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Jason A. Duprat, Entrepreneur, Healthcare Practitioner and Host of the Healthcare Entrepreneur Academy Podcast, celebrates his 100th show. In this milestone episode, Jason provides insight on how to purchase a small business, including what to think about and where to look for buying options.   

Episode Highlights:

  • The stimulus package is encouraging a lot of investors and business people to invest.   
  • The net profit of a business and the owner’s salary make up the business valuation. 
  • The multiple of earnings and the percentage of gross sales are two factors of the evaluation.   
  • When purchasing a company, look for a minimum of 3-5 years in operation. 
  • Focus on buying a business’ assets and not its liabilities.  
  • Hire a broker, as well as a CPA and attorney.    
  • Be prepared to sign a non-disclosure agreement when you gather information about businesses on broker sites.  
  • Let your network know you’re interested in buying a business for off-market deal options.  

3 Key Points:

  1. A large business’ valuation will be the EBITDA (earnings before interest, tax, depreciation and amortization). For small business, it’s the seller’s discretionary earnings. 
  2. When buying a business, know the valuation, how long the business has been operating and why the owner is selling. 
  3. Ask if the business owner is willing to offer seller financing because lending is challenging.        

Tweetable Quotes:

  • “As businesses are forced to shut down because they’ve run out of capital, they don’t have enough cash flow to pay their bills or their employees or themselves, then you’ll see a lot of businesses go under or go for sale.” – Jason A. Duprat
  • “Horizontal integration is buying another business operating in the same industry. Vertical integration is buying a business or firm within a different industry.” – Jason A. Duprat

Resources Mentioned:

#HealthcareEntrepreneurAcademy #HealthcareBoss #healthcare #entrepreneur #entrepreneurship #smallbiz #smallbusinesspurchase #businessowner #COVID-19 #coronavirus