The following educational videos have been created by business brokerage industry professionals who share their expert knowledge and advice on the purchase and sale of small and medium-sized businesses.
Key Considerations For Buyers Before Searching Business Opportunities on FindBusinessesForSale.com (4:31 min.) David Turner, FindBusinessesForSale.com Buying an existing business is an excellent way to become an entrepreneur without the risk of starting a business from scratch. However, just like any other major investment, purchasing an existing business requires a lot of due diligence research to minimize risk. Key considerations include:
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How Much Time Is Right For Small Business Due Diligence? (5.56 min.)David Barnett, DavidCBarnett.com In this video, David discusses how much due diligence is typically required when buying a business before submitting an offer on an existing business that satisfies your business acquisition criteria. One approach that he advocates are for buyers to have due diligence continue all the way to transaction completion! Once a buyer is comfortable with all due diligence inquiries excluding communicating with key employees and key suppliers, then a refundable deposit can become nonrefundable so that the buyer has the opportunity of communicating with and becoming comfortable with these two critical aspects of the business operation prior to completing the purchase transaction. |
Avoid Scams When Buying a Business (12.22 min.)David Barnett, BusinessBuyerAdvantage.com David is a leading educator on purchasing and selling small and medium-sized businesses. This video provides professional advice on avoiding scams when analyzing business acquisition opportunities. Scams can originate from sellers who provide fraudulent financial information, or even worse, the business operation may be fictitious to a large extent. If a seller or broker requires you as a buyer to put up a nonrefundable deposit prior to commencing due diligence, this requirement should be interpreted as a big red flag. Buyers should also be very cautious if a seller claims that there are unreported sales or the seller is reporting unusually high sales in the months leading up to the business being put on the market. Buyers should be aware of common scams since they may be more prevalent than you may think. |
Myths, Misconceptions, And Realities About Selling a Business (2.19 min.)Paul Savage, Pacific Business Brokers Inc. In this short video, Paul shares four common myths and misconceptions about selling a business. Watch this short video to help ensure you avoid making potentially costly mistakes when selling your business through. The business selling process is unique and it is critical to understand the process in order to optimize price, minimize taxes and ensure a successful transaction outcome. He dispels four common myths: Myth #1: "I can Sell the business myself"...Keeping a business operating at peak performance while trying to sell it in a confidential manner is an extremely difficult task. Myth #2: "I will sell my business when I am ready"...Personal factors and economic conditions are very important considerations that may significantly affect optimal business exit timing. Myth#3: "I know what my business is worth"...Meaningful and accurate market business valuation requires training and expertise. Myth#4: "Selling a business is like selling Real Estate"...Selling a business requires a great deal of preplanning, and a high level of trust between a purchaser and seller as well as continued seller involvement after the transaction completes to ensure a smooth business ownership transition. The process has substantially more fascets and more moving parts than any real estate transaction. |
Why SDE is not Cash Flow (15:01 min.)David explains the differences between net income, profit, cash flow, EBITDA and SDE. David delivers an informative tutorial to help provide clarity on what these common financial terms mean. If you have 15 minutes to spend educating yourself, this video will provide clarity on these common financial terms. SDC and EBITDA are very important financial metrics to understand since both are commonly employed in valuing small and medium-sized businesses representing meaningful information for comparing different business opportunities during your business acquisition journey. |
Selling a Business is Better With a Business Broker (1.43 min.)International Business Brokers Association This video is part of the International Business Brokers Association's (IBBA's) video series created to increase awareness among business sellers and buyers of the value of working with a professional business broker and why you should consider engaging an IBBA Member who has earned the educational certification of Certified Business Intermediary (CBI). |
How is EBITDA Calculated? (2.00 min.)FinanceRatios.com Numerous factors affect the "net Income" of a company. EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization. It is popular financial metric because it focuses on the financial outcome casused by operating decisions made by the current management of the company. EBT (Earnings befor taxes) , EBIT (Earnings before Interest and Taxes) and EBITDA are also briefly discussed in this informative video on these important financial metrics. |
Using Equity Financing To Get Money For Your Small Business (12.33 min.)
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Asset Sale vs Share Sale Purchase (11.23 min.)David Barnett, DavidCBarnett.com In this video, David discusses the differences between the two legal approaches for acquiring operating businesses: Asset Sales and Share Sales. |
Is a Franchise Model for You? (2.35 min.)Arthur Klein, Pacific Business Brokers Inc. In this week's video blog, Arthur Klein of Pacific Business Brokers Inc. discusses key differences between the Franchise and Non-Franchise business models, helping you identify if a Franchise model is a good fit for you when looking to buy a business. |