Guerrilla BillionaireTM
How to Buy a Business The Big Taboo There is no more taboo of a topic when it comes to the question of how to buy a business, than that of how to finance the purchase. Ask a broker how it’s done, and he will stress that you need to have a 50% down payment sitting in your checking account and the other 50% in the form of a bank loan before he will even talk to you. Yeah right, buddy. The truth is that line is driven purely by a need to make sure that there’s enough of a down payment to avoid a closing day fight with the seller over his commission. In a lot of cases, 50% or more of the down payment goes to the broker at closing. Business owners will then parrot this nonsense too because they don’t know any better. While they may know how to run their business, they know next to nothing about how it’s bought and sold. The truth is rather different about how business acquisitions are financed. The reality is that because businesses are highly illiquid assets in markets with few buyers, the seller has to be willing to cooperate with the buyer. For a sale to occur the seller and buyer need to engage in a game of give and take so that both get the best possible deal. This is one of the reasons that sophisticated buyers avoid businesses listed with brokers. Brokers are deal-killers. Industry surveys show that decade after decade only 20% of businesses listed with brokers are sold. Think about that. Four out of five are not sold. To find out more about how to buy a business and pay for it, visit our site and sign up for the free How to Buy a Business newsletter. This is not for the faint of heart. To find out more, visit our website and subscribe to the free newsletter. http://www.guerrillabillionaire.com Check this out too. The Next Gold Rush. http://www.scribd.com/doc/17954374/Next-Gold-Rush
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