2. Ready for a promotion? If you cant be the big Boss where you work, then maybe its time to promote yourself! When you own the company,youre the big Boss!

3. Why Work for Myself? I will have control my future. I deserve the profits of my hard work and good ideas! Investing in me will provide the best for me & my family!

4. Acquire or Start a Business? U.S. Government surveys suggest that 6 out of 10 business start-ups will fail within their first 3 years of operations. Risks are high for unproven: Locations Products or Services Marketing Plans Budgets – How much will it really take? Why?

5. Reasons People Sell Good Businesses Retirement Illness Partnership dispute Divorce Too diversified and spread too thin Relocation Want a change Biz has outgrown them Change in personal situation

6. Components for a Successful Business Right location available on good terms. Products or Services people want & will buy. Resources & skills suitable to the business. A successful, going business has what it takes!

7. Acquiring a Proven Business You acquire 2 essential components: Proven location Proven products or services Customers and revenues prove that the sellers location, products and services work!

8. The Remaining Component Resources & Skills: Your Investment Your Skills Your Experience Training from Seller

9. Is it affordable? For most good businesses, 20% to 40% down will get the deal done. Your new business then pays for itself!

10. How? Sellers Discretionary Earnings (SDE) Definition: Cash benefit to you, as new owner, that you use to pay the debt and yourself.

11. SDE = Owners Benefits Owners(s)/Officers Salary, if included in expenses $ Discretionary Expenses, if included in expenses $ a. Auto Expense $ b. Travel $ c. Insurance (excess) $ d. Interest, if not applicable $ e. Entertainment $ f. Meals $ g. Non-employed spouse salary $ Non-Recurring Expenses (explain) $ Non-Cash Expenses $ a. Depreciation $ b. Amortization $ TOTAL ADJUSTMENTS $ Net Profit (Loss) from P&L $ SELLERS DISCRETIONARY EARNINGS $

12. Financing Options Seller financingInstitutional financing Lower Interest Rate Various Financing Options at longer terms Low Down Payment Simple Credit Checks & Loan Application, Processing & Loan Closing Business serves as collateral for the loan Business serves as collateral for the loan Personal Guaranty & possible additional personal collateral Personal Guaranty & possible additional personal collateral Greater Owner CommitmentGreater Independence Use other peoples money !

13. Valuing a Business 1. Rules of Thumb 2 to 3 times earnings Equipment + Inventory + 1 Year Net 1 Year Gross Sales 2. Comparables Multiple of revenue Multiple of SDE 3. CAP rates 4. Return On Investment 5. Other Valuation Methods

14. Whats It Worth to You? If you can buy the business for the amount you have to put down… AND, from its profits make the living you need… AND, also pay off the business…THEN, that business is priced right for you! Its worth its price to you!

15. Getting Your Business Meet With Broker to Discuss Your Needs Preview Suitable Opportunities Discreetly Tour Businesses Meet with Sellers for More Information Make a Contingent Offer with Earnest Money Begin Formal Due Diligence Remove Contingencies Complete Financing Requirements Close Escrow Youre in Business

16. A Contingent Offer A contingent offer expresses your interest to purchase subject to your contingencies and acceptance of your price and terms. Typical contingencies are: Equipment must be of type and condition satisfactory to you. Books & records must be satisfactory to you. Lease assignment or sublease must be obtainable on satisfactory terms. Ability to get necessary licenses and/or financing Business must pass any required inspections Business must be transferred free & clear of debt, except as agreed.

17. Getting to an Agreement C ontingencies do allow you: To examine all the business details To secure financing To obtain necessary leases To investigate qualifying for licenses & permits To investigate anything important to you … Before youre offer becomes fully binding! You must be satisfied! IF not, IF not, you have the option to adjust your offer or to cancel and have your deposit refunded.

18. Business Brokers Do… Save you time & $$ Have many businesses to offer. Assist with financing process.. Educate Help find you the right opportunity. Guide the parties through the deal. Provide Expertise Have valuable tips & resources for assistance in getting starting Bridge the Gap Negotiate, coordinate and facilitate a meeting of the minds – a deal. Assist in Lease Issues Coordinate and facilitate your application with Landlord Provide Information Give you the key numbers you need to make an offer

19. Business Brokers Dont… Make your decisions Do your due diligence Manage your business Open Sellers confidential details until formal due diligence begins

20. Advisors Talk to… Business owners for mentoring on buying your business Qualified Attorneys for legal matters Qualified Accountants for taxes & bookkeeping

21. Escrow Officers Neutral: Dont represent either the Seller or the Buyer 1.Prepare all closing documents 2.Hold all funds until closing. Distribute funds. Escrow fees usually paid equally by Seller & Buyer

22. The Closing Whos there : You & Seller Business Broker Escrow Officer What happens: Documents reviewed, approved & signed You and Escrow Officer release check to Seller Seller gives you the keys

23. Congratulations! You are now in business for yourself and your family!