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Looking to buy a business? In this video, we cover everything you need to know about business acquisition and purchasing an existing business. We'll discuss acquisition strategy, how to buy an established business, business mergers and acquisitions, and more.

One of the biggest challenges in acquiring a business is agreeing on the valuation with the seller. Many business owners have an unrealistic perception of the value of their company based on things like sentimental value or their past efforts. But when it comes to business valuation, we need to focus on the here and now, not the past or future potential.

So, why is it important for a seller to admit that their business is distressed? The truth is that the admission of distress can strengthen the buyer's negotiating position. During the due diligence stage, the buyer will gather the necessary numbers and facts to assess the business's health. But when the seller admits that the business is struggling, it can help the buyer negotiate a better deal.

We also discuss the potential of a business and why it can be tricky to value. The truth is that every business owner talks about their business's potential, but that doesn't necessarily mean it's a reality. When it comes to valuation when looking to buy an existing business, we must focus on the present, not what could happen in the future.

However, there is a way to bridge the gap between a seller's perception of value and the buyer's assessment. An earnout structure can be used to link part of the payment to the business's future performance. This allows the seller to put their money where their mouth is and demonstrates their belief in the business's potential. It’s a valuable addition to your business acquisition strategy.

If you're considering buying a business, this video is a mustwatch. Learn how to create a successful acquisition strategy, what to look for when buying a small business, and how to purchase a company. Don't miss out on this valuable information!