By: Joshua Finley
Mitja Sadar, a seasoned finance professional, leverages his extensive expertise to assist startups and scale-ups in building robust finance teams and securing financing. As the CFO and a founding member of SKROL, Mitja is dedicated to empowering SMBs through economies of scale, digitalization, and best practices. With over 15 years in finance, including a remarkable track record of raising over €1.6 billion in debt financing and €190 million in equity financing for companies like Grover and Kreditech, Mitja’s insights into business acquisition are invaluable for aspiring entrepreneurs.
Finding the Right Fit
Mitja emphasizes the importance of honesty and self-awareness in the business acquisition process. “There are around 500,000 companies for sale in the US alone,” he notes. “Companies come in all shapes and sizes. It becomes extremely important to see what works for you.”
Before diving into potential deals, it is crucial to narrow your search. “You need to narrow down the fields to maybe 500 deals or so,” Mitja advises. This involves understanding your strengths and weaknesses, the price you are willing to pay, and the type of business that aligns with your skills and goals.
Knowing What You Want
Understanding the type of business you want to acquire is a critical step. “Some companies are 100% owner-dependent, while others can be run absentee,” Mitja points out. Your skill set and personal circumstances will significantly influence this decision. For example, if you prefer hands-on management, an owner-dependent business might be suitable. Alternatively, if you seek a more passive role, an absentee-managed business could be a better fit.
Assessing Your Strengths and Weaknesses
Mitja emphasizes the importance of self-assessment. “You need to ask yourself, is this what I want to do for the next 5-10 years? Do I have the time? I may love it, but will it work with my plan for the rest of my life?” Understanding your capabilities and limitations will help you choose a business that not only aligns with your skills but also fits into your lifestyle.
Crafting Your Vision
Having a clear vision for the business is crucial. “See where you want to take the business,” Mitja advises. “Everyone has different motivations and goals.” For instance, some business owners optimize for personal comfort rather than efficiency or profit. Knowing what you want to optimize for—whether scaling, profitability, or personal satisfaction—will guide your acquisition strategy.
Mitja highlights the importance of long-term commitment and realistic expectations. “You shouldn’t underestimate the amount and commitment that buying a business will require.” Whether you plan to grow the business, turn it around, or maintain it for steady cash flow, your vision will shape your approach and actions.
Final Thoughts
Mitja Sadar’s advice on business acquisition is grounded in his extensive experience and success in the finance industry. For those looking to venture into business ownership, his insights are a valuable guide. As Mitja aptly puts it, “First, you need to start with yourself and be honest with yourself. Is this right for me? Can I do this? Do I want to do it?” By following these principles, aspiring entrepreneurs can navigate business acquisition and unlock their full potential.
Get in touch with Mitja by visiting his LinkedIn or SKROL’s website.
Published By: Aize Perez
