Product Description

Owning your own business may sound like paradise but being the owner also means taking the responsibility for the business's health. Now, Garrett Sutton gives potential business owners the practical information they need to fulfill their dream of owning their own business.

Product Details

• Amazon Sales Rank: #246062 in Books
• Published on: 2003-04-01
• Original language: English
• Number of items: 1
• Binding: Paperback
• 208 pages

From Publishers Weekly
Sutton (Own Your Own Corporation) offers a comprehensive guide for both buyers and sellers of businesses. The book, the latest in the popular Rich Dad's Advisors series, covers important topics, including valuation, negotiating strategies, confidentiality, franchises and closing. Sutton presents the information in a straightforward manner, using case histories to illustrate his points. Chapters end with brief "Rich Dad's Tips" summarizing key points. Many books offer scenarios, but fail to explain what readers should take away. Thankfully, Sutton goes to great lengths to clarify his examples, e.g., after describing a sale with stalled negotiations and less-than-helpful attorneys, he says, "The lesson here is that if you are going to let other people negotiate for you, be certain that there are no hidden agendas.... An attorney whose motivation is to generate as much as possible in hourly fees may drag out negotiations to the point that a perfectly workable deal falls apart due to frustration and ill will." This is a solid book, though it doesn't offer much more than many others available on the topic. It will be of most help to inexperienced readers; those expecting dramatic new strategies on acquiring or selling a business won't find them here.
Copyright 2003 Reed Business Information, Inc.

About the Author
Garrett Sutton is an Attorney with over 20 years experience in assisting individuals and businesses to determine their corporate structure, limit their liability, protect their assets and achieve their personal and professional goals

Customer Reviews

I wish I had this before I bought my first business
This book, the newest in the Rich Dad series, will save a businessman years and thousands of dollars in mistakes.The typical mentality of checking with an attorney is not the best advice. Some attorneys, as reported in this book, will drag on the process and many are not entrepreneurs.I also recommend Real Estate Loopholes which also just came out in bookstores.Read and grow rich.

Canned advice
This books offers canned advice and can be summed up as:
1. Find a good accountant
2. Find a good lawyer
3. Find a good business broker.

The three people above are your 'team' and will carry you through the pitfalls of buying a business.

Oh yes - he also spends one chapter on why lawyers are 'deal killers.'

That's it - I saved you money. Three is no further detail, only a checklist. Nothing worth $19.

You should only two Kiyosaki books: Cash Flow Quadrant and the Investing Guide - all else is nonsense and filler - regurgitating what he already said in previous. From his advisor series, the only person who fills the books with valuable information is Diane Kennedy's Loophols and Real Estate Loopholes. All other advisor books are filler and junk.

Simplistic Guide in a Complicated Process!
'How to Buy & Sell a Business' by Garrett Sutton is a very enjoyable read on what really is a complicated subject. It is written with the assumption (I assume) that one is completely new to the process of buying a business and a first-time seller of an existing business.

Written in very easy-to-understand language, Sutton has divided up the processes of buying and selling a business into chapters with case studies presented and key points to look for and/or execute as you are buying and selling your business. Some points and pages worth noting are as follows:

Pg(s) 98 - 107: Valuation of a business is very complicated. It involves everything from the FMV of assets, intellectual property, current and potential revenue, accurate accounting and finance, and of course goodwill. There are books written that cover this topic by itself and Sutton does a good job in outlining the basic concepts of valuation. His coverage of the three principles of valuation (future benefits, substitution, and alternatives) are informative though brief. He manages to provide the IRS-recommend approach to valuing a business as well, which is of course very important.

Pg(s) 114 - 116: The negotiation phase of buying a business next to valuing the business and reviewing accounting and finance records is arguably where it comes down to (along with the ability to obtain the needed financing). Negotiations is an art with a lot of science involved. Specific to Sutton's work the section on Representations and Warranties should prove helpful from a broad view on things to look for when negotiating on the other side of the table.

Pg(s) 120 - 123: Covers structure and the pros and cons of an asset sale versus a stock sale. He manages to cover both pretty well and covers the concept of indemnification, which is often overlooked when one buys and sells a business. The stock versus asset structure is very complicated, but Sutton manages to point out high-level concerns you may have.

Pg(s) 131 - 134: Covers financing structure. Financial structuring can be the key (along with terms) on rather a deal is even "do-able." These pages point out quick-cut ways to obtain the money (at least where to look) while giving you some common sense approaches to obtaining the financing and to have sources of funds compete for your business. A strong section within the above pages is the discussion on convertible securities as a form of payment - common in large-scale sales of businesses (corporate and private), but may be overlooked by smaller businesses owners and prospective buyers.

The case studies are very entertaining (at least to read) and put the chapters in perspective. This book is not designed to be a standalone guide to buying and selling a business, but to give you a quick overview of the process as you proceed forward in buying or selling your business. It is not fluff as many would assume from the Rich Dad's Advisors (TM) book series. Also, Dianne Kennedy's chapter may make your eyes glaze, but this chapter is a must even if you are seasoned at buying and selling small businesses - yes, it covers the tax strategies and consequences. As an managing partner of a capital funding group that specializes in assisting small to medium size business owners obtain cash for their businesses, I see small oversights and mistakes that are made by buyers and sellers of businesses that if one thought about in the beginning would make the buying or selling of businesses a more pleasant experience. That's the key to my review recommendation: You will finish this book with some knowledge and/or key reminders especially if you are a novice at buying or selling a business.

In summary: If you're new to the buying and selling of a business - this book is strongly recommend. If you're a current business owner, but it's been a while since you bought or sold a business - this book is recommend for a quick review prior to going to your team of professionals. If you're a seasoned buyer and seller of businesses this read will be too basic for you. If you work with businesses as a professional adviser - this book is strongly recommended.