Can I Trust a Seller's Information When Buying a Business? How to Buy a Business

Viewer Question: Can I trust a sellers information when buying a business? Sometimes. Maybe. Why not structure the deal to protect yourself from lies regardless of the information?
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About ME: My name is David C. Barnett. I am a consultant and I work with entrepreneurs around the world to buy, sell, and organize their small to medium sized businesses. As a former business broker, I have seen many people do bad deals and lose their life savings as a result. So, I made it my mission to start this channel to help educate people on ways to invest smarter and to ask questions, so they don’t get trapped into doing bad deals.
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[@estebanlau2116]

Great content as always, David! I have a couple of questions if you don't mind answering: (1) How many deals fall apart after an LOI has been accepted, due to problems found in the due diligence phase? (2) Assuming that you have to meet with the seller eventually, at what point does this usually happen? For example, is it after the LOI has been accepted? How necessary is that in-person meeting? I'm asking because I might live out-of-state and if I'm flying to meet, it'd be good to have a good likelihood to close the deal. Thank you!

[@DavidCBarnett]

(1) 50-75% (2) before you make an offer. I have a video coming out about this shortly, July 2023. I don't believe you can make a reasonable deal with a person who hasn't had the chance to know you at all.

[@oaciftci]

These are under rated videos! Thnx for sharing knowledge David!

[@DavidCBarnett]

Thanks for watching them! Every view gets the stats up. Cheers.

[@zahir585]

What a great advice. Thank you so much

[@DavidCBarnett]

Thanks Zac. Get all the latest info by subscribing to my emails at DavidCBarnettList.com

[@djjayvibes3159]

Great video thanks

[@DavidCBarnett]

Glad you enjoyed it

[@ninobtc9536]

thanks Dave.

[@DavidCBarnett]

You’re welcome Nino. Don’t forget to like and share videos to help get the word out. 👍

[@bryanbell9103]

This is absolute gold! I wonder if this can be used in investment commercial real estate purchases . Are most business sellers open to this type of arrangement? Or is this only with a motivated or distressed seller. I'm looking for a way to invest and real estate is over saturated right now, is the business market the same way and maybe just not publicized as much?

[@DavidCBarnett]

Real estate deals have been done with notes forever. Sellers always prefer cash but it's best for buyers to have seller financing. With real estate it's different because you're talking about a tangible asset. Tom Henderson at hpnotes.com/ has an email list and lots of great information about real estate deals with notes and trading in the notes themselves. Cheers

[@rathwije1579]

Thanks

[@DavidCBarnett]

My pleasure.

[@DRUNKENSYLEMASTER619]

WHAT ABOUT MAKING A STOCK DEAL.I BUY 100% OF STOCK.THE OLD OWNER WORKS FOR A YEAR FOR A SET PAY.AFTER COLLECTING DIVIDENDS FOR FIRST YEAR I COMPARE THE DIVIDENDS THE OWNER PAY AND CASH FLOW TO THE BOOKS.

[@DavidCBarnett]

...and if it turns out to be all fraudulent then you're stuck with the shares of a crappy company. Jason M, you should take my online course at www.BusinessBuyerAdvantage.com You'd gain a lot from it.