What You Should Know Before Buying A Business: Acquisition Criteria

This is part one in my series on the most important factors to know before you buy a business.

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Roland Frasier is co-founder and principal of three current Inc. Magazine fastest-growing companies and he has founded, scaled, or sold 24 different 7 to 9 figure businesses ranging from consumer products to industrial machine manufacturing companies with adjusted sales ranging from $3 million to $337 million.

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[claysdogtraining]

I feel so blessed to know your channel, great value for time, thank you!

[MikeyDonios]

So much great info. Glad I came across this channel!

[glennD]

mr frasier, thank you so much for sharing your experience and knowledge. I have been actively searching to acquire a business and the way you break down methods are easily understandable and makes so much sense.

[kalebbillig]

I’ve got a plan to buy storage, dumpster/container rental, moving truck rental and moving businesses… then I plan to buy a bunch of them and then I can offer container drop off, the moving companies can pack and load and then we can ship it to any of storage yards or rental locations, or at another house! I know it’s similar to uhaul but it goes a step farther in providing service, where uhaul is more geared towards diy moving and storage, we will still have that option but will capitalize on the higher income section of the market

[thegardenofsteven]

I look forward to joining your training when it becomes available.

[VictorZimbardi]

Great intro video. I am beginning to consider acquiring an architecture firm. I am about to graduate with a degree in architecture and have actually worked at this firm before.

[jamesmalin]

Hi Roland, thank you for helping others in their journeys and providing relevant content. I currently own a software consulting business and was recently pre-approved for up to 8MM with a combination of SBA financing and secondary loan options. I might be able to actually qualify for 100% financing depending on the NAICS code of the prospective business which is amazing. Any financing of course depends on the financials of the target business. First, is there anything you see that would make this a bad decision in the current market? Let's say the rate is prime + 2% (10.5%). Would you try to acquire a business above 5MM since the competition may be lower or would you go the route of 2-3 businesses? I understand that by doing so, you're also likely increasing the time needed to run the business by 2-3X if you're acquiring more than one. Also, do recent MBAs from top tier schools like Harvard have what it takes to run a business at these sizes (let's say 750K-2.5MM EBITDA) or lacking real-world experience makes that a non-starter for someone to help run the business(es)?

[javi_park]

great video. any videos/resources you recommend for founders who want to position for a future acquisition?

[TshepoKotelo]

What if you have no experience in something that interests you?

[geniushughes]

I need something that's going to last the next 50 years the brand new running business because of the brand new system they're putting in

[Nick-lfjo]

Roland, thank you for everything you do and share.
As a complete novice at what point do you seek out an accountant and lawyer, would it be when you're going through the due diligence ? And do you have a video on how to interview and find these professionals ? One of my concerns is finding one you can trust to do a good job for you. Any thoughts would be appreciated .

[boni_traxton]

I’m a young guy from Florida, I started a mobile golf cart cleaning service since I’m surrounded by older people. But I don’t want it to be my only thing I want to have an asset that I can call mine and will be a income producer when it’s a dry season for my other business. I have most past expierince in restaurants I was a dishwasher for many years so I am looking into a small ice cream shop or sub sandwich shop. Or retail like a clothing store, haircare supply store Something under $60, 000

[danielkearns]

Have you thought about playing the piano for an intro? It would go well

[gustavmunch]

what would be the first step to be able to buy a business, without knowledge and cash?

[vascoapolonio]

So, i buy a profitable business in a way that i will secure my profits, regardless the market flutuations, down grading wages and laying off people...

[HandsOnRealEstate]

Wouldn’t it be smart to buy different types of businesses that hedge against each other in different economical situations?

[JM-hvjq]

What's up with your eyes are those weird contact lenses you have on?