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How to buy business and flip it for more profit? Any best Idea!!!!

Anybody get an best idea "How to buy any business and than flip it to next buyer for more profit?"
Do you think its possible if I have an contract to buy a business with someone and at the same time I also have own contract with other party( my own buyer) without current business owner consent, esspecially I buy this particular business involved a loan process and mynext buyer he also apply for another loan at the same time.....Sorry too complicated

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Answers (4)
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New York County, NY

Absolutely, the number one key factor is finding a problem with the business. fixing it, and growing the business or just getting it very cheap which is normally from a distressed buyer. If neither of these apply normally i would stay away.

Feb 5, 2013
Nina Agustin
Ace Chapman, LLC
Hamilton County, TN

Most people make a mistake with the valuation. If you get a great valuation you can flip any business and raise the money you need.
When a broker does a valuation, they will work this equation the other way around and use a “Profit Multiplier”. So a good small business that has a net profit of $100,000 should sell from 1-3 times that figure, anywhere between $100,000 and $300,000. Anything over $300,000 in the current market and you are OVERPAYING based on our strategy.
In any business you are looking to buy, quickly check the valuation by working out the “Profit Multiplier”. Just divide the asking price by the net profit.

Jun 1, 2012
Steven St
World Business Partners, Inc
Los Angeles County, CA

Actually there are a lot of ways to buy a business and flip for a profit. It's complicated and I wouldn't try it without having a really good business attorney involved (even better if you have a partner with experience doing these types of transactions). It's ALL in how you structure the deal. You have to have all of your ducks in a row BEFORE you make an offer. But it's not something that can be written in 5000 words or less. So, I'll leave it at that.

Apr 24, 2009
Raj Kathuria
Kathuria, Flynn & Associates, LLC
MD

Hello! you are correct in saying it is too complicated... You could do it only if it is a cash transaction. If Bank financing is involved it can only happen as a reasonable "founders fees". That will depend on bank to interpret what is reasonable.

Apr 24, 2009

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