Transworld Business Advisors receive thousands of buyers from around the world every year who are looking to buy a business. In this episode, Andry and Jessica talk about specifically the individual buyers seeking businesses and what exactly are they looking for. The typical profile is somebody who has worked for a corporation for ten to twenty years, has dreamed of buying a business, saved money for their retirement, and now are looking for income replacement; they are looking to buy themselves a job but within a business that they can grow.
If you are listening to this show as a business seller, the information you will hear will help you position your business to sell, and if you are a buyer, you will get ways to carve out some competitive advantage for yourself and have better chances of winning a deal.
Listing of the week: Carey Davis (New York). Major player in the wholesale importer and distributor of products grown in farms and fields around the country and imported from South America delivered to supermarkets, restaurants, and homes. The company started 15 years ago. Sales over $25 million per year, $9 million in expenses, $19 million in products, $1.2 million income. SDE: $2,250,000. Ready to get in the organic market. The asking price is $13.9 million. Financing is available. Contact Carey cdavis@tworld.com or call 646-707-4559.
Key takeaways:
[3:13] Buyers look for a business with established revenue.
[4:42] Keep good books and records.
[5:10] Buyers are looking to determine what the owner's engagement in the business is.
[9:12] Buyers look for stability in a changing market, a business that is recession-resistant.
[11:30] People hate change.
[11:49] The reputation of a business is easy to track.
[13:55] The type of business is a priority to buyers.
[15:49] What to do if you are thinking of franchising your business.
[16:13] Buyers are looking for businesses that have limited competition.
[18:56] Buyers are looking to leverage their capital.
[22:06] Buyers look for businesses that have professional advisors.
[27:05] Deal of the week: Joshua Sagman (South Florida). Deal in Puerto Rico. Consulting company. A complex deal that was solved creatively. The owner stayed on board for the transitional period. Sold for $199,000 in three payments. The owner benefits were $400,000 per year.
[32:23] Listing of the week: Carey Davis (New York) Major player in the wholesale importer and distributor of products grown in farms and fields around the country and imported from South America. SDE: $2,250,000. Ready to get in the organic market. The asking price is $13.9 million. Financing is available.
Mentioned in this Episode:
Call us — 888-711-9018
Email us thedealboard@tworld.com
Contact Joshua Sagman at joshuasagman@tworld.com or call 561-707-8986
Contact Carey Davis at cdavis@tworld.com or call 646-707-4559
Tweetables:
"Absentee-owner business does not exist." #thedealboard #transworldbusinessadvisors #business #owner
"Buyers look for a business that can survive without the owner." #thedealboard #transworldbusinessadvisors #business #buyers #selling
"You want to create a business that has systems in place that are transferable to a new buyer." #thedealboard #transworldbusinessadvisors #business #selling
"The biggest danger in a deal is not getting it done." #thedealboard #transworldbusinessadvisors #business #deal #done
