[USER]

Purchasing Existing Business
Does anyone have any experience with purchasing am existing business? Right now it is an idea but don’t know where to start.

What should we be thinking about? Who should we be talking to?

The business we have in mind is a place I worked at previously and now in a place where the owners are looking to retire.

It is a franchise business that has been ran at this location by owners for 20+ years.

TIA for insight and suggestions!

[Rebecca]

Please also dig into the actual financials and tax returns so you can see real income and have no surprises.

[Damon]

Codie Sanchez, Walker Deibel, and Roland Frasier all have communities built around this, so there is plenty of content discussing topics surrounding buying an existing businesses.

They all have podcasts. Walker has a good book on the topic too (Buy Then Sell).

[Molly]

I have sold 3 businesses. I used a broker for the bigger ones. The valuation for selling price is a multiple of Net Income.

In my businesses we got between 3 and 4 times the annual net income.

As you speak to the owner about the possibility it is customary to ask to see their current financials for the last two years and the last 3 tax returns for the business.

[Author]

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