Before You Buy or Sell a Business

In this episode of Before You Buy or Sell a Business, host Jared Johnson interviews August Felker, an entrepreneur with experience in buying and selling businesses, particularly insurance brokerages. August shares his journey from starting a search fund to acquiring his first business, the challenges he faced during the negotiation process, and the emotions he experienced as a seller. He also discusses his transition into supporting others in the acquisition process and provides insights into the importance of insurance diligence when buying a business.Key Takeaways:🔹Starting a search fund allows aspiring entrepreneurs to buy an existing business and become an entrepreneur without starting from scratch.🔹The negotiation process when buying a business can be emotional, and it's important to be prepared for the different waves of emotions that come with it.🔹Building a relationship with the seller is crucial, both during the negotiation process and after the sale, to ensure a smooth transition and ongoing success.🔹Conducting insurance diligence before buying a business is essential to identify any coverage problems or surprises that may arise after the acquisition.🔹Cold calling and building relationships with potential sellers can be an effective way to find proprietary deals and stand out from competitors.In this episode:00:00:00 | Introduction00:01:10 | August Felker discusses his background and experience in buying businesses00:03:04 | What is a Search Fund?00:06:05 | August Felker on finding and acquiring his first business00:14:07 | Deciding to sell00:16:38 | Advice for sellers00:20:11 | Transition from a traditional search fund model to a self-funded model00:25:10 | Consider the seller's needs to stand out as a buyer00:31:08 | Insurance is often at the bottom of the client's list, but they still have to deal with it00:37:04 | August Felker on what motivates him00:39:09:02 Closing remarks______________________________________________________________________If you have questions for Jared, visit JaredWJohnson.comDISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

In this episode, Jared Johnson interviews Ryan Hutchins, the founder of Peak Business Valuations. They discuss Ryan's background and journey into the world of business valuation, as well as the services provided by his firm. Ryan explains the different approaches used to value a business, including the asset approach, market approach, and income approach. He also shares insights on the importance of accurate financials, the role of inventory and equipment in valuation, and the challenges of valuing small businesses.Key Takeaways:Valuing a business involves assessing its cash flow, perceived risk, and comparable transactions in the market.The asset approach is typically used for businesses with significant tangible assets, while the market approach looks at comparable transactions in the industry.The income approach focuses on the cash flow generated by the business and uses a cap rate to determine its value.Accurate financials are crucial in valuing a business, and hiring a bookkeeper can help ensure that the financials are in order.Personal expenses and inventory should be carefully considered in the valuation process.Notable Quotes:"The value of any business is what a willing buyer and a willing seller hypothetically transact at, known as fair market value." - Ryan Hutchins"Your financials will impact not only the value of your business but also how long the process takes to sell your business." - Ryan HutchinsResources:Peak Business ValuationsRyan’s LinkedInLoopNetBizBuySell______________________________________________________________________If you have questions for Jared, visit JaredWJohnson.comDISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

In this episode, host Jared Johnson interviews Jesse Carlson, the owner of a FedEx business. Jesse shares his journey from working in the entertainment industry to becoming a business owner. He discusses the challenges he faced during the acquisition process and the importance of thorough due diligence. Jesse also highlights the key factors that attracted him to the FedEx business model and the lessons he has learned since taking over the business. This episode provides valuable insights for anyone considering buying or selling a business.Key Takeaways:Jesse's transition from the entertainment industry to the lending industry and eventually to owning a FedEx business showcases the importance of adaptability and the willingness to explore new opportunities.Thorough research and due diligence are crucial when buying a business. Jesse's extensive research and guidance from experienced individuals helped him make an informed decision.The FedEx business model offers stability and recession-proof potential, making it an attractive option for aspiring business owners.Building strong relationships with drivers and taking care of their needs is essential for the success of a FedEx business.Owning a business requires continuous learning and adaptability. Jesse emphasizes the importance of staying informed and being open to new challenges.Quotes:"I wanted to get something that was more stable, reliable, and recession-proof." Resources:LoopNetBizBuySell

In this episode of Before You Buy or Sell a Business, host Jared Johnson interviews John Hannum, the founder of PPS Solutions, about the importance of having a fractional CFO for small and growing businesses. John shares his insights on the biggest mistakes business owners make, the key things to focus on when selling a business, and the trends he has observed in the small to medium business market. He also provides valuable advice for buyers looking to acquire a business and discusses the role of a fractional CFO in improving a company's financial health and maximizing its value.For more information or to contact John, visit: https://www.ppsfinance.com/In this episode:00:00:00 | Introduction00:03:41 |John Hannum on starting PPS Solutions, fractional CFO services00:06:04 | Fractional CFOs offer operational expertise and act as financial partners to entrepreneurs.00:08:55 | Biggest mistake in finance: not using clean accounting information00:09:11 | Importance of cleaning up accounting and looking at accrual accounting00:11:35 | Importance of budgeting and cash flow forecasting00:14:20 | Importance of planning for business exit and maximizing value00:17:35 | Setting goals in the first year of a three-year period00:20:26 | Creating a good story for the business sale00:22:00 | Dealing with cash sales and creative ad backs00:23:46 | Educating business owners on the implications of tax fraud00:27:09 | Advice for buyers looking to buy a business00:31:45 | Motivation to help others achieve their vision00:33:21 | Closing remarks, contact information for John Hannum__________________________________________________If you have questions for Jared, visit JaredWJohnson.comDISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

In this episode of Before You Buy or Sell a Business, Eric and Joy Rose share their journey of buying a sushi restaurant in Salt Lake City. They discuss their backgrounds, including their experience working for the federal government and living overseas. They explain how they decided to buy a restaurant and why they chose a sushi restaurant. They also talk about the negotiation process and the challenges they faced in securing financing. Despite the obstacles, they were able to successfully close the deal and are now running the restaurant.About The Guest(s):Eric and Joy Rose are the owners of a sushi restaurant in Salt Lake City. Eric has a background in international relations and Russian language, and has worked for the federal government for nearly 20 years. Joy has a background in humanities and English secondary education, and is a licensed acupuncturist.Key Takeaways:Eric and Joy had a desire to own their own business and found a sushi restaurant that aligned with their interests.They had to navigate the negotiation process and secure financing to purchase the restaurant.The seller was willing to work with them to restructure the deal and make it more favorable for both parties.Building relationships and trust with the seller and the staff was crucial in the transition process.__________________________________________________If you have questions for Jared, visit JaredWJohnson.comDISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

In this episode of Before You Buy or Sell a Business, Scott Fournier shares his experience of buying a meat market business in Magnolia, Texas. He talks about his background, the process of finding and evaluating the business, and the financing and closing process. He also discusses the transition period and his plans for the future, including expanding the business and implementing new systems.Business | Ainsworth Meat MarketKey Takeaways:➡️ Scott's motivation for buying a business was to provide additional income for his family and have a project for his wife.➡️ He found the business online and was attracted to it because of his wife's interest in healthy eating and the potential for growth.➡️ The cash flow and potential for expansion were the main factors that influenced his decision to make an offer on the business.➡️ Scott advises spending time on due diligence and ensuring that the financials are accurate before making an offer.➡️ The transition period involved training with the previous owners and implementing new systems, which sometimes met with resistance from employees.__________________________________________________If you have questions for Jared, visit JaredWJohnson.comDISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Mark Basile, a CPA with a background in mergers and acquisitions, shares his experience of buying a landscape business. He discusses the challenges and successes of the acquisition, the importance of due diligence, and the need for a clear exit plan. Topics include finding the right opportunity, managing a large number of employees, obstacles in the landscape industry like price undercutters, and the role of mentors in achieving financial stability.

In this episode of the Before You Buy or Sell a Business podcast, Jeptune Lupiter shares his journey of buying a restaurant and the challenges he faced during the process. He talks about his background in the restaurant industry and how he decided to look for a business to buy. Jeptune discusses the importance of properly managing finances and being transparent with lenders. He also emphasizes the need for focus and determination in running a business. His goal is to grow the restaurant brand and potentially acquire more businesses in the future.About The Guest:Jeptune Lupiter is a restaurant owner and entrepreneur based in Las Vegas. He has a background in computer science and international business and has worked in the restaurant industry for several years. Jeptune is passionate about growing businesses and is focused on expanding his restaurant brand.Key Takeaways:Season your money and ensure it is properly documented before buying a business.Be transparent about any personal or financial issues that may affect the acquisition process.Laser focus and determination are essential for success in business.Building relationships with employees and maintaining a positive work environment is crucial.Consider expanding your business and acquiring additional locations to grow your brand.______________________________________________________________________If you have questions for Jared, visit JaredWJohnson.comDISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

About The Guest:Tommy Speigner is an experienced IT professional with a background in sales and technical knowledge. He has worked in various industries and has a passion for entrepreneurship. Tommy is currently based in Las Vegas and is actively looking to buy a business.Summary:Tommy Speigner, an IT professional with a background in sales, shares his experience of trying to buy an art framing business in Las Vegas. He discusses his background, how he ended up in the business world, and his decision to buy a business instead of starting one from scratch. Tommy talks about the art framing business he was interested in and the potential for growth in the industry. He explains the negotiation process, due diligence, and the challenges he faced when the deal fell through. Despite the setback, Tommy remains optimistic and is looking forward to finding the right business opportunity in the future.Key Takeaways:Tommy Speigner decided to buy a business instead of starting one from scratch, realizing the potential for growth and the benefits of acquiring an established business.He identified opportunities for growth in the art framing business, such as offering delivery and installation services and expanding into digital art.The negotiation process involved adjusting the valuation based on updated numbers and the impact of the lease on expenses.Due diligence was a learning experience for Tommy, as he gathered and analyzed information to understand the business's financials and operations.The deal fell through due to a significant increase in expenses, including labor costs and lease terms, which affected the business's profitability.______________________________________________________________________If you have questions for Jared, visit JaredWJohnson.comDISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

About The Guest:Ron Quinn is the founder of Accelerated Law Group, a law firm that specializes in business transactions. With over 22 years of experience, Ron has handled thousands of transactions, ranging from small businesses to multimillion-dollar chains. He is known for his expertise in business law and his commitment to providing excellent service to his clients.​SummaryIn this episode, host Jared Johnson interviews Ron Quinn, the founder of Accelerated Law Group. Ron shares his journey into the world of business transactions and discusses the services his firm provides. He emphasizes the importance of choosing an escrow company that understands the intricacies of business transactions and offers advice for buyers and sellers. Ron also explains the differences between asset purchases and stock purchases and highlights the need for due diligence and careful consideration of tax liabilities. He concludes by sharing some of the craziest experiences he has had in his career.Key TakeawaysWhen choosing an escrow company, it is crucial to find one that specializes in business transactions and understands the unique challenges they present.Due diligence is essential for buyers and sellers to ensure they are aware of any potential liabilities or issues with the business.Stock purchases and membership interest purchases can be more complex than asset purchases and require careful consideration of contracts and tax liabilities.Buyers should be cautious about making significant changes to a business immediately after acquiring it, as this can disrupt operations and alienate employees and customers.Communication is key in business transactions, and all parties involved should stay in touch and keep each other informed throughout the process.If you have questions for Jared, visit JaredWJohnson.com or connect with Jared on LinkedIn.DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.