***New Video Alert!
If you buy something and pay for it over 10 years and need to replace it after 2, that would be bad, right?
Here’s how a lot of buyers and sellers get into pricing problems.
Check it out in this week’s new video: https://youtu.be/qcr-MR0TT58
Cheers
See you over on YouTube
David C Barnett
***New Video Alert!
Confused by some of the terms you come across?
This week, I run down a list of the top 10 SMB deal making terms you need to understand to avoid bad deals.
Even if you believe you’re experienced, you may learn a thing or two in this week’s video: https://youtu.be/xVU_HofGDys
Cheers
See you over on YouTube
David C Barnett
***New Video Alert!
Double the content of the original deal education modules.
Completely new sections.
If you’re planning to buy a business, don’t do it without learning how we can help you: https://youtu.be/ErWE6G8LIG8
Check video show notes for a special offer from David for new students.
Cheers
See you over on YouTube
David C Barnett
***New Video Alert!
Want more money?
Respect?
Power?
Status?
And you also don’t want to do any work to achieve these things?
I’ve got a deal for you: https://youtu.be/XrhH0iizUPo
Cheers
See you over on YouTube
David C Barnett
Question of the week:
When you have a vendor take-back (seller financing) in a business purchase, what exactly serves as the collateral? https://youtu.be/CzbU6DCLsVo
In most cases, the business itself is the collateral.
It works just like other secured loans:
Car loan? The car is the collateral.
Mortgage? The house is the collateral.
Vendor take-back note? The business you’re buying is the collateral.
If the buyer stops making payments, the seller can foreclose and take the business back.
A common fear from sellers is:
“What if the buyer runs the business into the ground before I get paid?”
It’s a valid concern. If the business loses value, so does their collateral.
But here’s the silver lining because the business is the collateral, the seller has a vested interest in your success. They’re often more likely to:
Provide thorough training during the transition
Stay available for mentoring
Help troubleshoot problems
The healthier the business, the more likely the seller gets paid in full.
If there’s a bank involved in the deal, hard assets like buildings, vehicles, or equipment are usually pledged to the bank first.
Buyers’ personal assets like a home are often tapped for the down payment through refinancing or a line of credit. By the time the vendor note is in place, there’s rarely much left for the seller to claim beyond the business itself.
In most small to mid-sized business deals, the vendor financing note is secured mainly by the business.
That’s why sellers who agree to it tend to remain engaged. They know their payout depends on you keeping the business healthy and profitable.
Don’t forget—join my email list for early access to my latest videos and insights at DavidCBarnettList.com . You’ll even receive 7 FREE gifts when you sign up.
– David C. Barnett
***New Video Alert!
Can you retire from your business?
What will that look like?
When will it happen?
How can you make sure it really will?
This and more in my latest video all about small business exit planning. https://youtu.be/b2DTzqQixD8
Cheers
See you over on YouTube
David C Barnett
***New Video Alert!
Your lawyer, accountant and other professionals work for you to get the best deal and protect your interests.
Right?
But, are you sure?
The very dangerous world of conflicted interests in this week’s video: https://youtu.be/MwJWD52Byjw
Cheers
See you over on YouTube
David C Barnett
***New Video Alert!
Today, I address simplistic advice from an article likely written by an AI.
Should you run from these common deal problems?
-Lack of documentation
-Excessive add-backs
-Uncooperative sellers
I’ll tell you what I really think in this week’s video: https://youtu.be/E5AqdO2C3Ew
Cheers
See you over on YouTube
David C Barnett
***New Video Alert!
Today, I discuss the four levels of assurance that lenders rely upon and the six stages of small business failure and how this keeps your banker up at night.
Watch this week’s video here: https://youtu.be/9Xl43oe58JA
Cheers
See you over on YouTube
David C Barnett
***New Video Alert!
Should you quit your job and search for a business full time?
This week, I made a video about the pros and cons of searching full vs. part time and what lessons we can learn from people who already own a business who search to grow via acquisition.
Part time search can work better, if you have a real plan.
Watch this week’s video here: https://youtu.be/pl92EhRWR-M
Cheers
See you over on YouTube
David C Barnett
***New Video Alert!
You’re buying a business?
Spend some time investigating these three things.
If there’s something being hidden from you, these will likely reveal clues to help you track down real problems.
Watch this week’s video here: https://youtu.be/Kga6ighe8oE
Cheers
See you over on YouTube
David C Barnett
***New Video Alert!
I met with a fantastic group of young professional women who were interested in building wealth.
Their big question- Can you invest in small businesses and produce a passive income like real estate or a stock portfolio?
Big question!
I dig into it this week and let you know what I think and also what considerations you would need to make if you ever thought you wanted to try this.
Watch this week’s video here: https://youtu.be/kQCfKa-GKA4
Cheers
See you over on YouTube
David C Barnett
***New Video Alert!
You see the payables.
You agree to the payables.
But wait, there’s more… that you find after closing.
Avoid this Balance Sheet Bomb!
Watch this week’s video here: https://youtu.be/1izgWVGELOw
Cheers
See you over on YouTube
David C Barnett
When it comes to negotiating a business sale, the price tag might not be as crucial as you think. Sometimes, the terms of the deal can carry more weight than the actual dollar amount—for both the buyer and the seller. https://youtu.be/iqo5EngtGa8
Recently, I worked with a consulting client who gave me one of the best testimonials I’ve ever received. After a short phone conversation, I helped him restructure the terms of a deal he was already negotiating—and the result? An extra $250,000 in his pocket.
This isn’t a one-off story. I’ve previously discussed similar situations, like the time a business owner sold for more than expected by simply offering better vendor financing terms to the buyer. The buyer couldn’t find comparable terms elsewhere, which made the higher price acceptable.
The client I helped recently was selling shares of his Canadian business, a type of sale that qualifies for tax-free capital gains under certain conditions. He had smartly prepared with his accountant over the years, combining his tax-free allowance with his spouse’s.
However, when sellers finance a portion of the sale and collect interest, that interest income is taxable. We discussed structuring the deal to offer low-interest vendor financing in exchange for a higher overall sale price. This made the offer more attractive to the buyer and more profitable (and tax-efficient) for the seller.
The seller met with the buyer, proposed the new terms, and the buyer accepted. The deal closed with an additional quarter-million dollars in the seller’s hands, purely from creative thinking and flexible negotiation.
If you’re thinking of selling your business, it's crucial to:
Prepare Properly – This seller had been working with a tax advisor for years.
Get the Right Help – Strategic advice can uncover value you didn’t know was possible.
Visit www.howtosellmyownbusiness.com to learn about the five-step process I use with clients:
Education
Evaluation
Preparation
Advertising
Coaching
If this story inspired you, please like or share this post. It helps others discover useful content and boosts visibility through platform algorithms.
And don’t forget—join my email list for early access to my latest videos and insights at DavidCBarnettList.com. You’ll even receive 7 FREE gifts when you sign up.
