What makes us different? The deals I am talking about are larger than retail stores, pizza restaurants and other typical small market transactions. We do small leveraged buyouts, that is, a buyout using financing based mostly on the strength of the target business. This allows us to buy a company in the small and middle markets using sophisticated big buyout techniques. Our target company size is $1.0 Million in sales on up to $25 Million depending on what sort of resources we can pull together. Can the average person buy one? Sure, but like anything it takes work and you need to go up the learning curve. That’s where we can help. So Start Here and good luck with your new career!
Because I’m Such A Nice Guy
Do you have any idea what it takes to teach people for years about how to buy a business? I write and write and hopefully you all learn. The stuff in this blog is but the tip of the iceberg. Its the free stuff (and its a lot of free stuff). I don’t have time to write 20 pages on each topic so I throw a post up in my spare time. There is so much more to put out there. Which is why I am going to add more videos and products. I love all you subscribers and appreciate your questions and all the feedback that my free book has helped you. That book too is the tip of the iceberg. Hopefully you are doing what I teach and networking with brokers and getting out to visit businesses. And just to show you what a nice guy I am going to give you a quick primer below of what it takes to buy a business.
How To Buy A Business Without Wasting Your Life On It.
Buying a business can be a long process and it can consume too much of your time if you let it. There are any number of factors working against you along the way. Sellers, for example do not have to sell, but you, on the other hand, have to buy. So you are saddled with urgency while the seller can sit back and collect his paycheck, never ever making a decision. Bankers and other professionals can all take the year off and still have a job – so they don’t need to help you if they aren’t motivated. The search process can be protracted and send you off on wild goose chase every week. Seasoned business buyers short cut the process as much as possible and here are a few tips that will do just that.
1. Stop getting ready. The time and place to start the search for a good business is now. The time is now. If you believe you aren’t prepared to buy a business then you aren’t in the right mindset. The less you know the better. Only with practice comes proficiency and you will understand the deal business after get out there and talk to sellers and brokers.
2. Stop visiting companies. When you have enough visits under the belt save yourself some time by using the phone and email to reach out to new companies and brokers. Visiting companies takes time which you don’t have. It is a routine necessity especially when you have a hot lead, but the vast majority of your time should be spent with the most efficient communication route.
3. Stop spinning your wheels when the deal isn’t even ready. Sellers are usually not ready to sell. They don’t have a broker who can advise them, they are unprepared with proper financials and they haven’t even thought how much money they want. Do not waste time on deals until you have a complete file with current information. And you have a firm asking price and proposed structure from the seller or his broker. Get the broker to assemble the information and nail down the pricing. If the deal isn’t ready move on to the next.
4. Do not hesitate to move on. As soon as you have the numbers you are in a position to make the offer. I used to put it off making the offer but that is a time waster. If you encounter a good deal make the offer with a draft letter which doesn’t commit you to anything. This puts the ball in the seller’s court and gives you immediate credibility. If you are too far apart on price and structure move on to the next deal.
5. Stop procrastinating the process of finding financing. Always use 20% of your time to scout out financing sources along the way. Do not wait until the last minute to find financing sources. Cultivate them and find out their programs. Build those relationships. That way you will be ready with financing when the deal is.
6. Do the leg work yourself. Most of the tasks needed to close a deal can be completed by you. And you are the most motivated person in the deal. You collect due diligence, you negotiate with the seller, you find the financing. You can prepare business plans. In some cases you can even do some of the legal work. This will all save you money and time. Don’t be afraid of moving forward, you will get the hang of it with a few months of hard work.
