David C Barnett Small Business and Deal Making M&A SMB

Ron Skelton had me on his show, How2Exit. https://www.how2exit.com/ About the Guest(s): David Barnett is an experienced entrepreneur, consultant, author, and educator in buying, selling, and financing small and medium-sized businesses. With a background in sales and business education, he owned a business broker office before moving into banking. Since 2015, he has provided consultancy services for business transactions. Barnett shares his expertise through a YouTube channel and has written multiple books on investing, franchising, and buy-sell strategies, with a new book releasing this fall. Episode Summary: In the latest How2Exit podcast, host Ronald Skelton welcomes back David Barnett, an expert in small and medium-sized business transactions. They discuss the risks of over-leveraging in business acquisitions and offer insights on mastering business deals without financial pitfalls. Barnett shares his knowledge on proper business leverage, the impact of SBA interventions, and the challenges of buying a business with minimal down payment. He contrasts debt-equity structures in large companies with the small business sector and emphasizes prudence, long-term planning, and cash flow management for successful business purchases. Key Takeaways: • Typical leverage for large public companies is between 50-60% debt; anything higher is considered risky. • Zero-down deals are often more achievable by experienced individuals with substantial resources, not beginners with limited capital. • Relationships, trust, and a strong personal network are crucial when seeking investments in your business endeavors. • Minority equity holders in small businesses may face significant risks without majority control. • Prudent financial management and an understanding of potential business hazards are essential before taking on leverage.

Serious Small Business Market Intelligence. New Livestream guest- Nunzio Presta I’m happy to have Nunzio join me on a live broadcast. Nunzio has leads the team at BuyAndSellABusiness.com Tune in and as we’ll be discussing data, facts and observations from the point of view of someone who sees the smallbiz buy/sell playing field. This is a ‘must see event’ for prospective buyers and sellers of small businesses. Be sure to join live so that you can ask questions, replay will be available. Deals from https://www.BuyAndSellABusiness.com Seller's Subscription For the past decade, BuyAndSellABusiness.com has been helping business owners connect with qualified and engaged buyers, facilitating over $3.9 billion in deal value with a success rate twice the industry average. From the moment you list your business to the moment a buyer engages with your listing, the platform excels at creating a self-sufficient experience. It provides the appropriate nudges to ensure that deals and conversations remain active. If you're considering selling your business, take a look at their Subscription solution. For only $99 CAD per month, you receive unlimited listings, unlimited buyer introductions, a seller profile, and extra marketing exposure all with no contracts or cancellation fees. It seems like an obvious choice for a marketing tool. Try it today and use code FREE30 to receive your first month for free. Premium Buyer Program As a business buyer, BuyAndSellABusiness.com understands that one good deal can be extremely valuable. That's why they've introduced the Premium Buyer Program. For $400 CAD per year, you'll experience an optimized deal flow, receiving instant notifications for every new listing before the rest of the community. Additionally, you'll enjoy other perks such as a LOI template, priority customer support via Slack, and a Premium Badge on every seller introduction. Join the program today and receive a 40% discount on the annual fee. Just mention David Barnett and this show.

***New Video Alert! We all know that getting a divorce is likely bad for your business. But what about if your partner goes through a divorce? What kinds of strategies can you employ to protect yourself and the business in such a case? When should you be contemplating this? Learn more by watching this week’s video: https://youtu.be/dpY8w8-SAU8 Cheers See you over on YouTube David C Barnett *** Do Business with David using these incredible internet links... - David's Blog where you can find hundreds of free videos and articles, https://www.DavidCBarnett.com - Join David's email list so you never miss any new videos or important information or insights, https://www.DavidCBarnettList.com - Book a call with David and let him help you with your project, https://www.CallDavidBarnett.com - Learn how to buy a successful and profitable business in a risk-controlled way https://www.BusinessBuyerAdvantage.com - Get help selling your business, https://www.HowToSellMyOwnBusiness.com - Get better organized in your business, https://www.EasySmallBizSystems.com - Learn to make better cash flow forecasts and write incredibly effective business plans from scratch!, https://www.BizPlanSchool.com - Learn to build an equity asset with insurance! visit https://www.NewBankingSolution.com -Did you sign up for an expensive Merchant Cash Advance for your business and now struggle to make the payments? Find out how you can negotiate your way out at https://www.EndMyMCA.com

Does your small business need big B2B marketing? New Livestream guest- Sarah Noel-Block I’m happy to have Sarah join me on a live broadcast. She’s the genius behind Tiny Marketing. A content-marketing company that helps B2B businesses build authority and generate opportunities with the least amount of hassle and work possible. Tune in and as we’ll be discussing marketing strategies for companies with marketing teams of 0-2 people. Yup, Zero. This is a ‘must see event’ for anyone thinking of being in business that sells to other businesses. Find Sarah Noel Block online here: https://www.sarahnoelblock.com/tiny-marketing See you there! David C Barnett

Exploration of finance strategies to boost profit in small businesses by focusing on high sales, good margins, and low expenses. Analyzing market conditions for caution with merchant cash advances. Maintaining transparency for a smooth business sale process. Optimizing financial strategies for business success by understanding borrowed funds and investor impact.

Exploring the debate on dividends as part of seller's discretionary earnings, analyzing adjustments and SDE calculation, understanding the impact of dividends on business valuation, and navigating the pitfalls of overvaluing businesses during sales.

Getting Credit in your Business Name Without a Personal Guarantee New Livestream guest- Andrew Cervenka I’m happy to have Andrew join me on a live broadcast. Andrew and team have been helping small businesses establish trade credit and corporate creditworthiness for years. Tune in and as we’ll be discussing what it actually means to develop corporate credit and why you might want to. This is a ‘must see event’ for business owners that are worried about all their personal guarantees on all the credit products their business uses. Find Andrew online at acervenka@jgalt.io

Discover the new due diligence module in the online training program, providing essential content on business analysis, financial aspects, and legal considerations. David Barnett highlights the significance of due diligence and offers five hours of additional material including video lectures and audio interviews.

The podcast discusses the importance of working with knowledgeable business brokers, the role they play in preparing businesses for sale, and the significance of setting realistic expectations in deal making. It also explores creative approaches in business transactions, challenges with unrealistic valuations, and how brokers acquire listings through industry reputation.

***New Video Alert! What if you have a very small business? Even just yourself. How can you go about getting the best value for your biggest asset? Your customer list. I explore it in this week’s video here: https://youtu.be/0U9Rb-mNn90 Cheers See you over on YouTube David C Barnett *** Do Business with David using these incredible internet links... - David's Blog where you can find hundreds of free videos and articles, https://www.DavidCBarnett.com - Join David's email list so you never miss any new videos or important information or insights, https://www.DavidCBarnettList.com - Book a call with David and let him help you with your project, https://www.CallDavidBarnett.com - Learn how to buy a successful and profitable business in a risk-controlled way https://www.BusinessBuyerAdvantage.com - Get help selling your business, https://www.HowToSellMyOwnBusiness.com - Get better organized in your business, https://www.EasySmallBizSystems.com - Learn to make better cash flow forecasts and write incredibly effective business plans from scratch!, https://www.BizPlanSchool.com - Learn to build an equity asset with insurance! visit https://www.NewBankingSolution.com -Did you sign up for an expensive Merchant Cash Advance for your business and now struggle to make the payments? Find out how you can negotiate your way out at https://www.EndMyMCA.com