In this episode of Small Business Quick Wins, host Jay interviews David Barnett, an expert on buying and selling small businesses. They discuss how to determine the value of a business, what makes a business attractive to potential buyers, common mistakes sellers make, and tips for successfully exiting a business.
Key Discussion Points:
- What buyers look for when evaluating a business to purchase - strong cash flow that will continue under new ownership (00:01:42)
- Importance of having systems, processes and organization in place to prove the business can operate without the current owner (00:02:06)
- Tips for maximizing business value before selling: focus on increasing profits first (00:05:33), benchmark against industry standards (00:06:07)
- Keeping plans confidential when selling to avoid employees and customers leaving (00:09:17)
- Selling when business performance is declining - it will sell for less but can still find a buyer (00:11:49)
Guest Bio:
David Barnett is a business sale consultant who advises buyers and sellers on valuations, deal terms, and acquisition financing. He is the founder of David C Barnett LLC and previously worked as a business broker. Check out his podcast on YouTube to learn more about buying and selling businesses, franchise issues, doing private lending deals, and much more!
In this episode of Small Business Quick Wins, host Jay interviews David Barnett, an expert on buying and selling small businesses. They discuss how to determine the value of a business, what makes a business attractive to potential buyers, common mistakes sellers make, and tips for successfully exiting a business.
Key Discussion Points:
- What buyers look for when evaluating a business to purchase - strong cash flow that will continue under new ownership (00:01:42)
- Importance of having systems, processes and organization in place to prove the business can operate without the current owner (00:02:06)
- Tips for maximizing business value before selling: focus on increasing profits first (00:05:33), benchmark against industry standards (00:06:07)
- Keeping plans confidential when selling to avoid employees and customers leaving (00:09:17)
- Selling when business performance is declining - it will sell for less but can still find a buyer (00:11:49)
Guest Bio:
David Barnett is a business sale consultant who advises buyers and sellers on valuations, deal terms, and acquisition financing. He is the founder of David C Barnett LLC and previously worked as a business broker. Check out his podcast on YouTube to learn more about buying and selling businesses, franchise issues, doing private lending deals, and much more!