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.
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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.
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
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
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.
Buy a Business Tool Kit
Part 1 – Forms, Checklists and Contracts plus Special Contingencies and Language on the Deal Master 4.0 CD-ROM
All of 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. All documents 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 Buyer’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 in book illustrate usage and all are on the CD ROM 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. Deal Master’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. Hard copy Samples included for reference.
Part 2 – “Loan Proposal Generator” 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 ~ The 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 CD-ROM. 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