Summary
In this episode, Brandon Bruckman interviews Mike Finger, a seasoned entrepreneur and business coach, who shares his extensive experience in buying, selling, and operating small businesses. Mike discusses the common pitfalls small business owners face when preparing to sell, the importance of understanding seller discretionary earnings, and the realities of passive income in business ownership. He emphasizes the need for owners to prepare their businesses for sale well in advance and provides insights into the buyer's perspective, including the significance of operational efficiency and the mindset required for successful business transactions.
Takeaways
Mike Finger has owned and sold multiple small businesses, providing him with valuable insights.
Most small businesses fail to sell due to lack of preparation and understanding of sellability.
Seller discretionary earnings are crucial for buyers to assess the true value of a business.
Buyers should focus on specific industries where they have expertise to increase their chances of success.
Passive income in small business ownership is often a myth; active involvement is usually required.
Business owners should start preparing for a sale years in advance, not at the moment they decide to sell.
Operational efficiency is key to making a business both sellable and ownable.
Sellers often underestimate the importance of financial documentation and transparency.
Educating sellers about the realities of the market can be a challenging but necessary process.
Distressed businesses can present unique opportunities for buyers with the right skills and knowledge.
Social Links:
Podcast: The Retiring Real Estate Investor
Follow us on Instagram: @InvestWithInsight
Follow us on Facebook: @InvestWithInsight
Follow Brandon on Linkedin: @BrandonBruckman
Join the Facebook group: Invest with Insight
Listen on Spotify: The Retiring Real Estate Investor
Listen on Apple: The Retiring Real Estate Investor
If you're looking to learn more about DSTs, 1031 exchanges and passive investing, visit www.investwithinsight.com
The firm is a registered investment adviser with the states of KS, MO, WI, CA, AZ, TX, LA, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements.
