Business Broker Explains How to BUY a Business | Actionable Podcast
Special guest Kara Gibson, an experienced business broker, as they dive deep into the world of buying and selling businesses. Kara shares her expertise on a wide range of topics, from making valuable connections with bankers to identifying hot businesses in the current market.
Discover the different ways to purchase a business and learn about the qualifications needed for SBA loans. Kara also discusses the affordability of buying a business and the capital requirements involved. She shares valuable insights on how to find the right business fit for your lifestyle and identifies some of the safest bets in the business world.
If you're interested in approaching unlisted businesses, Kara provides expert guidance on how to approach business owners for potential purchases and emphasizes the importance of non-disclosure agreements. She also shares tips on building rapport, asking the right questions, and understanding key financial metrics like seller's discretionary earnings.
Before taking over a business, Kara stresses the importance of doing your homework and getting pre-qualified for acquisition financing. She explains the process of financing a business and discusses crucial components of the deal, such as the letter of intent (LOI) and engaging with the right attorney.
Whether you're a seasoned entrepreneur or just starting your journey into business ownership, this podcast is packed with valuable information and practical advice. Don't miss this opportunity to learn from Kara Gibson's extensive experience in the world of buying and selling businesses.
Kara's Linkedin: https://www.linkedin.com/in/karagibs
Kara's website: https://exitequity.com/
Timestamps:
00:00:00 - Making Banker Friends
00:03:45 - Hot Businesses in the Market
00:07:21 - Different Ways to Buy a Business
00:10:54 - Business Qualifications for SBA Loans
00:14:20 - The Affordability of Buying a Business
00:17:43 - How Much Capital Do You Need to Buy a Business?
00:21:15 - Making Banker Friends and Down Payments
00:24:48 - Going for an SBA Loan and Choosing a Business
00:28:05 - Finding the Right Business Fit
00:31:42 - Finding the Right Fit for Your Lifestyle
00:35:09 - Safe Bets in the Business World
00:39:08 - Approaching Unlisted Businesses
00:42:41 - How to Approach Business Owners for Potential Purchases
00:45:59 - The Importance of a Non-Disclosure Agreement
00:49:21 - Building Rapport and Asking Questions
00:52:46 - Understanding Seller's Discretionary Earnings
00:56:16 - Doing Your Homework before Taking Over a Business
00:59:51 - Getting Pre-Qualified for Acquisition Financing
01:03:14 - Financing the Business
01:06:53 - Including a Provision in the LOI
01:10:24 - The LOI and the Engagement
01:14:00 - Finding the Right Attorney
01:17:35 - Getting Started with a Business Purchase
01:20:55 - Buying and Selling a Business