| Most people who set out to buy a business do so | | | | needed to keep the seller interested and |
| with very little knowledge and experience in the | | | | motivated. |
| field. This is fine as long as you can do some | | | | 3. You must learn to negotiate. Where the rapport |
| homework on the key principles and skills that are | | | | ends, the negotiation begins. Learn to say no |
| needed to successfully complete a transaction. | | | | without ever giving the impression you are saying |
| Not only will mastering these skills increase your | | | | no. Never get unnerved or angry at any terms |
| effectiveness and odds of doing a deal, but they | | | | the seller proposes. They always ask for the |
| will boost your confidence and performance in | | | | Moon. Be a very polite Tiger Shark. Always |
| every area of your business life. | | | | believe your offer is never too low, as insulting as |
| 1. You must learn to read a balance sheet and | | | | it might be. |
| profit and loss statement. This is a little basic | | | | 4. Learn to dance. Dance around difficult |
| accounting which can give you the tools needed | | | | questions, criticisms and deficiencies. Your |
| to analyze any company for purchase of for any | | | | credibility is always a direct function of the image |
| reason at all. Read, compare, read, compare | | | | and confidence you project. You will never be as |
| balance sheets. No not IBM and General Electric | | | | big or as strong a buyer as you think you should |
| annual reports for your stock portfolio, the ones | | | | be. Forget about it. Lay your cards on the table |
| on small companies that we want to buy. It will | | | | and let them fall where they may. If someone |
| give you the core understanding of finance that | | | | does not like your story that is just fine with |
| very few individuals possess. | | | | you... there are always other sellers that will be |
| 2. You must learn to deal with people. This is a | | | | happy to take your money. |
| little broad but here is what I mean. You need to | | | | 5. Learn to move on. One must approach fifty or |
| get out and visit companies. The more companies | | | | so deals before getting the hang of it. There are |
| you visit, the more CEOs of companies you will | | | | dozens of reasons not to continue negotiations |
| deal with. Some smart some not, some nice, | | | | with a Seller. Once you hit one move on. Do not |
| some nasty. In order for you to feel comfortable | | | | dwell on the deal because you think it is a neat |
| in this environment you need to visit 50 | | | | business. Some of the neatest businesses are |
| companies (ok even 25 is a good start - it's not | | | | overpriced and unbankable. Learn what makes |
| that hard, just find the sellers and set up the | | | | and breaks a deal up front and as soon as a red |
| appointments) as a buyer which will pave the way | | | | flag emerges, do not waste time throwing in the |
| to develop instant rapport and presentation skills | | | | towel. |