#27: How to buy a business with Ted Leverette, The Business Buyer Advocate

16 May 2024

Ted Leverette calls himself The Business Buyer Advocate. He has spent more than 30 years helping people find and buy the right businesses in the right ways. Having advised clients across the world, Ted has deep insights into the similarities and differences across various jurisdictions.

With hard-hitting views on the realities of buying and selling private companies (“If you don’t have an exit plan, you’ll sell on the buyer’s terms”), Ted is well worth the investment of your time in listening to this podcast hosted by bizval co-founder The Finance Ghost.

Topics discussed include:

  • What makes businesses difficult to sell and what are some of the biggest mistakes made by founders is trying to build a sellable operation?
  • The importance of preparation of a business for sale – including preparation of the owners themselves!
  • The distinction of self-employment vs. having a sellable business.
  • Strategic vs. financial buyers and the core differences, not least of all in terms of offer price, handover periods and more.
  • The types of businesses that Ted is familiar with and how bankable they are.
  • Advice to sellers to help make them more attractive to buyers.
  • Controlling vs. minority stakes and why Ted’s clients generally want to own 100% of what they buy – with rare exceptions.
  • Why buyers should invest in sectors they are familiar with and how this improves credibility in the market and reduces risk.
  • The myth of being a silent partner and how dangerous that type of thinking is for buyers.

The podcast ends with a strong checklist for buyers on what they absolutely have to be thinking about when embarking on this journey.

bizval startup

Requirements

Less than 3 years old

Pre or post revenue

Business plan and forecasts available

Benefits

Bespoke valuation methodologies

Developed in conjunction with leading universities

Key valuation drivers unpacked

Scenario sensitivity analysis

Tech-and-touch approach

Personalized consideration and evaluation of results

Less than 10 day turn-around time

Access to bizval webinars and education sessions

bizval enterprise

Requirements

Business that provides services to other business owners

Benefits

3 valuation methodologies (DCF, EM and NAV)

Secure and confidential

Access to bizval webinars and education sessions

Priority support

Scenario sensitivity analysis

Personalized engagement and follow up

All the usual benefits with customized pricing for high-volume users

bizval exit

Requirements

Single or multiple business entity

Deep understanding of your business

Clear intention to sell or raise investment – now or in the future

Benefits

Proprietary bizval exit process and bizval exit scorecard

Includes a free concierge valuation

Less than 2 weeks from start to finish

Pesonalized engagement and follow up

Priority support

Customized deal readiness report

Heat map and recommendations to maximize valuation and ensure best chance of success

Secure and confidential

Access to bizval webinars and education sessions

Access to experienced professionals who know how to navigate the often scary world of deal making

Access to exclusive introductions to qualified investors

bizval concierge

Requirements

Single business entity

Basic business knowledge

2 years financial statements and/or management accounts

Benefits

Includes bizval exit scorecard

3 valuation methodologies (DCF, EM and NAV)

Secure and confidential

Access to bizval webinars and education sessions

Priority support

Scenario sensitivity analysis

Personalized evaluation of results

Less than 5 day turn-around time, once all information received

Quick and easy to use – Does not require detailed technical or accounting knowledge

bizval live

Requirements

Single business entity

Knowledge of key business and financial information

Benefits

Includes bizval exit scorecard

3 valuation methodologies (DCF, EM and NAV)

Secure and confidential

Access to bizval webinars and education sessions

Includes complimentary 15 min consultation

Unlimited access to Scenarios

Standard support

Access to valuation scenarios add-on

Instant valuation result

Unique bizval algorithm

Quick and easy to use – Does not require detailed technical or accounting knowledge