Is it Really Possible to Buy a Business with $500K of Profit?
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- Опубліковано 8 вер 2024
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What you read about online may not represent the reality of the world.
Future was watching my videos and wanted to know why he only sees complainers online who’ve done bad deals.
Can someone really buy a business with $500K of profits and live happily ever after?
Why does it seem like it doesn’t work for most people?
In this week’s video, I detail if it can be done.
Who’s doing it.
Who’s talking about it.
Who’s not finding them.
Who’s being caught and why.
Check it out in this week’s video: • Is it Really Possible ...
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Want to look dangerous like David? Jeff Alpaugh Customs has a special offer for you: www.JeffAlpaug... business buyers
You are Gold David, pure Gold
thanks TTS.
Thanks! David, this, and your other videos, are VERY valuable. Thank you for sharing.
Is that a tip! Wow. I believe it's my first. Thanks man!
Thanks David. Good, sensible advice as always. Of course, it's easy to neglect the idea of holding sufficient cash! I love the blue Spiderman btw. How did you know i watched till the end?!
Blue Spidey Senses.
Your page is solid gold. What’s a “pig peg line?” Thanks very much.
Here's a video all about it... ua-cam.com/video/L-muWEy2Y1E/v-deo.html
Thank you for the content. It is interesting, informative, and reasoned - a rarity for the internet. ;)
Glad you enjoyed it! I'll be starting a new hype channel later once I've taken all the excitement out of the internet. :)
Great point you made at the end of the video. Where is AOL now? Yahoo? Facebook is declining, and big tech might get regulated and even disappear in the next 10 years!
Yes, businesses rarely last forever esp in the SMB space.
Wise words thank you.
Very welcome
May God bless you and continue to post videos and add more to your website 🙏 Keep up the good work!
Thank you so much!
Very informative. I like the content
Glad to hear it!
Thanks man!🙂
No problem!
Thank-you David for the insight. I'm curious - if I found an acquisition target, say a SaaS at 20m asking price (4x revenue) and had an investor to back the deal, what sort of equity split do you see, assuming that myself (a software engineer of 24 years) will run the company? Assume the investor wants to be passive.
It depends on who you find and what they want. You're basically crafting a product and trying to sell it to an investor. In this case, the product is a 'security...' either a share, class of shares or a debt vehicle of some kind or some hybrid in between.
Likely, you'll end up with some kind of arrangement with a preferred rate of return on the investor's money, the requirement that they get their money out before you do, and some % of the common stock so they can cash in when the business is sold or that they can sell to you later.
When making your security, just compare it with other options. ie the preferred rate of return is going to have to look attractive when compared with gov't bonds, so a 6% preferred rate of return is likely not going to be attractive. Cheers
Thank you again for the good contents. Do you know who/how to contact private equity company? They are very difficult to get in contact with.
David do you have a video talking about franchise opportunities such as SuperCuts etc ? If not can you make one please
Thanks, Great suggestion.
The weight savings is costing us a small fortune to get access to his time.
David, what about industries that sell for low EBITA multiples like accounting? Besides the risks there it seems very possible to get 500k to even 1M ebita (assuming you have an accounting background or are able to hire accountants to replace the seller who is 99% of the time doing most the work)
I don't think an accounting firm doing $1M in EBITDA would be selling for a low multiple. That would be a pretty big business.
@@DavidCBarnett I am under LOI for an accounting firm, 1.2m SDE purchase price is ~ 1.3x revenue at 2.1M. perhaps I'm getting a good deal or I'm missing something big xD. I want to thank you so much for all your content its been helping tremendously through this process
@@zackjensen4484 Were you able to close the deal? Any lessons learned?
I don’t think Gold is the most liquid asset, is it?
There is always a market for gold, anywhere on Earth and there is no counterparty risk, unlike most assets. It's why central banks hold it.
@@DavidCBarnett it’s seems like currencies and treasuries are much more liquid but who knows
My 1st experience with a business broker was about a month ago when i found a business that im interested in on BizQuest.
I spoke to that broker about 4 times. Just as soon as i told him that i would bring my business attorney in on any deal that I may close, he ghosted me.
That put a Sour taste in my mouth for brokers and I don't trust them ‼️
They're all individual. Next time may be better but every buyer will eventually need a lawyer. Maybe they found a better prospect to buy?
Show me the incentices, I will show you the outcome
Hi David. How do I get in touch with you? I would like to consult you in this deal that I'm planning to buy. Thank you t
If you head to www.DavidCBarnett.com and go to the 'work with David tab' you'll find my contact info and all the ways I work with people.
Why couldn’t you buy a business and scale it to a $500k with a good manager?
Sure, the difficulty is not in creating this plan. It's in executing and achieving the results.
@@DavidCBarnett oh yea of course I was just looking at it from a standpoint of finding a business underperforming that has a real potential of doing those numbers
@@DavidCBarnett speaking of value creation plan: any good resources you woukd know of on this topic please?
Was wondering if you ever thought about getting a verification badge on your youtube channel to speed up your channel growth by almost 70%?
PS: Have verified 100+ channels till now with a 100% success rate (with less than 100k subs)
Isnt that something u get from youtube?