LeRoux Cilliers is a chartered accountant who conducted his search for a business with commendable thoroughness.
LeRoux scoped out no fewer than 100 businesses – many of them meticulously. He conducted “in-depth pre-due diligence on 10 to 15 businesses, and proper due diligence on five businesses.
I have a reasonable amount of theory knowledge as well as consulting practice about the buying process but there is nothing like doing it yourself – especially when you have no money
Leroux Cilliers, repair company buyer
“Most of this was done before the initial purchase, but some has been done since I bought the firm,” he explains.
“I have a reasonable amount of theory knowledge as well as consulting practice about the buying process but there is nothing like doing it yourself – especially when you have no money.”
LeRoux’s circumspection is understandable given the personal risk he took. “I raised finance for the purchase mainly through personal assets – house and reserves,” he says.
After considering a range of industries, he decided on something that could support his existing work in property development – a general building business.
“The purchase was driven by our desire to restore and renovate property. We wanted to acquire the capability to do it ourselves, rather than use subcontractors all the time.”
Thorough research
LeRoux’s attention to detail was again evident in his search for information, and specifically, advice.
“I read as much as I could. I consulted all the small business support organisations, like the Federation of Small Businesses and Business Link – who were, in fact, probably the most helpful in terms of process.
“I also consulted with accountants, banks, financial institutions, and attended a BusinessesForSale.com seminar. That was really helpful and it definitely made a difference – I had several follow-up conversations with one of the people I met there.
“For actual hands-on buying advice, Richard Parker’s book How To Buy A Great Business is excellent – very practical, I have used it like the bible.
“I have emailed and consulted with him directly, which has been of enormous benefit to me.”
LeRoux emphasises that a bit of self-sufficiency can keep expenses down.
“It’s easy for me to talk to accountants and the like; however, this all costs money. I have tried to be resourceful, and when looking for advice to get it for free – so Parker was great.”
