How To Buy A Business: Understanding Acquisition Criteria

How To Buy A Business: Understanding Acquisition Criteria

In this episode, we explore the intricacies of the business acquisition process with our esteemed guest, James Richardson. James takes us on a captivating journey through his inaugural business acquisition, where he not only successfully acquired his first venture but also expanded his portfolio by integrating additional businesses. We delve into key aspects such as delineating your acquisition criteria, orchestrating seller-financed deals, executing no-out-of-pocket transactions, and steering clear of potential pitfalls. Join us as we gain valuable insights into the art of understanding acquisition criteria when purchasing a business.

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Timestamps:
(02:50) - James talks about his career in the corporate world and his decision to become a full-time investor.
(06:54) - Seek the right information and joining the right circles to learn about buying businesses and mentions his five-week live training course.
(10:34) - The importance and benefits in good partnerships compared to going solo in business ventures.
(13:35) - Partnering with someone experienced in construction and retaining wall business.
(16:25) - SBA financing, fixed and variable interest rates, and their availability in the market.
(27:23) - Simplified spreadsheet tool to aid in evaluating businesses.
(30:00) - Steps to determine the earnings anchor and calculate normalized EBITDA for evaluating business acquisitions.
(37:29) - Alternative deal structures with varying down payments and seller financing.
(41:01) - Reflecting on past mistakes and learning from them.
(52:50) - Where to go to know more about James

💥 Thanks for watching
#businessownership #businessacquisition #entrepreneurship

About Beau: Beau Eckstein is a real estate entrepreneur, franchise broker, and commercial mortgage advisor, specializing in construction financing and SBA lending.
🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance all your projects.