---
title: How to Buy Your First Business | Meaden & Moore
description: Are you a first-time business buyer? Learn some of the common hurdles to keep in mind when buying your first business.
---

[Advisory & Consulting Blog | Meaden & Moore ](https://www.meadenmoore.com/blog/consulting)

# [How to Buy Your First Business | Meaden & Moore](https://www.meadenmoore.com/blog/consulting/advice-for-first-time-buyers)

 Written by [Lloyd Bell](https://www.meadenmoore.com/blog/consulting/author/lloyd-bell) | Jul 26, 2024 7:45:00 PM

Henry Ford famously said, “Whether you think you can or can’t, you’re right.” When it comes to buying your first business, the ability to effectively run a business is a different skill set than what is required to complete an acquisition. As a result, many successful companies and/or executives underestimate the complexities involved in closing a transaction.

## Understanding Seller Rationality

By far the largest hurdle that first-time business buyers need to understand is that [sellers](https://blog.meadenmoore.com/blog/bid/334208/Selling-a-Business-Avoid-First-Time-Seller-Mistakes) don’t have to be rational. A buyer can develop all sorts of financial models projecting certain rates of return on various capital structures, but a seller rarely cares. Their internal rate of return is not calculated on a spreadsheet, but rather, by what they’ve been able to provide for their family and what they hope to enjoy in retirement. A successful transaction, therefore, must meet the personal goals of the seller while protecting the financial goals of the buyer.

Key Points to Consider:

- Sellers’ personal motivations and goals
- The importance of aligning financial goals
- The emotional and personal investment of sellers in their business

## The Timeline for Closing a Transaction

First-time business buyers also tend to underestimate how long it will take to successfully close a transaction. Not only does it take a significant amount of time to find the appropriate target company, but the amount of time required to woo then wed will probably take longer than a buyer anticipates for a number of reasons.

Factors Affecting the Timeline:

- **Finding the Right Target Company: **This involves extensive research and due diligence.
- **Financing: **If outside financing is required, banks might be more measured in their approach.
- **Real Estate Involvement:** Deals involving real estate include engineers and appraisers, adding to the timeline.
- **Advisors’ Responses: **While the buyer’s legal and accounting advisors will be quick to respond, the seller’s advisors may delay.

## Ensuring Due Diligence and Flexibility

While the closing of an acquisition will likely veer from the original acquisition plan, first-time business buyers must remember to stick to the program as closely as possible. If specific steps drag on, it’s better to close later than to take shortcuts on [due diligence](https://www.meadenmoore.com/blog/consulting/buying-a-business-why-perform-financial-due-diligence).

Essential Steps for Buyers:

- **Due Diligence:** Never take shortcuts on due diligence to avoid future complications.
- **Adapting to Changes:** If the seller’s performance or available capital changes, reassess the deal to ensure it still makes sense.
- **Sticking to the Plan:** Maintain a structured approach to the acquisition process.

## Creating an Action Plan

Are you buying your first business? Meaden & Moore can help by creating an easy-to-follow plan of action. With expertise in [corporate financial planning and advising](https://www.meadenmoore.com/services/corporate-finance-advising), we follow proven methods to deliver insightful and highly effective solutions.

Buying your first business is a complex and lengthy process that requires patience, diligence, and expert guidance. By understanding seller rationality, anticipating timeline challenges, and committing to thorough due diligence, first-time buyers can navigate the acquisition process successfully. Partnering with Meaden & Moore ensures you have the expertise and support needed to make informed decisions and achieve a successful transaction.

For personalized assistance on how to buy a business, [contact Meaden & Moore today](https://www.meadenmoore.com/contact) and let us help you turn your business acquisition goals into reality.

[Download our whitepaper: "A Simple Introduction to Valuation"](https://www.meadenmoore.com/cs/c/?cta_guid=964a211b-206c-464f-83af-4475fd574770&signature=AAH58kH5ri02CngZ51FuT5diLRBSTAG-dQ&utm_referrer=https%3A%2F%2Fwww.meadenmoore.com%2Fblog%2Fconsulting%2Fbuying-a-business-why-perform-financial-due-diligence&portal_id=253116&pageId=1000630410&placement_guid=cba52134-658d-49de-9997-e6433651c118&click=aa555aba-1c64-4ecd-8576-b62fad56bc77&redirect_url=APefjpGXWK34i29UJ0dLPruvAdR-Njyviy_gbafntt5kpm2r95khGKNQzGzkmViOt7_fl3ridrcA2bVVcwnHVfMdX15QbMPacXej7mAUyzLx5dnTPg1_KFG1n3SoYMKW_esBk9rY1C8AjMy4_GSMvYjuxJi0r136IwofZzxZxKK5ovxZJQDmfk9ogqRZ_6Jl6VlOCtmB8Xpv5iQ_1l4fLhPAbmBY3A0jPTjQCTO1sZZmmwhhu-sU-gI1EQLFG5hdinZ7ZhPx-2S_kJg9iUWVzTM22Qq9PAz1Rbt9BGcSOWd863vonc9Sajlcf_ZcIz2_CR9ZSwWYSHUo&hsutk=b9d7c50b6fc42adc0695e07e2e6e11b9&canon=https%3A%2F%2Fwww.meadenmoore.com%2Fblog%2Fconsulting%2Fadvice-for-first-time-buyers&__hstc=171172479.b9d7c50b6fc42adc0695e07e2e6e11b9.1719260727809.1719338179451.1720464015944.5&__hssc=171172479.9.1720464015944&__hsfp=3741967887&contentType=blog-post)  

Read the flip-side of this in another post by Lloyd:  
[Selling a Business: Avoid First-Time Seller Mistakes](https://www.meadenmoore.com/blog/bid/334208/Selling-a-Business-Avoid-First-Time-Seller-Mistakes)

[View full post](https://www.meadenmoore.com/blog/consulting/advice-for-first-time-buyers)

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