In this episode:

03:20 - The background on AppBusinessBrokers

05:14 - A forecast for mobile apps

06:22 - Why many people sell

09:54 - The arrangements buyers look at

12:33 - Can businesses do without capital injection?

14:34 - A red flag for buyers

17:00 - The multiples involved

19:10 - Can transactions go sour?

21:53 - New trends for buyers

24:55 - What buyers must validate

30:27 - When you don't have the cash...

33:31 - Prepping and payment for legal agreements

36:01 - Avoid this mistake

The complete presentations of SuperFastBusiness Live 2017 are inside the community. One of them is "How to Grow your Business Strong to Sell It."

Download the PDF Transcription and Things To Consider When Buying An Internet Business PDF Resource

Transcription:

James: James Schramko here. Welcome back to SuperFastBusiness.com. Today, we're covering the topic of buying a business. We've got plenty of episodes on SuperFastBusiness about selling. And for every one who sells a business, someone has to be buying that business, so I've brought on a specialist in this field. Eric Owens from AppBusinessBrokers.com. Eric has been selling businesses and facilitating transactions for people with internet, e-com, SaaS solutions, mobile apps and has built up a fairly good reputation. I actually originally got referred to Eric from Ezra Firestone, another great friend of our SuperFastBusiness community. Welcome to the show, Eric.

Eric: Yeah, thanks, James. Appreciate you having me on. Yeah definitely, Ezra's a cool person. I'm glad he connected us up way back when.

James:  You know, Ezra has, I think, started and sold quite a few e-commerce stores. And originally, when I was looking to enter into selling my businesses, I asked Ezra who's good at this. And he sent me your details, and we had a conversation, and you sent me over a checklist. It turns out I was able to just sell the business myself. But I think that was through probably a fortunate scenario of both the business units that I sold, I ended up selling to customers of mine. So I already knew the buyers, which took away a huge part of the equation from the point of view of a broker. And also, I'm pretty comfortable with buying and selling from my previous experience, so that I wasn't worried at all about the negotiation phase or the pressure of making offers or the scrutiny. I've seen it all before in high-pressure sales environments.

So, two of the factors that I imagine are very appealing about a broking service were not present for me. However, if I didn't know the customer or if I was uncomfortable buying or selling, I think a broker is going to become a really great asset for someone in that situation. Is that correct?

Eric: Yeah, definitely. I mean like you said, if you have, with your experience with negotiating and selling to someone you know that definitely helps with a couple of those factors where most business owners don't have that negotiating experience or being able to value their business and know what's a good deal and what's not. And the buyers they may work with, you know, they don’t know who they are, really, so...