Once you have a business price, how do we divide it up among the 'stuff?'- How to buy a business, how to sell a business

Greg sent me a great question; Once we have a price for the business, how do we break down that price among the different things being bought?

Great question.  We call this the price allocation and it’s necessary to do when you buy or sell a business as an asset sale.

The way that you allocate the purchase price can have direct tax consequences for the selling entity at the time of sale... or for the buyer in the years to come after the purchase.

It’s often one of the facets of the negotiation that the buyer and seller don’t realize they need to get figured out sooner rather than later.

I’ve seen the price allocation cause delayed closings and has almost stopped a deal.  Especially if it’s left until the last minute. Learn more about how it can affect you in my new video.

Watch the video here: https://youtu.be/Zzt7xznT7fU

Learn more about price allocation and how to buy businesses at www.BusinessBuyerAdvantage.com where you can access tons of information and enroll in my online course.

Student satisfaction from my program is 100%.  Everyone who’s taken it is happy.  How do I know? It features a 30 day money-back guarantee which nobody has ever asked for.  There’s no risk at all for you to enroll.  You can see how my whole buyer system works in this video from a few weeks ago: https://youtu.be/ooixMSaFf6Y

Please remember to like and share this article, it’s the only way the people who run the internet have of knowing if the content is any good or not. The more you share, the more likely someone who needs this information will be able to find it.

Go to the left and sign up for my weekly e-mail. Easy unsubscribe at any time as I use MailChimp and I’m not interested in harassing people for who don’t want to hear from me.

I’m coming to Toronto on May 10, 2017.  Seats are already filling up.  Find my current and future live events here: http://davidbarnett.eventbrite.ca .    

The Centre for Entrepreneur Education and Development in Halifax will be having me do two workshops in Halifax, NS on April 10.  Visit http://www.CEED.ca for more info.

Thanks and I’ll see you next time.

David appears on Conscious Millionaire Podcast.

I had a great time talking with Conscious Millionaire JV Crum III about selling businesses.

Check it out. It was a great recording. Listen and see the show notes here:

http://consciousmillionaire.com/davidbarnett/

Chicago bigwig vs. the PIGs and the PEGs. How to Buy a Business

I had a chat with a Chicago executive who was looking for an opportunity to buy a ‘good sized’ business with about $500K EBITDA.

He was having troubles making a deal.  It seems that every time he found a good business, someone else arrived on the scene to outbid him.

What gives?  Why do these other buyers seem to want to over-pay for these businesses?

The problem is that at this revenue level, the financial buyer (person who wants an income and job) begins to run into the strategic buyers.  In this case; the PIGS and the PEGS.

These are the Private Investment Groups and Private Equity Groups.

There is a reason they’re willing to pay more.  They’ve got plans for these businesses.  Learn what it is in this video I made.

Watch the video here: https://youtu.be/L-muWEy2Y1E

Learn more about how to buy businesses at www.BusinessBuyerAdvantage.com where you can access tons of information and enroll in my online course.

In fact, it’s so awesome that in the years since I’ve been doing the online course and the live workshop, not a single person has taken me up on my money-back guaranteee.  (The course is a great value and yes, it comes with a 30-day money-back guarantee!)  You can see how my whole buyer system works in this video from a few weeks ago: https://youtu.be/ooixMSaFf6Y

Please remember to like and share this article, it’s the only way the people who run the internet have of knowing if the content is any good or not. The more you share, the more likely someone who needs this information will be able to find it.

Sign up for my weekly e-mail list.  It's just to the left of this article.

I’m coming to Moncton, NB on March 30 and Toronto on May 10.  Seats are already filling up.  Find all my live events here: http://davidbarnett.eventbrite.ca .    

The Centre for Entrepreneur Education and Development in Halifax will be having me do two workshops in Halifax, NS on April 10.  Visit http://www.CEED.ca for more info.

Thanks and I’ll see you next time.

Dave Lukas interviews me about buying and selling businesses on Misfit Entrepreneur- Listen

I had a great talk with Misfit Entrepreneur David Lukas about buying and selling businesses.  Listen in.  See the show notes here.

How to Borrow to Buy a Business with Undeclared Revenues - How To Buy a Business

Jolson wants to know how to convince a bank to make a loan for him to buy a business.  The problem is that the seller has not been declaring all the revenue and the financials look awful. 

What is a prospective buyer to do?

Great question… I love these kinds of sellers.

Why? Because they’ve made their businesses un-bankable by their tax-swindling ways. 

The only way they’re going to be able to sell their business is if the financing is provided in a different way which can be great news if you’re a buyer.

Let’s face it, banks can be difficult and time-consuming to deal with.  I always prefer to do a deal without them when I can.

Learn more about what I mean in the video I recorded to respond to Jolson.

Watch the video here: https://youtu.be/8pVgc2u07pU

Learn more about how to buy these types of businesses at www.BusinessBuyerAdvantage.com where you can access tons of information and enroll in my online course.

In fact, it’s so awesome that most of the people who enroll also sign up for my follow-up mentoring program to help them prepare to actually do a deal.  (The course is a great value and comes with a 30-day money-back guarantee!)  You can see how my whole buyer system works in this video from a few weeks ago: https://youtu.be/ooixMSaFf6Y

Please remember to like and share this article, it’s the only way the people who run the internet have of knowing if the content is any good or not. The more you share, the more likely someone who needs this information will be able to find it.

Go to www.DavidCBarnett.com and sign up for my weekly e-mail to receive my videos three days before they go public as well as other exclusive offers. Easy unsubscribe at any time as I use MailChimp.

I’m coming to Moncton, NB on March 30 and Toronto on May 10.  Seats are already filling up.  Find all my live events here: http://davidbarnett.eventbrite.ca .    

The Centre for Entrepreneur Education and Development in Halifax will be having me do two workshops in Halifax, NS on April 10.  Visit http://www.CEED.ca for more info.

Thanks and I’ll see you next time.

Does Debt Make a Small Business More Volatile? How To Manage Your Small Business

Eugene wants me to talk about how small business debt makes a business more volatile and if his assumption is correct.

Great question… because it’s not.

Small business owners take on debt to do one thing, boost returns somehow.  This has the effect of magnifying the returns on equity.  All awesome!

Of course, if a money-losing business were to finance losses via debt, that would be just stupid.

Watch my video and learn how/when small businesses should have debt and find out who I see get into the most trouble, the most often.  (and who’s to blame)

Watch the video here: https://youtu.be/YH8WzjkDU-A

Learn to get into business the lower-risk way at www.BusinessBuyerAdvantage.com where you can access tons of information and enroll in my online course.

In fact, it’s so awesome that most of the people who enroll also sign up for my follow-up mentoring program to help them prepare to actually do a deal.  (The course works out to about $20/hr. and comes with a 30-day money-back guarantee!)  You can see how my whole buyer system works in this video from a few weeks ago: https://youtu.be/ooixMSaFf6Y

Please remember to like and share this article, it’s the only way the people who run the internet have of knowing if the content is any good or not. The more you share, the more likely someone who needs this information will be able to find it.

Go to www.DavidCBarnett.com and sign up for my weekly e-mail to receive my videos three days before they go public as well as other exclusive offers. Easy unsubscribe at any time as I use MailChimp.

I’m coming to Moncton, NB on March 30 and Toronto on May 10.  Seats are already filling up.  Find all my live events here: http://davidbarnett.eventbrite.ca .    

The Centre for Entrepreneur Education and Development in Halifax will be having me do two workshops in Halifax, NS on April 10.  Visit http://www.CEED.ca for more info.

Franchise issues in the Real Estate industry.. a terribly candid live conversation that was a blast. Watch the replay..

I had a great live conversation which was pretty candid.  All about real estate, realtors who try to do business brokerage and franchise issues in the real estate industry.

Check out the recorded show here: 

http://mcdanielrealestatesystems.com/2017/03/02/what-real-estate-can-learn-from-franching-with-david-barnett/

Sam wants to know what kind of online business I would start- How To Buy a Business

Sam wants to know what kind of online business I would choose to start.  Easy answer since I’ve already started an online business.

I’d start one where I wrote and sold books and online courses.  The reason: time leverage.

The problem, of course, is that I’ve been working on my online business for years and its only now starting to truly pay me the way I deserve.

There is an easier way to get into an online business and make money right away. I share it here in this video: https://youtu.be/mCTH7UmJfLw

Learn how to buy a business (online or real-world) at www.BusinessBuyerAdvantage.com where you can access tons of information and enroll in my online course.

In fact, it’s so awesome that most of the people who enroll also sign up for my follow-up mentoring program to help them prepare to actually do a deal.  (The course works out to about $20/hr. and comes with a 30-day money-back guarantee!)  You can see how my whole buyer system works in this video from a few weeks ago: https://youtu.be/ooixMSaFf6Y

Please remember to like and share this article, it’s the only way the people who run the internet have of knowing if the content is any good or not. The more you share, the more likely someone who needs this information will be able to find it.

Sign up to my email list.. just to the left of this post.

I’m coming to Moncton, NB on March 30 and Toronto on May 10.  Seats are already filling up.  Find all my live events here: http://davidbarnett.eventbrite.ca .    

The Centre for Entrepreneur Education and Development in Halifax will be having me do two workshops in Halifax, NS on April 10.  Visit http://www.CEED.ca for more info.

Thanks and I’ll see you next time.