42: Building a Business You Can Sell for Top Dollar with David Barnett

Have you ever wondered how businesses are bought and sold? Or have you considered buying a business but don’t know where to start? Or maybe you've considered selling a business—or are starting a business that you’re hoping to sell at some point in the future. Buying and selling a business seems complicated... but it doesn’t have to be that way! David Barnett, business broker and author of six books including How to Sell My Own Business, knows firsthand how important it is that you build, structure, and manage a business in a way that will allow you to eventually sell it—even if that’s not your plan A. In this episode, he tells us why sometimes we have to sell even if we don’t expect to and how we can be certain to get top dollar if and when that time comes. In addition, David helps us understand how businesses are valued, the most common reasons why business owners sell, the types of terms that can be negotiated when buying or selling a business, and why most businesses sell for less than you’d think. And make sure you listen for David’s advice on how to handle situations where a seller is telling you one thing, but his financial statements are telling you another. Check him out, and subscribe to the BiggerPockets Business Podcast so you won’t miss our next show! In This Episode We Cover: The difference between business broker and real estate broker Why the business marketplace is a secret How business brokers work with buyers to get financing How brokers are often dual agents Some of the online marketplaces for business sales Why businesses sell for a lot less than you think The reasons people sell their businesses How the value of a business depends on cash flow And SO much more! Links from the Show BizBuySell businessesforsale.com Check the full show notes here: http://biggerpockets.com/bizshow42 Learn more about your ad choices. Visit megaphone.fm/adchoices