BizBuySell or LoopNet businesses

[ecommercewolf]

Anyone have experience buying a pre existing business on one of these websites?

Obviously you have to do proper vetting, I'm skeptical of some of the numbers on the postings for businesses for sale.

I know a lot of people on TFF prefer building something on their own but I'm not opposed to buying a pre existing business to increase cash flow.

Thoughts?

 

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[CareCPA]

Anyone have experience buying a pre existing business on one of these websites?

Obviously you have to do proper vetting, I'm skeptical of some of the numbers on the postings for businesses for sale.

I know a lot of people on TFF prefer building something on their own but I'm not opposed to buying a pre existing business to increase cash flow.

Thoughts?

Do heavy due diligence.
What type of business are you looking to buy? Depending on the type, there may be industry-specific brokers that will give you more confidence in the numbers and process.

 

[BizyDad]

Personally, no. That said, I have a 3 clients who acquired via BizBuySell. My sense is a lot of the businesses there are overinflated. The "value buys" don't make it to the website.

Not sure what thoughts you are looking for here. Do your due diligence. Negotiate. Close the deal. Scale a biz.

 

[ecommercewolf]

Do heavy due diligence.
What type of business are you looking to buy? Depending on the type, there may be industry-specific brokers that will give you more confidence in the numbers and process.

I have not narrowed down to a specific type of business. Never thought of the broker idea but it makes sense. I'm assuming a broker outside of the ones listed on BizBuySell?

Will be PM'ing you about your accounting services.

 

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[Kak]

After doing the search dog and pony show a few times, probably the biggest thing I have noticed is that if they are listed on these broker sites, it is too late. They will squeeze every cent out of the buyer. That isn't for me. I like to get a good deal.

Alternatively... Finding a complementary company or buying a strategic partner that ISN'T listed on the market is FAR more likely to be a great deal you can be excited about. Everything is for sale, at the right price and you can get deal crafty.

Honestly... I would rather cold call businesses I would like to own than look at those listings.

Open the dialogue with the intention of finding a win-win arrangement between you and the seller. Something you both can get excited about. If not, it fails, so what. Try again.

Obviously... Once the dialogue is open, do a lot of DD and make sure you are getting what you think you are getting.

 

[CareCPA]

I have not narrowed down to a specific type of business. Never thought of the broker idea but it makes sense. I'm assuming a broker outside of the ones listed on BizBuySell?

Will be PM'ing you about your accounting services.

Yea - for example, if you were looking for an ecommerce business, there are brokers who deal specifically in those. Some skew towards Amazon, some towards apps, Saas, etc.
BizBuySell generally just aggregates from other sites. If you can get in with a broker and show them you're serious, they often open opportunities up to their "list" before putting them in the open.

 

[Genius01]

I think @richardd has had some success in buying businesses.
He has a Gold thread where he shares some great nuggets.
You can look through if you haven't gone through already.

GOLD! - From 0 To $240,000 Per Year PROFIT In 18 Months

 

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[Ronak]

Alternatively... Finding a complementary company or buying a strategic partner that ISN'T listed on the market is FAR more likely to be a great deal you can be excited about. Everything is for sale, at the right price and you can get deal crafty.

I agree. Bizbuysell is a great resource to help you generate ideas for potential industries to look at, especially since they have (albeit inflated) numbers to go along with them. Slightly better than going in blindly.