[caption id="attachment_1584" align="aligncenter" width="300"] Photo Credit: Instant Vantage via Compfight cc[/caption] A serious buyer should have the answers to the following questions: Why are you considering the purchase of a business at this time? What is your time frame to find a suitable business? Are you open-minded about different...
[caption id="attachment_1563" align="aligncenter" width="300"] Photo Credit: Victor1558 via Compfight cc[/caption] There is the old anecdote about the immigrant who opened his own business in the United States. Like many small business owners, he had his own bookkeeping system. He kept his accounts payable in a cigar...
[caption id="attachment_1556" align="aligncenter" width="300"] Photo Credit: Lori Hersberger via Compfight cc[/caption] 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 for selling one’s...
[caption id="attachment_1543" align="aligncenter" width="300"] Photo Credit: gadl via Compfight cc[/caption] 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 a business? Price and...
[caption id="attachment_1537" align="aligncenter" width="300"] Photo Credit: DoodleDeMoon via Compfight cc[/caption] 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 optimistic. On the day...
[caption id="attachment_1516" align="aligncenter" width="300"] Photo Credit: CarbonNYC via Compfight cc[/caption] 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...
[caption id="attachment_589" align="aligncenter" width="300"] Photo Credit: faungg via Compfight cc[/caption] 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 the price and the market for...
Many experts say no! These experts believe that only half of the business valuation should be based on the financials (the number-crunching), with the other half of the business valuation based on non-financial information (the subjective factors). What subjective factors are they referring to? SWOT is...
"Exit strategies may allow you to get out before the bottom falls out of your industry. Well-planned exits allow you to get a better price for your business." From: Selling Your Business by Russ Robb, published by Adams Media Corporation Whether you plan to sell out in one year, five...