Everything You Need to Know About Buying a Business

Andy and Jessica welcome you to the third part of the series in regard to buying a business. While transiting through the COVID-19 crisis the market has turned into a buyers' field. This series is meant to bring together all the best information from previous episodes that buyers must have in order to be prepared to buy a business. You will hear about topics such as growth through acquisition, financing options, demographics, baby boomers, and the result of what is going to happen post-COVID-19, among other great valuable information for buyers and businesses interested in expanding. Listen to this episode for some timeless information about how to buy a business, resources, and tactics. Listing of the week: Chris "Chip" Redmond (Central Florida) is selling a seven-chair Barber Shop and two chairs in the back area set up for tattooing. The owner wants to move to a different business. Price: $20,000. 2019 earnings: $34,000. Call Chip at (321) 299-6867 or email [email protected] Key takeaways: [4:40] Poor books and records can kill a deal. [6:02] What to do if you don't have good books and records. [7:23] Have a good CPA and stop hiding cash. [8:45] Erin Bean talks about a case of a Nail Salon in Florida. [10:46] Deal of the week: Steven Hanson (San Diego) sold a business from a couple who created an accessory that could be used in all types of vehicles. They had brought their product into the market and wanted to retire. The buyer came from a similar industry. [13:55] Ross Haymes brings a case from a pavement repair company that kept great records. [16:28] Ross gives advice to sellers who have significant add-backs in a deal. [17:24] Linnea Westlake talks about overcoming challenges with poor books and records. [21:53] Deal of the week: Raymond Copell recently sold an insurance business for three times the book value. Clean books and records were substantial to get the deal done. [25:51] Many businesses rely on seller financing. [29:13] Everybody wants to leverage their money. [30:22] What is seller financing? [31:46] Andy talks about the flexibility involved in seller financing in opposition to the bank's terms and conditions. [32:43] Andy shares how seller financing is a tool to purchase a business. [35:40] Deborah Carman (Boca Raton) attorney [36:40] 20% to 30% of the deals are cash. [37:02] Buyer feels he is a partner with the seller when there is seller financing. [38:08] Creativity is needed when structuring a deal. [39:15] How is the seller protected? [41:07] Communication is the best way to resolve issues between sellers and buyers. [44:45] Listing of the week: Chris "Chip" Redmond (Central Florida) is selling a seven-chair Barber Shop and two chairs in the back area set up for tattooing. Price: $20,000. 2019 earnings: $34,000. [47:01] Andy and Jessica explain why having a legal partner is essential in a deal. [52:13] Jonathan Langer, from Izbiky and Associates, Colorado. [52:31] Jonathan shares examples of legal issues that buyers should be prepared for. [54:42] Everything starts with a letter of intent; Jonathan shares other documents that could be needed in a deal. [57:45] The biggest risks while buying/selling a business and how to protect yourself from a legal standpoint. [1:02:01] There are different market terms for each transaction. [1:03:03] Jonathan explains the issue of different style alignments. [1:04:39] Look for an attorney who is according to your market segment. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us [email protected] Email Ray Copell at [email protected] or call (954) 464- 6290. Get in touch with Deborah Carman phone: 561-392-7031 or email: [email protected] Call Chip Redmond at (321) 299-6867 or email [email protected] Call Jonathan Langer at (303) 850-7080 or email [email protected]

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