How To Buy A Business Course | Checklist For Buying A Business

How To Buy A Business Course | Checklist For Buying A Business

Hello and welcome my name is Matthew Buxton and I am the author of “The 8 Elements Approach To Buying A Business”. I’ve been through the business buying process hundreds of times. Based on this “hands-on” experience I’ve created a comprehensive course for individuals and couples who are seriously looking to buy a business – the right way. My course takes a non-technical, common-sense approach to buying a business and guides you step-by-step through the entire business buying process. Buy my course follow the advice within and I promise you several great things will happen: You’ll be learning the most cost-effective way of buying a business, saving you thousands of dollars in legal fees. You’ll learn how to identify a great business opportunity. Conversely, you’ll know how to spot a horrible money sapping business that should be avoided at all costs. You’ll learn how to Evaluate a business properly, as well as learn the fundamentals to Valuating a business. I’m going to teach you how to identify and avoid very common, very costly, mistakes! And how to buy a business in such a way that gives you the greatest probability of success. You’ll save tens, even hundreds of thousands of dollars over the entire business buying process! In this video I’m going to be discussing the course curriculum, so go grab a cup of your favorite beverage and let’s get started… In this first section I talked about the importance of personal preparation. It’s important because personal preparation is overlooked by many a buyer and in doing so this will cause delays at some point in the business buying process. And to be clear any unnecessary delay could result in another buyer, buying the business of your dreams. Lack of personal preparation might affect the response you get to your inquiries. Lack of personal preparation might add months, even years to your search for that perfect business opportunity. Lack of personal preparation might, at the most critical part of the process, jeopardize your ability to secure the financing you need in order to buy that business opportunity of your dreams. In this section I also talked about the various common costs associated to buying a business. As well as talk about the various ways you can buy a business. It’s important that you know this now so you can prepare yourself accordingly. Included in this section are some example document templates to help guide you towards properly preparing for the purchase of a business. Section 2 discusses the business buying, and selling market. You see it’s important that you know now what a typical profile of a seller looks like as well as understand why business owners list their businesses for sale. You’re going to learn all the common reasons why businesses do NOT sell. I’m going to talk about why businesses fail shortly after a change in ownership. I’m going to start teaching you how to identify a “shyster” business owner. I’m going to talk to you about the business buying and selling market in detail – in order to arm you with the knowledge needed to identify a fantastic business opportunity. – In order to stop you from making very common, very costly mistakes that can quite easily sap you of your life savings. If you’re looking to buy a business – the right way – you’re going to need a team of ethical, experienced advisors. Advisors who will all work together to ensure that nothing is missed or overlooked. Advisors who will objectively advise you throughout the entire business buying process. Specifically I’m going to talk about Business Brokers, Lenders, Lawyers and Accountants. When it comes to business brokers and lawyers I’m going to show you how to identify the great ones – the ones you should really consider hiring. I’m also going to show you how to identify the ones you should AVOID at all costs – the “bad guys”. And to be clear the bad guys of the people who will happily charge you thousands of dollars for the privilege of jeopardizing, even killing your deal for no verifiable reason at all. To help you identify the best advisors for your particular situation. I’ve included in this section an interview questionnaire for each of the aforementioned experts. So when you meet that lawyer for example you know the questions to ask them in order to determine if they’re suitable and experienced enough to help you. Now that you’ve taken the time to prepare for the purchase of a business, you know what to expect from the market and you’ve identified your team of advisors, it is now time to learn the business buying process. I’m going to start by showing you a flowchart that reflects the major milestones and steps that make up the entire business buying process. Then I’m going to discuss each of these steps in detail. Remember follow this flowchart in the order to which it is presented and it will save you thousands, even tens of thousands of dollars. Section 5 is where I discuss the 8 elements of a business that effect value. And it’s important to note that many of these elements are the same elements your lender will look at, in the likely event you need financing in order to buy a business. For each element discussed I’m going to teach you the critical questions you must ask. In total more than a hundred questions that you need to ask the business owner. I’m also going to advise you on how to interpret the answers you will get to each of these questions. Specifically does the answer they provide support your understanding of the business opportunity and information provided or is it cause for concern. In this section I’m going to teach you how to read financial statements. I’m going to talk about the most common expense categories you will see reflected in financial statements and in turn I’m going to teach you what common expenses a business owner hides within each of these expense items. Expenses you need to be aware of in order to determine the value of the business. Expenses you need to be aware of in order to determine if the business opportunity is really for you. Included in this section is the same list of questions which we discussed in detail earlier. However now there is a space for you to reflect the business owners response to each question, as well as your own notes. Remember to print off one complete set of checklists, for each business you review. Section 6 is your introduction to valuating a business. In this section I’m going to start by dispelling the myths about valuating a business. I’m going to explain why EBITDA is useless and I’m going to start teaching you to look at businesses like fingerprints – they are all different. I’m going to teach you the characteristics of a business that support a high multiple. Intern I’m going to teach you the characteristics of a business that result in a low multiple. As a buyer you can take this knowledge and advice and apply it to a business you’re looking to buy. When it comes to valuating a business, the key point to remember is you CANNOT valuate a business by just looking at the financial statements! In this section I’m going to teach you the correct way of creating an offer. The correct way of presenting an offer, to a business owner. The most cost-effective way of creating an offer and what must be included in your offer. This is particularly important. Mistakes made by individuals and couples here can cost you thousands of dollars. It might even result in you losing your deposit. To help you navigate this part of the process properly I’ve included some templates that you can duplicate and modify for your own use. Having your offer accepted by a business owner is a huge step in the right direction. Now is the time to really knuckle down and sink your teeth into all that information. Now is the time to fully engage your lender and your lawyer. Aside from discussing satisfying conditions, training and what happens post-sale, this section centers around two large areas of discussion. I’m going to discuss the Due Diligence process in detail. I’m going to guide you through ALL the steps you must take. I’m going to discuss the Final Inspection in detail. That is the inspection of the business the night before you take ownership of it. To ensure you don’t miss anything in the due diligence process, I’ve included an example due diligence checklist that covers over 70 individual items. As I’m sure you can see this is a comprehensive course but if you dedicate the time to implementing my advice, you will be able to buy a great business, for a great price, for the best possible Terms and in a way that guarantees the highest probability of success. If you’re thinking of buying a small to medium-sized business in Canada, I can help you! If you have a question about the course curriculum or any aspect of the business buying process, I’d love to help you. Contact me today. Thank you sincerely for taking the time to watch this video in its entirety.

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  1. Click here to enrol in Canada’s most comprehensive course specific to buying a business:

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