Buying a small business is an often arduous process at best. Peter Siegel with BizBen.com shares his strategies on this Podcast with Brian Loring who asks all the top questions successful business buyers tend to ask and get answered before buying a small business. Questions relating to searching, good vs bad industries at this time, common mistakes, due diligence, loan pre-qualification, pricing strategies, etc.
Usually I am one asking the questions but this week I was a guest on Brian Loring's Podcast - Brian is a Business Broker in the Southern California area. I enjoyed being on Brian's Podcast but I must confess it was strange being on the other side of the microphone - I hope you enjoy this podcast session - if you're a potential business buyer you will not want to miss this session with me on business buyer strategies and protocols!
Here are some of the questions we discuss for our listeners in this session:
- How to figure out what is a good industry? Do you think buyers should only stick to sectors they’re familiar with?
- A lot of buyers seem to be looking in many different industries. Bad idea?
- Discuss ways to determine what’s a good target and what isn’t.
- How to get personal finances in order to buy?
- How to begin the loan pre-qualification process?
- How to know how much I can afford?
- How to find off-market sellers who don’t want to list their business.
- How to conduct a targeted search
- How to get from preliminary due diligence to making an offer
- How to distinguish treasures from turkeys.
- Should buyers always eliminate businesses that are losing money?
- What are the most common mistakes you see buyers making?
- Why is the failure rate so high in business sales?
- Why do so many sellers overprice their business?
- Have you found it’s worthwhile for buyers to wait 6, 9, 12 months and have sellers get desperate?
- How has the Covid pandemic changed things for buyers?
- Which industries have been hurt, and helped, the most in the Covid economy?
- Any tips for how sellers can help buyers?
Thanks for listening to this podcast (approximately 33 minutes) - if you're thinking of buying a small business, I know you'll find this interview helpful.