When you are buying / selling a business, when are you ready to close? Sometimes the answer is NEVER! In some cases, everything seems to be moving just as it should and then the littlest but most significant piece is undone and can not be gotten over. Perhaps it is the transfer of the phone number. The buyer obviously wants, and usually needs, it and the seller can't part with it because Mom [...]
Today I was speaking to a gentleman looking for a business to buy. He was lamenting his experience of having to dig out the problems during due diligence in case after case. Then walking away from the deal because it was not as it originally appeared. On the one hand he was apologizing for all of his questions but knowing that he had to ask. A business broker typically appraises the business on [...]
When a buyer looks at a business for sale they really want to know three things. What is the business for sale for and what financial performance substantiates that price? The business that can show year after year of growth, the longer the better and net to owner that also demonstrates growth will be more successful at achieving a great price. What is the outlook for the company? Is there opportunity for the [...]
In many small-business-sale transactions, an asset sale is the method. The buyer is buying the name, phone/email/etc numbers, goodwill, inventory but not receivables and payables. As the transaction approaches, closing buyers and sellers begin to think of the reality of the receivables. Can the seller really collect after the business is no longer there and do they really want to? The payments are likely to come to the same old address no matter [...]
Several years ago (lets call her) Sue wanted to buy a business thousands of miles from home. She and husband Ralph found the right business and made an offer contingent, in part, on financing. The business for sale was negotiated to a price of $425,000. The structure was $80,000 from Sue and Ralph, $40,000 from angel financiers at 12%, $125,000 from the bank at prime plus two, and the balance from the owner [...]
When is a deal in a business-for-sale transaction not going to be completed? A broker working with a multi-million dollar transaction has heard about six times in the due diligence phase "I am out of here and not going through with the transaction." His patience, continued listening to the clients, and pointing out the errors in the thought process has continued to bring the parties back to the table. That particular deal is [...]
Recently there was a business-for-sale transaction where the listing sales person (not me) said to me (the broker bringing the buyer to the table) "drive for the higher price as it is a higher commission for you." I was appalled. Perhaps in the minds of some I would be considered naive or stupid. It is good for a buyer and seller to understand in a business-for-sale or other transaction what the basic driver [...]
Think about it. What are you going to do after you sell your business? Before you put your business on the market, have some future mapped out, if not in detail, generally. Know you really want to sell. Once, when searching for a business to buy, I found one through a broker. Based on information presented to me, it fit the characteristics required, except one. At the first meeting with the owner, the [...]
Contracted valuation work
Excluding Companies Marketed for sale
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Selling twice or more the national average
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Service Work
When you need to know what your business is worth, to a known buyer or open market sale, rely on our confidential valuation and consultation. Our buyer clients understand a business’ value. Our sellers position their company for the best sale possible. We focus on Central and Northern New Mexico, and work across the country. We partner with trusted brokers for listing and sale. Contact us today.
