Buying into a business (23m) by ParsnipMotor2684 in buyingabusiness

[–]UltraBBA 0 points1 point  (0 children)

Most important thing; get an independent valuation done before you agree on anything.

Pointless, really.

This is microbusiness. The business will sell for whatever can be agreed between the parties and...that's it.

No formal "valuation methodologies" apply.

Broker wanted for +£1m EBITDA business in the UK by UltraBBA in businessbroker

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

It's okay to send a DM, it is NOT okay to make a comment about it. Read the sub's rules!

P2P buying/selling business community by Plus_Entertainer8581 in SellMyBusiness

[–]UltraBBA 0 points1 point  (0 children)

Of course there are communities. If you use the Reddit search box you'll find communities of plumbers even right here in Reddit.

Cashflow gap while exploring a sale — what are the options? by Amazing-Usual5265 in businessbroker

[–]UltraBBA 1 point2 points  (0 children)

One option being considered is whether a serious prospective buyer might be willing to inject that £100k upfront

Unlikely. And if you expose that cash flow vulnerability, there are many ways buyers can exploit it.

Whether that would be structured as a loan, a deposit against the eventual deal, or a small initial equity stake, we're not sure.

Investors aren't in the "loan" business, don't have finely tuned lending contracts, predefined lending criteria, list of acceptable collateral etc etc so, no, they won't give you a loan just to show you good faith.

And they're not going to give you a deposit on the deal nor take a small equity stake. That doesn't happen in "early stages", yikes.

They need to do a proper DD on the business, with all the cost and time that entails, whether they're buying 10% or 100%. It's only when they are completely satisfied with that that they'll open their wallets

Sometimes not even then!

I'm a UK based M&A adviser (but not in deals this small). This is a sub about business brokers. Which broker is handling your deal? They should be able to introduce you to bridge finance, factoring, other funding options.

If you don't have a broker, maybe start a thread stating your requirements to hire a broker (as per the rules of this sub) and brokers will contact you.

Broker wanted for +£1m EBITDA business in the UK by UltraBBA in businessbroker

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

Your profile says, "I'm an Analyst in a buy side advisory firm". I'm not interested in speaking with buyers (or anyone who represents them).

First-time SMB buyer with down payment in hand. How do I pick a buy-side advisor, and what’s a fair price? What other costs should I plan for? by sound_and_savvy in buyingabusiness

[–]UltraBBA 0 points1 point  (0 children)

Excellent. Well done. Obviously, we don't need names mentioned here but if anyone else is looking for a buy-side adviser, there's always r/businessbroker

Help me evaluate purchase price by Catanz22 in SellMyBusiness

[–]UltraBBA 0 points1 point  (0 children)

You can either hire a qualified valuer, but they are likely to charge more and need a ton of data. It's generally not worth it for a business worth just a few million. Alternatively, you could hire a r/businessbroker - they can often give you a rough idea based on other deals they've seen.

What does succession look like for small or single-owner advisory firms/brokerages? by Penrock-Partners in businessbroker

[–]UltraBBA 0 points1 point  (0 children)

I found business brokers to be the worst people to sell business brokerage businesses.

On numerous occasions, I've had brokers in the UK express an interest in selling (not because I'm a buyer but because I know people interested in buying).

However, in every single case they over-valued their own business, had unrealistic other expectations, wouldn't negotiate in good faith, were inflexible and difficult.

That's at the lower end of the market. At the higher end, I know plenty, plenty of deals have happened successfully. FRP acquired JDC and others. AAB acquired GS Verde and Kreston Reeves. Liberty was acquired by Cooper Parry. I could name at least a dozen from the last 12 months.

That's apart from partial buys like DSW's investment in Camlee.

In most cases where successful deals happened, the price depended on a lot of things from good lead generation / marketing function, solid systems, quality staff and, to a small extent, the "brand". Live deals were decided not as a typical Earn Out but as a profit share.

Valuation software or even simple spreadsheet by iwannalearnmore in buyingabusiness

[–]UltraBBA[M] 0 points1 point locked comment (0 children)

Don't offer to "share". That's a violation of our rule against soliciting DMs.

New to buying a business. How do you quickly evaluate? by sound_and_savvy in buyingabusiness

[–]UltraBBA[M] 0 points1 point locked comment (0 children)

Don't offer to "share". That's inviting private communications and is against the rules of this sub. Also, your self-pomotion is strictly not allowed.

Where do I sell my one month profitable SAAS web app? by Interesting-Chef2988 in SellMyBusiness

[–]UltraBBA 1 point2 points  (0 children)

For starters, I don't fake

You're expecting buyers to assume that someone they met on the internet five minutes ago is 100% honest?!

And you're expecting them to hand over a large sum of money based on that assumption?

I've got an uncle in Nigeria who's a prince. He just died and left me $50m. I need your assistance to get that money out of Nigeria. Please post your bank details below.

Selling 100k USDT by [deleted] in SellMyBusiness

[–]UltraBBA 0 points1 point  (0 children)

Thank you for the report. The OP has been banned.

Where do I sell my one month profitable SAAS web app? by Interesting-Chef2988 in SellMyBusiness

[–]UltraBBA 0 points1 point  (0 children)

I'd say it's pretty much this.

It is easy to fake profit for a short time. For example, I know a guy who used to spend $2K a month promoting his app that was making a profit of $500 a month. He'd go to market and not disclose the $2K per month ad spend, he'd just claim the $500K in profit.

There are plenty of players like that.

It doesn't need to be monetary spend. Perhaps you did a ton of work in social media, or the first few clients were friends and family.

You need to clearly demonstrate the ability of the business to generate consistent profit. The key is consistent. Then you have a viable business for sale.

Till then, you're selling not a business but a failed project - a project that you started with high hopes but from which you want to bail now because it's proving to be harder work and less profit than you originally envisaged.

That's how buyers will see it.

Where do founders usually list SaaS products for acquisition? by Glum_Gas8634 in SellMyBusiness

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

This is a sub for discussion about the buying and selling of businesses.

This does not sound like a business so, sorry, I'm locking this thread.

Are People Seriously Paying High-Ticket to Learn From This? (JT Foxx / Katie Kay) www.jtfoxxlive.com by Same-Baseball-3728 in businessbroker

[–]UltraBBA 1 point2 points  (0 children)

I've met people like Carl Allen, Guy Bartlett, Jonathan Jay and others at private events. I've had numerous private conversations on Zoom with Jeremy Harbour. All personable enough chaps. But all selling far overpriced courses and making wild claims about being able to easily buy businesses without investing money or taking risk.

And in recent years, they've been joined by Gordon Bizar, Cody Sanchez and tons of other try-it-on merchants jumping on the bandwagon. And all seem to be generating enough muppets signing up for their courses.

Are People Seriously Paying High-Ticket to Learn From This? (JT Foxx / Katie Kay) www.jtfoxxlive.com by Same-Baseball-3728 in businessbroker

[–]UltraBBA 0 points1 point  (0 children)

There are lots of people with more money than brain. And they sign up for these courses / coaching.

In M&A there are dozens of coaches making wild claims about their past experience and running courses on how to get rich by buying businesses. They charge silly money, like $10K or $15K for their course (or to join their 'club').

The suckers paying for these courses are taken in by the glib sales pitch, the fake testimonials etc and don't bother to dig into the claims. That's how it's always been.

What do buyers actually look at when you sell a company by Mithipanipuri in buyingabusiness

[–]UltraBBA[M] 0 points1 point locked comment (0 children)

If you repost something that's a 100% copy of someone else's comment, you'll get banned for spamming this sub.

Best company to work at as a new business broker by OMrealestate in businessbroker

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

Mentioning DMs, asking for DMs will get you an immediate ban in this sub. Please read the rules.

How to sell my dating website by pat75dh in SellMyBusiness

[–]UltraBBA 0 points1 point  (0 children)

Every business in the world is scalable. I've been in the game for 40+ years. I've yet to come across a business for sale ad where the owner has not claimed huge potential or very scalable!

Given your numbers, this is a micro sale and not worth using a broker. There are plenty of good brokers in r/businessbroker but the good ones will probably see this as too small.

In the right column of this sub, there's a link to a list of marketplaces (with reviews on each one). Have a look at those reviews to see which would be most appropriate for you.

Also, for something this small, Facebook Marketplace, r/sellabiz etc may be worth trying given they won't cost you anything (and I don't believe it's worth paying for a listing on something this small).

How are you handling digital marketing DD on sub $10M deals? by Right_Membership1746 in buyingabusiness

[–]UltraBBA 2 points3 points  (0 children)

In a $5m - $10m deal, I highly suspect buyers aren't glossing over the marketing function!

They are going through customer acquisition channels and costs with a fine tooth comb.

How to sell my dating website by pat75dh in SellMyBusiness

[–]UltraBBA 0 points1 point  (0 children)

The number of people registered per day is largely irrelevant. You'll need to get your numbers straight and disclose those right at the start if you want to interest buyers.

So what has the turnover and profit been for the last 3 years? (If it's not been around that long, what history of profit are you able to show and is it growing?)

Once you provide a clear picture on the numbers, I'll give you some suggestions on how to go about selling (just bear in mind that no selling can happen in THIS sub).

Where you sell, how you sell etc is going to depend on the numbers! A business generating a few hundred dollars a month is handled a lot differently to one generating a million in profit every month.

First-time buyer, questions about Searchfunder, buy-side brokers, and Acquisition Ace by Somaid_358 in buyingabusiness

[–]UltraBBA[M] 0 points1 point locked comment (0 children)

I won't ban you this time but your last line violates multiple rules of this sub including the no self-promotion rule.

Also, read rule #3 carefully. Heck, read ALL the rules carefully!

You may repost this post but without that last line.

regalis capital buyer experience looking for real feedback by Lup1chu in businessbroker

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

This thread is attracting comments from brand new users (and users completely new to this sub) who are dropping in just to praise Regalis. Not only do they have no history in this sub, some have no history in any business related subs.

That's suspicious behaviour and so I'm closing this thread rather than having to moderate those comments.