Many people know owning a business isn’t for them. But for others, the appeal and lure of owning their own business and gaining a greater measure of control over their future can be powerful. If you are uncertain as to whether this path is for you, there are a few simple questions you can ask to gain almost instant clarity. In this article, we will explore those key questions and help you determine if owning a business is in your future.Details
When it comes to acquiring or selling a business, negotiation is vitally important. But it can also be complicated. Unfortunately, many prospective business buyers and sellers overlook the significance and complexity of negotiation.
There are four basic ways to negotiate. It is wise and worthwhile to consider your strategies before the time to buy or sell arrives.Details
When it comes to your deal being completed, having a signed letter of intent is great. While everything may seem as though it is moving along fine, it is vital to remember that the deal isn’t done until many boxes have been checked.
The due diligence process should never be overlooked. It is during due diligence that a buyer truly decides whether to move forward with a given deal. Depending on what is discovered, a buyer may want to renegotiate the price or even withdraw from the deal altogether.Details
Buyers, seller, advisors, and intermediaries often mention use of a “term sheet” prior to the creation of an actual purchase or sale agreement, but rarely will you hear the term explained. What is a term sheet and why is it important? This post will address these questions.Details
When it comes to completing your deal, having a signed Letter of Intent is promising, but is not the end step in the process. Although everything may seem as though it is moving along well, it is vital to remember that the deal isn’t done until many areas have been addressed and boxes have been…Details
If you are considering running your own business, one of the first questions that might pop in your mind is: Should I start a new one or buy an established business? In this article, we’ll take a closer look at the age-old dilemma of buying an existing business versus starting a new one from scratch.Details
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…Details
When considering selling their companies, many owners become paranoid regarding the issue of confidentiality. They don’t want anyone to know the company is for sale, but at the same time, they want the highest price possible in the shortest period of time. This means, of course, that the company must be presented to quite a…Details
When the sale of a business falls apart, everyone involved in the transaction is disappointed – usually. Sometimes the reasons are insurmountable, and other times they are minuscule – even personal. Some intermediaries report a closure rate of 80 percent; others say it is even lower. Still other intermediaries claim to close 80 percent or higher. When asked how, this last…Details
Putting a price on privately-held companies is more complicated than placing a value or price on a publicly-held one. For one thing, many privately-held businesses do not have audited financial statements; these statements are very expensive and not required. Public companies also have to reveal a lot more about their financial issues and other information than privately-held companies. This makes…Details
The Letter of Intent has been signed by both buyer and seller and everything seems to be moving along just fine. It would seem that the deal is almost done. However, the due diligence process must now be completed. Due diligence is the process in which the buyer really decides to go forward with the…Details
Two businesses for sale could report the same numeric value for “earnings” and yet be far from equal. Three factors of earnings are listed below that tell more about the earnings than just the number. 1. Quality of earnings Quality of earnings measures whether the earnings are padded with a lot of “add backs” or…Details
Most prospective business buyers really don’t know from the outset the exact type of business they want to buy. Experienced business brokers and intermediaries know that many business buyers end up with what is sometimes a far cry from what first captured their imagination. Take, for example, the old story of the buyer who saw…Details
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” or some changes can be made and the same company can be sold for $15 million.…Details