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How to Buy a Business – Bring It All Together at WWW.HowtoReallyBuyaBusiness.com
Folks, Started this website to help those of you that are entering the realm of buying a business. Its a heartfelt effort to bring together my experiences such that you can feel comfortable re: buying a business. http://www.HowtoReallyBuyaBusiness.com Take a … Continue reading
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Looking for 3X EBITDA? Why?
Most buyers would be happy to pay 3x EBITDA for a decent business. I will not go into the details of what a decent business is but sufficed to say this is generally the rule. However I recently took an … Continue reading
Is This Seller Nuts?
So what do you get when someone owns a business for 40 years and is either so enamored with the business or simply wants to retire “in style”? You get expectations that are so ludricris one has to feel sorry … Continue reading
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Would You Take Flyer on This?
Went to look at a company last week. Decent business with $12MM in revenue in the personnel placement space – health care industry. Problem is that the balance sheet is “upside down” – meaning that liabilities are greater than assets. … Continue reading
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The Hidden Trap in Acquisitions: Personnel Issues
Everyone knows that client concentration is a major issue when acquiring a company. It’s simple. If you have only a couple of large clients and they cease to be clients well then you don’t have much of a business. … Continue reading
Blue Skies for Small Business M&A?
Speaking with a couple of contacts lately and wanted to share some of the buzz I am hearing. Undoubtedly companies are selling however acquisition multiples are bifurcated. The fact is that companies with EBITDA greater than $4 to $5mm with … Continue reading
What Type of Revenue Do You Want to Acquire?
You thought the title should be “What type of Company do you want to Acquire? Maybe, but in truth you are essentially acquiring a revenue stream. The question is the relative stability and growth potential of revenue. And in my … Continue reading
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Tales from the Buy-Side – Real Insights
Went to visit what I would call a conglomeration of businesses – all of which have been operating for over 40 years. Well, having gone down the road of buying business for the better and worse, much comes into sharp … Continue reading
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The EBITDA Trap – How NOT to Get Trapped
The last post explored the EBITDA Trap. The EBITDA Trap is notion that when one purchases a company the price is based, typically, on a multiple of EBITDA – which is shorthand for Gross Cash Flow. However, as buyer you … Continue reading
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The EBITDA Trap – A Must Read for Every Buyer
I could not let the subject of EBITDA off the hook until I took a couple of more minutes to explain the “EBITDA Trap”. What is the EBITDA Trap? It’s when you value and pay for a company based on … Continue reading
