Everything to Do Before Buying a Business (Due Diligence 101)

BiggerPockets MoneyApr 5, 202441m 15s20.3K viewsScore 85
Pricing & Profitability
advanced
business acquisition
due diligence
SBA loans
financial verification
EBITDA
M

Summary

AI-generated

This video explains the crucial due diligence process for buying a small business, emphasizing financial verification and identifying potential risks. Learn how to assess a business's true value, understand SBA loans, and avoid costly mistakes before making an acquisition.

Key insights

  • The price of small businesses is often three to four times their EBITDA.

Mistakes to avoid

  • Avoid going into a business deal without thoroughly investigating the background and financials of the company. Doing your own research is always recommended.

Tools & resources

  • Flippawebsite

    A website to buy businesses.

Frequently Asked Questions

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial