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Thanks to our Partners, NAPA TRACS, AutoFix Auto Shop Coaching, and Today's Class\n\nJoin a discussion with multi-shop operators Dwayne Myers and Rick Levitan, as well as CPA Hunt Demarest, on the intricacies of purchasing a business. They cover the necessity of due diligence, understanding financials, and the emotional aspects of negotiation. The panel shares personal experiences, highlighting the importance of realistic financial projections, environmental assessments, and the role of goodwill in valuations. They advise on building strong banking relationships, scrutinizing financial statements, and respecting sellers' emotional ties, emphasizing patience and strategy for successful acquisitions in the automotive industry.\n\nHunt Demarest, CPA,\xa0Paar Mellis and Associates,\xa0Business by the Numbers Podcast\n\nDwayne Myers,\xa0Dynamic Automotive, 6 locations, Maryland. Dwayne\u2019s previous episodes\xa0HERE.\n\nRick Levitan, Managing Director,\xa0Auto Stream Car Care, MD.\n\nShow Notes\n\n

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• Real Estate Strategies with Rick Levitan [AW 170]: https://remarkableresults.biz/remarkable-results-radio-podcast/aw170/
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• The challenges of obtaining accurate financials (00:02:03)\xa0Discussion on the challenges of obtaining accurate financials when buying a business.
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• The importance of common sense in business acquisitions (00:06:30)\xa0The panel discusses the importance of using common sense and avoiding emotional attachment when considering a business acquisition.
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• Legal and financial considerations in business acquisitions (00:08:24)\xa0The panel discusses legal and financial considerations, including the importance of asset purchase, non-compete agreements, and the quality of real estate.
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• Financing Considerations (00:18:13)\xa0Discussion on the critical role of financing in business acquisitions and the advantages of using banks or owner financing.
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• Bank Relationships (00:19:09)\xa0Importance of building a relationship with a bank and leveraging the bank's confidence in the buyer's ability to expand.
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• Financial Statement Analysis (00:20:27)\xa0Importance of thoroughly analyzing financial statements, including understanding expenses and discretionary non-recurring expenses.
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• Negotiating the Deal (00:22:24)\xa0Strategies for negotiating the price and terms of the acquisition, including considering the concerns of the seller and assessing the facility's assets.
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• On-Site Q&A (00:23:31)\xa0The checklist and tactics for conducting a site visit to assess a potential acquisition, including evaluating equipment, employees, and the owner's future plans.
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• Pro Forma and Business Plan (00:25:23)\xa0The necessity of creating a pro forma and business plan for the bank, including the importance of conservative projections and understanding the return on investment.
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• Challenges of Multi-Shop Expansion (00:30:34)\xa0Discussion on the challenges and missteps often encountered by individuals expanding into multi-shop operations, emphasizing the need for patience and learning from experiences.
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• Gas Station Red Flags (00:32:41) The importance of environmental assessments.