Seize the Opportunity as Retiring Baby Boomers Create a Favorable Market for Business Buyers. Explore Key Steps for a Successful Small Business Acquisition: From Choosing the Right Type of Business, Assembling a Deal Team, Drafting a Letter of Intent, Conducting Due Diligence, Assessing Risks, and Preparing a Forward-Looking Business Plan to Creating a Purchase Agreement.
How to Find and Evaluate a Business for Sale Read More »
The Decision to Start a Business from Scratch, Buy into a Franchise Concept, or Acquire an Existing Business Hinges on Your Entrepreneurial Vision, Your Risk Tolerance, Your Financial Capacity, and the Desired Level of Control. Uncover the Unique Advantages and Challenges Associated with Each Pathway.
How To Choose Between Startups, Franchises, Or Acquisitions Read More »
Unlock The Secrets to Successfully Buying a Small Business. Explore The Vital Criteria: Potential for Growth, Strong Return on Investment, And Sustainable Income. Make Informed, Profitable Decisions for Your Entrepreneurial Journey.
Small Business Acquisitions: 3 Things You Need to Know Before You Buy Read More »
This quiz was designed to test your knowledge of buying an existing small business. Are you ready to put your knowledge to the test?
Buying An Existing Business: Test Your Knowledge About Buying a Business Read More »
Business purchases are either an asset purchase or a stock purchase. Buyers like to buy assets. Seller like to sell stock for tax advantages.
Types of Business Purchases – Taxes and Legal Issues Read More »
When buying or selling a business and the discussion comes around to financing options, few have ever considered the role of an earn-out. An earn-out can benefit both the buyer and the seller when used properly.
How to Increase Business Sale Profits with an Earn-Out Read More »
Once you agree on a final price for the business, the seller and buyer must agree to what portion of the purchase price applies to the tangible assets vs. intangible assets (e.g., goodwill). The allocation of the purchase price will dictate what portion of the sale price the seller can treat as capital gains vs.
Allocation of Sales Price Governs Tax Consequences Read More »
Most buyers and sellers just assume that when you buy or sell a business you pay cash. While cash may be a component in the sales price, generally a business sale is never an all cash deal. Often, there are secured notes and/or unsecured notes that the seller my extend to the buyer. Of course,
Forms of M&A Payments Read More »
There are several factors that can positively and negatively affect the value of a business from the point of view of the buyer. Some common factors that add value to a business include: When I sold my first business, the payment was to be made in the acquiring company’s public stock. Since it was during
Factors that Effect Business Value Read More »
When it comes to buying a business, buyers buy a documented and believable future. If you are the seller, it is your job to explain the past and sell the future. While it is up to the seller to prove the value of the business, it is often not a good idea for the seller
In M&A, He Who Mentions Price First Loses Read More »
The inverse to why sellers sell a business is why buyers buy. Often a seller may only sell one business in a lifetime. However, buyers often buy several companies during their lifetime as they assemble pieces to help another business grow. Many buyers purchase a business to avoid the risk associated with start-ups and are
Why Buyers Buy a Business Read More »
I teach a boot camp class each month for our local Small Business Development Center (SBDC). There is portion of this course that looks at the three ways to become a business owner. These ways include: buying a business, buying a franchise, and starting from scratch. As I discuss the option of buying an existing
Why Owners Sell Their Business Read More »
Most banks say that they are small business lenders. The missing part of that statement is how banks define small businesses and what banks will lend money for. From the bank’s perspective, a small business is an established business and not a new business. Banks lend money primarily for tangible assets that double as collateral.
How to Argue for Seller Financing Read More »
When it comes to buying a business, size does matter. Most lifestyle or micro businesses have under 1 million in annual sales. When it comes to lifestyle and micro businesses, the owner is also the top manager. For valuation purposes, a good rule of thumb for a marketable lifestyle or micro business is that the
How to Value an Existing Lifestyle or Micro Business Read More »
The other day I had a client look at buying someone’s business. The seller was very anxious to close the deal quickly which was the first indication that there might be a problem. Looking at the finances for the prior three years, revenue and profits were definitely moving in the right direction and the buyer
Value of Due Diligence Read More »
