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I saw that someone ran a search for this term so I decided I should deal with this subject. Why do people want to buy into a company? First what exactly is "buying into a company"? Buying into a company means an individual invests a significant amount of money into a private company and comes away with a significant, although minority, interest. He will also get whatever payments and perks ...

Background on Guarantees One of the biggest decisions you will come across when buying a business is choosing between recourse and non-recourse financing options. First let's define what we are talking about. Typically a non-recourse loan is one in which the lender looks to the company to pay the loan and cannot go back to collect from the principal. Recourse financing is one in which they can go back and ...

A subscriber asked me the other day why I did not recommend buying a software company. In fact, I do recommend buying a software company... if it is cheap. However for first, or even fifth time buyers I think it is a good idea to stay away from high tech companies in general for a number of reasons. Software companies may or may not be high tech companies.  I have ...

I have had folks ask me over the years about how to deal with bad credit when buying a business. In fact what can motivate buyers  to buy a business is bad credit. Moreover, life changes, job situations and money problems can be the driving force to thrust one into a different direction to develop a career. Buying a business is an automatic career of your own choosing.  So it ...

Here is something not everyone understands about Small Business Acquisitions.  There are really two major phases of the process which need to be dealt with separately.  There is the first phase. This is the part where you are just starting out and must find deals, collect information, analyze information, conduct visits, meet people, network, make offers and ultimately get to a signed letter of intent. Then there is the second ...

In much of my content I talk about "bootstrapping" a deal. This is a better way of saying you have no money, no resources and you want to buy a company. So let me talk about the ten key ingredients of a bootstrapped deal. Rather than a definition, these are factors that you hope and need to be present to complete your deal.  Some should be present, maybe not all, ...

"Yes, there are two paths you can go by, but in the long run There's still time to change the road you're on." ........Led Zeppelin, Stairway to Heaven After a dialogue with a long time subscriber I feel compelled to write a piece on exactly who we are and who we are trying to become -- if I may be philosophical.  The question was asked as to why "entrepreneurs" don't ...