important issue of a business selling-buying scenario – loss of customers.

Continue reading “Things to Consider When Buying an Existing Restaurant Business for Sale”