What Makes a STAR Deal? Think of the 5 points on the star

Dave Cozzocrea Contributor

Dave Cozzocrea https://www.linkedin.com/in/dave-cozzocrea-458582100

What makes a STAR deal? Think of the 5 points on the star.

1) Motivated seller - You hear this time and time again why? Because it's really the starting point.  If the seller's not motivated to sell most likely you're wasting your time because I can assure you there's another business owner who is!      

2) Sensible concept around the valuation - How many buyers/investors want to over pay for a business? Not many that I know of! The seller talked with his brother-in-law Sid who sold a business which now makes him the guru! Yes, we laugh but trust me, I've heard the stories!

3) Potential - What is the potential of the business? Upon reviewing the business what and how do you see growing it?    

4) Structure the deal - You have investors or partners or maybe good old brother-in-law Sid because he has money from selling his business. :) SBA loan or other lending options.  Seller financed.      

5) Simplicity - Finding a deal that looks simple, not multiply owners or other factors that could cause problems.

Hope you enjoyed this article !

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Sebastian Amieva

Investor / M&A Expert / Mentor

www.sebastianamieva.com

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