Before You Buy or Sell a Business

Jarryd Osborne shares his experience in searching for a business to buy and the challenges he faced along the way. He emphasizes the importance of building rapport with sellers, finding the right lender for financing, and conducting thorough due diligence. Jarryd also discusses his transition from searching for a business to becoming a business advisor.Key Takeaways:➡️Building rapport with sellers is crucial in the acquisition process.➡️Finding the right lender is important for securing financing.➡️Thorough due diligence is necessary to ensure a successful acquisition.➡️Transitioning from searching for a business to becoming a business advisor can be a natural progression.To connect with Jarryd Osborne, you can find him on Twitter at SMBKapital or on LinkedIn as Jarryd Osborne. 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:Alina Joseph is a business owner and entrepreneur who has acquired two businesses and is in the process of selling one. She has a background in finance and law, with an MBA and JD degree. Alina has experience in mergers and acquisitions and has a passion for helping others navigate the business acquisition process. Currently, Alina is the owner and CFO at MunchPak, a snack delivery service.Summary:Alina Joseph, a business owner with experience in acquiring and selling businesses, shares valuable insights in this podcast episode. She emphasizes the importance of thoroughly evaluating a business before buying, understanding the financials, and managing people effectively. Alina also highlights the need for transparency and thorough review of documents during the acquisition process. For buyers, she advises evaluating if the business is a good fit and aligns with their financial goals. For sellers, she recommends keeping clean books and staying on top of financial records. Alina's experiences and advice provide guidance for both buyers and sellers in the business acquisition process.Key Takeaways:Evaluate a business based on its profitability and growth potential.Understand the financials and key players in the industry.Be patient and wait before making significant changes to a newly acquired business.Thoroughly review all documents and contracts before signing.Be prepared to manage people and their expectations.Quotes:"Just because you have high revenue doesn't mean your cash flow is healthy." - Alina Joseph"Wait before making changes and get people's buy-in." - Alina Joseph"Do your own homework and evaluate the business properly." - Alina Joseph"Be transparent and thorough in your due diligence." - Alina Joseph"Stay engaged and keep working at it even when you're ready to sell." - Alina Joseph—---------------------------------------------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 the Before You Buy or Sell the Business podcast, host Jared Johnson interviews Jim Ely, an expert in SBA lending and a NAGGL instructor. Jim has been in the lending industry for over 39 years and has a wealth of knowledge about the acquisition process and recent transactions.OverviewIn this interview, Jim shares his experiences in the lending industry and provides insights on the SBA loan process. He discusses the development of the secondary market product, his background in bread and butter, and how he became an instructor for NAGGL. Jim also talks about his upbringing in Southern California, his time at UCLA, and how he got into lending. Additionally, he shares his experiences owning and operating businesses and emphasizes the importance of understanding the motivations of sellers when buying a business. Jim also sheds light on the State of California Infrastructure and Economic Development Bank's loan guarantee program, which complements the SBA loan program.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.

Jeff Solomon, a successful entrepreneur who has acquired multiple businesses, shares his journey into restaurant entrepreneurship, the importance of prioritizing quality over cost, and offers advice for potential buyers. In this episode of the Before You Buy or Sell a Business Podcast, host Jared Johnson interviews Jeff Solomon on his experience from running casinos to sushi restaurants. Solomon emphasizes the importance of thoroughly researching the industry and the specific business they are interested in and building a strong team of advisors. He stresses the importance of learning from past experiences and taking calculated risks in entrepreneurship. Having worked on a deal together, Jared and Jeff discuss the experience of negotiating with the seller of Jeff’s first restaurant business, who was initially stubborn about the purchase price. Jeff highlights the importance of due diligence when acquiring a business and recommends focusing on labor, marketing, overhead, and revenue numbers. Solomon and his team use a software program to track food costs and adjust prices accordingly. He advises buyers to look beyond the financial statements and dig deep into the business to uncover potential issues.Solomon stresses the importance of keeping a close eye on costs and finding ways to take out expenses that are not adding value. He suggests that taking calculated risks and constantly examining costs can lead to success in entrepreneurship. Solomon also believes that driving enough revenue can cure most issues in a business.In addition, Solomon discusses the importance of customer experience and quality in his restaurants. He does not sacrifice quality for short-term cash flow and believes that fixing issues now will save money in the long run. He advises buyers to look for brokers who are honest and have high standards.Solomon's experience as an entrepreneur highlights the importance of research, due diligence, and calculated risk-taking in the world of entrepreneurship. He stresses the importance of keeping a close eye on costs, finding ways to add value, and prioritizing customer experience and quality. Not only does Solomon emphasize the need to stay up-to-date with industry trends but also the ability to be open to new opportunities for growth. Furthermore, he suggests that potential buyers consider involving friends and family as investors, but cautions that it can be more complicated without these connections.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 the podcast "Before You Buy or Sell the Business," host Jared Johnson interviews Eric Hooiman, the now-owner of the oldest glass company in Las Vegas, on how he turned around the business to become successful. Eric was a long-time gold miner with experience in designing and installing fire suppression systems. The conversation is casual and friendly, with Jared expressing his admiration for Eric's recent deal. They discuss Eric's background and career in the industry, including his college experience playing midfield for Coos Bay on a Fulbright scholarship.The podcast aims to help buyers and sellers learn more about the acquisition process. Eric Hooiman found a glass company on BizBuySell that he and Jared decided to acquire. The company was the oldest glass company in Las Vegas and had an unlimited contractors license. Although the company had gone through three generations inside a family and was sold outside the family, the owner passed away from COVID, and his daughter inherited the company. Eric was interested in the deal because of its distressed situation, and the seller had dropped the price.The conversation also touches on the negotiation process and the initial pricing of the company. Jared Johnson and Eric Hooiman discuss their due diligence process when considering a company for acquisition. Hooiman emphasizes the importance of seeking advice from professionals and staying in one's lane. He shares that he consulted with his CPA and financial advisor, as well as conducting his own research on the company's financials to determine areas where they were losing money.Eric Hooiman provides more advice on acquiring a business, including the importance of transparency and utilizing employees as a resource. He also emphasizes the significance of implementing changes one step at a time and getting buy-in from employees. The conversation also touches on the difficulty of finding good employees and the importance of company culture in retaining them.Hooiman also talks about his future plans, which include stabilizing his current business and buying another one. Eric believes in the importance of having mentors and attends Tony Robbins events. He emphasizes the importance of adding value when seeking a mentor or learning from someone. To Eric, people are willing to give advice and help as long as the person seeking advice listens to them.Overall, Eric Hooiman's experience in gold mining and fire suppression system design, as well as his personal relationships and determination, have helped him successfully acquire a distressed business and turn it around. His emphasis on company culture and adding value to others provides valuable lessons for anyone looking to acquire and run a successful business.If you have questions for Jared, visit JaredWJohnson.comConnect with Jared on LinkedIn.Follow Jared on Instagram.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.

In this podcast episode, host Jared Johnson, welcomes Ken Kirkpatrick, a business acquirer who has acquired multiple businesses and is always on the lookout for more. First StepsKen graduated from UNLV with an accounting degree and worked for Citibank before joining KPMG, where he got certified as a CPA. After three years with KPMG, he was approached by a small group of casinos looking for a comptroller/CFO and decided to take the plunge into the casino business, where he worked for 15 years. Ken describes himself as cautiously optimistic and always looking for new opportunities to acquire businesses.In this continuation of the conversation, Ken Kirkpatrick talks about his work experience, which includes working in the gaming industry and trying different industries, including consulting and manufacturing. He worked for an individual who owned about 15 locations in town, bars and restaurants, and one main casino and hotel. He was treated very well and acted as the owner's personal CPA, ensuring that the financials were sound. Ken also discusses the intense nature of the gaming industry and the control standards that must be met to keep everyone happy on the Gaming Control Board side.Running a Non-medical Home Care FranchiseKen discusses how he transitioned from working for someone else to buying his own business, a non-medical home care franchise in South Texas. He also talks about the impact of COVID-19 on the home care industry and the challenges of being a private pay business. Kirkpatrick shares advice for anyone looking to buy a business, emphasizing the importance of buying receivables and having working capital. He also discusses his plans to relocate to South Texas before ultimately deciding to commute between Texas and Las Vegas.Manufacturing Laboratory DevicesThe conversation continues with Jared and Ken discussing the process of appraising businesses and the importance of not overpaying. Kirkpatrick shares his experience of buying another business, MSI Products, after feeling bored in Las Vegas and looking for a small business to work on when he's in town. The company sells laboratory devices and had been owned by a family in San Diego who put it up for sale after the previous owner passed away from cancer. Kirkpatrick quickly responded to the ad and was one of the first to look at it, eventually buying it. Negotiations for this company were straightforward, and the buyer paid almost the full asking price while also obtaining an SBA loan and a small owner's loan held back. The quality of the product is superior, making it difficult to get knocked off in China. The conversation also emphasizes the importance of understanding accounting and finances for small business owners.Acquiring a Live Pet StoreSeeing the potential for growth, Ken acquired a live pet store franchise that was located near his home. Despite the high price, he recognized the store's outstanding numbers and potential for growth, especially during COVID, which saw a rush in pet purchases. Ken also mentions that the Southern California market does not have a real-life pet store due to state law, and he plans to expand his business to cater to that underserved market. He emphasizes his desire to serve the community and provide a trustworthy source for people to get healthy, well-bred puppies for their families.Ken’s Outlook on His Entrepreneurial JourneyAs a successful entrepreneur, Ken revealed that his motivation to succeed and provide for his family stems from growing up poor and wanting to create a better life for himself and his loved ones. He also shared that his experiences in the casino business taught him the importance of hiring the best people and treating them with respect and that he tries to create a family-like atmosphere in his own businesses. Kirkpatrick emphasized the need for humility and valuing the opinions of his employees, who have a better understanding of the day-to-day operations.------------------------------------------------------------------------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.

Thank you for listening to the Before You Buy or Sell a Business podcast.In this episode, host Jared Johnson sits down with M&A attorney Scott Oliver. Scott is an attorney with the Lewis Kappes law firm. Jared and Scott discuss the legal aspects of buying and selling a business, specifically with SBA lending. They also touch on Oliver's background, including his education at Purdue and IU law school, and how he ended up at Lewis Kappes. The conversation is lighthearted, including a bit of banter about the pronunciation of the firm's name.Scott talks to Jared about legal considerations when buying or selling a business. He advises buyers to hire an attorney experienced in M&A transactions and in SBA lending, cautioning against hiring a large law firm or an attorney unfamiliar with the specific type of acquisition. Additionally, Scott emphasizes the importance of building a deal team with the right expertise to ensure a smooth transaction.This episode also touches on the nuances of a stock vs. asset purchases, including liability considerations and tax implications. Scott Oliver explains that in an asset sale, the buyer is purchasing equipment, machinery, and goodwill, but the seller usually retains liabilities such as debt and lawsuits. In contrast, a stock sale involves acquiring the company as it exists, along with all its issues and employees. Jared Johnson asks about how to determine which type of sale to pursue, and Oliver advises consulting with attorneys and tax professionals. They also discuss the importance of lenders considering whether stock certificates are involved and taking them as collateral if necessary. Overall, Oliver emphasizes the need for a customized checklist to ensure all necessary steps are taken for each specific deal.We hope you enjoy this episode.To contact Scott: SOliver@lewiskappes.comFor questions, visit https://jaredwjohnson.com/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.

In this podcast episode, host Jared Johnson interviews business acquisition expert, Rob Lichfield, where they share insights and tips about what to consider when acquiring a business. The conversation primarily centers around their experiences in the FedEx industry, but they also cover other topics such as due diligence, managing employees, and the SBA loan process. So, whether you're a first-time buyer or an experienced business owner, this blog will provide valuable information that can help you navigate the world of business acquisition.Rob Lichfield’s BackgroundRob Lichfield grew up in southern Utah. He’s been on a Mormon mission to Massachusetts, and worked in a commercial bank with his dad. Lichfield also talks about living on the beach in Puerto Penasco, Mexico, which he describes as a cool and inexpensive place for American expats to live. The Challenges of Owning a FedEx businessRob Lichfield discusses his attraction to the FedEx independent service provider model, which is highly competitive and has undergone many changes over the years. But Rob shares his insight on the challenges of owning a FedEx route and how the company has made it difficult for owners to make a profit. Jared and Rob also touch on the SBA's approval of FedEx as a licensing agreement rather than a franchise, which opened doors for SBA loans. Overall, Rob advises that someone looking to invest in a FedEx business should consider being an owner-operator rather than a semi-absentee owner.Buying a Winning BusinessThe conversation continues with Rob Lichfield discussing the importance of buying a winning business and not making too many changes. He compares it to a relay race where one must not drop the baton. Rob talks about the risks of making changes when buying a business, as it can lead to a loss of culture and status quo, resulting in the business going out of business. Having acquired multiple businesses, Rob emphasizes the importance of learning the business before buying and mentions how his brother learned through delivering with his crew for six weeks.ConclusionFinally, Jared and Rob briefly discuss a restaurant acquisition that Rob found through BizBuySell.com when he was looking to get out of the FedEx space. The business Rob acquired, Protein Source, is a healthy, fast casual restaurant that serves protein shakes and healthy protein-based meals, mostly meat-based, with vegetarian and vegan options. They have repeat customers who are into fitness and healthy lifestyle. The business averages about $7,000 in sales a day and $50,000 a week between its two locations.Rob enjoys being a good employer and that’s what drives him to keep going.==================================================================If you have questions for Jared, visit JaredWJohnson.comor connect with Jared on LinkedIn or Instagram.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.

In this podcast episode of Before You Buy or Sell a Business, host Jared Johnson interviews Lyndsey Davino, a business broker based in Las Vegas. Davino shares how she got into business brokerage, starting with her background in commercial real estate and property management. She discusses the challenges and excitement of the industry, and how it never gets boring. Johnson and Davino discuss the recent transaction of a pest control business as an example of market price analysis and how a lender evaluates it for financing. Lyndsey explains the concept of a market price analysis (MPA) and how it helps determine the value of the business based on financial performance, operations, and comps. Jared goes through the numbers of a closed loan for a pest control business in southern Nevada and explains the difference between accrual and cash basis accounting.They go over the top-line revenue and net income for 2020 and 2021 and discuss the bankers' add-backs, including depreciation, amortization, and officers' salary. Johnson mentions auto expenses as an example of a typical add-back, and Davino talks about the difficulty of proving some add-backs and the need to be more conservative in some cases. They also mention some unusual add-backs, such as family members' salaries and household food from restaurant suppliers. Johnson emphasizes the importance of looking at the cash flow to determine whether the numbers work for a loan.The conversation continues with Lyndsey Davino emphasizing the importance of pricing a business competitively and realistically, based on the analysis of the provided numbers and details about the business. She advises against relying on internet rules of thumb and emphasizes the need to work with a professional broker. Pricing the business right the first time is key. Ultimately, the goal is to find a buyer who is reasonable and willing to pay a fair price for the business.Lastly, Lyndsey Davino advises business owners to plan their exit strategy as soon as possible to prepare for any unforeseen circumstances that may arise. She also mentions that not every business is sellable, and business owners must educate themselves and talk to a business broker to make their business sellable. Lyndsey also advises potential buyers to assess their financial situation and get pre-qualified for an SBA loan before approaching a business broker. To contact Lyndsey, email her at: Lyndsey@FCBB.com or call her at (702) 772-7542.If you have questions for Jared, visit JaredWJohnson.com==================================================================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.==================================================================This conversation covers:Property ManagementListing a Business for SaleMarket Price Analysis for Small BusinessesAdd Backs and Cash Flow Analysis for Business ValuationValuation of a Pest Control Business: Using Comparable Sales and Multiple AdjustmentsAnalysis of Tax Returns and Seller's Discretionary Earnings for Business Loan ApprovalLease AgreementsBeing a Woman in the Brokerage IndustryDealing with Landlords in Commercial Real Estate Transactions

In this episode of “Before You Buy or Sell a Business,” host Jared Johnson talks with Michael Johnson; the two have no immediate family relation.Michael Johnson was a multi-skilled maintenance and integrated facility services worker for fifteen years. During that time, he worked his way up to a management position, helping to design and construct vinyl windows for a window extrusion company. Michael then decided to pursue a college education and earned an engineering degree. A conversation with Michael’s boss during an annual review eventually led him to make the decision to buy a business in the same industry.When it comes to management, Michael has a philosophy of: seek first to understand, then to be understood. With Michael’s previous experience, he looked for a business to acquire that was connected to his management skills. Ultimately, Michael’s wealth of experience and knowledge helped him navigate the process of taking over a new business.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.