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Over and over this year and last, the word has been to so many who would like to retire or merely move on to other business ventures “don’t sell your business now if you can wait.” The unfortunate piece of this message is that folks are tired.  They are not finding the energy they once had to find new solutions, take more cost out, do the jobs once someone did for them.  They [...]

The slow economic turn around has many owners having to make the tough decision of selling low, getting out through liquidation, or waiting to sell their business. If you have decided the best strategy for you is to wait until the economy and your business rebounds, don’t sit and wait.  It is hard but, in the situation where you want to sell your business but barely seem to have the energy to run [...]

How does a vending company as a business-for-sale secure the validation of its business. Eample:  Jordan had moved to the community after college and a brief stint working abroad.  He recognized the economy was not going to help him find a job.  He also knew that having sufficient money to pursue various dreams would not grow on trees.  So, he elected to build a business for sale, anticipating a profit in the sale. [...]

Imagine this:  You have just been successful in purchasing a business for sale or starting your own business.  You are busy:  New staff; New systems; Tight cash; Grumpy customers.  Certainly you can wait to plan the sale of the business.  Right? Wellllll, perhaps you are even a bit, but just a bit, behind the eight ball. Actually, it is never too soon to plan.  One never knows what might happen in life that [...]

Recently during the end days of a business-for-sale transaction, when it was becoming clear we might actually close the deal, the seller said to me “I have to give it to you for riding this bull so well.” We actually did close the transaction but it was not smooth sailing.  Often this is the case.  In this specific transaction, there were nuances that made, it seemed, everything challenging.   An usual deadline of one [...]

A business-for-sale or buyer broker has many, many guidelines to follow.   Knowing which ones to rely and which to relax in a given transaction becomes the art of the profession.  Here are three that are should rarely, if ever, be broken. A broker should Be clear with everyone in advance about her role and limits to knowledge & capabilities. Value businesses based on well-defined and known-to-be-valid methodologies. Present an honest picture of the [...]

Sue is a buyer of a business for sale.  She is looking at two businesses making stuffed ponies, and wants to know which one to buy.  How does Sue choose? The Case: Sales of both companies are $1MM.  The cost of goods (COG) for both companies is 25%, with the same definition of expense items within COG.  The age of the equipment is the same.  One company is making $100,000 cash to owner [...]

Some business-for-sale transactions are quick and simple, closing in a week or two.  Others take months, if no years, to close.  There are many factors to the speed of the transaction.  One of these is the winnowing away the disagreements eased or not by the temperament and flexibility of the parties. Take the home accessories store.   The purchaser loves the store.  It meets all of the husband and wife purchaser needs:  Right location, [...]

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 again?  The professional is trying to avoid conflicts when the final documents are drawn including changes that [...]

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 presented, where you are comfortable in knowing you can take/expand or enhance it, and that the [...]