In many business-for-sale transactions there are millions (well not quite) of documents to sign.  Some seem to require signing over and over, or amendments substitute, as changes are made.  Is it important to sign again and again?
Perhaps yes.  Perhaps no.  You decide.  Should the broker or attorney involved require revisions to sign documents be signed [...]

On August 3, 2010, my blog discussed the seller’s view in a business-for-sale transaction.  But what about the buyer, doesn’t she have perspective?
Of course.  Everything has different perspectives and the buyer is no exception. She should be considering this:
1)  Know the business and don’t buy it without great comfort that it is as it is [...]

Recently a prospective business-for-sale buyer said this to me:  “I am worried that this business will not perform and then I will have made a bad investment.  I guess I will then just quit paying the owner.”
Seller’s beware:  When you are selling a business have these rules:
1)  Know the qualifications of any buyer who proposes [...]

When a business-for-sale owner finds the right buyer, usually they are responsible for training, introducing the new owner to everything about the business in its current state.  They are NOT responsible for teaching the owner the laws of the land and the new owner should not assume that any such information that is shared may [...]

In our prior post, “Business for Sale with Real Estate–Implication,” I listed six implications of having business or business-owned real estate in a business-sale transaction. You can find that July 18,2010 blog post at http://dakinbusinessgroup.com/sell-a-business-with-real-estate.  Generally these implications are market, real estate owner, and prospective-buyer perspective.
It is most advantageous if the real estate owner (either [...]

Businesses for sale that include real estate owned by the business or owners of the business should carefully consider the impact of  the real estate in the sale of the business.
Consider these implications of the real estate in the business transaction:
1)  If the business is put on the market ONLY with a sale of the [...]

In some MBA programs they clearly define the ultimate return on investment (ROI.) At the Booth School of Business at the University of Chicago, I was taught:
ROI: Income (before distributions to suppliers of capital) for a period. As a rate, this amount divided by average total assets. Interest, net of [...]

Susan, my good friend, started a service business for $10,000. The business has matured and does quite nicely. The first year, she had a ROI of -0- after a wage of $30,000. Now, ten years later, she has an annual ROI of 500% after a fair market wage of $60,000. [...]

As in any big purchase, buyer’s remorse is not so unusual in business-for-sale transactions. Buyer’s remorse should, however, dissipate after a month or so and the new business owner gets into the rhythm of the business. For purposes of this discussion, lets assume that the price paid was fair for all.
When exploring a [...]

Some months ago, I asked a prospective buyer of a business for sale transaction “What liquid cash do you have to invest in a business.”  The answer was, $200,000.  The business for sale was priced well and likely eligible for financing with the right buyer.  $200,000 would have been 1/3 down plus enough working capital.
As [...]