Can You Really Afford to Sell?
In many cases, the sale of a small company is “event” driven. That is, the reason for sale is often an event such as a health decline or illness, divorce, partnership issues, or even a decline in business. A...
Read moreCompany Weaknesses
Photo Credit: Simon & Camera via Compfight cc Take two seemingly identical companies with very similar financials, but one of the companies was worth substantially more than the other company. One company will sell for $10 million “as is”...
Read moreBurnout: An Ever-Present Threat
Photo Credit: Lori Hersberger via Compfight cc Burnout is an often-used reason for an owner selling his or her business. Potential buyers may have trouble accepting this as a valid reason for sale. However, burnout is a valid reason...
Read moreHow Long Does It Take to Sell a Business?
Photo Credit: gadl via Compfight cc Recent studies indicate that it now takes, on average, about eight to ten months to sell a small business. This figure seems to increase yearly. Why does it take so long to sell...
Read moreWhat Would Your Business Sell For?
Photo Credit: Victor1558 via Compfight cc There is the old anecdote about the immigrant who opened his own business in Canada. Like many small business owners, he had his own bookkeeping system. He kept his accounts payable in a...
Read moreAdvantages of Buying an Existing Business
Photo Credit: morebyless via Compfight cc 1. Established. An existing business is a known entity. It has an established and historical track record. It has a customer or client base, established vendors, and suppliers. It has a physical...
Read moreWhen to Create an Exit Strategy
Photo Credit: DoodleDeMoon via Compfight cc There is the old saying that the time to develop an exit strategy is the day you open for business. Sounds good, but it’s not very realistic. Further, it also isn’t very...
Read moreBuying or Selling a Business: The External View
There is the oft-told story about Ray Kroc, the founder of McDonalds. Before he approached the McDonald brothers at their California hamburger restaurant, he spent quite a few days sitting in his car watching the business. Only when he was...
Read moreFive Kinds of Buyers
Buyers are generally categorized as belonging to one of the following groups although, in reality, most buyers fit into more than one. The Individual Buyer – This is typically an individual with substantial financial resources, and with the type...
Read moreWhy Deals Don’t Close
Photo Credit: faungg via Compfight cc Sellers Don’t have a valid reason for selling. Are testing the waters to check the market and the price. (They are similar to the buyer who is “just shopping.”) Are completely unrealistic about...
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