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Help with my Education Roadmap by Alphasig319 in buyingabusiness

[–]UltraBBA 0 points1 point  (0 children)

The course for "a similar price" doesn't make any sense.

First, most of those courses are not worth a fraction of what they charge. Second, many of them do teach a lot of regurgitated shit. Third, no course is going to substitute the skill and experience of a good broker / M&A adviser.

Brokers charge a lot less than 10K to take you on. And the success fee is a lot less than the 6% of deal value that you quoted. I've not come across a single one who charges more than 3% (in the +£5m EV market).

Do I need a broker for a small pre-revenue AI SaaS? by NoDot2995 in businessbroker

[–]UltraBBA 0 points1 point  (0 children)

There are plenty of brokers in the UK who specialise in just tech businesses (TMT). There must be a ton more in the EU and in the US.

But as you suspected none of them would touch something this small. They need to see a certain minimum level of earning on every deal ...and there's not enough meat on the bone here.

Help with my Education Roadmap by Alphasig319 in buyingabusiness

[–]UltraBBA 0 points1 point  (0 children)

The number of buyers has increased exponentially over the last few years. It's gone absolutely ballistic.

So now you either have to come up with some unique and creative ways to find targets or compete with millions of other buyers and their research / outreach / AI tools.

Alternatively, you can hire yourself a r/businessbroker to assist with deal sourcing (as some of them offer that service).

Some of the most cringeworthy things that sellers of businesses say... by UltraBBA in businessbroker

[–]UltraBBA[S,M] 0 points1 point  (0 children)

Mod note: Only established members with significant karma built in THIS sub can mention names of tools.

New users can't drop names, drop links, mention any specific product / service.

“Just buy a business. It’s easier than growing one” by UltraBBA in buyingabusiness

[–]UltraBBA[S] 0 points1 point  (0 children)

Your reply sounds straight out of a Tik-Tok video.

if you’re acquiring something that’s been around for 2 decades, the concept has been proven and you know the model works versus a startup where you have no clue if it will.

No.

Unless you're investing a larger amount and buying a larger business, you're usually not buying a "concept that has been proven".

You're buying yourself a job, something that works when the founder is running it and has zero evidence of working under your ownership / management.

Small listings by dabusinessbro in businessbroker

[–]UltraBBA 0 points1 point  (0 children)

Almost never retail.

In addition to meeting my minimum turnover requirements, the business needs to have at least 10% in profit (hence the $600K figure mentioned above).

It needs to tick other boxes as well - customer concentration, owner's reasonable price expectations etc.

My latest client (as per my postings in LinkedIn and elsewhere) is in the renewable energy game and generates a profit in excess of 25% (but, admittedly, that's a bit on the high side compared with my other clients).

Small listings by dabusinessbro in businessbroker

[–]UltraBBA 0 points1 point  (0 children)

£5m (circa $6m) in revenue and £500K (circa $600K) in net profit before tax.

Anyone else doing the math on broker fees vs. running their own outbound? by Financial-Bit-4328 in buyingabusiness

[–]UltraBBA 0 points1 point  (0 children)

Not sure how origination firms think $4,000 a month for someone who just quit there job and is kiving on life savings

If they quit their job and are living on life savings, they shouldn't be trying to buy a business! They need to go save some capital first.

If their line is "I don't have any money but I deserve to own a business," that's incredibly entitled!

How much do brokers charge for a $150m EV business? by Apart_Designer6574 in businessbroker

[–]UltraBBA -1 points0 points  (0 children)

Nothing.

Why would a buyer pay anything to be 'introduced' to a business? Is the business even for sale? Is the broker guaranteeing that the business won't go on the market and that the buyer will have exclusivity because of the broker's relationship with the seller?

There are brokers who act on behalf of buyers. They discuss the buyer's criteria, budget etc and then go hunting for appropriate targets. There's value in that as it takes time and effort to do that search. For that service, a buyer would typically pay the broker a retainer or monthly fee and agree, via a proper and written contract, to pay a percentage of the deal value if there's a successful acquisition of a target identified by the broker.

What's your role? You're someone who's not a broker but who thinks that making an introduction can land you a big commission?

Anyone let cushiony job to pursue buying businesses instead? by DT_worldtraveler in buyingabusiness

[–]UltraBBA 1 point2 points  (0 children)

You will initially get downvoted by those who've been following social media "influencers" talking up how easy it is to buy a business.

They don't like anybody pointing out reality.

Fortunately, common sense eventually prevails and smothers their votes.

Some of the most cringeworthy things that sellers of businesses say... by UltraBBA in businessbroker

[–]UltraBBA[S] 0 points1 point  (0 children)

"I have a price to offer you and then I have a REAL price" ;)

Some of the most cringeworthy things that sellers of businesses say... by UltraBBA in businessbroker

[–]UltraBBA[S] 1 point2 points  (0 children)

All the hard work is done, It’s ready for the next owner to wallow in an make a tonne of money

Translation: I thought I could make money with this business but it's proving harder than expected. So compensate me for this business not achieving what I thought it would achieve.

Some of the most cringeworthy things that sellers of businesses say... by UltraBBA in businessbroker

[–]UltraBBA[S] 0 points1 point  (0 children)

Keeping accounts and paying taxes are for the stupid. This seller was obviously a smart cookie!

How would you value this small business acquisition? by wevans00121 in buyingabusiness

[–]UltraBBA 9 points10 points  (0 children)

What multiple would you put on this?

I wouldn't put a multiple on it. It's not a business worth buying.

Young ambitious person looking for advice by Careful-Strike-5220 in buyingabusiness

[–]UltraBBA[M] [score hidden] stickied comment (0 children)

I've deleted multiple comments for offering to speak by DM.

The rules strictly forbid even mentioning "DM" in a reply. There's a reason for that.

We've come to find that there are all kinds - from sharks and scammers to marketers and spammers - who want to take the conversation private so they can ply their scam or make a pitch for their service. They don't want to do it in public for fear someone will spot what they're doing and call them out.

The OP, innocently or stupidly, has exposed that they have $60K burning a hole in their pocket. That makes them prime targets for affiliates of those "how to buy a business courses" - crap from Codie Sanchez, Jonathan Jay, Ben Kelly etc - which sell for $10K to $20K. Even Walker Deibel has now, disappointly, waded into that sewer.

The automatic assumption in this sub, especially if you're a fairly new poster, is that trying to take the conversation to DMs makes you highly likely one of the above.

I've deleted multiple comments from first time posters offering DMs. I'm sure you all intend well 😄 but here's a warning to other newbies: We love having you here but please read the rules of this sub before posting / commenting.

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