Catastrophic Events = Business Purchase Opportunities

As a buyer, everyone likes to get "a deal". Finding a

bargain often means being at the right place at the right time,

whether intended or by fate. Finding a lucrative opportunity to

buy a business that is for sale because of an unexpected

catastrophic event requires a disciplined approach.

As a business buyer, you often need to use "creative" means to

position yourself to get the first, if not the only, shot at a

promising business acquisition candidate. You need to explore

as many ways as you can to find quality companies that are for

sale that can be bought with extraordinarily favorable purchase

terms. Pursuing acquisitions that surface due to unexpected

business events or catastrophic business owner life situations

can a "win-win" opportunity for both business buyers and

sellers.

Unexpected Personal and Business Events

Assuming you have clearly defined business purchase criteria and

have the purchase skills and financial resources to effectively

respond to an unexpected, short term disposition business

purchase opportunity, you may want to leverage common personal

and business events to your purchase advantage.

Although catastrophic events are relatively rare in business,

they are genuine realities and must be dealt with in a prompt

fashion by business owners to reduce further company value

deterioration or even potential liquidation.

Personal life events for business owners such as death, divorce,

indictment, sickness, disability or addiction to expensive

vices often significantly accelerates the need to recapitalize

or sell the business owner's viable business.

Unexpected catastrophic business consequences, realized from

unexpected events or neglect, stupidity or devastating reactive

business tactics such as: large liability claims, loss of a

major customer(s), government seizures or new legislation,

employee fraud, strikes, lender financing changes or no viable

contingencies for acts of God, to name just a few, also

significantly accelerate the need to refinance or quickly

market the business for sale.

How Fast Do You Need To React?

Business buyers typically do not want to purchase a company that

has experienced a major unexpected setback or have to put

themselves through a quick "buying blitz" to qualify a rapidly

deteriorating acquisition candidate. However, high return on

investment purchase opportunities resulting from catastrophic

events, of viable businesses that are consistently profitable

with immediate, critical, financial or human resource

deprivation are often well worth the extraordinary effort.

To quickly restore a business to its established efficiency a

business buyer must act quickly to qualify and close the

business purchase. Often the business buyer who can react the

quickest in its purchase methodology or offer immediate

purchase funds will easily offset a higher purchase price

offering from another potential buyer.

For a business owner personal tragedy, a business buyer

typically has less than 60 days to buy the company before major

value deterioration occurs. For a wide variety of major

business catastrophes, a business buyer typically has slightly

more time, but not much more!

How Do I Find These "Deals"?

Effectively locating immediately distressed businesses that must

be recapitalized or sold because of unexpected personal

business owner situations or business management misfortunes

does not happen overnight. It requires a premeditated,

organized and ongoing program of communication and

documentation of your distressed business purchase interests to

legal, financial and business brokerage intermediaries who

typically must handle these extraordinary situations.

Reinforcing your unique interests and abilities to respond to

specific business catastrophe situations also requires periodic

oral and written communication to these same types of business

service providers.

Steps to "Get the Word Out"

* Define and document your distressed business purchase criteria

* Define business: legal, financial and acquisition service

providers who typically deal with distressed business

situations: M&A or Probate attorneys, Bank Trust Departments,

Commercial bank "workout" managers or "turn-around"

acquisition intermediaries: investment bankers, business

brokers, consultants or CPA's

* Get the word out! Implement an organized effort to communicate

and document your specific catastrophic business purchase

criteria to all above noted service providers

* Periodically reinforce your distressed business purchase

interests and criteria with broadcast mailings, announcements

or advertisements

* Embellish your successful acquisitions of distressed

businesses with press releases and formal printed or

electronic announcements to like business service providers

Often the more "creative" you are to find deals, the quicker

you'll find the "right" deal. The more diverse your means to

locate viable companies that are for sale, the better your

chances of finding a quality acquisition candidate that few

others are aware of.

As a business buyer, you have two ways to look at buying

businesses based on catastrophic events: 1) as negative, taking

advantage of distressed sellers, or, 2) as positive, taking

advantage of a unique opportunity to become a business

seller's, "savior", the best means available to allow their

employees to keep their jobs and continue to provide for their

families. You make the choice... like most lucrative business

opportunities, if you don't participate, others more than

likely will!

About the Author:

Mark Smock is President of http://www.business-buyer-directory.com, the FIRST international business buyer directory of its kind. Business Buyer Directory provides a non-traditional means for proactive business buyers to locate businesses for sale worldwide that meet their exact registered purchase criteria.