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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 (5)
Brandon Watson
Global Real Estate
Cabarrus County, NC

Firstly, anything most likely can be done with the proper planning and some " know how". Nevertheless, you want to have someone on your behalf review the docs to help minimize your liabilities and remedy any recourse that may be apparent in the language of the contract. You would want to secure yourself and all partys upfront with a Letter of Intent and have your council to hold the earnest money in the firms trust.
Im getting off point to your question and remarks.
Always look at deal/transaction/aquisition,etc objectively as if you sitting in a court room being cross examined. This most likely will help keep you out of the court room. When asking this type of question, you're going to get multiple perspectives which is very useful however a licensed broker will have more of a cautious approach than per say an investor of whom has some relative experience.
One last thing, its only as complicated as you want to make it. With that said, try not to be greedy.Spend a little to make some capital, hire yourself representation It will payoff better in the end for both sides of the transaction. FYI- its not like flipping propertys on HGTVor BRAVO, be a good business person and make smart decisions. If theres a large amount of capital at risk in your deal then I would believe that the buyer may be savvy and has is rear end covered and you may want to do the same so you dont look incompetant. Not saying you are but people weird and business can get nasty......CYA..

sorry for the poor grammer Im in traffic!

Feb 6, 2013
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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

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