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The Sales Podcast


May 30, 2018

http://www.thesaleswhisperer.com/blog/topic/podcast

http://MakeEverySale.com

  • What recommended action steps do you have for the first 100 days as a business owner?
  • What is the value of buying a business rather than founding one?
  • What criteria do you recommend people have when deciding what kind of business to buy?
  • Why do some business partners thrive while others tear their businesses apart?
  • How can you evaluate whether a business is worth buying?
  • How much of buying a small business is based on psychology vs. numbers?
  • When selling your business, what is the main criteria owners look for?
  • How did teaching others help you refine your own business buying systems?
  • Grew up on Wall Street in corporate mergers and acquisitions in 1992
  • Did private equity
  • Invested in a software company and sold to HP and went with the sale
  • 10 years ago his wife went into labor 4 weeks early while he was in Moscow and he almost missed the birth of his child
  • "Small deals are where it's at. There are over two million businesses for sale in North America. Only 1 in 13 will actually sell."
  • In 2017 more than six million entrepreneurs started a business but 96% will fail within 10 years.
  • The Leveraged Buyout—LBO—use financing against the business itself.
  • The best deals are off-market, i.e., without using brokers.
  • Brokers are trained to sell businesses to competitors to get more money for the seller.
  • He owns whole or part of 17 businesses.
  • Find a business that is a good business but the seller is in some form of distress.
  • He targets businesses between $1 to $3 million in revenue so individuals usually target those types of businesses.
  • 80% of small business owners won't list their business for sale so their competitors and staff don't know about what's going on.
  • Entrepreneurs think it's cool to go start something from scratch.
  • Around 2016 people were encouraging him to teach his processes.
  • He prefers asset-based lending so the bank doesn't look at my credit worthiness.
    • Real estate
    • Plant and resources
    • Receivables are key
  • Lately the SBA is stepping up with a $1 trillion fund and they'll loan you 90% of the deal and you can use the 10% cash from the business
    • My credit score must be at least 690
  • How to find these businesses
    • Social media
      • LinkedIn groups
    • Networking
      • Spouse
      • CPA
      • Attorney
      • Banker
    • Attend events
      • Research attendees and build rapport
      • Ask for advice on how to buy a business like yours (wiggle the bait)
      • They may want to sell their business or they may give me referrals
    • Direct approach
      • Use Hoover's for free at your library to get a list
      • Message the targeted businesses
    • Brokers...eventually
      • They overprice deals
      • Let it sit for some time—nine months or more
  • According to Biz Buy Sell the average multiple was 1.94x earnings
    • EBITDA 
    • Free cash flow or SDE—Seller's Discretionary Earnings
  • Buy what resonates with you
    • Experience
    • Passion
  • Sales can and does apply across all industries
  • NinjaAcquisitions.com/free
  • Be an owner/manager or an owner/investor
  • Give the GMs a percent of ownership so they have some skin in the game