The Truth About Finding Worthwhile Companies for Sale

WARNING: You may be offended by this article if you are an unqualified or illegitimate (1) searcher/buyer, or (2) a misleading advisor/coach/newsletter/website, or (3) you're offering a business for sale that exemplifies “lipstick on a pig.” (Sorry)

The basics in this article support the more comprehensive recording from my popular (and slightly controversial) webinar, which you can view on YouTube: “How to Prepare to Search and Find Worthwhile Opportunities.”

Here’s a tip; and it’s the bottom line:?

• Prepare yourself first . . . or, later, expect to pay more and risk more.

Buyers AND sellers, respectively: Expedite your learning about what you need to know, especially about the reasons for sale or purchase, and the computation of profit, and the pricing multiples people use to arrive at the asking prices - and the offering prices - for companies.

• Keep in mind your goal: Move forward with an LOI.

Time and generalized conversations are like the saying: “Familiarity breeds contempt.”

It’s not so much that people begin to dislike each other, but it’s scary to sell and buy businesses. The more time buyers let sellers think about it, the more likely the sellers’ fears will increase . . . and that may cause owners/sellers/brokers to have their ah-ha moment: “Maybe buyer competition would be useful.”

Don’t forget, if you want to sell your company, that competition goes both ways. Searchers and buyers (unless they’re stupid) won’t sit on the sellers’ sidelines while sellers try to generate buyer competition. Savvy searchers always have pending at least two worthwhile deals.

So, what are you up against?

Many mistakes that buyers make are errors of omission, not knowing what to do. Even people who know what to do sometimes do the wrong thing, especially if they have a bad case of buyer fever -- wanting a particular business so badly they suspend their common sense.

Here’s my recommendation, to business sellers . . . about the wishful-thinking poseurs, the pretending searchers and self-proclaimed buyers:

• It’s vital that business sellers detect phony “buyers.” There’s too much exaggeration and bloviating by searchers pretending to BE more, and HAVE more to offer sellers.

My advice to sellers and brokers: Confidentially (behind the scenes) spread the word in your industry whenever charlatans are posing as legitimate buyers.

If you’re thinking of selling a business, don’t bother with self-proclaimed “buyers” who do not show up behaving like I’m teaching during this presentation. Chances are you’ll have to cope with poorly-prepared searchers; they can breach your confidentialities and otherwise make you crazy.

What about having to compete with other buyers?

Well, you have to outbid them . . . which is a good way to pay more than a business is worth.

TIPS

• Avoid buyer competition by accessing the Hidden (Off) Market.
• If you can’t avoid competition, beat them!

Never forget your lost income opportunity.

Irrationally deferring an M&A transaction presents at least two kinds of?potential losses. Both risks are avoidable.

• Missing out on the best opportunity that you’re going to get.
• Lost income, what you would have earned every month longer it takes to complete your deal.

What about buying a business in a seller's market?

How do you know when it IS a seller's market? (Watch my video.)

Will buying the bubble burst your business acquisition?

There's a surge of business sellers. Some sellers want to avoid losing to rising costs for labor and materials. They're hoping buyers will compete to pay a premium price for their company during the "seller's market."

Too many people buying small and midsize businesses are falling for the nonsense being pitched by sellers. Even worse, we're seeing so-called business appraisers, in their reports, mostly or totally ignoring the effects of Covid on whatever business they’re “valuing.”

Or, ignoring the labor market, where disgruntled employees are causing trouble. Employees demanding big raises can cost business buyers, bigtime.

I am the Original Business Buyer Advocate ?, and I can improve your marketability to business sellers, brokers, investors, and others. And then show you how to find and buy the right businesses the right ways.

Email me from my website, https://partneroncall.com/. Or, DM me on LinkedIn.

Why me?

For decades, worldwide, I’ve evaluated, trained coached and advised searchers and buyers on the basis of hundreds of done deals. My colleagues have shared information about thousands of searchers and dealmakers.

• We have no businesses to sell or recommend.
• No conflict of interest.
• Our loyalty is solely to buyers looking for opportunities leading to done deals.

Not sure?

Watch this:

2-Minute Video Reveals What The Savviest Searchers Do

Read this:

How to Prepare Yourself and Find the Right Business to Buy

Preview my books:

120 Financial Lifelines for Small Businesses

How to Prepare Yourself and Find the Right Business to Buy

How to Buy the Right Business the Right Way—Dos, Don’ts & Profit Strategies

21st Century Entrepreneur Ideas for Kids and Aspirational Adults (Complimentary)

How to Get ALL the Money You Want For Your Business Without Stealing It (USA and Canadian versions.)

Ted J. Leverette

The Original Business Buyer Advocate ?

“Partner” On-Call Network, LLC

https://partneroncall.com/

Each Office Independently Owned & Operated

#acquisitions #bestadvice #business #businessbuyeradvocate #businessintelligence #businessowner #businessvaluation #careers #cashflow #consultants #corporatefinance #duediligence #employees #entrepreneur #entrepreneurship #hiring #hr #humanresources #jobsearch #legalissues #management #mergersacquisitionsdivestitures #smallbusiness #smallbusinessowners #sme #startups #success #tedleverette