Buying a business can be a daunting task without the proper team. At Brightstar, we put our knowledge of the market and ability to know what to look out for to your advantage. Our ability to negotiate based on provable facts and due diligence typically saves our clients a great deal of money. While there is no such thing as a “Risk Free” business, managing that risk involves acquiring the right business at the right price. We strive to protect our clients and never allow them to walk into a room they can’t walk out of.
Unfortunately there are a few unscrupulous people in the world. From inflated cash flow claims to “Cooked Books”(Remember Enron?), we see listings that just don’t add up. At Brightstar, we share the kindred spirit of our fellow entrepreneurs and cringe at the thought of some unsuspecting entrepreneur falling for one of those. We really want you to succeed, client or not, so feel free to call us anytime to discuss anything. At Brightstar, WE SPEAK BUSINESS!
In every market exists a widely adopted system of valuation. It is an important factor in managing the risk in any acquisition. Standard means applies to all so acquiring a business using widely accepted valuation methods provides the buyer with a bar to measure the amount of risk vs potential gain.
As the great book “Getting to Yes” proves, getting from “Positional” negotiations to “Principled” negotiations is key to a fair and successful transaction. At Brightstar, we are trained negotiating professionals. Always learning to be better for our clients.
When reviewing the financials please consider these factors: What valuation model was used to create the price? Run that against an alternate method to compare. Verify any add backs contributing to Sellers Discretionary Earnings. (As an example: If depreciation is added, verify it was a non cash expense in the P&Ls. Remember, potential is for the buyer to capture and has no monetary value in the valuation.