Brian K Fitzgibbon CPA, Accountant, Small Business Valuer & Consultant for over 25 years, says...
"Let Me Show You How to Expertly Value a Small Business So You Know What it's Really Worth,
Save You $Thousands in Valuation Fees,
Discover All the Hidden Facts and Secrets,
Help You Learn the 27 Traps to Avoid &
Gain the Power to Negotiate a Better Price
When You Buy"
Brian Will Show you:
- Do you have a Dream of Buying your own Small Business?
- Do you Desire to have the Independence, Security & Satisfaction of Owning your own Small Business
- Do You Like The idea of Doing Things Your Way?
- How long have you had those Dreams and Desires? Months? Years?
- How many Businesses have you looked at? One? Three? Ten? More?
- on average 80% of people look at Businesses for 18 Months and Still Don't Buy!
- Why is This?
You Could Use your Accountant or CPA
to check out
& Value the Businesses For you Couldn't You? But Then...
What if you could do it yourself...
Well you can do it yourself!
I'm going to help you answer these questions
Show you how you can save mega bucks &
do a better job than anyone else could - read on!
There is no doubt that buying your own business is a very serious undertaking and I admire your courage in deciding to do so. To help steel your resolve so you don't lose heart along the way, try this exercise.
Picture yourself when you've fulfilled your dream. You've just completed the sale and the business is yours. You're happy and confident you bought at the right price and that it's a good business that will suit you and your family and make their future secure.
Now type in the box below the first three people you'll tell and what you'll say to them. Perhaps it will be your boss, your family, your parents or maybe your best friend. Just who they are and one brief sentence for each will do.
This is a powerful goal-setting exercise that convinces your brain that it really will happen that way and it must make sure it does. It becomes just a matter of when, not if!
(Type the names and what you will say in the box below)How do i know all this
My name is Brian Fitzgibbon and I'm the author of "How to Value a Business & Buy It Without Fear".
As you read every word of this article you'll realize just how important it is that you properly check out and value the Small Family Business (up to about $200,000 per annum in profits) that you're going to buy.
I'm a CPA and have specialized in doing just that for my Mom and Dad clients for more years than I care to remember.
They come to me because they know I will do a good job, they trust me, and I'm cheaper!
"Brian, I shopped all over town before I found you. Most others wanted a minimum of ten grand to check out and value the business I now happily own – your quote was that it wouldn't exceed two! You pointed out things I hadn't picked up and the valuation was so easy to understand I was able to explain it to the seller and ended up saving $20,000 on the price."
This made me realize two things.
First, I should be making a lot more money than I am.
Second, and more importantly, most small business buyers can't afford these fees – even at $2,000.
Because very rarely do you buy the first business you have a good look at. It's like buying your new home, you can look at a lot before you find the one you really want.
So if you get your accountant to check out even 6 businesses before you find the right one, it's going to cost you $12,000 even at my modest fees!
Why Do Accountants Charge So Much?
Why do accountants & CPA's (especially the bigger firms) charge so much for this kind of work? I believe it's because:
So charging these high fees is their way of saying they don't really want to do it.
Obviously most buyers can't afford to have every business checked out properly like this, so they do the best they can themselves even though they have no experience or training at it.
Which is why in too many cases they end up with their confidence ebbing away and a high level of fear!
When they find the one they think is right, they may get their accountant to "run their eyes over the figures" before they go ahead.
The result is the chances are high that they have overlooked something or got something wrong.
Too often it ends in disaster. They may have to close, struggle on
and hope to get back some of their money, or sell out at a loss.
Don't risk your hard-earned savings, your marriage and your family's future happiness and security by not knowing how to properly check out your chosen business. When you learn the easy techniques and secrets in "How to Value a Business and Buy It Without Fear" you will know you have made the right choice, your mind will be at rest, you will have the power to control your own destiny, and you and your family's livelihood and future will be assured.
Using a Business Broker
Alternatively, you may rely on a Business Broker & accept that the asking price of the business is fair. The problem is brokers are not trained in valuing a business. They tend to use "rule of thumb" formulae to set their prices. (I am not saying this is a bad thing. They are in fact very valuable shortcut methods that really reflect past sales, and they are used in Chapter 6 of "How to Value a Business & Buy It Without Fear" to help calculate goodwill.)
These can work OK for certain categories of businesses (e.g. convenience stores) where each business is similar to the next and there is a high turnover of business sales.
But if your business is a little different and/or does not belong to these commonly sold categories, the broker may guess at a price and may well be off the mark.
Don't get me wrong here. I am not having a go at brokers. Accountants are not really trained to value these kind of small businesses either. During college or university they will learn about different valuation formulae, but they mostly apply to big business. And they have to get any real experience themselves.
Even professionally trained valuers don't touch small family businesses. They learn how to value land & buildings, plant and equipment, and know all about the laws and cases that appear before Land Courts – but they are told to stay away from valuing goodwill. This is accountants' territory.
And since goodwill is by far the biggest component of the value of a small family business, it gets left to the broker to value it, because there usually is nobody else.
But what the broker is really doing is putting a price on the business, not valuing it. The function of the broker is to sell the business at the best price they can get, not to value it.
The rules of thumb formulae they use are shortcut methods to arrive at a price that they know from experience has been acceptable to buyers and sellers over the years.
Add all this up and it means that Small Business Buyers are caught between a rock and a hard place!
What This E-Book Will Do for You
"How to Value a Business & Buy It Without Fear" aims to rectify this situation. Once you have learned the simple methods and valuation techniques I'll teach you, you can use them on as many businesses as you like, at no further cost!
And when you do end up with the right one, you will have the confidence to go ahead without the gnawing feeling in your belly that you might have paid too much or missed something (you'll probably still have that feeling, but it won't be as bad!)
I can honestly say that I have used this method and these techniques for many years and on literally hundreds of small businesses. In many cases the deal didn't go ahead. The asking price turned out to be too high when compared with the calculated value, or the valuation techniques in this eBook exposed undisclosed problems and/or incorrect figures.
In others the valuation became a tool to successfully negotiate a lower price.
But in most cases the valuation was realistic and in the right ballpark for a successful deal with satisfaction for both parties.
"How to Value a Business & Buy It Without Fear" is not one of those "enter the profit and the type of business and we will give you an instant free valuation" websites.
It is a serious and comprehensive tool to empower you to be able to properly check out and discover the secrets and traps in the business that the seller knows but you don't – and then to be able to accurately value it and have the confidence that you have got it right.
In other words, to take away the fear!
And to make it even easier for you, a specially designed software package is included FREE in the price to do all of the calculations for you.
Checking Out the Business
In my many years experience as a CPA specializing in consulting to small "Mom & Dad” family businesses, the main reason I am asked to value a business is when a client wants to buy one.
But they don't just want to know if the asking price is too much, they also want to know if the information and figures given by the seller are genuine, and if there are hidden reasons for selling that have not been disclosed.
So I am doing much more than a simple mathematical calculation using a "one size fits all" formula to calculate a value. I'm actually checking out all aspects of the business, verifying the facts and figures, uncovering the hidden secrets and looking at which way this business and its industry are headed.
And then I incorporate all of this in the valuation.
All this experience and the techniques I have learned are now fully disclosed in
"How to Value a Business & Buy It Without Fear"
I am not holding anything back in the hope you might engage me to finish off the valuation because you might find it too hard to do.
In fact I gain my satisfaction from empowering others to do their own thing, and nowhere is this needed more than when "first timers" are risking their savings and mortgaging their homes to buy a business or franchise.
Because it really is a jungle out there and there are many traps for the unwary. Which is why I devote the whole of Chapter 2 to expose:
The 27 Traps in Buying a Business and How to Avoid Them.
This is where we get down to the nitty gritty of what actually happens in the real world of small family businesses.
Here are two examples:
Trap 11. Boosting Sales by Selling to Friends:
A clever client of mine told me that when he told the owner of a small (all cash) corner store that he did not believe him about undeclared cash, the owner said "spend a week behind the counter and run the shop yourself before you sign up for it. You'll see".
My client did so and yes, business was brisk. The friendly locals seem to come in just about every day to buy something. Unbeknown to everybody however my client quietly marked each item with a felt pen before he handed it over. Next morning they had mysteriously reappeared on the shelves.
The owner had his cronies spend up big, then met them around the corner where he bought everything back again and put them back on the shelves late at night.
Trap 22. Not Being Aware of the Seller's Fame and Following:
Hairdressers are particularly prone to this one, but it can also apply to any service or professional business where the personality and skills of the owner in dealing with clients and customers is important. As soon as Mr Personality sells out the customers go with him or go elsewhere.
I know of a male hairdresser who had a devoted following in the gay community. When he sold out half the customers disappeared. It took the new owner months to figure it out.
You'll find many more examples like this in Chapter 2, and most importantly, what to do about them. You'll also find 10 special tips on buying a franchise.
Using My Simple Valuation Method
When I first started writing this book I thought it was going to be all about valuing a business. The further I got into it the more I realized that its really all about checking out the unique circumstances of the business so you can avoid traps like those above.
But it's not just about the traps. You also need to know the sales and profit trends of the business, how risky is that type of business and what is happening in that industry – and lots more, all of which are covered in detail in "How to Value a Business & Buy It Without Fear".
The discovery and understanding of all these unique circumstances in your chosen business allows you to either reject it or go ahead with it with full confidence and knowledge of what you are getting into.
This emphasis on winkling out all the facts and then incorporating them in the valuation is what makes "How to Value a Business & Buy It Without Fear" unique!
The method of valuation explained in the book has been tried and tested over many years and is very simple to use. And it is as accurate as a small business valuation can be because it takes into account the advantages and disadvantages and the differing risk levels and characteristics of each individual business.
Most important of all, it's easy to understand, it's logical, and it just makes sense. There is no jargon or theory, and the value just builds up layer by layer as you enter each easy step in the calculation software.
The assumption is that you, the reader, are a naive, mathematically challenged, first-time buyer who is cautious and conservative and does not want to take any unnecessary risks.
If this is you, this eBook will make you smarter, build your confidence and empower you. It will put you in a much stronger position in negotiations with the seller. So when you do find the right business for you, you will know that it is so, know that you are not being conned and know you are paying the right price.
May I Ask You Something Else?
Exactly Why are You Buying a Business?
Buying a Job
Buying a Job is a term that is used contemptuously by some accountants and advisors, especially if the business has profits below the $100,000 mark. They say if you buy a business like that you are "only buying a job".
In their view, buyers should approach the purchase of a small business just like any other investment. Look at the risk and then add a loading to what you would get if you invested in, say, Government Bonds – a guaranteed, ultra-safe investment.
So if you got a 5% return from the bonds, you might add a loading of 20% for the risks of a small business. You should then expect a 25% return on your investment.
So far so good. However the other thing they say is, to make a fair comparison you should imagine you were a "passive investor", just like you would be if you invested in the bonds. A passive investor means you don't have to do anything to earn the money. You just buy the bonds and that's it.
In other words, you should pretend you are still in a full time job elsewhere and that you employed a manager for your small business at a commercial salary.
On that basis many small businesses would never sell.
Imagine a small corner store earning $50,000 profits before the owner takes anything. Given the hours that the owner works, they would probably have to pay a manager $60,000 to do the same work.
This would make the business look like it is running at a loss and mean that it is showing a nil return on investment and therefore worth nothing.
But in reality it is worth something as these types of businesses change hands every day for good money!
People buy businesses like these for two reasons – Independence and Security. Independence because they are fed up with bosses telling them what to do.
Security because nobody can sack them, no matter how tough the times.
They may not make much money and they won't get a company pension, but... they can work past normal retirement age if they want to. And, who knows, one day they may sell out for a lot more than they bought for.
If that's "Buying a Job", then personally I'm all in favor of it!
You will be pleased to know that these facts of life are taken into account in the valuation method used in "How to Value a Business & Buy It Without Fear"
Are You Really an Entrepreneur?
Michael Gerber wrote a famous book a few years ago called "The E Myth". The "E" stands for Entrepreneur and the Myth is that all Small Business Owners are Entrepreneurs. As he points out, the truth is very few are.
Entrepreneurs seek opportunities to make money. They don't particularly care how they make it, as long as they do. This is not meant to be disparaging. We need entrepreneurs and the world would not progress without them.
But most of us (and I include myself in this group) are what Michael Gerber calls "Technicians". We get our kicks from actually doing the work, especially if that work is a trade or profession or any service that requires skills or training.
This means the return we get on our investment (as in buying a business) is not our priority. It's more important that we enjoy what we do, make a good job of it, and gain satisfaction from doing it.
All of this adds up to the fact that Return on Investment (ROI) type formulae for valuing businesses (and particularly the Goodwill) of this size (up to $200,000 profits per annum) simply do not work. Because they assume our primary motivation is to make money, and this is not necessarily so.
Should You Buy in a Recession?
This is the big question, and it is striking fear into the hearts of everyone as I write this.
Some would say you would be mad to buy a business in the middle of a recession.
Others would say it is the best time to buy one, just like buying shares when the stock market is low.
"Buy in the gloom, sell in the boom" as the saying goes.
Every time there is a stock market boom people say, "This one is different. It will go on for years".
Every time there is a bust, they say, "This one is different. We'll never get out of it".
There are three things to remember about a recession.
If this is you, and/or you have sufficient cash at your disposal, then now could be a very good time to start looking out for a bargain business – or even buying a job that you can't get sacked from.
A recession combines three of the four factors that improve your bargaining position – there is more supply than demand, it is difficult to get finance, and the owner is desperate to sell. You'll read more about this in Chapter 7 of "How to Value a Business & Buy It Without Fear"
Valuing Goodwill
You'll also learn all about valuing goodwill. Putting a value on goodwill and how to do so is both the most important and the most difficult part of valuing a business. There are many different ways of doing this and the merits of the most common are explained in the eBook.
Goodwill is usually defined as "the value an interested but prudent purchaser would pay for the expected future profits of the business."
So how much should this prudent investor pay for these expected future profits?
"Well, it depends" you reply.
"Depends on what?" I ask.
"It depends on the circumstances of the business!"
Absolutely correct. The key words here are "future” and "circumstances”. A buyer wants to know as much as possible about what is going to happen in the future, not what happened yesterday or last year. And the buyer also wants to know what circumstances exist that may increase or decrease their risk or alter their bargaining position.
And after many years of valuing small businesses of this size (profits up to $200,000 per annum, just to remind you), I have broken these "circumstances” down into bite-sized chunks to make them easier to value.
Each of these factors is dealt with comprehensively in "How to Value a Business & Buy It Without Fear”.
This enables you to look at every one in isolation and adjust the goodwill up or down according to how important each one is in your own chosen business.
There are huge advantages in assessing goodwill this way and I will show you in the book how easy it is to do.
I'm sure you can see now that this book is indispensable for serious small business buyers and because I know that is you, you should act on my advice and order now.
"How To Value A Business & Buy It Without Fear"
What's It
Going to do for Me?
Your Problems Solved!
Your Fear Removed!
Your Confidence In Getting The Best deal through the roof!
All the cards Now stacked in your favor!
A list of the major problem areas that we Have Covered for you!
Chapter 1: Why Are You Valuing This Business
You Are Selling the Business
You Are Splitting up with a Partner or Retiring
What Exactly is Being Valued?
Chapter 2: Step 1: Checking Out the Business
Location, Location, Location
Check the Lease
Check the Accuracy of the Figures
Undeclared Cash Out of the Till
Manipulating Inventory and Creditors Figures
Checking the GP% to Sales
Family Members Who Work in the Business
Why is the Vendor Selling?
Other Traps
10 Special Tips on Franchises
Final Comments
Chapter 3: Step 2: Valuing Net Tangible Assets
In a Partnership Split-Up
Land & Buildings
Intangible Assets
Contingent Liabilities
Completing Worksheet Part A
Chapter 4: Step 3: Finding the True Net Profit
Private Motor Vehicle Costs
Depreciation & Amortization
Bank, Finance Company & Credit Cards Interest
Taxes Paid
Owners Wages & Other Benefits
Notional Wages to Other Family Members
Other Adjustments
The Adjusted Present Net Profit
Completing Worksheet Part B
Sales and Profit Trends
Chapter 5: Step 4: Goodwill Part 1 – Expected Future Profits
There is No Such Thing as Goodwill?
Buying a Job
The Components of Goodwill
Factors That Will Change Expected Future Profits
- Profitability Trends
- Known Future Cost Increases
Chapter 6: Step 5: Goodwill Part 2 – Assessing Risk
- The Price Revenue Multiple
- The Price SDE Multiple
- Industry Rules of Thumb
- Determining the Industry Risk Level
- What if I Don't Trust These Figures
- Extraordinary Risks
Chapter 7: Step 6: Goodwill Part 3 – Other Factors, The Final Figure
- The Owner is Desperate to Sell
- The Specialized Nature of the Business
- Availability of Finance
- Local Factors
The Final Goodwill Figure
Completing Worksheet Part C
Chapter 8: Step 7: Bringing it All Together
- Testing the Final Value
- Negotiating to Get the Lowest Price
- Use Lawyers Sparingly
- Bleed the Business Broker
- Using Non-Business Valuers
Appendix A: Comparing With Other Methods of Valuation
Appendix B: Sample Valuation Report
Appendix C: Checklist of Traps
Appendix D: Checklist of 10 Special Tips on Franchises
Appendix E: Full Set of Worksheets
From all that you have read so far, I'm sure you realize just as most readers do by now, that in order to become a successful small business owner and keep yourself ahead of the pack, you need to invest in this eBook, and you need to act now!
And there's more...
you already have:
"How to Monitor the Pulse of Your Business With One Simple Tool” an invaluable guide to help you run your business profitably and without stress, once you are the proud new owner of your very own Small Business.
If the eBook provides your "Learning Instructions” on buying the business, this Invaluable Report provides your "Operating Instructions” to ensure you manage and monitor its performance properly once you take over.
All small business owners should use these little-known but very powerful and easy-to-use techniques explained here. Sadly only the most successful ones do.
Once you have access to this hot list of tips and techniques you will be yet another step ahead of the crowd, and yet another rung up on the ladder.
These techniques are fully explained with examples and will show you how to:
In summary, these simple techniques will give you control of your business and help you overcome the one remaining FEAR... The Fear You May Not Make a Success of It Because of Lack of Experience.
I'm So Confident You'll be Empowered by the Knowledge in This Book to Successfully Buy Your Own Business and Fulfil Your Dream, I'm Backing It With a No-Risk 100% GUARANTEE!
That's right! I think most people are honest, so I don't mind offering you an iron-clad 100% money-back guarantee.
I know you will find the techniques make sense and are easy to understand and use.
I know that you will find the information invaluable and that it will save you $Thousands!
I know that you will be so glad that you made the decision to invest in "How to Value a Business & Buy It Without Fear” that you won't even be thinking about this 100% no-questions-asked guarantee!
If you buy "How to Value a Business & Buy It Without Fear” and want your investment back,
then you get it all back – no questions asked! Now I can't be fairer than that, can I?
Don't delay any longer - get started now
Recap On What Is Included: |
Value: |
| "How to Value a Business & Buy It Without Fear” | $2,000 |
"How to Monitor the Pulse of Your Business With One Simple Tool” |
$997 |
| Full Professionally Designed Valuation Calculation Software | $697 |
| Direct Access To A Fully Qualified Professional CPA Average Hourly Rates From $250 |
$250 + |
| Instructions, Worksheets & Checklists | $197 |
| Sample Valuation Report Templates | $197 |
| Checklist of Traps | $497 |
| Special Franchise Checklist | $297 |
ESTIMATED TOTAL VALUE |
$4862 + |
When you take into consideration all the extras that come with "How to Value a Business & Buy It Without Fear”, and how many $Thousands it's going to save you, you're probably wondering…
How Much Is This Going To Cost?
You're probably thinking I am going to ask you to shell out thousands of dollars for giving away all my secrets and techniques like this. After all, you have already seen how one existing happy owner of "How to Value a Business & Buy It Without Fear” saved $20,000 off the purchase price of his new business using these techniques and you know you will save thousands when you use it yourself.
And what price can you put on your own increased expertise and confidence and reduction in fear?
Look at how much you are planning to outlay on the most important and riskiest investment you will probably ever make (next to your home).
It will be at least $50,000, more likely in excess of $100,000 and every chance of being more than $200,000.
If you decided instead to invest this kind of money in say, shares, would you do so without finding out how the share market works and how to select the right stocks?
Of course not! And how many thousands would you spend on expensive courses, books, seminars and computer programs before you invested a penny? You'd be very smart to do this because you know this pre-training and research is an essential part of any successful investment.
It's even more important to do so when investing in a small business.
When you buy shares you don't just put all your money into one stock. You spread it around in different sectors.
Not so with a business. You're putting all your eggs in one basket.
"How to Value a Business & Buy It Without Fear” is your pre-training tool to check there are no holes in the basket and that the handles won't fall off!
Because I really do believe in empowering small business owners and the more the better, I am not even going to ask you for the fee for one hour of my time.
But you must act now because this is an introductory offer that is set to expire on . I really don't know if we will be able to continue at this crazy low price after that date. Making myself available for unlimited access means that I can only spread myself so far; so don't delay too long and end up disappointed, act now!
My accountant and other professional valuer friends are saying, "Brian, you are mad! You're giving away all the secrets we use & charge thousands for, plus software and checklists, plus an essential bonus report... and unlimited access to you! You should be charging an awful lot more!”
Now is the time for you to act and realize your dream of being independent and secure through owning your own small business.
Where else could you find such a tremendous haul of invaluable, money-saving information, help and support for such a small investment?
Order online safely and securely now!
Fully Guaranteed - Instant Delivery
"Brian, I've used you and your firm many times over the years to value small businesses that are being resumed by the authorities to make way for new highways and roadworks.
Your valuations have been accepted by all parties for settlement purposes in even the most difficult cases. This is because the method you use sets everything out so simply and logically and is so easy even for a layman to follow.
I think every small business buyer should have a copy of your book and use it as their "Buy a Business Bible”. And I think their accountants could learn a lot from it as well.
I wish you every success with it."
If you have any questions before or after you place your order, you can contact me at any time – just click here.
And if you'd still like your free chapter, just enter your first name and email in the boxes below. It'll be downloaded immediately to your email address.
From One Small Business Owner to the Next…..
P.S.
The valuation techniques explained in "How to Value a Business & Buy It Without Fear” can also be used if you already own a business and want to know how much it is worth without paying a fortune to find out.
It could be that you are planning to sell, refinancing, restructuring your business, splitting up with your partner or spouse, or are retiring and handing the business over to your children. If a written valuation report is required you will learn how to get it done without it costing you an arm and a leg.
P.P.S.
If you are really serious about buying a business you cannot afford not to have "How to Value a Business & Buy It Without Fear”. The "27 Traps and What to Do About Them” section is alone worth far more than this affordable $97 investment. Don't leave until it's too late, act now!
P.P.P.S.
If you're not quite ready to order yet just print this page so you can read it at your leisure.
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