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MenuHow can I learn more about selling companies?
I'm interested in learning about acquiring companies, adding value and selling them and I would like to get a better understanding of what business buyers are looking for and what they will pay. Not the theoretical stuff in a text book but what actual people are buying right now.
I have done research and I hear of different multipliers based on EBITDA - with the more systematized the business and the future prospects looking stable the higher the multiplier.
Answers
Hi,
My entire practice is built around helping people buy and sell their own business.
I've been working in this field since 2008.
If you come over to www.DavidCBarnett.com you'll find over 300 blog posts on buying, selling, financing and managing SMEs with links to playlists which now have over 250 FREE videos on these subjects. Also, dozens of links to interviews on podcasts that I've done on these subjects.
To learn more about buying a business, I recommend my online course at www.BusinessBuyerAdvantage.com . To learn about selling, visit www.HowToSellMyOwnBusiness.com where you'll also find an online course as well as a free download and links to my best-selling book called 'How To Sell My Own Business.'
To learn about improving a business to make it more valuable, visit www.EasySmallBizSystems.com
Right now I've got 7 books on Amazon along these topics as well.
And if you ever want to discuss a particular opportunity that you find, just arrange a call.
Cheers
David C Barnett
"Flipping" companies is a very rare activity, Private Equity firms are among the very few specialists of that trade.
Some stints in i-banking, PE, or Corp Dev would help, but so some P&L experience, especially in turnaround scenario.
Short of having massive personal wealth, a leveraged buy out would be the only option and that raise the bar even more in terms of the type of performance needed to make it worthwhile.
You can learn more about selling companies by actually taking action and look out potential seller or connecting with Agent who can tell you more about the business. I strongly suggest that you go on field that you already know, have a high understanding. You can negotiate a deal on the terms and conditions with the seller, doesn't necessarily have to be on the price.
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How do you make money to survive while you are building a business? What are some quick ways to make money with less time commitment?
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I have this social media idea,but no coding skills. How do I get someone to do the coding (cant afford to pay them) and not give away half of my idea?
Dilip was very kind in his response. My answer might be a bit on the "tough love" side. But that's for you to decide. My intention, just for the record, is to help you (and those like you) on your path to success. And that starts with having a viable philosophy about entrepreneurial-ism and business. And I'm going to answer this because I get asked some form / version of this question very frequently from newcomers to entrepreneurial-ism. The scenario goes something like this: "I have a great idea. It's amazing, I love it, and I just KNOW it's gonna make me a ton of money. But I have no money right now so I can't afford to (fill in the blank with things like "to build it / create it / market it / etc" or "to hire the required staff needed to work in my business to sell it / develop it / etc"). And I don't want to tell anyone about my great idea because I'm worried someone will steal it and make MY million / billion dollars. But I can't afford to legally protect it either... So how do I launch without the skills to personally create the product AND no money to hire anyone else to do that either??" The answer is ... You don't. Look - let's be honest. All you have is an idea. Big deal. Really. I'm not saying it's not a good idea. I'm not saying that if properly executed it couldn't make you a million / billion dollars... But an idea is NOT a business. Nor is it an asset. Until you do some (very important) initial work - like creating a business model, doing customer development, creating a MVP, etc - all you really have is a dream. Right now your choices are: 1. Find someone with the skills or the money to develop your idea and sell them on WHY they should invest in you. And yes, this will mean giving up either a portion of the "ownership" or of future income or equity. And the more risk they have to take - the more equity they will want (and quite frankly be entitled to). 2. Learn how to code and build it yourself. MANY entrepreneurs without financial resources are still resourceful. They develop the skills needed to create what they don't have the money to pay someone else to do. 3. Get some cash so you can pay someone to do the coding. You'll probably have to have some knowledge of coding to direct the architecture of your idea. So you will likely still have to become knowledgeable even if its not you personally doing the coding. (This is not meant to be a comprehensive list of options... And I'm sure some of the other experts here on Clarity have others to add - and I hope they do) To wrap up - Here's my final tip to you that I hope you "get"... It's FAR more valuable to have an idea that a very specific hungry crowd is clamoring for right now - One that THEY would love and pay you for right now - Maybe even one they'd pre-order because they just have to have it - Versus YOU being in love with your own idea. [Notice I didn't say "an idea that some as-of-yet-undetermined market would probably love"] I wish you the best of luck moving forward.DB
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If I have a business idea for a large company, how can I give it to them and mutually profit, without them just taking the idea and squashing me?
Probably not the answer you're looking for, but companies have so many unimplemented ideas that the likelihood of partnering to implement someone else's idea is really low. And besides which, the idea is not something that has much value in and of itself. If you're passionate in the idea, build it yourself. That's the only way you can have leverage.TW
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