pdakin

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 [...]

Priscilla’s Top-Ten Transition Tips 1)    Do as much in advance as you can of the things that must be done in the first 2 months of ownership. Set up bank accounts Establish merchant services Buy the software you know you will need that does not come with the business, i.e. accounting, design, inventory control, etc. Establish professional relationships…accountant, lawyer, banker, bookkeeper Find the place to live and the things to live with Have [...]

Entrepreneurs looking for businesses for sale can benefit by working through a broker. Brokers are not necessary for any sale and they are not only for Sellers.  Some brokers work exclusively with buyers and are paid by buyers, not sellers. What about the money side of things?   The buyer working through a business broker may spend more money for the business as a seller not paying a commission may have a lesser price [...]

Recently someone was about to sign a listing agreement, for the sale of their business.  At the last minute, they elected to try to sell the business themselves.  At this point they had received some of the materials a broker might typically use for the sale of the business, a list of the places any business might be marketed on the internet, and input from the broker as to the general nature of [...]

Susie has a business for sale.  The business is a marketing company.  She has been in business for ten years and has made a nice income, kept reasonable records,  built a list of clients, has a company name beyond her own, and has evidence of her services in the market place in a permanent fashion, one that carry forward. Being conservative, Susie has never had an office, uses her own car to get [...]

Yesterday I met with an attorney.  We were chatting about the sale of a business and the implications of inventory. Imagine, it is the day before close, after a month or two of due diligence.  The demands of the buyer have been slightly on the nerves of the seller.  After all, did the buyer not realize the great value of this business?  The buyer feels like he had to slug through the due [...]