#1,153 in Business & money books
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Reddit mentions of HBR Guide to Buying a Small Business: Think Big, Buy Small, Own Your Own Company (HBR Guide Series)
Sentiment score: 2
Reddit mentions: 3
We found 3 Reddit mentions of HBR Guide to Buying a Small Business: Think Big, Buy Small, Own Your Own Company (HBR Guide Series). Here are the top ones.
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- Harvard Business School Press
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| Height | 8.9 Inches |
| Length | 5 Inches |
| Number of items | 1 |
| Weight | 0.78043640748 Pounds |
| Width | 0.9 Inches |
this podcast talks about exactly the topic you mentioned. Interview with two Harvard Business School profs, who even wrote a book on the topic.
REALLY Private Equity, with Royce Yudkoff and Rick Ruback – Invest Like the Best, EP.33
HBR Guide to Buying a Small Business
Read HBR Guide to Buying a Small Business
It's very thorough and covers everything from valuation, to raising equity, how to split profits, etc.
In general, investors want to see a 25% return on their money for this kind of deal, maybe a little more in your case due to the turnaround nature of the deal.
Also, I echo the advice to draft pro formas-- what do the financials look like after your improvements and assuming everything goes as planned. Do the improvements yield a meaningful enough change?
Finally, the owner should be willing to finance a significant portion of the deal. It's very common in small business, but especially since you're looking at a much higher risk situation.
https://www.amazon.com/HBR-Guide-Buying-Small-Business/dp/1633692507/ref=sr_1_1?ie=UTF8&qid=1487885144&sr=8-1&keywords=buying+a+small+business
This is all good advice. In terms of structuring the deal, I'd agree that a 5 year buy-out makes sense.
Take a look at the HBR Guide to Buying a Small Business (http://amzn.to/2qoPMhn) for some good ideas on how to do this. It spends a lot of time talking about the sourcing process, but the second half of the book covers your situation nicely.