Why Buy a Business

and Howto do it theRight Way

photo credit: FOTOCROMO

Diomo Corporation

Whypurchase

a business??

Purchasing a business gives you:• Positive cash flow on day one• Immediate value when you buy it below market• 25-33% return on your cash investment when structured correctly• The opportunity to be your own boss

Knowledge makes the difference between

getting your feet wet...

and taking the plunge

Don’t be a chronic “looker”

Become a BUSINESS BUYER!There is a business out there for you

Why You Need a Plan• Over 90% of people who try to buy a business never do• 82% of our clients buy a business within 6 months

Step 1: Choose the Right Business

Hint: Rock Paper Scissors is not an effective strategy

It’s about the individualThe right business is the one suited to your strengths

It’s about the individualWhatever it is that you do best must be

the single most important factor that drives the revenue and profit of any business that you may consider purchasing

Remember:Every business is for sale

You can’t buy a business from an ad

You must send inquiriesand meet sellers

Step 2: Don’t Overpay

How to accurately value

a business??

Valuation is NOT: • The asking price• What other businesses have sold for• What a broker tells you it’s worth

Valuation IS: The price YOU are willing to pay and the terms YOU are prepared to offer

The ONLY thing that counts is past profit and what can happen

to impact it in the future

Step 3: Due DiligenceFind the bad apples

Avoiding SurprisesMake sure you have enough time to completea proper review

Finding out problemsafter you buy is too late!

Use our 200-point checklist to evaluateopportunities

Step 4: Financing

What comes first,the business or the financing?

• Finding a good business is the priority

• You can ALWAYS finance a good business

Powerful buyers get powerful deals

91% of our clients get the seller to finance the bulk of the purchase

How To Buy A Good Business At A Great Price

diomo.comEverything you need to know before buying a business

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