In the latest episode of the Business Buying Strategies podcast, Jonathan Jay reveals some of the most common business buying mistakes we see new and inexperienced business buyers make. (And many experienced dealmakers, too!)
Many of these mistakes can seriously damage your ability to source deals, negotiate the best price and terms possible and can even stop deals in their tracks. What’s more, many of these mistakes can be easily avoided.
Listen to the Business Buying Strategies podcast today and discover whether you are making any of these 12 most common mistakes when it comes to buying a business.
Here are the key highlights:
01:17 The Pitfall of Using Your Own Money
02:43 The Art of Financing a Business Purchase
04:48 Avoiding the Trap of Buying a Job
05:51 The Danger of Overpaying for a Business
08:46 The Importance of Understanding the Business You're Buying
10:44 Balancing Your Day Job and Business Buying Journey
12:54 The Power of Thinking Big in Business Buying
15:42 Assembling the Right Team for Your Business Purchase
17:34 The Importance of Cash Flow in Business Buying
20:26 The Risks of Buying an Underperforming Business
23:10 Understanding the Seller's Motivation
25:56 The Importance of a Company's Reputation
27:46 The Crucial Role of Due Diligence in Business Buying
Here is what you will discover…
- Why buying a small business is the same effort as buying a large business (but can leave you with more stress, worry and sleepless nights…)
- Why you must never sign a personal guarantee (unless you want to risk losing your house or other personal assets…)
- Why putting your own money into a business acquisition is a huge risk (even if you have money in the bank)
- Why there are so many better ways to finance a business acquisition that don’t involve using your own funds
- Why not putting your own money into a deal will always create a better deal in the end (this may surprise you)
- Why you should never take a vendor’s unwillingness to negotiate at face value (it’s amazing to see how quickly this can change under the right circumstances)
- Why buying a business in a sector or profession you understand will shortcut your journey (and take weeks and months off your learning curve)
- The No.1 thing every business buyer wishes they had done for their first deal (so you don’t make the same mistake)
- Why you must never cut corners when it comes to building your deal team (getting this wrong is a recipe for disaster)
- Why you must avoid buying a distressed business at all costs as your first acquisition
- The one thing you need to discover from the vendor that makes all your negotiations simpler (and could close the deal in a fraction of the time)
** Looking for a great acquisition lawyer in the UK? Use mine! **
If you are looking for a lawyer in the UK to help you get the deal over the line, then use my own lawyer, John Andrews. You can phone his office at (0345) 2412494 or email him at johnandrews.deallawyer@jmw.co.uk.
Ready to get started?
Here’s how you can start your business buying journey…
Watch my FREE Dealmakers webinar training:
https://www.dealmakerspodcast.com
Get a FREE copy of my book:
https://www.thedealmakersacademy.com/free-book-giveaway
Join the Business Acquisition FastTrack course
https://www.thedealmakersacademy.com/quick
Already bought a business?
if you've already bought a business, you should be part of my Inner Circle group where we discuss raising capital, integration management, and exiting. Email Maria on hello@thedealmakersacademy.com for more information.
