Buying an Electrical Business - Is There a Catch?
Expertise is essential in such a specialized industry. If you don't hold a master craftsman qualification yourself, you'll definitely need skilled staff who do, or who are at least very well and thoroughly trained in electronics. You should have solid knowledge of electrodynamics, electrostatics, and common electrical systems that you use when dealing with customers or on-site. Have you found your dream company and are you now fired up about it?
Approach the transaction process thoughtfully! Get in touch with the seller, take your time reviewing the numbers, and don't shy away from inspecting the business on-site. Form your own picture and get to the point — that is, ask yourself why the business is being handed over.
Is the business doing well, with retirement of the current owner being the reason for the handover?
Are revenues declining, with the seller simply wanting to leave the sinking ship in time?
Customer Base and Suppliers
Electrical businesses currently enjoy an excellent order situation. But orders only come in once you've built up a certain customer base. The advantage of a takeover is that this is usually already in place. The same goes for suppliers and supplier contracts. When buying, be sure to secure a guarantee of existing contracts and the takeover of the existing customer base.