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

Livestream from April 19, 2021... Join me in welcoming Jeff Morrill to the channel. Jeff is the former owner of a car dealership who has just released a new book called 'Profit Wise: How to Make More Money in Business by Doing the Right Thing.' Yes, it's true! You don't need to be a scoundrel to be successful in business. Jeff is going to join us in talking about his real-life business experiences. We'll discuss sales, marketing, hiring and firing and when it just doesn't pay to be involved with someone when your gut says something is not right. Join live to ask your questions. Learn more about Jeff at https://www.jeffmorrill.com/ Learn about setting up proper business structures and systems to allow you to leave the day to day for others at https://www.EasySmallBizSystems.com

Thanks to Sean Adams for having me on his podcast. Here are his original show notes: --------------------------------------- David C. Barnett is a business valuation and acquisition specialist whose primary focus is on small businesses and local investing. He is also the author of three best-selling business books, one of which will be the basis of today’s discussion. We talk about local investing, why small businesses struggle with financing, and the future of local investing. [03:30] Getting to Know David C. Barnett [07:40] Why Small Businesses Struggle to Get Financing [11:16] The Downside to Business Loans [12:40] Local Investment Opportunities [17:30] David’s First Encounter With Profitable Local Investment Opportunities [22:37] Local Investment as an Alternative Investment Option [24:09] Vetting Process before Closing a Deal [29:20] Importance of the Human Element During Deal Making [32:30] Risks Associated With Local Investments [38:10] Creative Strategies to Grow Your Wealth [43:18] Unique Local Investment Opportunities in a Post-Pandemic World [48:56] The Future of Local Investing Why Small Business Struggle to get financing Over 95% of all businesses in the country are small businesses, yet banks and financial institutions are often unwilling to finance them. Why is this the case? Most small businesses are owner-dependent, which means if something were to happen to the owner, the business would practically crumble. The other thing is that small businesses are often built upon traditional business models that don’t cushion them during tough times. Local Investment Opportunities With small businesses struggling to secure loans, investors can take advantage of this financial gap by financing these businesses at an interest. Mind you, we’re not talking about loaning people with poor credit or exposing yourself to high-risk situations. We’re only after great deals that have higher growth potential and low risks. These businesses can include specialists who need expensive equipment to perfect their crafts. Nonetheless, you need to create a win-win situation where the borrower saves money on interests and gets quality equipment while guaranteeing your security. The more successful a borrower is, the lower your risks and the more transactions you can pull off together Links and Resources David’s YouTube Channel David’s Website David’s Book: Invest Local David’s LinkedIn Connect With Sean: Facebook: https://www.facebook.com/profile.php?id=100060279543976 LinkedIn: https://www.linkedin.com/in/leveraged-life/ Instagram: https://www.instagram.com/sean_adams103/ Youtube: https://www.youtube.com/channel/UC0i91Q-fFy70LkaFxvfnGpg For more videos and resources, visit leveraged-life.com. Do you have questions and feedback? Get in touch with Sean Adams through his email: sean@leveraged-life.com. All shared information from the Wealth Secrets Podcast should not be taken as legal or financial advice. Please consult with a professional before making any decisions. --- Send in a voice message: https://anchor.fm/wealthsecretspodcast/message Support this podcast: https://anchor.fm/wealthsecretspodcast/support

https://www.BusinessBuyerAdvantage.com https://www.HowToSellMyOwnBusiness.com Learn more at https://www.DavidCBarnett.com Related article... Outsourcing your way to a sale. Alan was watching my live interview about Minimalism with Aaron Clarey and sent in a question about outsourcing. What if you outsourced absolutely everything? Would you still have a business to sell? Learn the answer to this question and more in this week’s video: https://youtu.be/q9NoUwiGa6E Learn how to buy an already-successful and profitable business even in the covid-recession of 2020 https://www.BusinessBuyerAdvantage.com Book a call with me at https://www.clarity.fm/davidbarnett Stop missing my new videos. Join my email list here: https://www.DavidCBarnettList.com business broker mergers and acquisitions smb outsourcing explained

Andrew Stotz was kind enough to have me on his show to talk about some of the ideas in my book; 21 Stupid Things People Do When Trying to Buy a Business. Here are his original show notes: -------------------------------------------------- Quick take BIO: David Barnett is the author of 21 Stupid Things People Do When Trying To Buy a Business. Presently he works as a private transaction advisor with people buying or selling a business. STORY: We get a preview of his book as he takes us through the top 5 stupid mistakes people make when buying a business. LEARNING: David shares a host of lessons for people trying to buy a business. “If something looks like a really good deal and you don’t know about that industry, ask yourself why isn’t somebody else in this industry picking up this company.” David Barnett Guest profile David Barnett loves to say that it took him 10 years to un-learn what he was taught in business school. University had trained him to be a middle manager in big enterprises, and he was unprepared for the realities of small business. After a career in advertising sales, David started several businesses, including a commercial debt brokerage. Helping to finance small and medium-sized businesses led to the field of business brokerage. Over several years, he sold dozens of businesses for others while also managing his own portfolio of income properties and starting his career as a local private investor. David regularly consults with professionals and banks on business and asset values. Presently he works as a private transaction advisor with people around the world who are buying or selling a business. Find him at Davidcbarnett.com. Worst investment ever In this episode, we will jump straight to the top five stupid mistakes that people make when buying a business, as explained in David’s book 21 Stupid Things People Do When Trying To Buy a Business: Learn how to avoid these awful novice mistakes. Then we will look at some of the things that Andrew takes away from the interview. Lessons learned 1. Failing to understand how businesses are valued A lot of small business owners and potential buyers do not understand that it is not the business that is being bought or sold; it is the cash flow. So when purchasing a company, find out how much cash flow it is generating, then ask yourself as a buyer, what are you willing to pay for that cash flow, given your ability to run the business. Also, when looking at growth opportunities, while there could legitimately be an opportunity, do not pay the seller for it because you are the one that has to do the work to deliver the result, not the seller. 2. Failing to account for the value of the buyer’s labor Most people will be very optimistic about a business’s cash flow, and they will not put a high enough price on their own time when they are examining the business. 3. Failing to account for the value of capital People always forget that they need a return on the cash they put in the deal. When you put money that you have saved up over years or decades into an acquisition, you need to get an adequate rate of return on that equity you have put in. 4. Overcommitting projected free cash flow to debt service Go for a business with a much greater debt service coverage ratio because the last thing you want is a cash crunch that bleeds out your free money. 5. Failing to adjust for operating capital Many small business owners are experts at what they are doing, but they are not financial professionals. So they fail to generate optimized balance sheets. Andrew’s takeaways Cashflow growth depends on your effort, not the seller When you buy a business, you buy two things; the existing cash flow and growth in that cash flow. So your job is to keep that cash flow growing. Focus on the net profit While other metrics can be helpful, net profit gets straight down to the bottom line.

https://www.BusinessBuyerAdvantage.com https://www.HowToSellMyOwnBusiness.com Learn more at https://www.DavidCBarnett.com Related article... Broke Phil wants David’s career advice. Phil was watching my interview with Carlos about no-money-down courses offered online and wanted to reach out about taking Dan Pena’s course. Phil is out of work because of covid rules and thinks buying a business might be the solution to his troubles. Do people really buy businesses to solve their problems? I’ll explore this as well as give Phil some practical advice to start building a more solid financial foundation that might one day lead to business ownership. Learn the answer to this question and more in this week’s video: https://youtu.be/nBoNclTg3nE Find all the videos and articles about buying a business with no money over at https://www.investlocalbook.com/p/buy-business-with-no-money.html Learn how to buy an already-successful and profitable business even in the covid-recession of 2020 https://www.BusinessBuyerAdvantage.com Book a call with me at https://www.clarity.fm/davidbarnett Stop missing my new videos. Join my email list here: https://www.DavidCBarnettList.com business brokers mergers and acquisitions m&a smb mergers and acquisitions explained

https://www.BusinessBuyerAdvantage.com https://www.HowToSellMyOwnBusiness.com Learn more at https://www.DavidCBarnett.com Related article... The difference between one truck and 500. Dan was watching an old video of mine about valuing small businesses and posed a question about something Warren Buffet says. Basically, Buffet doesn’t like EBITDA valuations because he doesn’t believe that little fairies will pay for the equipment and machinery used in a business. But, as I teach in this week’s video… the depreciation figure you see on the paper is NOT the way to ward off the magic fairies… Learn the answer to this question and more in this week’s video: https://youtu.be/_S2m1dieX6w Learn how to be amazing at creating cash flow forecasts and business plans by enrolling in the David C Barnett’s Cash Flow Forecasting and Business Plan Writing program here: https://www.BizPlanSchool.com Learn how to buy an already-successful and profitable business even in the covid-recession of 2020 https://www.BusinessBuyerAdvantage.com Book a call with me at https://www.clarity.fm/davidbarnett Stop missing my new videos. Join my email list here: https://www.DavidCBarnettList.com business broker business brokers mergers and acquisitions m&a smb

https://www.BusinessBuyerAdvantage.com https://www.HowToSellMyOwnBusiness.com Learn more at https://www.DavidCBarnett.com Related article... Buying a Client List vs. a Business I received a message from Kim Kardashiann on this old video from 2015. What if instead of buying a business, you just want to buy the list? How do you put a price on that? Well, just like in pricing a business, it depends on the certainty of the cash flow under your stewardship. As you get into riskier and riskier lists, ownership may not even make sense. But, there is another way to profit from them. Listen as I explain this thinking to Kim in this week’s video: https://youtu.be/nkqQBn6DZSE Learn how to buy an already-successful and profitable business even in the covid-recession of 2020 https://www.BusinessBuyerAdvantage.com Book a call with me at https://www.clarity.fm/davidbarnett Stop missing my new videos. Join my email list here: https://www.DavidCBarnettList.com business broker smb joint venture mergers and acquisitions business brokers m&a

This week I have Giuseppe Grammatico, the Franchise Guide and author of Franchise Freedom on to talk about new franchises. He knows I wrote a book called Franchise Warnings and isn't afraid to come and talk to all of you! We're going to have a frank conversation and if you join us live you can ask us any question you want. Guiseppe has been helping people choose the right franchise for years. Never miss any of my videos or livestreams by signing up for my email list at https://www.DavidCBarnettList.com Find out more about Giuseppe at https://ggthefranchiseguide.com/ https://www.myfranchiseroadmap.com

Thanks to Rocky for allowing me to share this episode with my audience. Here are his original show notes... Hi, I'm the Profit Answer Man Rocky Lalvani! I help small business owners simplify their financial reports so that they can make more informed business decisions with fewer hassles. We utilize the Profit First system created by Mike Michalowicz Effortless Cashflow Course: http://bit.do/effortlesscashflowcourse Schedule your free, no-obligation intro call: https://bookme.name/rockyl/lite/intro-appointment-15-minutes David Barnett has been working with small businesses for over 20 years. He’s helped them grow, he’s helped entrepreneurs buy and sell them, he’s helped people finance them. David is the author of 7 books about small business transactions and local investing. He’s the host of a YouTube channel with hundreds of videos about buying, selling, financing and managing SMEs and can be found anytime at his blog site www.DavidCBarnett.com E-mail: dbarnett@alpatlantic.com, https://twitter.com/dbarnettmoncton https://www.youtube.com/user/DavidCBarnett More about making profitability simple: http://profitcomesfirst.com/ Questions: questions@profitanswerman.com Email: rocky@profitcomesfirst.com Profit Answer Man Facebook group: https://www.facebook.com/groups/profitanswerman/ My podcast about living a richer more meaningful life: http://richersoul.com/ First 2 chapter of Profit First: https://mailchi.mp/1bf6b892deda/profitfirst Music provided by Junan from Junan Podcast Any financial advice is for educational purposes only and you should consult with an expert for your specific needs.f

https://www.BusinessBuyerAdvantage.com https://www.HowToSellMyOwnBusiness.com Learn more at https://www.DavidCBarnett.com Related article... Hey Mr. Broker, can you share your paycheque with me? Sujit was watching my video about small business tax returns and financial statements and wanted to know if it would be reasonable to ask a business broker for a realtor-type deal… Like 50% cash back on his commission! There are important differences between what business brokers and realtors do. Please don’t confuse them. Realtors should not be selling businesses as I explain in this oldie- https://youtu.be/s9HkiHiiEB0 Now, what about Sujit and his 50% discount… is that a doable thing? Learn the answer to this question and more in this week’s video: https://youtu.be/jDdxBzjEffg Learn how to borrow money from your business broker here: https://gum.co/BorrowFromBrokers Learn how to buy an already-successful and profitable business even in the covid-recession of 2020 https://www.BusinessBuyerAdvantage.com Book a call with me at https://www.clarity.fm/davidbarnett Stop missing my new videos. Join my email list here: https://www.DavidCBarnettList.com mergers and acquisitions entrepreneurship m&a