Business Buying System
How to Find and Buy Your Ideal Business and Pay a Fair Price
The System even includes Exclusive Instructions on how to find and buy your Ideal business even if it’s NOT on the Market! A proven system for buying your ideal business that is based upon experience gained buying and selling more than 2,000 businesses.
Tips, Tools and Secrets on How to Find, Investigate, Value and Buy Your Ideal Business
Buying a Business is different than buying anything else you can imagine! Here are a few reasons why:
- Business owners don’t want anyone to know their business might be for sale.
- Opportunity seekers confess they really don’t know what they want to buy but, as with art, they will know when they see it.
- Ask ten people what a business might be worth and you’ll receive as many answers.
Sellers don’t want anyone to know they are selling. Buyers don’t really know what they want to buy. Seldom does anyone agree on a value. How’s that for openers? Small wonder most businesses are not sold and likewise, most opportunity seekers fail in their quest to buy a business.
As you can see, the environment in which businesses are bought and sold is unique and therefore, success requires a unique process. Our books, software and other materials are designed to walk you through this unique process to success. The first step is the self analysis section that will help you define and recognize your Ideal Business.
This is the same process we developed in guiding more than 2,000 individuals into their ideal businesses.
Just follow the steps, one at a time, in the order outlined and before you know it you have: found, analyzed, valued, financed and purchased your ideal business! Congratulations!
We originally produced and assembled this book and software especially for first time business buyers but many financial professionals, business brokers, intermediaries and advisors to entrepreneurs have purchased the program and found it of benefit in their practices. We made sure, however, that the Business Buying System’s software could be used by non-financial and financial professionals alike to assure the program would benefit the most people.
The Business Buying Guide’s software consists of several interactive components that cover the entire acquisition process from start to finish. Applying the “Insider Information” this package provides can save you thousands of dollars in legal and accounting fees plus save you hundreds of hours reviewing inappropriate businesses or companies that are not right for you. The Business Buying Guide is designed to make process of buying a business simple and safe.
Use the Business Buying Guide and no one will ever believe you are buying your first business.
Profit from the experience and insight gained in negotiating more than two thousand business transfers. This practical guide, written in understandable “shirt sleeve” language, simplifies a very complex subject. The book focuses upon the motivations and perceptions that drive a sale and the software “crunches the numbers.” Case studies and examples are provided to illustrate every major point.
Here’s what is included in the Business Buying Guide:
The book ‘The Complete Guide to Buying Your Ideal Business and Paying a Fair Price” walks you through the Business Buying Process one step at a time. Each major point is illustrated with case studies of an actual sales.
Some of the tips and insider information illustrated in “The Complete Guide”
- Identify businesses that fit you. Ideally businesses that have “All the Right Things Wrong” with them
- Quickly eliminate businesses that do not fit your personality or fail to meet your income needs
- How to find a business to buy that’s not for sale (estimates of the number of business owners who are considering sale but are not yet listed with a broker range between twenty and forty percent).
- Three questions to ask so you don’t waste time and money reviewing businesses that don’t “fit” you or your lifestyle – cut right to the quick without offending either the seller nor the sellers advisors
- Ask the four key questions used by the Pros to determine profitability before seeing ” the books” – Save hundreds of hours and perhaps thousands of dollars in professional fees analyzing businesses that either:
a) will not support your lifestyle or
b) you cannot afford to purchase.
- Learn how to determine the real profits of any business, especially cash businesses, using methods employed by the Internal Revenue Service and savvy business buyers
- Avoid pitfalls and common mistakes that most first time buyers make that can cost you dearly
- Learn negotiation techniques that produce win-win results
- Where to obtain the best advice (and it’s usually free)
- Determine a proper price and transaction structure for purchasing the business.
Ask all the right questions of the seller without aggravating him or her
- How to obtain all the important documentation and information up front
Analyze the collected data as would a financial professional
- Structure Win-Win Offers and Counter-Offers quickly and confidently
Business Pricing and Transaction Structuring Software
for Small to Middle Market Companies – Size does matter
One size does not fit everyone; and neither does one approach to business valuation. That’s why the program produces values, transaction structures and fairness testing for the three size categories of private businesses – all at the same time. The three Size and Business Structure categories can be briefly described as follows:
Middle Market — Generally Private companies with well defined Corporate structure and earnings in the low millions
Mid-Size — Private companies with Corporate structure developing. Owner has delegated many management functions to others – earnings typically from $250,000 to the early Millions.
Main Street — Commonly referred to as “Mom and Pop” – Business owner wears essentially all the hats – Earnings usually under $250,000
15 valuation methods at the click of a key
Yes, the program simultaneously produces three business valuations (one for each of the three groups) using 15 valuation methods. This approach insures you are using valuation methods that are appropriate for the business type and size involved.
Don’t pay too much!
Use the Business Buying Guide’s Pricing software to develop a fair price you can defend and with terms that will work. Construct a deal where existing cash flows will cover your acquisition debt service, give you a reasonable return on your investment and compensation commensurate with your initial investment. Use the Data Gathering form to assure you cover all the important bases.
Determine a Fair Price and Terms for the business – You can perform countless “What if” scenarios and calculate scores of possible transaction structures quickly and easily to determine a Fair Price. It’s not necessarily the price you pay that’s most important but rather – it’s the terms or how you pay it that really matters. Make sure the business can afford the purchase price terms so the business can stay sold.
Business Buying Guide’s Transaction Structuring software helps you analyze counter offers for fairness and “get back to the table” with a proposal you can defend quickly and confidently.
Fairness Test and Justification of Purchase Price
Make sure the business can afford to pay:
* The acquisition debt service and
* You a reasonable wage,
* That your Rate of Return is commensurate with the risk involved; This is a double check on whether or not the price is fair.
Designed to be used by non-financial professionals
Don’t let the ease of use fool you – this is a powerful program designed for the business owner, business buyer or advisors who needs to know how to price and structure the sale of a company.
No financial expertise or specialized knowledge is needed and the program uses Microsoft Excel™ so there isn’t a new software program to learn.
The software is designed to be easy to use. Simply enter one page of data from tax returns or accounting statements, answer a few questions and make some decisions and the software does the rest. It couldn’t be easier or more simple. The program, although years in development, will provide you with a comprehensive valuation and pricing structures in minutes.
Enter one page of data, push a button and the program has calculated:
* A Fair Price and Terms for the business – You can perform countless “What if” scenarios and calculate scores of possible transaction structures quickly and easily to determine a Fair Price
* Fairness Test and Justification of Purchase Price Calculations – Make sure the business can afford the price, and that your Rate of Return is commensurate with the risk involved – this is a double check on whether or not the price is fair.
* Comprehensive Ratio Analysis with explanations – Scores of ratios are calculated by Business Buyer’s Tool Kit’s software along with an explanation of what each ratio means, why it is important and how it is calculated
Business Buying System’s software will also provide:
* Comparative Income Statements and Balance Sheets
* Risk Analysis Reviewer ~ Checks out factors other than “the numbers”
* Graphs to visually view key factors
* Pro-forma projections of profitability under your management – Easy and straightforward calculation that employ the scores of historic operating ratios generated by the program.
* Cash Flows and working capital requirements – Make sure you will have adequate reserves and money to grow your new business
Business Buying System’s Transaction Structuring software helps you analyze counter offers for fairness and “get back to the table” with a proposal you can defend quickly and confidently.
Hard copy sample of an actual case study included for reference.
“The right tools can make you an expert”
Easy to use – No new programs to learn
The Business Buying System’s programs are in either Microsoft Excel workbook format or Microsoft Word doc format. You need not know Excel to use the program. The forms, checklists etc are in Microsoft Word doc file format and as such can readily be imported into most any word processing program if you are not using Word. No need to learn a new software program to start using Business Buying Guide right away. Yes, an operating manual is included but, because the program is so intuitive, you probably will not use it.
Buy a Business Tool Kit
Part 1 – Forms, Checklists and Contracts plus Special Contingencies and Language in the ToolKit.
All the documents required to buy a business safely ~ Forms, Letters, Contracts and Checklists all ready to be used as is or customized by you. All documents have been field tested in several thousand negotiations and are designed to protect you fully during and after negotiations are completed.
Forms, checklists, letters of understanding and the like are considered mundane by many. We can assure you they are vitally important in many subtle and not so subtle ways. In the interest of brevity, consider the possible cost of an oversight caused by the lack of a comprehensive Due Diligence Checklist. How will you be assured all bills are paid when you take possession? What protection will you have should unpaid bills arise after the sale? The “mundane” Forms, Checklists and Contracts Section of the Business Buying System’s Tool Kit addresses these and many other issues automatically.
Some of the forms and checklists:
- Preliminary Checklist to assist in clearly defining the business that will be right for you. This checklist alone can save you from spending countless hours and thousands of dollars as you search for the “Right Business.”
- Business Profile data gathering workbook – Covers all of the questions that must be answered to avoid costly oversights – make sure you cover all the bases.
- Due diligence checklist covers:
a) all areas of concern to be investigated and checked –
b) All the documents that must be collected (in addition to Tax Returns) before a price is finalized and a sale consummated.
Forms and letters for use in negotiating the purchase of the business safely * Samples included illustrate usage and all are ready to be used as is or customized for a special situation.
Sample wording for contingencies to protect you in those special or unusual situations that may occur.
Business Buying System’s family of documents proceed through the Offer, Counter Offer, Due Diligence, Negotiation, Problem Solving, Financing and Final Close with YOU in CONTROL throughout the process. The Tool Kit’s documentation is designed so you can SAFELY STOP the process at any time up to the preparation of the final documents. YOU STAY in CONTROL and YOUR DEPOSIT is SAFE until you call a stop or the deal is done. Samples are included for reference.
“Loan Proposal Generator” in the Buy a Business Tool Kit
The Loan Proposal Generator portion of the System is unique in that it automatically creates a Loan Proposal based upon actual Banker’s lending criteria and presents the data in the format the Lender’s like to see making it easy for a lender to say yes to your loan request.
You can structure your offer with confidence and present yourself as a savvy business person to the seller and the seller’s advisors. Sample Loan Package included for reference.
Special Bonus ~ Deal Master’s Loan Proposal Generator contains a section that will facilitate your contact with the most competitive lenders willing to “do your deal” at the best available rate. Run a possible transaction by the lenders before you make an offer to determine:
* What the lenders will consider a Fair Price
* What down payment will be required of you
* How much bank financing is available and at what rate
* The Amount of seller financing that may be required
Owning “Buy a Business Tool Kit” is like having your very own CPA, MBA, Financial Advisor, Banker and Business Intermediary on your computer. Calculate scores of sophisticated ratios to thoroughly analyze the business. Develop a fair price and transaction terms that will work. Investigate the Business with the same tools used by the IRS and savvy business buyers. Save hundreds, if not thousands of dollars in professional fees by doing the calculations and assembling financial and other information into a concise report for your advisors to review. Proper use of you professional advisors is simplified with Business Buying System .
Easy to use – No new programs to learn
The “Buy a Business Tool Kit’s” programs are in either Microsoft Excel workbook format or Microsoft Word doc format. You need not know Excel to use the program. The forms, checklists etc are in Microsoft Word doc file format and as such can readily be imported into most any word processing program if you are not using Word. No need to learn a new software program to start using “Buy a Business Tool Kit” right away. Yes, an operating manual is included but, because the program is so intuitive, you probably will not use it.
“Your accountant would have to charge you many times
the cost of this package for the ratio and business analysis alone”
Samples and Examples
Samples and examples put you on a fast track to understanding the several sophisticated reports the “Buy a Business Tool Kit” software programs generate. Having completed reports to review will make developing reports for the businesses you target so very much easier to do and understand.
Sample Business Analysis
Sample Business Valuation
Sample Transaction Structure
Sample SBA Loan Proposal
How much does the complete “Business Buying System” cost?
To compare value, please consider the following:
- An accountant would have to charge you $1,000 (and maybe more) just to place a rough estimate of the sale price of a business you may wish to buy. This could become quite expensive if you review several businesses
- A basic Business Valuation similar to what you will produce yourself with EZbizPRICER’s software will generally cost between $1,500 and $15,000 or more depending on the size and complexity of the business being valued
- Expect to pay an accountant $2,500 or more for the comprehensive financial analysis that the Business Analysis software program produces
- SBA Loan Proposal Generator will save you the hundreds of dollars an accountant would charge or save you scores of hours were you to attempt to produce the SBA loan proposal on your own
- Document Pack will save you money two ways:
1) Avoid excessive legal fees
2) Make sure that all the protections possible are included and that you are in control of the business buying process from start to close
- Just one mistake made because you didn’t have the book “The Complete Guide to Buying Your Ideal Business and Paying a Fair Price” to guide you could cost thousands or even worse – prevent you from buying the business that would have been perfect for you.
With these costs in mind, you can readily see where the “Business Buying System” (Books and Software) is worth much more than its selling price.
“Those who are serious about buying a business will purchase this Tool Kit
and wonder why the price is so low.”
Use IRS AUDIT Tools &Techniques to Determine the Real Earnings of any Business
A book and software combination expressly
created for the non-financial entrepreneur or executive
engaged in buying or selling Private Companies.
Now you can have the same Audit and Investigation Tools the IRS uses
Obtain a clear and concise understanding of any company’s financial strengths and weaknesses quickly. Ratify opportunities a company represents in minutes using this unique book and software combination. This combo was created for non-financial professionals and is based upon experience gained participating in more than two thousand Private Company acquisitions. It is written in clear, plain, shirt sleeve English and not accounting jargon or code that is understood only by members of the “Financial Circle.”
No need to be intimidated by accounting and finance jargon any longer.
Buying a Cash Business? The book explains how to determine what the real earnings of any company might be under your ownership and the “IRS Audit Tools on Disk” software makes “crunching the numbers” easy. Impress your accountant with the quality Due Diligence review the “IRS Audit Tools on Disk” software produces. Save the hundreds if not thousands of dollars he/she would have to charge you for a similar work product. The book and software enables you to fully understand any company’s financial position and maintain complete control over the Due Diligence process.
Avoid Misuse of Advisors
After you complete this guide you will be in a position to use the financial professional you engage correctly. Most business buyers do not completely understand how the relationship between advisor and client should work and as a result misuse their advisors and, as a result of this misuse, fail to attain their goal of business ownership.
Perhaps the best way to illustrate the ideal relationship between client and advisor would be compare the role of a spiritual advisor to that of an accountant. A young man approaches his clergyman and asks “Should I marry this woman?” The clergyman’s only answer is NO. Why? Simply because asking such a question indicates that the young man isn’t sure of what he is doing. If he is not mature enough to answer the question himself is he mature enough to handle marriage? That question has to be answered by the young man himself and is not a decision that should be shifted to another.
Assume for a moment that you are an accountant or CPA and that your best friend in the world has just thrust a few tax returns into your hands and asks: “Should I buy this business?” Did you feel a chill go up your spine? The real life accountant certainly would have. Your fear would be that your friend doesn’t know what he’s doing. You also are mindful of the litigious society in which we live. Your answer to his question eventually would probably be NO.
Proper Use of Your Financial Professional
You should have completed the following tasks BEFORE you approach your financial advisor
IRS Audit Tools on Disk makes it easy to calculate:
- A comparative Analysis of Income Statements and Balance Sheets
- Developed a 5 Year Comparative Ratio Analysis
- Conducted a Gross Profit Test
- Researched the Company’s Industry and that of its major customers
- Obtained a full understanding of the opportunity the business represents
- Constructed a Pro forma of expected Company performance under your ownership.
Simply enter one to five years of financial data from accounting statements or tax returns, answer a few questions regarding the business, make a few decisions – press a key and PRESTO! The program has calculated it all.
What’s in this book?
Owner’s of Private Companies and their accountants work diligently to minimize declared income on their tax returns in order to avoid taxes. Determining the real earnings for a Private Company is therefore sometimes difficult, especially if it is a Cash business. This book and its companion Software will lead you through the process of determining a company’s real earnings using the same methods the Internal Revenue Service uses.
- How to determine the real profitability of an ALL CASH Business using IRS audit methods
- An example of actual IRS Audit Instructions for a “Cash Business”
- Compare your Target business operating results with those of its industry to reveal or confirm opportunities for improvement
- How and why Public company accounting practices differ from those of Private businesses – How to avoid costly mistakes that are made by those who do not realize the differences
- Why financial professionals find it difficult and frustrating to analyze the financials of companies with less than 5 million in sales
- Ratio analysis – What the various ratios mean and reveal about a company. How to use the Ratios to confirm and expose opportunities for improvement
- How the IRS uses Ratio Analysis to determine un-reported income
- Simplify the construction of Balance Sheets and Income Statements
- Convert “Accounting Jargon” in to plain English that a non-financial entrepreneur can understand
- A Comprehensive Data Gathering worksheet is included – Compile data needed to demystify much of the financial data. Without this information much of the financial position of the company and, the opportunity the company represents, will remain a mystery
Uncover the REAL EARNINGS and potential earnings for any business.
As they say on TV – But wait, there’s more. . .
IRS Audit Tools
IRS Audit Tools on Disk has a unique ability to show you the real profits of any business – even Cash Businesses
IRS Field Agent Audit Guides by Industry – The Actual IRS Audit instructions and guides for scores of industries from Architect to Veterinarian
IRS Tax Return Data by Industry – Data collected from actual Tax Returns – Use this data to determine the most profitable industries.
IRS Audit Tools on Disk will automatically generate Comparative Income Statements and Balance Sheets
Risk Analysis Reviewer ~ Checks out factors other than “the numbers”
You can perform countless “What if” scenarios and calculate scores of possible transaction structures quickly and easily to determine a Fair Price
Fairness Test and Justification of Purchase Price Calculations – Make sure the business can afford the price, and that your Rate of Return is commensurate with the risk involved – this is a double check on whether or not the price is fair.
Pro-forma projections of profitability under your management – Easy and straightforward calculation that employ the scores of historic operating ratios generated by the program.
Cash Flows and working capital requirements – Make sure you will have adequate reserves and money to grow your new business
Comprehensive Ratio Analysis with explanations – Scores of ratios are calculated by IRS Audit Tools on Disk along with an explanation of what each ratio means, why the ratio is important and how it is calculated
Graphs to visually view key factors
IRS Tax Return Data by Industry
Who would have believed you would have direct access to Internal Revenue Service information directly from your computer and the IRS Audit Tools on Disk CD-ROM. The financial data collected from tax returns filed with the IRS is compiled in spreadsheet format by Industry, Business Form, and other criteria. We have made it easy for you to use the data to justify/ratify your assumptions and compare your target business to other businesses of the same size within the same industry. For example, you might want to use this data to ratify that the Gross Profit percentage you expect to maintain is realistic and attainable. This would be especially helpful in adding credibility to your projections and increasing a lender’s confidence.
Recast Income and Profitability
Real Profitability of one industry with another and more.
Thanks to CD ROM technology, the copious amount of IRS data is readily available to you as dynamic information. You can forget about the tedious data input that is required with static information found in books, articles and reports. IRS Audit Tools on Disk has organized the data on CD-ROM – ready for you to use and analyze as you wish.
IRS Field Agent Audit Guide by Industry
In addition to the IRS financial data the CD-ROM contains the IRS’s internal Audit and Investigation Guides for businesses from Architect to Veterinarian. Thanks again to CD-ROM technology, the vast amount of information involved is readily available for download to your printer or for on screen review by industry .
Each Audit Guide provides an overview of the industry under review to familiarize the you with industry lingo, practices and then outlines just what questions should be asked, what documents should be requested and reviewed etc. Actually the IRS agent’s Audit is essentially the same as the Due Diligence Review one should conduct before acquiring any business. Investigate and Audit your target business using IRS techniques and information
I have finished reading “Determine the Real Earnings
of any Company ….” and it was extremely easy to read and understand.
We can keep the cost to you very low by providing the data on the IRS Audit Tools on software rather than in a telephone book size document.
How much does it cost?
Not as much as you might think. Your accountant or CPA would certainly have to charge you several hundred dollars or more to produce the review “IRS Audit Tools on Disk” produces. It is also unlikely your accountant wants to spend the time required to teach you how to interpret financial statements. Accountants and CPAs make their living interpreting financial statements for their clients and not by teaching clients how to do it themselves.
Thanks, “Determine the Real Earnings of any Company”
is just what I have been searching for,
you would not believe it. I have been looking for a layman’s guide for the longest time. I have purchased other materials from you and you continue to deliver.
Ron H. Business Advisor