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Why Use a Business Broker to Sell Your Business?
Some business owners feel that they can sell their business themselves. After all, who knows the bus...
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Sunbelt Business Network has 250 offices worldwide with 1300 affiliate brokers. The team of profess...
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Buying a Franchise: What It's Worth to You
If you are considering entering the world of franchising, an important consideration is assessing the value of the business. All of the following factors either affect or help determine valuations of typical franchise operations: 1. Franchise Agreements: Typically, franchise agreements can cover a period of twenty years; sometimes with added options. In most situations where a franchise unit has fewer than ten years remaining on the agreement (and options, if any), the value would dimi...
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If you are considering entering the world of franchising, an important consideration is assessing the value of the business. All of the following factors either affect or help determine valuations of typical franchise operations: 1. Franchise Agreements: Typically, franchise agreements can cover a period of twenty years; sometimes with added options. In most situations where a franchise unit has fewer than ten years remaining on the agreement (and options, if any), the value would dimi...
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Financing the Business Purchase
Where can buyers turn for help with what is likely to be the largest single investment of their lives? For most small to mid-sized business acquisitions, here are the best ways to go:Personal EquityTypically, anywhere from 20 to 50 percent of cash needed to buy a business comes from the buyer and his or her family. Buyers who invest their own capital (usually an amount between $50,000 and $150,000) are positively influencing other investors or lenders to participate in financing.Seller Financing...
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Where can buyers turn for help with what is likely to be the largest single investment of their lives? For most small to mid-sized business acquisitions, here are the best ways to go:Personal EquityTypically, anywhere from 20 to 50 percent of cash needed to buy a business comes from the buyer and his or her family. Buyers who invest their own capital (usually an amount between $50,000 and $150,000) are positively influencing other investors or lenders to participate in financing.Seller Financing...
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Financing the Business Sale -- Some Questions to Answer!
Structuring the purchase of a business is an issue that should be faced early in the selling decision. Ultimately, the final structure of the sale will be determined by actual negotiations between buyer and seller, but the seller must still answer the following questions: What is the lowest amount of cash acceptable from the sale? Has consideration been given to paying off all unsecured creditors and a portion of the closing costs? (Both are, in most cases, the seller's responsibility.) I...
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Structuring the purchase of a business is an issue that should be faced early in the selling decision. Ultimately, the final structure of the sale will be determined by actual negotiations between buyer and seller, but the seller must still answer the following questions: What is the lowest amount of cash acceptable from the sale? Has consideration been given to paying off all unsecured creditors and a portion of the closing costs? (Both are, in most cases, the seller's responsibility.) I...
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Business Brokerage and Mergers & Acquisitions
We are often asked -- what is the difference between business brokers and intermediaries? Or, what is the difference between business brokerage and mergers and acquisitions? Others ask - where is the dividing line between the two? Is the mid-market size business the same as mergers and acquisitions? We think the battle is really one of semantics. Many successful practitioners who handle the sale of the larger business feel that they are business brokers because that's exactly what they do. Other...
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We are often asked -- what is the difference between business brokers and intermediaries? Or, what is the difference between business brokerage and mergers and acquisitions? Others ask - where is the dividing line between the two? Is the mid-market size business the same as mergers and acquisitions? We think the battle is really one of semantics. Many successful practitioners who handle the sale of the larger business feel that they are business brokers because that's exactly what they do. Other...
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Women Business Owners: Coming on Strong
If there were any doubt that women owners are an ever-growing force on the independent business scene, new studies of leading female entrepreneurs around the world supplies incontrovertible proof. The National Foundation for Women Business Owners (NFWBO) has been hard at work, researching the small business climate for women and identifying strong trends. Fifty Top Women Show TrendsIn one study done jointly with IBM, the NFWBO used as its subjects 50 top women business owners (plus 10 more up-an...
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If there were any doubt that women owners are an ever-growing force on the independent business scene, new studies of leading female entrepreneurs around the world supplies incontrovertible proof. The National Foundation for Women Business Owners (NFWBO) has been hard at work, researching the small business climate for women and identifying strong trends. Fifty Top Women Show TrendsIn one study done jointly with IBM, the NFWBO used as its subjects 50 top women business owners (plus 10 more up-an...
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Buying (or Selling) a Business
The following is some basic information for anyone considering purchasing a business. Is may also be of interest to anyone thinking of selling their business. The more information and knowledge both sides have about buying and selling a business, the easier the process will become. A Buyer ProfileHere is a look at the make-up of the average individual buyer looking to replace a lost job or wanting to get out of an uncomfortable job situation. The chances are he is a male (however, more ...
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The following is some basic information for anyone considering purchasing a business. Is may also be of interest to anyone thinking of selling their business. The more information and knowledge both sides have about buying and selling a business, the easier the process will become. A Buyer ProfileHere is a look at the make-up of the average individual buyer looking to replace a lost job or wanting to get out of an uncomfortable job situation. The chances are he is a male (however, more ...
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Selling - What Does an Intermediary Expect From You?
If you are seriously considering selling your company, you have no doubt considered using the services of an intermediary. You probably have wondered what you could expect from him or her. It works both ways. To do their job, which is selling your company, maximizing the selling price, terms and net proceeds, plus handling the details effectively, there are some things intermediaries will expect from you. By understanding these expectations, you will greatly improve the chances of a successful s...
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If you are seriously considering selling your company, you have no doubt considered using the services of an intermediary. You probably have wondered what you could expect from him or her. It works both ways. To do their job, which is selling your company, maximizing the selling price, terms and net proceeds, plus handling the details effectively, there are some things intermediaries will expect from you. By understanding these expectations, you will greatly improve the chances of a successful s...
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When Buying or Selling: Attorneys Should Be Deal-Friendly and Sale-Wise
Whether you are buying or selling a business, your legal counsel can make or break the deal. It is important that you emphasize to your attorney that you want the sale to go through. In many instances, the sale of the business fails to close because the attorney for one side or the other makes too many demands of the other side. Certainly, you want your attorney to protect your interests, but not to the point where the demands are so strenuous that the other party or his or her counsel balks. If...
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Whether you are buying or selling a business, your legal counsel can make or break the deal. It is important that you emphasize to your attorney that you want the sale to go through. In many instances, the sale of the business fails to close because the attorney for one side or the other makes too many demands of the other side. Certainly, you want your attorney to protect your interests, but not to the point where the demands are so strenuous that the other party or his or her counsel balks. If...
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Why Use a Business Broker to Sell Your Business?
Some business owners feel that they can sell their business themselves. After all, who knows the business better than they do. Often, these owners become sellers by simply placing an ad in the newspaper and waiting for the telephone to ring. They think of the money they can save by not paying a broker's fee. Sounds good, but it very seldom works! First, the telephone may not ring. If it does, it may be the local competition attempting to find out what is for sale and for how much. Those who may ...
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Some business owners feel that they can sell their business themselves. After all, who knows the business better than they do. Often, these owners become sellers by simply placing an ad in the newspaper and waiting for the telephone to ring. They think of the money they can save by not paying a broker's fee. Sounds good, but it very seldom works! First, the telephone may not ring. If it does, it may be the local competition attempting to find out what is for sale and for how much. Those who may ...
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Learn the Dynamics and Save the Deal
Many business owners are unfamiliar with the dynamics of selling a company, because they have never done so. There are numerous possible “deal breakers.” Being aware of the following pitfalls and their remedies should help prevent the possibility of an aborted transaction. Neglecting the Running of Your BusinessA major reason companies with sales under $20 million become derailed during the selling process is that the owner becomes consumed with the pending trans...
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Many business owners are unfamiliar with the dynamics of selling a company, because they have never done so. There are numerous possible “deal breakers.” Being aware of the following pitfalls and their remedies should help prevent the possibility of an aborted transaction. Neglecting the Running of Your BusinessA major reason companies with sales under $20 million become derailed during the selling process is that the owner becomes consumed with the pending trans...
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Fairness Opinions
Since one often hears the term “fair value” or “fair market value,” it would be easy to assume that “fairness opinion” means the same thing. A fairness opinion may be based to some degree on fair market value, but there the similarities end. Assume that you are president of a family business and the other members are not active in the business, but are stockholders; or you are president of a privately held company that has several investors/stockho...
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Since one often hears the term “fair value” or “fair market value,” it would be easy to assume that “fairness opinion” means the same thing. A fairness opinion may be based to some degree on fair market value, but there the similarities end. Assume that you are president of a family business and the other members are not active in the business, but are stockholders; or you are president of a privately held company that has several investors/stockho...
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How Does Your Company Rate?
Valuation of private companies is much more subjective than public companies because there is no free trading marketplace for the private companies’ stock. Just like a champion Olympic figure skater, the performance has to be flawless. Take a look at the following check list – see if the target company rates near perfect (on a scale of 1 to 10 – 10 being best): • Stable Market• Stability of Earnings Historically• Realized Cost ...
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Valuation of private companies is much more subjective than public companies because there is no free trading marketplace for the private companies’ stock. Just like a champion Olympic figure skater, the performance has to be flawless. Take a look at the following check list – see if the target company rates near perfect (on a scale of 1 to 10 – 10 being best): • Stable Market• Stability of Earnings Historically• Realized Cost ...
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When Is A Company In Trouble?
Companies can be in trouble or headed for it for many reasons. However, most of them can be linked to one or more of the following: • Lack of proper focus• Poor management• Poor financial controls• Loss of key employee(s)• Loss of important customer(s)/client(s)• Not keeping up with technology• Quality control or other operating issues• Legal or governmental issues• Target market change or sh...
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Companies can be in trouble or headed for it for many reasons. However, most of them can be linked to one or more of the following: • Lack of proper focus• Poor management• Poor financial controls• Loss of key employee(s)• Loss of important customer(s)/client(s)• Not keeping up with technology• Quality control or other operating issues• Legal or governmental issues• Target market change or sh...
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A Board of Advisors
In most jurisdictions, a board of directors is not required for privately held companies. However, many of these companies have appointed what might be termed advisory boards. Although they may not have any legal authority, owners of these privately owned companies have discovered that this team of outside advisors can assist them in many ways. One important way they can help is just by having their name and/or company affiliation attached to the company. This can open...
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In most jurisdictions, a board of directors is not required for privately held companies. However, many of these companies have appointed what might be termed advisory boards. Although they may not have any legal authority, owners of these privately owned companies have discovered that this team of outside advisors can assist them in many ways. One important way they can help is just by having their name and/or company affiliation attached to the company. This can open...
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Due Diligence -- Do It Now!
Due diligence is generally considered an activity that takes place as part of the selling process. It might be wise to take a look at the business from a buyer’s perspective in performing due diligence as part of an annual review of the business. Performing due diligence does two things: (1) It provides a valuable assessment of the business by company management, and (2) It offers the company an accurate profile of itself, just in case the decision is made to sell, or an acquirer sud...
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Due diligence is generally considered an activity that takes place as part of the selling process. It might be wise to take a look at the business from a buyer’s perspective in performing due diligence as part of an annual review of the business. Performing due diligence does two things: (1) It provides a valuable assessment of the business by company management, and (2) It offers the company an accurate profile of itself, just in case the decision is made to sell, or an acquirer sud...
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Key Factors to a Successful Closing
Experienced intermediaries list several key factors from the buyer’s side, most of which are necessary for a successful closing. Sufficient financial resources to complete the deal as specified. Sufficient staff to run the business and to continue working on an acquisition at the same time. Realistic approach to the type, size, and geographic location of target companies. The willingness to pay for acquisitions and, if necessary, to pay all-cash. The willingness to go six to...
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Experienced intermediaries list several key factors from the buyer’s side, most of which are necessary for a successful closing. Sufficient financial resources to complete the deal as specified. Sufficient staff to run the business and to continue working on an acquisition at the same time. Realistic approach to the type, size, and geographic location of target companies. The willingness to pay for acquisitions and, if necessary, to pay all-cash. The willingness to go six to...
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Before You Sell Your Family-Owned Business
There once was a family-owned bakery that had sales in the millions. The bakery sold bread to restaurants, supermarkets and some retail outlets. The founder gave each of his 5 children 20 percent ownership of the business. The kids really didn’t want to work in the business, so they turned the operation and management over to 2 members of the third generation. For some years the business had been operating on a break-even basis, and sales were not increasing. The found...
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There once was a family-owned bakery that had sales in the millions. The bakery sold bread to restaurants, supermarkets and some retail outlets. The founder gave each of his 5 children 20 percent ownership of the business. The kids really didn’t want to work in the business, so they turned the operation and management over to 2 members of the third generation. For some years the business had been operating on a break-even basis, and sales were not increasing. The found...
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12 Ways to Increase the Value of Your Company
1. Build a solid management team. A business with sales of $5 million and up needs a full complement of officers and directors. Such a team might include: a COO, a CFO, a sales manager and, depending on the type business, an IT director. It is also beneficial to create a Board of Directors with at least two outside members. This professionalizing of management can remove the stigma of “the one man band.” Not only will this build a stronger company, it will increase the value to ...
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1. Build a solid management team. A business with sales of $5 million and up needs a full complement of officers and directors. Such a team might include: a COO, a CFO, a sales manager and, depending on the type business, an IT director. It is also beneficial to create a Board of Directors with at least two outside members. This professionalizing of management can remove the stigma of “the one man band.” Not only will this build a stronger company, it will increase the value to ...
read more
How Do Valuation Experts Look at Your Company?
Providing a business valuation is more than just analyzing financial statements and records. Although the process is complex, the first step is to gather the necessary information. Business owners can make this a lot easier by maintaining good records on an ongoing basis. Although audited statements are certainly preferable, most appraisers and business intermediaries are accustomed to working with the company’s own financial records. Company officials should understand that the peop...
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Providing a business valuation is more than just analyzing financial statements and records. Although the process is complex, the first step is to gather the necessary information. Business owners can make this a lot easier by maintaining good records on an ongoing basis. Although audited statements are certainly preferable, most appraisers and business intermediaries are accustomed to working with the company’s own financial records. Company officials should understand that the peop...
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Is Your Company Tired?
It can be easy for successful company owners, especially founders, to rest on their laurels. The sales keep coming in, so the owner buys a bigger house, takes a lot of expensive vacations and devotes time to charities and/or civic activities. All well and good, but ignoring the business can create problems that may not surface immediately. Here are some examples: The owner, who used to call on the large and important customers or clients, turns them over to the sales manager....
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It can be easy for successful company owners, especially founders, to rest on their laurels. The sales keep coming in, so the owner buys a bigger house, takes a lot of expensive vacations and devotes time to charities and/or civic activities. All well and good, but ignoring the business can create problems that may not surface immediately. Here are some examples: The owner, who used to call on the large and important customers or clients, turns them over to the sales manager....
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Four Potential Mistakes Sellers Make When Selling Their Companies
1. Poor Timing: As the saying goes, “Timing is everything.” Selling one’s business at the proverbial top of the game is almost impossible, but selling on the upside is certainly better than selling on the downside. There is another side of timing. The owner is 63 years old and says he doesn’t plan on retiring until he is 65. Besides, business is really good right now, so why sell now? Because timing is everything, and since the business is better than ever,...
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1. Poor Timing: As the saying goes, “Timing is everything.” Selling one’s business at the proverbial top of the game is almost impossible, but selling on the upside is certainly better than selling on the downside. There is another side of timing. The owner is 63 years old and says he doesn’t plan on retiring until he is 65. Besides, business is really good right now, so why sell now? Because timing is everything, and since the business is better than ever,...
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Is the Business Sustainable?
One of the important issues in valuing a company is the sustainability of sales and income. It is a major issue in the due diligence process. It is also one of the most difficult to assess since many of the factors are so subjective. To bring things into focus, here are some of the factors that should be considered in looking at the sustainability of sales and profits: proprietary products and/or services market share customer concentration/broad distribution quality of financial systems ...
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One of the important issues in valuing a company is the sustainability of sales and income. It is a major issue in the due diligence process. It is also one of the most difficult to assess since many of the factors are so subjective. To bring things into focus, here are some of the factors that should be considered in looking at the sustainability of sales and profits: proprietary products and/or services market share customer concentration/broad distribution quality of financial systems ...
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How's Your Corporate Social Responsibility (CSR)?
Your first question may be, “Just what is Corporate Social Responsibility (CSR)?” We see CSR demonstrated in a variety of ways in areas such as: THE COMMUNITY: o Contributing to local community programs through financial support and personal involvement THE ENVIRONMENT: o Using packaging and containers that are environmentally-friendlyo Recycling o Using low-emission and high mileage vehicles where possible o Seeking more efficient manufactu...
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Your first question may be, “Just what is Corporate Social Responsibility (CSR)?” We see CSR demonstrated in a variety of ways in areas such as: THE COMMUNITY: o Contributing to local community programs through financial support and personal involvement THE ENVIRONMENT: o Using packaging and containers that are environmentally-friendlyo Recycling o Using low-emission and high mileage vehicles where possible o Seeking more efficient manufactu...
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Selling a Business: How Long Does It Take?
A recent survey revealed the following about the length of time that selling a business requires: Average time from putting the business on the market to time of sale: Time Period % of Businesses Sold in This Time Period 1 to 3 Months 9.7 % 4 to 6 Months 28.3% 7 to 9 Months 38.0% 10 to 12 Months 15.9% 13 to 18 Mon...
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A recent survey revealed the following about the length of time that selling a business requires: Average time from putting the business on the market to time of sale: Time Period % of Businesses Sold in This Time Period 1 to 3 Months 9.7 % 4 to 6 Months 28.3% 7 to 9 Months 38.0% 10 to 12 Months 15.9% 13 to 18 Mon...
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Selling Your Business? Expect the Unexpected!
According to the experts, a business owner should lay the groundwork for selling at about the same time as he or she first opens the door for business. Great advice, but it rarely happens. Most sales of businesses are event-driven; i.e., an event or circumstance such as partnership problems, divorce, health, or just plain burn-out pushes the business owner into selling. The business owner now becomes a seller without considering the unexpected issues that almost always occur.&n...
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According to the experts, a business owner should lay the groundwork for selling at about the same time as he or she first opens the door for business. Great advice, but it rarely happens. Most sales of businesses are event-driven; i.e., an event or circumstance such as partnership problems, divorce, health, or just plain burn-out pushes the business owner into selling. The business owner now becomes a seller without considering the unexpected issues that almost always occur.&n...
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Take a Look at Your Lease
If your business is not location-sensitive, that is, if your business location is immaterial to its success, then the following may not be important. However, lease information is usually helpful no matter what the situation. The business owner whose business is very dependent on its current location should certainly read on. If your business is location-sensitive, which is almost always true for a restaurant, a retail operation, or, in fact, any business that depends on cus...
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If your business is not location-sensitive, that is, if your business location is immaterial to its success, then the following may not be important. However, lease information is usually helpful no matter what the situation. The business owner whose business is very dependent on its current location should certainly read on. If your business is location-sensitive, which is almost always true for a restaurant, a retail operation, or, in fact, any business that depends on cus...
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Common Seller Questions
How long does it take to sell my business? It generally takes, on average, between five to eight months to sell most businesses. Keep in mind that an average is just that. Some businesses will take longer to sell, while others will sell in a shorter period of time. The sooner you have all the information needed to begin the marketing process, the shorter the time period should be. It is also important that the business be priced properly right from the start. Some sellers, operating under the p...
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How long does it take to sell my business? It generally takes, on average, between five to eight months to sell most businesses. Keep in mind that an average is just that. Some businesses will take longer to sell, while others will sell in a shorter period of time. The sooner you have all the information needed to begin the marketing process, the shorter the time period should be. It is also important that the business be priced properly right from the start. Some sellers, operating under the p...
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What Makes Your Company Unique?
There are unique attributes of a company that make it more attractive to a possible acquirer and/or more valuable. Certainly, the numbers are important, but potential buyers will also look beyond them. Factors that make your company special or unique can often not only make the difference in a possible sale or merger, but also can dramatically increase value. Review the following to see if any of them apply to your company and if they are transferable to new ownership. Brand name or ide...
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There are unique attributes of a company that make it more attractive to a possible acquirer and/or more valuable. Certainly, the numbers are important, but potential buyers will also look beyond them. Factors that make your company special or unique can often not only make the difference in a possible sale or merger, but also can dramatically increase value. Review the following to see if any of them apply to your company and if they are transferable to new ownership. Brand name or ide...
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Why Your Company Needs a Physical
Many executives of both public and private firms get a physical check-up once a year. Many of these same executives think nothing of having their investments checked over at least once a year - probably more often. Yet, these same prudent executives never consider giving their company an annual physical, unless they are required to by company rules, ESOP regulations or some other necessary reason. A leading CPA firm conducted a survey that revealed: 65% of business owners do not know...
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Many executives of both public and private firms get a physical check-up once a year. Many of these same executives think nothing of having their investments checked over at least once a year - probably more often. Yet, these same prudent executives never consider giving their company an annual physical, unless they are required to by company rules, ESOP regulations or some other necessary reason. A leading CPA firm conducted a survey that revealed: 65% of business owners do not know...
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Seize the Moment -- Tips for Sellers (Option A)
Those business owners who decide to take advantage of a favorable market should act quickly to launch the selling process. There are vital steps to take--and crucial realizations to face--in preparing for this all-important transaction. 1. Resolve current problems as soon and as thoroughly as possible. If the business is a partnership, both parties should be agreed about the major decisions to be made in the selling process. Hopefully, in cases where the business is a partnership, a buy...
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Those business owners who decide to take advantage of a favorable market should act quickly to launch the selling process. There are vital steps to take--and crucial realizations to face--in preparing for this all-important transaction. 1. Resolve current problems as soon and as thoroughly as possible. If the business is a partnership, both parties should be agreed about the major decisions to be made in the selling process. Hopefully, in cases where the business is a partnership, a buy...
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Seize the Moment -- Tips for Sellers (Option B)
If you have made the decision to sell your business, the wisest first move is to contact a qualified business broker professional, who can . . . Advise you on pricing and structuring the sale of your business. Prepare the marketing strategy, using professional resources. Determine the right buyer for your particular business. Educate buyers in the business-buying process. Keep you informed about market reaction. Present offers and point out strengths and weaknesses. When...
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If you have made the decision to sell your business, the wisest first move is to contact a qualified business broker professional, who can . . . Advise you on pricing and structuring the sale of your business. Prepare the marketing strategy, using professional resources. Determine the right buyer for your particular business. Educate buyers in the business-buying process. Keep you informed about market reaction. Present offers and point out strengths and weaknesses. When...
read more
Adding Value to Your Business
If you are considering selling your business, remember that there are positive factors that influence value and those that detract from it. Looking at your business from a buyer's perspective is important since a prudent buyer will be adding and subtracting these various factors when arriving at an asking price. It is perhaps more important to recognize when the buyer arrives at a price at which he or she will leave the negotiations. Buyers naturally try to buy the business at the lowest possibl...
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If you are considering selling your business, remember that there are positive factors that influence value and those that detract from it. Looking at your business from a buyer's perspective is important since a prudent buyer will be adding and subtracting these various factors when arriving at an asking price. It is perhaps more important to recognize when the buyer arrives at a price at which he or she will leave the negotiations. Buyers naturally try to buy the business at the lowest possibl...
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A Few Things to Consider
Buyers Want Cash FlowThe first thing to keep in mind is that the vast majority of buyers want to buy cash flow. Sit down with your accountant or bookkeeper and begin to get your financial statements in order with cash flow the order of business. Cash flow is not the same thing as profit. Most buyers look at the profit and loss statement or tax return, and look at owners or family compensation. They will consider any excess compensation to employees and family members. Buyers will also look at la...
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Buyers Want Cash FlowThe first thing to keep in mind is that the vast majority of buyers want to buy cash flow. Sit down with your accountant or bookkeeper and begin to get your financial statements in order with cash flow the order of business. Cash flow is not the same thing as profit. Most buyers look at the profit and loss statement or tax return, and look at owners or family compensation. They will consider any excess compensation to employees and family members. Buyers will also look at la...
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Price and Value: Any Difference?
The question most often asked by those considering placing their businesses for sale is: “What is my business worth?” The question that should be asked is: “How much can I get for my business?” Worth and value are words that in many cases are interchangeable. Leading business appraiser Shannon Pratt, in his book Business Valuation Body of Knowledge, states that “Price is the face value at which a specific transaction occurred. It may have been arrived at arbitrarily...
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The question most often asked by those considering placing their businesses for sale is: “What is my business worth?” The question that should be asked is: “How much can I get for my business?” Worth and value are words that in many cases are interchangeable. Leading business appraiser Shannon Pratt, in his book Business Valuation Body of Knowledge, states that “Price is the face value at which a specific transaction occurred. It may have been arrived at arbitrarily...
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Selling Price Defined
When the time comes to sell your business, what makes up the selling price. What is it that you are selling and the buyer is buying? It is important that the selling price be defined in such a way to avoid any confusion. Below you will find some sample wording used by business intermediaries to define the selling price. Keep in mind that this is sample wording only and is presented here merely for informational purposes. The term “selling price” shall include (a) the...
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When the time comes to sell your business, what makes up the selling price. What is it that you are selling and the buyer is buying? It is important that the selling price be defined in such a way to avoid any confusion. Below you will find some sample wording used by business intermediaries to define the selling price. Keep in mind that this is sample wording only and is presented here merely for informational purposes. The term “selling price” shall include (a) the...
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You Want How Much for Your Business?
This is often a prospective buyer’s first response when given the price of a seller’s business. This is especially true today when many excellent and profitable businesses have few hard or physical assets. For years, buyers, and even business appraisers, have called the difference between the actual physical assets and the asking price as “blue sky.” Goodwill has often been a prime force behind the blue sky concept, and it is one of the reasons a potential buyer might fee...
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This is often a prospective buyer’s first response when given the price of a seller’s business. This is especially true today when many excellent and profitable businesses have few hard or physical assets. For years, buyers, and even business appraisers, have called the difference between the actual physical assets and the asking price as “blue sky.” Goodwill has often been a prime force behind the blue sky concept, and it is one of the reasons a potential buyer might fee...
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Is Your Business Saleable?
Many business owners probably have asked themselves this question. There are many unique and different types of business. Some fill very small niches while others have carved out a unique product or service while still others require a unique or very specialized talent, knowledge or experience. An owner of a “unique” or at least unusual business may feel that there is no one out there who would buy it. Almost all businesses are saleable, but the big question is: Is the selle...
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Many business owners probably have asked themselves this question. There are many unique and different types of business. Some fill very small niches while others have carved out a unique product or service while still others require a unique or very specialized talent, knowledge or experience. An owner of a “unique” or at least unusual business may feel that there is no one out there who would buy it. Almost all businesses are saleable, but the big question is: Is the selle...
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Price or Terms: The Structure of the Deal
An old saying in negotiating the sale of a business goes like this: The buyer says to the seller, “You name the price, and I get to name the terms.” Another saying used to explain the actual value of the term full price: “If we could find you a business that nets you $250,000 a year after debt service, and you could buy it for $100 down, would you really care what the full price was?” It seems that everyone is concerned only about full price. And yet, f...
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An old saying in negotiating the sale of a business goes like this: The buyer says to the seller, “You name the price, and I get to name the terms.” Another saying used to explain the actual value of the term full price: “If we could find you a business that nets you $250,000 a year after debt service, and you could buy it for $100 down, would you really care what the full price was?” It seems that everyone is concerned only about full price. And yet, f...
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Personal Goodwill: Who Owns It?
Personal Goodwill has always been a fascinating subject, impacting the sale of many small to medium-sized businesses – and possibly even some larger companies. How is personal goodwill developed? An individual starts a business and during the process builds one or more of the following: • A positive personal reputation• A personal relationship with many of the largest customers and/or suppliers• Company pro...
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Personal Goodwill has always been a fascinating subject, impacting the sale of many small to medium-sized businesses – and possibly even some larger companies. How is personal goodwill developed? An individual starts a business and during the process builds one or more of the following: • A positive personal reputation• A personal relationship with many of the largest customers and/or suppliers• Company pro...
read more
Why Choose Sunbelt?
Sunbelt Business Network has 250 offices worldwide with 1300 affiliate brokers. The team of professionals at Sunbelt has over 50 years of business experience. We'll show you our 18 step Selling and Buying process in the industry, from initial interview to exit strategy. Our team of professionals will save you time and money from their experience and knowledge each step of the way. Hal Janke, President, CBI, SBA, FIBBA has sold hudreds of businesses over the last 28 years, along with Glenn...
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Sunbelt Business Network has 250 offices worldwide with 1300 affiliate brokers. The team of professionals at Sunbelt has over 50 years of business experience. We'll show you our 18 step Selling and Buying process in the industry, from initial interview to exit strategy. Our team of professionals will save you time and money from their experience and knowledge each step of the way. Hal Janke, President, CBI, SBA, FIBBA has sold hudreds of businesses over the last 28 years, along with Glenn...
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