Most buyers are interested in buying an absentee run business, but they don’t know how to find this kind of business. The common question that they ask is ‘how do I find an absentee run business?’ Here is some information about whether you should buy an absentee run company or not.
The most important role in any kind of business is the owner or the CEO. The CEO or owner deals with the current affairs of the company. The owner is also responsible to bring a vision for the future direction of the company. The economy is changing rapidly due to which it is not a good idea to buy an absentee business. Without the CEO or the owner, this kind of business might not be around for long.
According to most business brokers, there’s no “truly” absentee run business out there. This is because in order to have this kind of company, you must have a manager who you trust. Also, bear in mind that you will have to pay the manager a high salary. Typically, most businesses require a responsible manager to watch over them.
First of all, it is important to realize that if the company is absentee for the seller, it probably started in a different way. It took the seller time to find people they could rely on and trust, but that doesn’t transfer to you as a purchaser. The seller is also highly vigilant and quick to detect and correct any problems before these problems become a real big problem that also doesn’t transfer to you. It is important to note that absentee run companies are probably going to be easier to run because of a solid support already in place. But it doesn’t mean that you can buy a business and spend no time, and expect everything to go well. It is strongly advised to work in the newly acquired business as much as possible at first. This will help you know the staff, the customers and the small issues that could potentially become a major problem. For More : Turner Butler Selling Your Business.
It is also important to note that there’s no substitute for an active owner who takes care of the day to day affairs of their company. If you find an owner tat says their business is absentee run, you should spend some time investigating about the company. A physical observation period will tell everything about the claims made by the owner about their business being absentee run.
That being said, some brokers also say that fully absentee run businesses do exist. When looking for a business like this, you should keep your main focus on understanding what does the current owner mean when they say ‘absentee’. For some owners, their company is absentee run business if they give only a few hours every week and their company makes revenues.
So, if you are interested in acquiring an absentee run company, it is recommended to do your homework and look at the engagement of the owner in their company.