The ASE Fleet's Weekly Take Off 33
Want to buy a business? Follow this 3-meeting strategy...
Do you want to buy a business? Follow this 3-meeting strategy:
Reach out to the owner to see if they're open to selling.
Talk about your background and address their concerns.
Look at the business in person and discuss the non-binding LOI checklist.
Before starting due diligence, get the info you need:
Is it an asset or equity purchase?
What's the valuation or purchase price?
How will it be financed and structured?
What will the owner's participation be?
To analyze financial statements:
Look at sales, margin, and expenses.
Verify assets and liabilities.
Be aware of common owner disappointments and reasons for seller remorse.
By addressing these concerns, you can ensure a successful purchase.
Questions? Let us know in the comments!
Meme Of The Week
Post Of The Week
Financial Architecting Tip Of The Week
The ASE Fleet's Financial Architecting Tool #21
"To qualify for an employment-based fifth preference (EB-5) visa, applicants must invest a minimum of $900,000 in a new commercial enterprise (NCE) that would lead to the creation of at least 10 full-time jobs for American workers."
Deal Trophy Of The Week
M&A Script Of The Week
The ASE Fleet's M&A Negotiation Bomb #3
I'm looking to invest in the best IT service providers, and naturally, I thought about your business.
ASE’s Deal Assembly Line
We put a man on the moon 54 years ago!
And luckily for you, closing M&A deals isn't rocket science, and it can be systemized!
ASE has a dedicated professional for each bullet point in our assembly line.
And in all honesty, having your own financial ducks in order is one of the fastest ways to leverage other people's money (OPM).
To that respect, ASE also has The Become Lender-Ready Program and a complimentary Financial Education Platform.
Our Deal Assembly Line is only a tiny part of our Become Your Own Private Equity Firm Consulting Kit.
If you're making more than $500k a year in sales and want to take your business to the moon DM me, and buckle your seat belt for take off!
Now here is some clarification on a few of the points in our infographic.
The Debt Coverage Service Ratio (DSCR) is how many times per month a company's net profit can pay for the debt service used to acquire the company after an M&A transaction is closed.
Integration is the final phase of the M&A lifecycle, where you optimize the company with systems, marketing, and by rallying the troops.
The Entrepreneurial Operating System (EOS) is an operating system for businesses that has proven to get companies higher multiples upon exit over and over.
Profits First is a model that flips the profit equation into Sales - Profit = Expenses.
Hopefully, this post connected some dots for you whether or not you work with us.
And tag us in a social media post if you implement any of this and get results; we love seeing others win!