Everything You Need to Know About Buying a Business

Transcript

Andy and Jessica are starting with this episode a series of shows dedicated to outlining all the major aspects you need to know when buying a business. The current market belongs to the buyers while the U.S. slowly moves out of the COVID-19 pandemic. Stay tuned, since the following episodes will include a combination of different interviews that were done during almost two years of podcasts. This series includes timeless advice for business buyers seeking great advice, resources, and tactics.

Listing of the week: Chris Redmond (Central Florida). Restaurant in business since 1976, located in Orlando. One-and-a-half-acre property and business are for sale for $2.3 million. An iconic Orlando location. Great for national franchise or developer. Call Chris at (321) 299-6867 or email [email protected]

Key Takeaways

Key takeaways:

[5:50] Why downtimes can be the best times to buy a business.

[8:00] Owning your business is more secure than having a job.

[10:21] Reasons why now is the best time to buy a business.

[11:17] Take advantage of the current flexibility on deal terms.

[12:16] Buyers can dictate the terms of the deal.

[13:22] Acquisition opportunities are really good deals for banks through the SBA program.

[15:30] SBA is waving all payments on 7(a) microloans and 504 SBA loans that are generated before now until September 27th, 2020.

[19:35] Baby Boomer businesses are entering the market.

[21:19] Your home equity should be intact.

[22:46] The pandemic opened a huge opportunity for synergistic or strategic buyers.

[23:12] Take advantage of the reduced competition and the possibility of increasing your market share as a business owner.

[26:15] There will be commercial real state space.

[28:43] Uncertainty can be good for business, risk-takers will take the lead.

[31:45] Listing of the week: Chris Redmond (Central Florida). Restaurant in business since 1976, located in Orlando. One-and-a-half-acre property and business are for sale for $2.3 million. An iconic Orlando location. Great for national franchise or developer.

[34:22] 11 different ways to minimize the risk of buying a business.

[34:50] 1. You are going to need a good attorney.

[38:36] 2. Hire a good business accountant.

[41:05] 3. Do your homework!

[42:35] 4. Tuck the money away: Reserve money for the first year in business.

[44:44] 5. It takes work to buy a business.

[46:41] 6. Use a business broker.

[49:30] 7. Have money on escrow or on a seller’s note to take care of all liabilities.

[51:18] 8. Don’t make any changes in the business for at least six months.

[53:41] 9. Insurance.

[56:05] 10. Buy a business with good systems in place.

[57:55] 11. Relationship with the seller post-transaction.

[1:02:08] Carey Davis (New York City), when a buyer finds a broker: buy-side agreement.

[1:06:34] Advice for buyers from Transworld Business Advisors’ experts.

[1:10:05] Deal of the week: Michael Shea talks about how he sold a 50-year-old sign manufacturer located in Orlando during COVID-19 times.

[1:13:50] Trent Dailey, CEO and President of Insurance Managing Group, talks about how he grew his business through acquisition.

[1:17:41] Trent Dailey shares how to ease the post-transaction period after acquiring a business to grow your business.

[1:19:43] Trent Dailey gives advice to entrepreneurs who want to grow through acquisition.

Mentioned in this Episode:

The Deal Board Podcast

United Franchise Group

Transworld Business Advisors

Transworld on Linkedin

Transworld on Facebook

Call us — (888) 711-9018

Email us [email protected]

Call Chris Redmond at (321) 299-6867 or email [email protected]

Call Michael Shea at (321) 287-0349 or email [email protected]

Email Trent Dailey at [email protected]

Mentioned in This Episode

• The Deal Board Podcast
• Transworld Business Advisors
• Transworld on LinkedIn
• Transworld on Facebook