Ready, Set, Acquire: How to buy a business

Have you ever wondered how the magic of buying a business actually happens?

I’m Jason Andrew, and this is Stark Naked Numbers. It’s the podcast that strips down the numbers of business, investing and wealth creation to help you become a better entrepreneur and a better investor, and ultimately build your net worth. 

In this episode, I unravel the step-by-step process of acquiring a business, and reveal the nitty-gritty of how these deals go down. Whether you’re a seasoned investor or considering your first venture into business ownership, this one’s a must-listen.

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To learn more about uncovering your financials, unlocking your cash and unleashing your cash, visit starknakednumbers.com.

Show Notes:

(01:18) - Understanding mergers and acquisitions

(02:35) - The five key phases of the business buying process 

(06:49) - Fixed price vs. multiple of profit pricing strategy – which one works best?

(08:39) - Buying shares vs buying assets – what’s the smarter choice?

(11:40) - Navigating the intricacies of working capital

(14:25) - What does exclusivity in deals actually mean?

(14:50) - Why structuring your deal is just as important as price

(16:41) - Exploring the three most common forms of deal structuring

(34:33) - Post acquisition – Strategies for managing existing staff

(36:08) - The four types of due diligence every buyer should perform

(40:41) - What’s involved in the legal phase of the acquisition process?

(45:41) - How to run your new business