Dien, what other concepts has Harvey Brody shared with you?

[GordonJ]

First, I love what Michael has done at Hard to Find Seminars and his other site, and I've listened to many of the interviews. Art Hamel is a genius in his own right. And he proves my old friend Jim Straw's point about...

Who is the most beautiful woman in the world? question.

The answer is totally SUBJECTIVE. Depends on what any given person thinks beautiful IS. Right?

Same goes for business. My brother and Tiny both had a tow truck business, which I could never do. If you've read about the Cuckoo Clock, you see I'm not good with my hands.

A power tool in my hands is usually followed with a call to 911. See?

Art Hamel proffers his opinion. I would agree there is a lot of slop and mess, FOR ME, in what he teaches. INVENTORY?

Lack of product put Gary Halbert in Fed. prison, his supply chain was broken. So, from an absentee stand point, why would I even bother to put the waders on and venture into that swamp...filled with gators,

when I can stay on dry land and feast on the low hanging fruit?

I know MANY people who operate the LOWLY "dime a dozen" service and retail business, and do very well for themselves.

Get to know Sherman Hunter, read as much as you can...and take his survey. It may shed some light. Although I think I could create a better survey, and I usually do on the phone asking questions...

the answer to the question:

What is an Ideal distressed business to acquire as a suitcase business?

from MY perspective (and I can't speak for Sherman, but I think he might agree)...

is the one which BEST SUITS YOU.

So, it begins with an understanding of YOURSELF.

What aptitudes and attitudes you bring to the game.

I have ZERO ability with building things, making music (which I deeply regret) and dealing with people who waste time.

But that is me. Therefore, I wouldn't spend hours trying to learn to play guitar, it would be fruitless...but if there were a profitable music store for sale, and the owner is retiring...

I'm "good enough" at analyzing the books to be able to conclude whether or not it could be added to the mix, but, you won't find me in the store trying to sell you a flute, cause I couldn't tell you the difference between a flute and a piccolo.

The most beautiful woman? Why, it is my "current" girlfriend, of course!

Gordon

PS A part of Sherman's strategy is to be able to look at and analyze a business opportunity from a spreadsheet...profit and loss statement, same as you see the sharks in the tank ask about sales and

VALUATION. They know at the first question, which question comes next.

One of the best of the ideal (best looking women) suitcase takeovers is Stored Value IP, as our friend Ryan McGrath spoke of some time back...in his "resurrecting" of an out of print book.

That, or get the rights to the PRINCE catalog, there seems to be some iffiness about who owns it NOW?

But, I like to look at established businesses with a Senior Owner, who wants someone else to have the fun he/she has had for decades. They are very open to ideas.

There is no right, wrong, THIS way or THAT way absolutes.

It begins....with...

what YOU bring along.

gja

Originally Posted by ascendedmind

Wow, Gordon I really appreciate your knowledge & research! What type of distressed businesses does Sherman focus on, which would qualify as a suitcase business?

Yes, I signed up to read his blog etc. However, I have not found any specifics. I understand the concept of stored value. I like the idea, but what is the reality? Is Sherman over simplifying this?

Have you listened to any of Art Hamel interviews by Michael Senoff? He specializes in buying specific types of manufacturing businesses because you can use finance the assets & get owner financing.

However, it does not sound like an opportunity Harvey would pursue. Bog down & too time consuming?

Art Hamel says:

"In manufacturing, you have to buy equipment, lots of it. You need lots
of inventory. You end up with a lot of accounts receivable, which
means a lot of people owe you money. So, when you’re in there, and
you have X number of dollars, lots of dollars invested in assets, it’s
very difficult for somebody or people generally to go in and compete
with you.

Why? It’s too costly"

Don’t go after service and retail businesses. There a dime a dozen & too easy to enter into.


“I have to ask you (Wannabe business buyers)three questions.

First of all, do you have any business experience? Number two, do you
have any management experience? Number three, do you have any
money? Now, if you don’t’ have two of these, you’re screwed.


Additionally, Art Hamel says:

"What are three things I have to have in place in order to value
companies correctly, purchase them, and then operate them towards a
more profitable future... And where can I locate the right people with that
expertise to be on my team?"

"First of all, in every transaction, you’re going to need a CPA, a good
one, and a CPA that understands business. Don’t go to some CPA
that’s working for General Motors. You’ve seen the job that they’ve
done.

What you want is a nice CPA who’s done a lot of work with smaller
businesses, that has experience in that, and has also done audits or
checking on sales of businesses.

You also want an attorney that is used to putting business transactions
together, not somebody that is an expert in law that has to do with
divorces. You want two experts in your court.

Now, the problem is they are the exception rather than the rule. So,
you’re going to have to rely on your attorney, your CPA, and also other
business owners because what’s going to happen is if you’re looking at
electronics manufacturing companies, you’re not going to buy the first
one you run into."

Sounds very complex & time consuming to me.

Gordon, any idea what Sherman considers an Ideal distressed business to acquire as a suitcase business?