Will buying the bubble burst your business acquisition?

by a professional from University of Southern California - Marshall School of Business

2 years ago

Too many people buying small and midsize businesses are falling for the nonsense being pitched by sellers. Even worse, we're seeing so-called business appraisers, in their reports, mostly or totally ignoring the effects of Covid on whatever business they are “valuing.” And, some lenders, in the rush to approve unrealistic loans are further putting at risk buyers.
Example of pandemic folly: "Investors Hung Their Hats on Peloton and Zoom Last Year. What Now?" https://www.nytimes.com/2021/11/17/business/peloton-zoom-stock.html
For some, it's a seller's market. You're invited to participate with us as we consider 50 variables to help buyers navigate during these confusing times. Register for my Jan. 26 Zoom event: "How to Buy a Business in a Seller's Market." https://us02web.zoom.us/meeting/register/tZAkcuCorDkjGdLDfYHuZHEZreUwYIWvIpZo

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professional from University of Southern California - Marshall School of Business

Particularly eye-opening for me is what legal counsel said about landlords and personal guarantees.

2 years ago | like reply | 0 likes

professional from University of Southern California - Marshall School of Business

Listen to 11 searchers discuss buying a business during a seller's market.Searchers, dealmakers and legal counsel discuss tactics.Scroll down my webpage to see 45 dealmaking tactics not covered during our discussion. You'll also see a link you can use if you want deeper insights, which I can privately share with you via Zoom. https://partneroncall.com/how-to-buy-a-business-in-a-sellers-market/Who’s selling whom? Beware of a disabling or fatal case of business buyer fever. Right now buyer fever is raging. It’s contagious. It’s fueling unhealthy competition among business buyers. And that plays into the hands of sellers.• Is value increasing or is it merely pricing that is increasing?• How do you know when it’s a seller’s market?• Will buying the bubble burst your business acquisition?• Consider these 52 variables to help you navigate during these confusing and risky times.Never forget your lost income opportunity: Irrationally deferring completing an M&A transaction presents at least two kinds of (avoidable) potential losses. (1) Missing out on buying the best opportunity that you’re going to find. (2) Lost income opportunity, which is what you would have earned every month longer it takes to complete your deal.

2 years ago | like reply | 0 likes

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