David C Barnett Small Business and Deal Making M&A SMB 90 Day To Deal- Express Small Business Acquisition - 6 Key Takeaways (1)
Oct 23, 2024
Discover how to buy a business in just 90 days with insights from a compelling case study. Learn the importance of due diligence while navigating the transition from real estate to a garage door service. Understand why cash flow forecasting is crucial and how mispricing can lead to costly mistakes. The discussion emphasizes the need for thorough research, accurate valuations, and the role of emotional intelligence in the acquisition process. Prepare to be inspired to take your entrepreneurial journey to the next level!
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Rapid Acquisition Story
- Brittany and her husband found a garage door business on BizBuySell and went under contract within 90 days of hearing about acquisitions.
- They used an SBA loan, seller financing, and minimal down payment to close quickly on a ~$1M deal.
Hidden Risk And Survivorship Bias
- Small privately controlled companies are the riskiest asset class due to liquidity and external risks.
- Survivorship bias online hides many acquisition missteps and creates false expectations of ease.
Buy From Motivated Sellers
- Seek sellers who have a clear motivation to sell because motivated owners create better buying opportunities.
- Avoid buying well-run, profitable businesses from owners unwilling to part with them without strong reasons.