4 Steps to Buying a business

4 Steps to Buying a Business
Step 1 Find a Profitable Business
Step 2 Consider the 2 Types of Business & Multiple
- Owner operated have a Seller Discretion Earnings (SDE) multiple
- Professionally managed business we use Earning Before Interest Taxes and Amortization (EBITDA) multiple
Step 3 Find the Business Valuation
Step 4 Reposition Different Parts of the Company for Higher Multiples
Breakdown
0:00 Welcome & Step 1
0:49 Step 2
1:33 SDE
3:44 EBITDA
8:34 Step 3
13:32 Step 4
To learn more about Roland Frasier 👉 msha.ke/rolandfrasier/
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Roland Frasier is co-founder and principal of three current Inc. Magazine fastest-growing companies and he has founded, scaled, or sold 24 different 7 to 9 figure businesses ranging from consumer products to industrial machine manufacturing companies with adjusted sales ranging from $3 million to $337 million.
Currently growing Scalable.co, DigitalMarketer.com, RivalBrands.com, and Plattr.com while advising over 150 other companies on digitally centric customer acquisition, activation, referral, retention, and revenue strategies and plan implementation.
You can also find other content by Roland on:
The Business Lunch Podcast KZbin Channel 👉 / @businesslunchwithrola...
The War Room Mastermind 👉 / @warroom9086
Subscribe to Roland Frasier 👉 / @rolandfrasierepic
To learn more about Roland Frasier 👉 msha.ke/rolandfrasier/
Connect with me on social:
🎵 TikTok: / rolandfrasier
📸 Instagram: / rolandfrasier
📱 Facebook: / rolandfrasierpage
💼 LinkedIn: / rolandfrasier
Subscribe to Roland Frasier 👉 / @rolandfrasierepic

[@johnstuckenschneider790]

Thanks sooo much Roland! Just getting into this and looking for the best advice on buying profitable businesses. Thanks so much for your content and information that I'm sure will help me avoid the most common pitfalls most run into.

[@RolandFrasierEPIC]

Welcome John, love to hear what you acquire!

[@ricecube5079]

Your content is simple and easy to understand thank you!

[@corycaldwell7981]

This is extremely helpful! Thank you for breaking it down in a practical, digestible way for those of us that are just starting out.

[@RolandFrasierEPIC]

Welcome Cory! Happy you found it helpful!

[@Tmsoi]

Fantastic Content! THE BIGGEST RESPECT TO YOU ROLAND!

[@RolandFrasierEPIC]

Thank you Tomas!

[@claysdogtraining9702]

So few views, such a shame. Thank you for dedicating your time and effort

[@RolandFrasierEPIC]

Thanks Clay!

[@Zac_Lamb]

Love the Basics here Roland! Selfishly want to keep the views low haha but keep pushing!

[@RolandFrasierEPIC]

Haha!

[@gustavmunch9691]

gorgious

[@lukebenden]

👍🏼👍🏼👍🏼👍🏼

[@samkao4697]

Thanks Roland for these explanations . Just a question : is EBITDA equal to NET PROFIT ? (because you say TAKE BACK FROM : does it mean Earnings minus Interest Taxes Depreciation & Amortisation ? (is BEFORE = MINUS ? ) Thanks a lot

[@RolandFrasierEPIC]

Before means you add back those numbers so you know the full value of the assets of company and not just earnings.

[@rugeleonel769]

I am about to buy one in Canada

[@RolandFrasierEPIC]

Let me know how it goes.

[@damiangilz]

Is this possible to do in Mexico?

[@RolandFrasierEPIC]

Yes it works internationally as well.

[@brentparker9527]

Hello Rolland. I found a business using your investment email template to send to a business owner that I’d like to acquire. However, I want to send them an earn out proposal. Do you have a template that I can use?

[@RolandFrasierEPIC]

I don’t really have a template for that Brent, but generally it’s just deal points. Commonly the 3 major points of an earnout is 1) what percentage of the total purchase price will the earnout apply to (this is typically 10% to 40% of total purchase price), 2) what is the period of time for the earnout (this is typically between 1 and 4 years, 3) what is the metric that determines whether the earnout payment happens (typically tied to gross revenues, profit, customer retention, key personnel retention, or some combination of those things).

[@brentparker9527]

@@RolandFrasierEPIC Ok thank you. I think I can draft up a simple proposal from this. Thank you.

[@RolandFrasierEPIC]

@@brentparker9527 You’re welcome. Let me know how it goes!

[@fallin4271]

What is this video about? It got me so confused

[@RolandFrasierEPIC]

This video is the benefits of buying a business particularly with no money down.