This document provides an overview of why and how to buy a business. It outlines 4 key steps: 1) Choose the right business by selecting one that matches your strengths and drives revenue and profit. 2) Accurately value the business based on past profits and future impact, not just asking price. 3) Conduct thorough due diligence by using a 200-point checklist to evaluate opportunities and avoid surprises. 4) Arrange financing, with the priority being finding a good business first before financing, as a strong deal can always be financed. The document emphasizes buying at a good price through seller financing.

1. Why Buy
a Business
and How
to do it the
Right Way
Diomo Corporation
photo credit: FOTOCROMO

2. Why
purchase
a business??

3. 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

4. Knowledge makes the difference between
getting your feet wet...

5. and taking the plunge

6. Don’t be a
chronic “looker”
Become a BUSINESS BUYER!
There is a business out there for you

7. 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

8. Step 1: Choose the Right Business
Hint: Rock Paper Scissors is not an effective strategy

9. It’s about the individual
The right business is the one suited to your strengths

10. It’s about the individual
Whatever 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

11. Remember:
Every business is for sale

12. You can’t buy a business
from an ad

13. You must send inquiries
and meet sellers

14. Step 2:
Don’t Overpay

15. How to
accurately value
a business??

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

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

18. The ONLY thing that counts is
past profit and what can happen
to impact it in the future

19. Step 3: Due Diligence
Find the bad apples

20. Avoiding
Surprises
Make sure you have
enough time to complete
a proper review
Finding out problems
after you buy is too late!
Use our 200-point
checklist to evaluate
opportunities

21. Step 4: Financing

22. What comes first,
the business or the financing?
• Finding a good business is the priority
• You can ALWAYS finance a good business

23. Powerful buyers get powerful deals
91% of our clients get
the seller to finance the
bulk of the purchase

24. How To Buy A Good Business At A Great Price
TM
Everything you need to know before buying a business
diomo.com