Matt recently wrote into the show to ask about best practices for buying a business, and more specifically his uncle's pest control business. Matt has worked in the business some, and has an opportunity to buy the business, but isn't sure about the best way to go about it -- generating a letter of intent and purchase agreement, how to value the business, how to stucture terms, financing, etc. Mitchell and Scott review his email and offer advice for aspiring business owners in a similiar situation, sharing their own successes as well as lessons learned from deals gone wrong.
One key takeaway -- once you decide you want to buy the business, get the purchase agreement signed as soon as possible. Don't delay! Many people in similar situations have gotten with a verbal agreement to buy the business, but the owner procrastinates, the papers never get drafted and executed, circumstances change, and the deal never comes to fruition. The potential purchaser wastes months and years with nothing to show for it. You owe it to yourself and your family to get serious about making a deal, or move on and look for the next one.
Get in touch with the show!
Email: show@stupidtaxpod.com
Mitchell Baldridge
Twitter: @baldridgecpa
https://baldridgecpa.ck.page
https://baldridgefinancial.com
Scott Hambrick
Twitter: @hambrickscott
IG: @ogscotthambrick
https://onlinegreatbooks.com
https://scotthambrick.com
