***New Video Alert!
Part 3 of the ‘Get into Business 101’ summer series.
Today, we’re talking team members.
This is something you do before you get into business.
I’ll explain the experts and the not-so-experts that you need to find in your community and online.
Check out this week’s video: https://youtu.be/hA75uMo3cNw
Cheers
See you over on YouTube
David C Barnett
X-Ray the personality of someone before you hire them!
New Livestream guest-> Fletcher Wimbush
I’m happy to have Fletcher join me on a live broadcast.
He’s got over a decade of experience in hiring and talent acquisition and evaluation.
Tune in and as we’ll be discussing DISC assessments in the hiring process and how to properly use them.
This is a ‘must see event’ for anyone who will need to grow their team in the future.
Be sure to join live so that you can ask questions, replay will be available.
Set yourself a reminder on YouTube here:https://youtube.com/live/rApkiUGMW3c
We’ll be going live Monday July 22, 2024 at 1 PM Atlantic Time, 12 Noon Eastern Time
See you there!
David C Barnett
Today, I’m sharing a story about a viewer in Chicago who’s struggling to buy a business with around $500,000 in EBITDA. This tale might just resonate with many of you looking to make a similar move. https://youtu.be/L-muWEy2Y1E
Our Chicago friend, a retired C-level executive with a substantial budget, is looking for a solid business to purchase and grow. However, he’s finding himself constantly outbid by competitors with deeper pockets. Why? It’s all about the magic of the $500K EBITDA mark.
At $500K EBITDA, a business becomes highly attractive to both Private Investment Groups (PIGs) and Private Equity Groups (PEGs). These entities have the resources to transform such businesses into larger, more valuable enterprises. Here’s how they do it:
Target Industry Segmentation: They focus on industries with many independent operators.
Strategic Acquisition: They buy a successful business and pour resources into rebranding and marketing.
Expansion: They acquire similar businesses within the same media market, creating a chain.
Scaling: They grow the business from $500K EBITDA to several million dollars.
Exit Strategy: They sell the aggregated businesses at a much higher multiple or take it public.
Strategic buyers are willing to pay more because they’re not just buying current cash flow—they’re buying future growth potential. They can afford to offer higher prices because:
They can spread marketing and operational costs across multiple businesses.
They’re aiming to sell at higher multiples typical in the stock market (8-15 times earnings) compared to the small business market (3-4 times earnings).
For individual buyers like our Chicago friend, competing against these strategic buyers is tough. Here’s my advice:
Look for Smaller Targets: Focus on businesses just below the $500K EBITDA mark. These are less likely to attract PIGs and PEGs.
Build to Sell: Find a solid business, grow it, and then sell it to a PIG or PEG once it hits that magic EBITDA threshold.
Navigating the business buying landscape can be challenging, especially when competing with well-funded investment groups. However, by adjusting your strategy and targeting slightly smaller businesses, you can find valuable opportunities and potentially sell at a profit in the future. www.DavidCBarnettList.com
Cheers!
David C. Barnett
Join me to this interview with the host of He Said, She Said: Razon Branding Podcast together with Jacci Russo and Michael Russo.
Tune in to learn why business is tough, why it’s important to be realistic about business opportunities, and how to navigate the ever-changing landscape of buying and running a business. Don't miss my practical advice and candid insights that could help you make better business decisions.
***New Video Alert!
Part 2 of the ‘Get into Business 101’ summer series.
Today, we’re talking resources.
Understanding what you’re working with will inform your options.
Money
Debts
Personal Assets
Skills and Experience.
Check out this week’s video: https://youtu.be/8_IiRwZ0bOo
Cheers
See you over on YouTube
David C Barnett
Business Seller’s Journeys with Business Brokers
New Livestream guest-> Neal Isaacs
I’m happy to have Neal join me on a live broadcast.
Neal has sold dozens of businesses in his role as a business broker with VR Business Brokers in Raleigh, NC.
Tune in and as we’ll be discussing what ideally a broker should be telling/showing/helping sellers with and we’ll hear some of his stories from the trenches.
In particular, I’m going to ask Neal about how, as a broker, he views his inventory of businesses for sale.
This is a ‘must see event’ for any small business owner who might want to sell one day.
ESPECIALLY if you want to learn how to spot the tells of a qualified broker vs. a poseur.
Be sure to join live so that you can ask questions, replay will be available.
Set yourself a reminder on YouTube here: https://youtube.com/live/-7vt5Ef-9i8
We’ll be going live NOW! July 15, 2024 at 1PM Atlantic Time and 12 Noon Eastern Time
See you there!
David C Barnett
