Are you thinking of buying a business? Chances are that’s your plan, but you have no idea where to start. This episode is for you. Phillip Teudt joins Zoran Sarabaca on the show to discuss the ultimate process of buying a business.

Phillip is the director of Business Buying Services (BBS). It is Australia’s largest exclusive business buyer advocate. BBS helps individuals and companies buy businesses. BBS having exceptional access to accountants, financial planners, and advisors allows our clients access to businesses not otherwise on the open market.

In this episode, Phillip will share some essential nuggets of wisdom that can come in handy in making your business buying process more manageable. According to Phillip, before working with anyone, they have a client risk profile to determine whether they can complete a transaction. From his experience, most transactions abort because of emotions from either the buyer or the seller and sometimes both.

What does a buying process involve? Phillip takes us through the buying process. From evaluating the buyer, finding a seller, closing the deal, and everything in between. He also shares some of the challenges one might encounter during the process.

Grab a notebook and pen. It would be best if you took notes.

Timestamps:

[01:52] What type of businesses do Phil and his partners buy?

[02:56] How to work with Phil: Step-by-step description

[05:24] How Phil determines a client’s risk profile

[06:58] What do people struggle with most when completing a transaction to acquire a business?

[11:13] How does Phil find businesses to buy?

[16:47] Reasons why Phil enjoys working with advisors when buying businesses

[17:52] The biggest frustrations with brokers

[22:19] Approaching people who are not selling their businesses

[25:48] What happens after a client shows interest in selling a business?

[36:23] Contents of a term sheet

[39:02] How to do due diligence

[41:17] How to deal with the difference in valuations between the buyer and the seller

[42:33] Understanding business goodwill

[46:00] Reasons that make Philip not proceed with a deal

[49:29] How long does a reasonable offer take to complete?

[52:50] Advisors involved in selling and buying a business

[54:18] Can a lawyer interfere with a transaction?

[56:48] Business buying tips from Philip

[59:13] Challenges that businesses buying other businesses experience

[01:02:18] Outro

Magical Quotes from the Episode

“I’m a big believer that when a business goes to the market, it has to be priced accurately.”

“People do due diligence with the idea that their due diligence will give them opportunities to renegotiate the deal. That’s the worst thing you can do.”

Connect with Phillip Teudt:

Website: https://www.businessbuying.com.au/

LinkedIn: linkedin.com/in/phillip-teudt-8a497aa

Connect with Us:

Website:  https://www.xcllusive.com.au/

LinkedIn:  https://www.linkedin.com/in/zoran-sarabaca-bba2a38/

In future episodes, we will be covering all aspects of Mergers and Acquisitions, buying businesses, selling businesses, exit strategies, and numerous other subjects that will help you gain a better understanding of business purchasing, succession planning, and many other aspects of business ownership in today’s market.