Thanks for this video David, its exactly what I need for a few of the businesses I'm working with right now.. Small, low SDE and higher replaceable FF&E Value. You reference the software you use to perform valuations...I've got your Business Buyer Advantage Analysis Template (great stuff). Do you have access to the valuation software you use?
Would you include a daycare where I’m buying a job with the real estate included and ff&e would be discounted or negative value? How might you approach an owner of 20+ years with unrealistic expectations of goodwill?
Sometimes you have to show them the cash flow forecast so they can see how you simply can't afford to pay any more. They know, but they don't want to know.
Hi Alan here, good explanation. I spoke to a lawyer recently on LOI's/IOI's and noticed one of the lenders that I now follow on twitter, mentioned using an IOI before and LOI if no asking price is published in the sale. thoughts ? Thanks A
I always used an 'offer to purchase' which was a simple, two page form-style of document that outlined the deal subject to financing, due-diligence, etc. I've heard people describe the IOI and it seems like they're doing the same strategy that I've always advocated. You don't want to involve attorneys in expensive documents until you know you're at least on the same page as the seller.
Thanks for this video David, its exactly what I need for a few of the businesses I'm working with right now.. Small, low SDE and higher replaceable FF&E Value. You reference the software you use to perform valuations...I've got your Business Buyer Advantage Analysis Template (great stuff). Do you have access to the valuation software you use?
I use the Financial Analysis Template from Pacific Mergers and Acquisitions. Google them, you'll find it.
Would you include a daycare where I’m buying a job with the real estate included and ff&e would be discounted or negative value? How might you approach an owner of 20+ years with unrealistic expectations of goodwill?
Sometimes you have to show them the cash flow forecast so they can see how you simply can't afford to pay any more. They know, but they don't want to know.
Hi Alan here, good explanation. I spoke to a lawyer recently on LOI's/IOI's and noticed one of the lenders that I now follow on twitter, mentioned using an IOI before and LOI if no asking price is published in the sale. thoughts ? Thanks A
I always used an 'offer to purchase' which was a simple, two page form-style of document that outlined the deal subject to financing, due-diligence, etc. I've heard people describe the IOI and it seems like they're doing the same strategy that I've always advocated. You don't want to involve attorneys in expensive documents until you know you're at least on the same page as the seller.
@@DavidCBarnett offer to purchase sounds perfect. Thanks again. Always learning new things with your good content
Awesome stuff, By any chance Can I help you with engaging video edits?
No. I'm not really trying to attract people who are looking to be entertained. Thanks though and good luck with your business.
Thank you. Your talk was pretty good, BUT you may want to state the the meaning of your multy leter statements' At the start of your talk.
Multi-letter statements? You mean SDE, EBITDA, etc? Just spend some time on this channel and go through the old videos.