How To Buy A Business That Is Not For Sale

Many of my posts focus on businesses that are for sale – as opposed to not for sale, or never thought about selling. These for sale businesses are usually represented and listed by brokers. In some cases these are main street brokers, in some cases big deal shops and M&A intermediaries and even real estate brokers in states like Florida.

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More on NOI, EBITDA, EBIT, SDCF, NPAT and other strange terms

I love talking about profits. The abbreviations above are all well known calculation methods for profits. Or cash flow depending on what you are looking for. I refer back to Pablo’s theorem of the difference between the two: “net profit is an opinion, cash flow is a fact”. This is to say that net profit is a number generally tainted with accounting principles, and subject to debate, while cash flow either exists or it doesn’t. Semantics. In this case the opinion is just as useful as the fact unless of course any numbers are substantially misrepresented.

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Business For Sale Sites – For Better or Worse

I am going to provide my perspective on the world of brokers and their respective websites. Or perhaps the websites and their respective brokers. Both exist in big numbers. I usually start with big search engines such as Bizbuysell, where you can find loads of businesses for sale and the contact info for the brokers that represent them. There is also Bizquest, which does pretty much the same thing and I think is owned by the BBS people. There is also Globalbx and a whole bunch of others which you can easily run a search for.

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How to Buy a Business Which Has Debt.

Unfortunately most businesses have some kind of debt on the statement. Buyers don’t always know what to do when they see it. When I say statement I mean financial statement and by that I mean balance sheet. Most companies have some sort of loans, liabilities, or other types of contingencies on the balance sheet. It comes with the territory. This is what happens when you own a business. You are almost certainly going to have some liabilities on the balance sheet. But what effect do those liabilities have in a sale of the business? In fact the effect is dramatic and may well interfere with or even break up the deal. So how to buy a business what has debt or what to do when you encounter one?

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