Buying someone else's business is the least risky way to become a business owner and selling a business is a way to cash in on years of hard work. This section is a collection of posts that cover concepts entrepreneurs need to know when considering buy or selling a business.
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.
There are a few steps that a franchisee considering a franchise will go through to get to a decision about investing in the franchise. In this article, we will break the process down into four basic steps.
In any industry, you will find good, and not-so-good businesses and business associates. The same is true in the franchise consulting industry. Franchise consultants play an important role in the franchise industry. They can be a sturdy bridge between individuals seeking franchisees to invest in, and the franchisors who are seeking good franchisee candidates.
When I sold my first company, I got a call from my business broker just before I was packing up to go home one night. He said that there was some interest in my business by a potential out-of-state buyer. He added they were a publicly traded company and wanted to fly out a team […]
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. […]
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, […]
Whether you are using a business broker or attempting to sell your business yourself, you will need to start with a solid business plan. Using the business plan as your base, you will need to edit it to create a confidential business review document (CBR). The CBR is the main document buyers will use to […]
Between the time when a business owner puts his company on the market and the closing date, there are two events that can occur which either kill the deal outright or negatively affect the final sale – the inadvertent disclosure of the sale and the accidental disclosure of proprietary information to competitors and customers. The […]
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: The organization, including its employees and internal processes Its reputation in the industry How well the business fits with the acquiring business, […]