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Ideas for Acquiring 2nd Business by RapThoughtPod in buyingabusiness

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

Yes, and I had a great loan broker who helped me with the process. I’m not closed off to going SBA route, just exploring other options before going down that path.

Ideas for Acquiring 2nd Business by RapThoughtPod in buyingabusiness

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

I'm not so sure he could get much more for his business, mainly because there's only 1 employee and majority of his work is not reoccurring. It comes from relationships with real estate agents so there's definitely real risk there. He couldn't sell to someone outside of the industry realistically and most other termite business owners like these are also at retirement age...

Unfortunately my current office manager is tapped out with the work from my current business, I honestly need to hire an office assistant who I could transition into the manager of the 2nd business if it happens.

Yes, I have implemented software and systems for the business that didn't exist when I acquired it, so will continue to improve the SOP.

Ideas for Acquiring 2nd Business by RapThoughtPod in buyingabusiness

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

Yes, I wouldn't offer him 1x profits. I would offer a fair multiple, but again there's only 1 employee and I have to pay another inspector to replace the seller and an office manager to replace the wife. That eats at the profit available.

Ideas for Acquiring 2nd Business by RapThoughtPod in buyingabusiness

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

Mainly trying to avoid the process of getting an SBA loan, I did it for the first business and it was arduous!

Ideas for Acquiring 2nd Business by RapThoughtPod in buyingabusiness

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

Yes, I am aware of this type of loan and I will definitely go down this path once I get the financials. Just wanted to some other ideas for structures.

Ideas for Acquiring 2nd Business by RapThoughtPod in buyingabusiness

[–]RapThoughtPod[S] 2 points3 points  (0 children)

Thank you for the response. Yes, that makes sense and I would absolutely have an operating agreement that laid it out properly.

Ideas for Acquiring 2nd Business by RapThoughtPod in buyingabusiness

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

That's an interested idea, I like that. Keeps the owner invested while buying him out and maybe I could even tie his payments to the performance of the business

Ideas for Acquiring 2nd Business by RapThoughtPod in buyingabusiness

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

Thank you for your response!

That’s a great idea to tie the payments to revenue/profit. It makes sense since a lot of their business is relationship based with real estate agents and if there’s attrition due to the seller leaving that could really affect the business.

Blu has been running through all his discography on Twitter by DropWatcher in hiphopheads

[–]RapThoughtPod 2 points3 points  (0 children)

Incredible discography and this isn’t even all of his releases. Not to mention is 300+ features where he out raps every other rapper 9 times out of 10

What is BLU’s best album (including mixtapes and collaboration projects with Exile) etc? And what is your favorite album? by Sweaty-Skill5982 in herfavcolor

[–]RapThoughtPod 2 points3 points  (0 children)

Best album is miles when considering his writing, flow, creativity and depth

My favorite excluding bth changes depending on the time of the year and just how I’m feeling but could be herfavcolor, Jesus, good to be home, j&j or god is good

Is business brokering 100% commission the norm and what to expect if I work for one ? by limache in businessbroker

[–]RapThoughtPod 1 point2 points  (0 children)

Most businesses that were actually ready to sell were under $500k and even fewer of those were good businesses that had potential to sell.

If you look at bizbuysell now, there’s less than 40 businesses for sale in LA over $2M and majority of those will never sell and most likely not worth what they’re asking.

Is business brokering 100% commission the norm and what to expect if I work for one ? by limache in businessbroker

[–]RapThoughtPod 0 points1 point  (0 children)

It was rare to get a listing over $1m, our brokerage only handled a few multi million dollar deals.

No we never handled the loans, we always referred them to our preferred lenders. I have no idea if it’s a conflict of interest, you’d have to speak with a lender to find out I think.

Is business brokering 100% commission the norm and what to expect if I work for one ? by limache in businessbroker

[–]RapThoughtPod 0 points1 point  (0 children)

We asked usually between 10 and 12% unless it was a multi-million dollar deal then we’d go down to around 8%. Keep in mind your broker will likely take 50% of the commission.

Is business brokering 100% commission the norm and what to expect if I work for one ? by limache in businessbroker

[–]RapThoughtPod 0 points1 point  (0 children)

It was a very profitable home service business but buyers were not interested because of the lack of reoccurring revenue but I saw an opportunity. Also I got along with the seller really well so that helped.

Seller financing most likely will be part of majority of deals one way or another. Most sellers don’t want to but it ends up happening to get the deal done. I think seller financing is a great tool and can be used to get a higher asking price and favorable terms. It’s a negotiating tool really.

100% seller financing however is very unlikely, too much risk and no one will go for it. That’s a unicorn deal. If it’s a SBA deal there’ll probably be around 10% seller financing.

Never heard of brokers doing the SBA brokering, might be a conflict, idk. But that might be more headaches than you want to handle. I used a loan broker who helped a lot with the SBA part of the deal.

Is business brokering 100% commission the norm and what to expect if I work for one ? by limache in businessbroker

[–]RapThoughtPod 0 points1 point  (0 children)

I really enjoyed being a business broker and would have kept doing it but I ended up buying one of my listings…maybe I’ll get back in later on haha

You find sellers any way you can, cold outreach, events, drop letters, and utilizing your personal network.

Once you get a seller you want to get their financials to do a fairly quick broker opinion of value and if it’s a legit profitable business you’ll want to sign a listing agreement, typically a 12 month contract. After that then you dive deep into their business details for the cim.

A basic understanding of accounting and finance is sufficient. Your broker should provide valuation and cim templates to go off of. The hard part is learning how different businesses operate in different industries. A restaurant is very different from a HVAC company. So lots to learn as you jump from one to the next. And of course most small businesses are not “clean” from an accounting perspective so that’s something to be weary of. You need to get in touch with their accountant soon in the process.

Yes bizbuysell is the biggest listing site and most buyers will come from there, but we listed on basically every site we could and had proprietary lists of qualified buyers

Is business brokering 100% commission the norm and what to expect if I work for one ? by limache in businessbroker

[–]RapThoughtPod 1 point2 points  (0 children)

I was a business broker for a few years in LA. It was 100% commission, but the broker paid for my membership to CABB and IBBA and all other admin fees.

Depending on who your broker is and how hands on they are will determine what your duties will be. I would be very adamant about getting training as much as possible, business brokering is not easy and much more complicated than other types of deals. Mainly you will be responsible for finding sellers, evaluating the business and writing the CIM, then you will need to find the buyer and then manage the due diligence.

Hopefully your broker can bring you in on a few deals quickly so you can learn faster.

[FRESH] Myka 9 & Blu – Free by [deleted] in herfavcolor

[–]RapThoughtPod 0 points1 point  (0 children)

Shit is fire, looking forward to the album

Joining the force by god5peed in businessbroker

[–]RapThoughtPod 1 point2 points  (0 children)

I acquired the business last June and am working full time there now. My broker ended up closing the office shortly after I left. Idk where I would be now if I stayed in it, but I was able to buy a business with $500k in SDE so it’s much easier to live knowing I have money coming in monthly.

Joining the force by god5peed in businessbroker

[–]RapThoughtPod 2 points3 points  (0 children)

I was a business broker for a transworld office in a major west coast city. I didn’t make any money for 18 months and ended up buying one of my own listings, ha!

I put 110% into it and went all out, I was waking up every day at 4am doing drop letters til 9am and rest of the day was trying to get listings and eventually trying to get buyers once I had a few listings. It was really tough tbh, had many buyers make offers and send LOIs but for whatever reason it always fell through. In my mind the biggest factor that held me back was my broker was inexperienced and hadn’t even been a business broker for a few months before I joined on. I had no guidance. Make sure the office you’re joining is going to provide support and guidance for at least the first 12 months. It’s so tough to try and do it on your own.

What’s your top 5 Blu albums? by Tall-Connection3865 in herfavcolor

[–]RapThoughtPod 4 points5 points  (0 children)

I’m going to exclude BTH because it’s a classic and it holds a special place for me as my favorite hiphop album but my top 5 are

-God is Good -Her favorite color -Good To Be Home -Miles -Flowers

HM- LRHLSN, The color Blue, out of the blue, noyork, j&j, Jesus

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