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Stewart owned a malt shop, the one his father started when Steward was just 10. The malt shop had a great location, had added sugar free, lower glycemic, and lactose-free options as these options became fashionable. What more...... He had added impulse items at the checkout and on stands in the middle of the floor, yet it seemed he had reached a plateau, there was no more revenue to be had, at least [...]

It is a pain ....but oh so important to both parties. Both Seller and Purchaser have due diligence needs. From the Seller perspective due diligence is the opportunity to demonstrate their statements of business value are factual.  It is also a time where a Seller can confirm the operational and credit worthiness of a Purchaser seeking financing. From the Purchaser perspective due diligence is the opportunity to ensure the Seller's statements of business [...]

Patrick opened his vitamin business 15 years ago. Now he has it listed for sale and the buyers are asking questions.   “They are questioning my integrity????” Patrick was outraged…. How could they suggest? These are some things that the buyers were seeing and becoming more reluctant along the way. These are some things that Patrick might have done differently: Report and adequately provide for unusual practices: If he was going to self-insure, he [...]

It’s a non-profit BUSINESS! When you take part in providing necessary goods and/or services you are in business. When in business, the goal is to provide these necessary goods and/or services efficiently and effectively. When you provide these necessary goods and/or services efficiently and effectively, your balance sheet shows a profit. When your balance sheet shows a profit the result is: For-profit businesses - pay dividends to stockholders and owe taxes Non-profit businesses [...]

Jennifer was devastated. “What do you mean, my business did not sell?” She had put 20 years into developing the best building construction business around. Everyone knew who she was as her name was in every advertisement, building-site sign, and business-league bulletin. But, perhaps that was the problem. Whether doing a lot of business or a little, the business not clearly identifiable as being able to stand without the owner may have challenges [...]

Junior had to decide, “Do I buy or build a business from scratch.”  It is for most a clear decision but not the same for each entrepreneur. One reason to buy is to be assured of immediate cash flow, no uncertain ramp-up expenses.  Another is the ability create one’s specific dream, building on an existing proven foundation that is paying the bills For the build-it-myself entrepreneur, to spend all that money on buying [...]

For a buyer, the up front investigation of a business may seem rather simple but what then?  What if I want to buy the business. First, gather round you professionals, an attorney to review documents and a CPA to assist with assessing the organization. In my practice and many main street business-for-sale transactions using an intermediary/broker, the process often includes these steps and features.  These are typical but, then, no transaction is typical. [...]

Frankly, it is almost always a surprise, the value of a business.  Owners wanting to sell are often thinking the sale price will fully fund their retirement, the only requirement to continue to live as they have. Usually this is just not true. Note: Cash flow to owner is sometimes called discretionary earnings.  There are several models for this calculation, all leading to the same end.  It is good to know that the [...]

This list is especially intended for owners of newly purchased businesses.  It could also serve as a check list for any owner or start up entrepreneur. It is a non-inclusive list as each business, business environment has its own nuances.  Often when a business is purchased a number of these are in place and easily transitioned.  It is usually better to not change systems for a period of time until there is a [...]

How Can a Solo-preneur or Other Smaller Business Owner Be Appealing for Acquisition? While this example is written about two mental health providers, it could be about a construction company, web designer, etc. Fran and Frank had two different operational models and two very different prospects for sale. Fran a mental health provider had completed her training and joined a large health system.  After five years she was ready to be on her [...]