You Are Invited to Celebrate 100 Episodes with The Deal Board!
The 100th episode is just about to happen; one hundred episodes delivering valuable information on how to buy, sell, and run a business. To celebrate this special occasion, Andy and Jessica are going to put together an episode with 100 Business Tips, and they will do it by having a little contest. You need to go to The Deal Board Podcast, click on the link to The Deal Board Youtube Channel, subscribe, and comment on this episode your best business tip. The best ten tips will be brought onto the show and you will have the chance to go live in the hundredth episode that will be launched on March 18th and win a special prize.
Description: Andy and Jessica are very proudly welcoming you to another episode of The Deal Board Podcast. In today's episode, they are sharing with you the ultimate buyers' playbook for 2021. 2020 has left an incredible opportunity by the SBA incentives that have been allowing buyers to leverage themselves into deals, giving six months on principal and interest.
Listing of the week: Art Warsorff (Utah County) is selling a high-end restaurant takeout that was doing great pre-COVID-19. The owner created a special menu during COVID-19 that was particularly good for takeout and delivery, maintaining this way the relationship with customers, and keeping the business alive and blossoming. Asking price: $780,000 (the owner is willing to self-finance a portion of it). The business made $400,000 in 2019 and close to that also in 2020. Email Art at utahcounty@tworld.com or call (801) 557-6713.
Key takeaways:
[4:55] What is going on in 2021?
[5:15] Jessica talks about the incentives to take a new SBA loan.
[9:50] Why is this a life-time opportunity?
[13:07] There is competition for deals but that doesn't mean there aren't businesses to buy.
[13:50] You could get a really sizable business with the SBA loan, from 9 to 15 million dollars, depending on the deal.
[14:08] Some businesses experienced a boom as a result of the 2020 crisis.
[16:01] Deal of the week: Raymond Copell (Fort Lauderdale) sold a restaurant with a drive-thru, a sale that took almost five years of consistency, persistence, and clear communication. Asking price: $850,000. Sold at $600,000 with a cash deal.
[21:14] Jonathan Wilson from Nature's Expert
[22:18] Jonathan talks about how a lot of industries are going through a different phase where there is an old and a new type of ownership.
[24:56] Jonathan shares about the companies he purchased over the last five years.
[32:29] Jonathan talks about the opportunities he sees in the current marketplace.
[34:01] Subscribe to Transworld's BizMatch.
[35:09] Listing of the week: Art Warsorff (Utah County) is selling a high-end restaurant takeout. Asking price: $780,000; the owner is willing to self-finance a portion of it. The owner made $400,000 in 2019 and close to that also in 2020.
[38:28] Andy and Jessica answer listeners' questions (Q).
[38:30] Q1: What guidelines does the SBA use to qualify a business for a loan?
[40:22] Q2: Do banks accept seller financing as part of the down payment?
[41:20] Q3: Does the 90% guarantee reduce the Personal Guarantee in collateral?
[42:11] Q4: Does the SBA financing include businesses without real estate?
[42:32] Q5: Can you purchase real estate with the SBA program?
[43:45] Q6: Does experience matter?
[44:24] Q7: What are we seeing in terms of selling prices and multiples of EBITDA? Is it stable or increasing?
[45:34] Q8: Why should sellers care about the waves of owners selling their businesses?
[47:15] Q9: Are the SBA loans asked by the target business or by the person who is buying it?
[47:45] Q10: Can you buy a business with no money down?
[49:38] Q11: Can SBA loans be used to buy out a business partner?
[51:39] Q12: Are there any restrictions for buyers residing outside of the U.S.?
[52:45] Q13: Can the SBA loan be used by employees?
[53:29] Q14: What is the typical closing cost in addition to the down payment?
[54:30] Q15: Can you use your IRA for the 10% down payment?
[54:51] Q16: If you have good credit, do you still need to have personal collateral?
[55:40] Q17: Does Transworld release any valuation metrics on a monthly or quarterly basis in regard to current valuations in the marketplace?
[56:11] Q18: Do PPP dollars issued to a seller on Round Two have to roll over to the new owner?
[57:12] Q19: Does Transworld have offices in Atlanta, Georgia?
[57:25] Q20: Can an SBA loan be taken by a company instead of an individual?
[57:55] Q21: Are sellers hesitating to sell as a result of waiting for the PPP forgiveness?
[58:22] Q22: Should the EBITDA and SDE multiples equal each other?
[59:54] Q23: Why banks avoid doing smaller deals.
[1:01:01] Q24: What is included in the SDE?
[1:03:01] Q25: Are there any cons of an SBA loan?
Mentioned in this Episode:
Call us — 1-888-711-9018
Email us thedealboard@tworld.com
Sign in at Transworld Biz Match
Call Raymond Copell at (954) 464-6290.
Email Art Warsoff at utahcounty@tworld.com or call (801) 557-6713
Tweetables:
"We are in a market that is both beneficial for buyers and sellers." #thedealboard #transworldbusinessadvisors #2021 #opportunities #businessadvice
"Right now, with the SBA incentives, you are getting money for free to buy a business."
#thedealboard #transworldbusinessadvisors #2021 #opportunities #businessadvice
"If you could navigate last year being a regular business, then the sky's the limit."
#thedealboard #transworldbusinessadvisors #2021 #opportunities #businessadvice
