Sunday, June 21, 2009
"How to buy a business and sell a business" - Vital question you need to ask yourself
Over the years of buying and selling businesses
we have witnessed both "sides of the fence",
the good and the bad.
As we discussed in the last post,
business brokers are typically about the seller
and not the buyer. The main reason, their commission!
I know this because I have been doing this for over
thirty years now and have seen many prospective
business buyers and sellers make very costly
all to costly mistakes.
Now that I am retired(but still active in the
business brokers world), I have lots of time to
reflect on all of the mishaps and pitfalls most
people make when buying or selling a business.
When buying or selling a business there are
some very important things to keep in mind
- The business broker is looking for there commission PERIOD!
- Use ALL financial reports,statements, and tax returns from at least five years if not 10 years ago. This helps you determine economic trends for the business as well so you will be better prepared for what lies ahead should you buy a business.
- There are less buyers in the current economic state. This gives the buyer of the business a little more leverage.
- Understanding the reasons why a business owner is selling their business is also another great leverage point.
- Gathering all data and info of ACTUAL value of business assets,inventory,employees,payroll,marketing and advertising budgets as well. This will let the business buyer understand thoroughly and be prepared for what their estimated cost projections will be from month to month just to keep the business running.
- Always weigh your options for creative financing of business. You can usually work out exceptional deals with very flexible criteria.
- Always have your own team of lawyers and consultants ready to examine all documents before even drawing up a contract for purchase.
Whatever you do , do not EVER think that you can handle
every aspect of analyzing and preparing a business for
purchase or sale properly.
There are a myriad of aspects to be analyzed,documents
created, and red tape to go through and it can be very
This is where our exclusive "How to buy or sell a business successfully" package comes into play. Our package includes
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Arm yourself with the proper "weapons" when looking to buy or sell a business, our package is providing you with all the proper tools and knowledge so you can make a HIGHLY educated decision and avoid all of the major pitfalls of buying and selling a business.
This package in the short and long run, will ultimately save you quite possibly your life savings, that is of course, you are serious about buying or selling a business.
Till next time,
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