Stay Paid Podcast 430 - The Secrets of Buying a Business: What You Need to Know
Right now, there is a huge number of baby boomers who are looking to get out of their businesses but have no one to pass them on to. This situation creates a tremendous opportunity for investors and sellers alike. Whether you're on the selling or buying side of a transaction, this episode of Stay Paid has all the information you need. John Turner serves as vice president of Investment Advisory Lending at Live Oak Bank, and he joins us to discuss some of the more important factors—and a cautionary tale—the different parties should consider before settling on an agreement.
Be sure to check out our show notes at staypaidpodcast.com for more in-depth information and added details not included in the episode.
Connect | Resources
John’s phone number: 651-212-0141
John’s email address: john.turner@liveoakbank.com
Website: liveoakbank.com
0:00 Introduction
1:28 Interested vs. qualified buyers
3:55 Finding a business for sale | Lists vs. relationships
4:42 3 ways to create a list of businesses to buy [Golden Nugget]
6:05 3 ways to vet your list of businesses to buy
6:43 How approach a potential business seller
8:49 Acquisition, organic growth, and fail rate
10:22 Purchase based on revenue or EBITDA
15:08 Caution to those selling private equity business
16:34 Massive opportunity exists to buy businesses
17:13 More tips for finding and closing the deal
19:25 John’s advice to younger John
21:55 Action Item