Discover the seven costly mistakes buyers often make when acquiring a business. Learn why due diligence is crucial and why conventional online advice might mislead you. Delve into the importance of quality of earnings reports, especially for small businesses, and how they can shape your buying strategy. The discussion emphasizes the need for meticulous planning, emotional control, and tailored research to avoid pitfalls. Gain insights on preparations you should make, including understanding products and valuable resources to streamline your acquisition process.
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volunteer_activism ADVICE
Tailor Due Diligence to Business
Do proper due diligence tailored to the industry and business type when buying a business.
Involve a CPA to identify key review areas, but personally examine details to learn the business and save costs.
question_answer ANECDOTE
Broker Error Leads to Overpayment Risk
A buyer almost overpaid for an HVAC business due to a broker's mistake inflating earnings.
The buyer had no industry experience and was influenced by hype without understanding typical margins.
volunteer_activism ADVICE
Check Working Capital Carefully
Analyze working capital needs including inventory and net current assets before buying.
Confirm what working capital is included in the deal and budget for any additional capital requirements.
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21 Stupid Things People Do When Trying to Buy a Business
21 Stupid Things People Do When Trying to Buy a Business
Second Edition
David C Barnett
David C. Barnett's "21 Stupid Things People Do When Trying to Buy a Business" is a practical guide for aspiring business buyers. The book highlights common pitfalls and offers actionable strategies to avoid costly mistakes. It covers due diligence, negotiation, financing, and post-acquisition integration. Barnett's experience as a business broker informs his advice, making the book a valuable resource for anyone considering purchasing a business. The book emphasizes the importance of thorough planning and understanding the intricacies of the business acquisition process.
***New Video Alert!
Today, I run down a list of mistakes I see people do when buying a business and let you know how to avoid most of them.
These are not the bits of advice that you’ll hear from most online ‘buy a business’ content.
Watch this week’s video here: https://youtu.be/b_KLvF_j11c
Cheers
See you over on YouTube
David C Barnett
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