March 15, 2023

10 Things We Learned About Buying or Selling a Business by interviewing Zoran Sarabaca - Business Broker

10 Things We Learned About Buying or Selling a Business by interviewing Zoran Sarabaca - Business Broker

10 Things We Learned About Buying or Selling a Business by interviewing Zoran Sarabaca - Business Broker E 11: Watch Here

Here is what my team and I learned from this interview: (These are notes from team members, writers, sometimes AI, and even listeners who submitted what i learned loosely edited and shared here) - If it seems a bit unrefined, you're reading our notes, so. yeah. -Ron

Concept 1: Get in Control of Destiny


We all have dreams and aspirations in life, but it is only those who take the initiative to take control of their destiny that will succeed. Zoran Sarbaka is an example of a person who took control of his destiny and achieved success.

Growing up in Serbia, Zoran was groomed by his father, who had a large business in Libya, to be in control of his own destiny. When trouble started in Yugoslavia in 1991, Zoran had two choices: to join the army or to leave. He chose to leave and ended up in Australia. At the age of 21, Zoran started his own business, not knowing much about the business world but believing that he could make it work. 

Seven years into the business, Zoran found himself in a bit of trouble and the only way to get out of it was to sell the business. He interviewed a few brokers and went with the one he thought was the best match. He was disappointed with the service he received and realized that he was not getting the inquiries he needed. This pushed him to become a business broker himself, so he could treat clients better and build a better brokerage. 

Zoran is now a successful business broker and has been for over 18 years. He has taken control of his destiny and achieved success. His story is a reminder that it is possible to take control of our destiny and make our dreams come true. We just need to be willing to take the initiative and put in the work. With hard work and dedication, anything is possible.

Concept 2: Know Your Market

Zoran's story is also an example of the importance of knowing your market. Zoran had to learn the ins and outs of the business brokering industry before he could be successful. He had to read books, do research, and figure out how to make it work. He had to understand the rules and regulations of the industry and how to best serve his clients. This knowledge was essential to his success.

The same is true for any business. Before you can be successful, you must understand the industry you are entering and the market you are targeting. You need to know the rules and regulations, the competition, and the customer base. You need to understand the trends and the needs of the people you are trying to serve.

It is also important to know your own strengths and weaknesses. You need to understand what makes you unique and what sets you apart from your competitors. You need to be able to identify the areas where you can improve and the areas where you can excel.

Knowing your market is essential for success. It is the foundation for any successful business. Without it, you will be unable to make informed decisions and you will be unable to capitalize on opportunities. It is essential to understand the industry, the competition, and the customer base before you can be successful. Zoran's story is a great example of the importance of knowing your market and taking the initiative to make your dreams come true.

Concept 3: Find Experienced Problem Solvers

Zoran's story is a great example of the importance of finding experienced problem solvers. He discussed how it took him 18 years to find the right people to help him sell businesses. He found that the hardest part was to find the talent to both hold the deal together and have enough knowledge about businesses in order to overcome the issues as they come. He found that accountants were normally really good at resolving the issues but not so good at holding relationships with people. He also found that salespeople were really good at holding relationships but not so good at understanding the business. This is why it is so important to find experienced problem solvers.

Experienced problem solvers are invaluable to any business. They can see problems quickly and come up with solutions. They are able to untangle complex issues and find the pieces that need to be put together. They are able to look at a problem and come up with an opportunity out of it. They are also able to think outside the box and come up with creative solutions.

Finding experienced problem solvers can be difficult. Zoran mentioned that it is hard to find a good business broker because it takes a particular type of person. He found that the best candidates were usually ex-consultants or ex-business owners that have had successful business lives.

In conclusion, it is essential to find experienced problem solvers in order to be successful in any business. They are invaluable in being able to quickly see problems and come up with creative solutions. Finding experienced problem solvers can be difficult, but it is worth the effort in order to be successful.

Concept 4:  Price Accurately For Success

When it comes to selling a business, pricing accurately is key to success. Overpricing a business can lead to it staying on the market for too long and becoming stale, which can damage its chances of selling. It can also lead to potential buyers walking away because they think the business is overpriced. Furthermore, it can lead to brokers telling the business owner what they want to hear, not what they need to know. This creates a moral hazard, as the broker is incentivized to tell the business owner what they want to hear in order to get paid.

Accurately pricing a business is essential for it to be successful. It is important to find experienced problem solvers who can accurately assess the value of the business and give realistic advice. This can be difficult, but it is worth the effort in order to get the best price for the business. Furthermore, it is important to be realistic when pricing the business and not to overvalue it in order to leave room for negotiation.

In summary, pricing accurately is essential for the success of a business. It is important to find experienced problem solvers who can accurately assess the value of the business and give realistic advice. Furthermore, it is important to be realistic when pricing the business and not to overvalue it in order to leave room for negotiation. Accurately pricing a business is essential for it to be successful.

Concept 5: Valuation is Key to Success

When it comes to pricing a business, it is important to find experienced problem solvers who can accurately assess the value of the business and give realistic advice. This is because if the price is set too high, it can be difficult to find buyers. On the other hand, if the price is set too low, the seller may not receive the full value of their business. Furthermore, a smaller broker may be better equipped to accurately price the business as they are more focused on finding the right buyers and have more experience dealing with the complexities of the industry.

It is also important to be realistic when pricing the business. This means not overvaluing it in order to leave room for negotiation. Buyers will be more likely to purchase the business if they feel they are getting a good deal. Furthermore, it is important to take into account factors such as the industry, the size of the business, and the potential for growth when pricing the business.

Knowing the true value of a business is essential for any business owner. It is important to evaluate the business in order to determine its true worth and to understand the potential of the business. This is especially true for businesses that are looking to sell. Without knowing the true value of a business, it is difficult to accurately price it and to make an informed decision about selling the business. 

When pricing a business, it is important to consider factors such as the performance of the business, how well it is managed, and how well it is run. It is also important to consider the personal side of the business, such as any potential moves or changes that could affect the value of the business. Additionally, it is important to consider the wider investment market and what potential buyers could do with the money they would spend on the business.

It is also important to have access to trusted sources of information in order to accurately assess the value of the business. This can be done by consulting experienced problem solvers such as business coaches or advisors. They can provide advice on how to accurately price the business and can also provide insight into the potential of the business.

Finally, it is important to be realistic when pricing the business. It is important to not overvalue the business in order to leave room for negotiation. It is also important to remember that the value of the business is not only determined by the performance of the business, but also by the potential of the business.

Concept 6: Accurately Valuing A Business Takes Time


Accurately valuing a business takes time. It is not a simple task, and it is not something that can be done in a few hours. The process of accurately valuing a business can take up to 40 hours of research and analysis. This includes researching the market, analyzing the business’s performance, and looking at comparable sales. It is not something that can be done overnight.

It is important to remember that the value of a business is more than just the assets of the business. The value of a business is also determined by the potential of the business. This means that the value of the business is determined by the ability of the business to generate income in the future. Therefore, it is important to consider the potential of the business when valuing it.

In addition, it is important to remember that the value of a business is determined by the performance of the business. This means that the value of the business is determined by the amount of revenue the business generates, the amount of profit the business generates, and the amount of debt the business has. Therefore, it is important to consider the performance of the business when valuing it.

When valuing a business, it is important to remember that there is no one-size-fits-all formula for valuing a business. There are many different methods for valuing a business, and it is important to consider all of them in order to get an accurate value. In addition, it is important to remember that the value of a business is not only determined by the performance of the business, but also by the potential of the business. Therefore, it is important to consider the potential of the business when valuing it.

Accurately valuing a business takes time and effort. It is important to remember that the value of a business is determined by the performance of the business, the potential of the business, and the market conditions. Therefore, it is important to consider all of these factors when valuing a business. Accurately valuing a business is a complex process, and it is important to remember that it takes time and effort to do it properly.

Concept 7: Build a Quality Database - Deal Room


For those looking to buy or sell a business, it is essential to build a quality database. A quality database is a collection of information about the business, its performance, and its potential. It should include information on the business’s financials, customer base, industry trends, and other relevant data. Building a quality database is important because it allows buyers and sellers to accurately assess the value of the business and make informed decisions.

When building a quality database, it is important to consider all of the factors that may impact the value of the business. This includes the performance of the business, its potential, and the market conditions. It is also important to consider the risks associated with the business and the resources needed to make it successful. The database should also include information on the customer base and the industry trends that may affect the business.

Building a quality database is essential for those looking to buy or sell a business. It is important to remember that it takes time and effort to build a quality database, but it is worth it in the long run. By building a quality database, buyers and sellers can accurately assess the value of the business and make informed decisions.

Concept 8: Find Undervalued Businesses

One way to find undervalued businesses is to actively look for owners. This could mean going on LinkedIn and making a list of every single business in the area that is being targeted. By doing this, buyers can make sure they are getting the best possible deal. It is also important to get on the phone and start calling these people. It may take 20 calls before the right person is found, but it is worth it in the long run.

Another important factor to consider when looking for undervalued businesses is marketing. It is essential to make sure that the business is advertised in a way that will entice people to call or entice them to dismiss the communication altogether. It is also important to be open with the employees about the sale of the business. This will help to prevent any potential breaches of confidentiality.

Finally, it is important to remember that buyers should look for businesses that are worth more than what they are being sold for. This means looking for businesses that are worth two million dollars, but being offered for one million dollars. This could be a great way to get a great deal on a business.

In conclusion, finding undervalued businesses can be a great way to get a great deal. It is important to remember that it takes time and effort to build a quality database, but it is worth it in the long run. Additionally, it is important to actively look for buyers, market the business correctly, and look for businesses that are worth more than what they are being sold for. By following these tips, buyers can find great deals on businesses.

Concept 9: Price and Paperwork are Key

When it comes to selling a business, price and paperwork are key. It is important to price the business accurately from the start. This will help to attract buyers and avoid any unnecessary negotiations. Additionally, it is important to have all the paperwork ready before the sale. This includes profit and loss statements, bank statements, tax returns, and any other documents that potential buyers may need to make an informed decision. This will help to make the process go more smoothly and quickly.

It is also important to consider the laws of the jurisdiction where the business is located. Different states and countries have different laws that govern how businesses are sold. For example, in Australia, businesses with a revenue of less than $300,000 require a Form 2 to be completed by an accountant. Furthermore, businesses with a revenue of more than $20 or $50 million require an audit to be done annually. Knowing the laws of the jurisdiction will help to ensure that the sale goes smoothly.

Finally, it is important to remember that the process of selling a business can take time. On average, it can take up to 200 days from the beginning of the process to when the money is in the bank. This is because of the extra paperwork and due diligence that is required. It is important to be patient and to make sure that all the paperwork is in order.

Overall, price and paperwork are key when it comes to selling a business. It is important to price the business accurately from the start, have all the paperwork ready, and be aware of the laws of the jurisdiction. Additionally, it is important to remember that the process can take up to 200 days. By following these tips, buyers can find great deals on businesses.

Concept 10: Take action and get results

Taking action and getting results is a key component to success in business. It is important to not just talk about what you want to do, but to actually take action and get results. It is important to set goals and take the necessary steps to achieve them. This includes researching the market, understanding the competition, and having a plan of action.

When it comes to selling a business, it is important to be organized and prepared from the start. First, it is important to find a buyer and then to get them across the line. This includes doing due diligence and addressing any issues that may arise. It is important to have all the information ready from the start and to have a realistic price. This can help reduce the time it takes to close the deal and reduce the chance of something derailing the deal.

It is also important to reach out to the right people. Exclusive Business Sales is a great resource for those looking to buy or sell a business. They specialize in deals ranging from small to large businesses. They can help with business valuations and provide assistance with the sale process.

In conclusion, taking action and getting results is essential to success in business. It is important to be organized and prepared from the start when it comes to selling a business. It is also important to reach out to the right people who can help with the process. With the right preparation, buyers can find great deals on businesses.

 

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