19 Ways Brokers and Sellers Overprice SMBs | Buy a Business

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Clint Fiore lists out ways in which brokers overprice businesses. Isn’t a high price their job?
Not really, but you’ll have to stay to the end to find out what I think they should really be doing.
I cover this and more in this week’s video: • Q1 IBBA Market Report • 19 Ways Brokers and Se...
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[@lukegraven7839]

That's my favorite video of yours. Make some similar ones please when you have a moment.

[@DavidCBarnett]

Will do!

[@thejedibunny4802]

Excellent video! Thank you

[@DavidCBarnett]

Glad you liked it!

[@billieburke3493]

Thank you for sharing your knowledge and time, appreciate it greatly🙏🏼 so much value!

[@DavidCBarnett]

My pleasure!

[@tomaswilliams9407]

Great video great knowledge 👍

[@DavidCBarnett]

Glad you enjoyed it. We have to thank Clint for making a great list on Twitter.

[@anibalmarin7599]

Great video as always David!!

[@DavidCBarnett]

Glad you enjoyed it!

[@burtonic2641]

good stuff!

[@DavidCBarnett]

Appreciate it!

[@codegeek-il5fm]

Hi David, love your videos. Do you have any videos or tips on how to find a good broker who is fair/reasonable ? For example, I came across one broker who lists businesses without a price. Does that make sense ?

[@DavidCBarnett]

Great suggestion!

[@credittrickscredithacks]

Hi David, can you please point me to your video, about when the business has X amount of money in their bank account, and the owners do NOT take that money out, prior to the sale, but leave it in the company, for the new owner

[@DavidCBarnett]

Hmm, I don't know if I have a specific video on that. What you're describing is a share sale which includes a certain level of operating capital and there needs to be cash to balance the equation. Here's a vid on the different ways to buy a company> kzbin.info/www/bejne/fpinfZqtl72aoJI

[@rpbutton]

Hi David, Two questions for you: How would you go about assessing the value of IP assets like patents? When the buyer is another similar business, how does that change the math? If the expected buyer already has the assets and people in place to grow the seller's business would that factor into the valuation somehow?

[@DavidCBarnett]

IP and patents are only valuable in a business if they help you earn more money. Otherwise, you're just speculating that someone will pay for that solution one day. A buyer who wants/can use the IP for their business may value you more highly because of it, but that doesn't mean they'll pay you more. Check out this video on the concept of Blue Sky kzbin.info/www/bejne/f3-wmn2Al72lkNk Finding someone to pay more because of what they'll have to do is tough. Here's an interview with someone who has done this in the mid-market space: kzbin.info/www/bejne/mKvNo4iQhth2jcU

[@kaatto2121]

What are those databases for sold businesses that you were talking about ?

[@DavidCBarnett]

There are many, dealstats, bizcomps, IBA data and other newer ones.

[@taxchat]

I run a CPA firm and often clients would ask me to help them to locate a buyer for their business. The problem is: both buyer and seller are my clients, so I don't really want to give out any opinion regarding the price. Later I also got a realtor license and mortgage broker license, so now I am thinking should I focus on business brokerage? Here in Canada we need a realtor license to do business brokerage. That is why I searched and found your video.

[@DavidCBarnett]

Hi Lily. Just be aware that real estate and business brokerage are completely different things. AND many real estate firms won't allow you to practise business brokerage because of the liabilites. If you're going to get into brokerage, I would recommend you search up other videos I've done about being a biz broker and look for a good firm that can give you access to training.

[@wassim4460]

@taxchat do you have any experience with Canadian buying a business in the US, any idea how they get access to financing??(since SBA loans are only for citizens)

[@black12212]

David, Are you available for hire to evaluate the value of a business for US businesses and US buyers like myself?

[@DavidCBarnett]

Yes. Send an email to info at alpatlantic.com and ask for a ‘Buyer Menu.’ A Buyer Insight Analysis is likely what you need.

[@black12212]

@@DavidCBarnett Good deal. I just emailed you with the subject line Buyer Menu and my initials are OH. Look forward to hearing from you

[@snorttroll4379]

How did it go?

[@phyllisburris7093]

Can u recommend Business Broker than can sell business for my client in Texas?

[@DavidCBarnett]

I would want to know more about the business. Brokers have different levels of competence and can have areas of expertise. Finding the right broker can involve a sort of RFP process. ie like a real purchasing endeavour.

[@phyllisburris7093]

After extensive research, company has decided to Partner with Hedge Fund or Investment Fund.

[@hermesotaku201]

Sounds like I'll need a team of auditors to do all this figuring out for me before acquiring anything.

[@DavidCBarnett]

Nah, you just need to figure out what works for you when making offers. Overpricing a business doesn't mean people actually pay those prices. Often, these businesses just sit on the market until someone educates the seller on why it will never be sold.

[@hermesotaku201]

@@DavidCBarnett So juat one auditor to analyze yheir books

[@daljindersingh3208]

Is anyone here from Canada?

[@DavidCBarnett]

I am.