Due Diligence Case Study: Poor Bookkeeping Leads to Confusion
This is a true story of one of my due diligence assignments regarding a thief operating from within a tree trimming and landscaping company in Northern California.
Entries by Willard Michlin
Finding Out the Seller’s Motivation
What Motivates a Business Seller? When working with buyers as a business broker and a CPA doing due diligence, the buyers universally ask one question. “Why is the seller getting out? This is a good question but the question I ask is, “How do you know if the seller is telling you the truth?”
Business Valuation Pitfalls: What is the True Worth of a Business?
I am often asked how can we determine the true worth of a business. The first step to this process requires determining the actual profit of a business in the current market conditions. The second step is to create a value for the current income stream assuming it continues into the future or you may […]
Purchasing An E-Commerce Business – 4 things You Must Know
Purchasing An E-Commerce Business – 4 things You Must Know Today I received the Business Broker Press© release of the ten top selling businesses. At the top of the list was E-Commerce. E-Commerce refers to web based business that sells products online. This can be anything from cosmetics and clothing to automobiles and dating services […]
The 6 Key Items Influencing a Company’s Value with Two Working Owners
The key issues that influence a company’s value when there are two working owners: 1. What is the profit level of the business after allowing for the second partner’s salary Sellers Discretionary Earnings (SDE)? 2. Do a few customers dominate the sales? I see some great companies where one customer is over 50% of the […]
Business Due Diligence or a Seller Warranty? Which is Better…
The seller told the buyer “The books do not show all the money, but I guarantee you that this business will clear $10,000 a month after taxes.” How often have you heard these words? Wouldn’t it be great if you could actually get a guarantee from a seller when buying a business? You can. But […]
Business Buying Tips: Where do you find the right business to buy?
The first step in locating a business to buy is to decide what type of work you are interested in and what you are definitely not interested in. This makes the first step, going out in the world and making very complete lists of possible kinds of businesses available to you. Do not put owning […]
High Yield Trust Deed Investments — How do they work?
Before we can talk about Investing in Trust Deeds the reader has to know the meaning of some of the key words. Definitions Hard Money Loan = An investor writes a check to fund the loan. It is real hard cash money that is lent to a real estate owner who is borrowing money. Soft […]
Fast Food Business Ownership: Making a Fast Food Business So That It Virtually Prints Money
Fully half of all the businesses that are sold are retail food storefronts. This includes franchise, non-franchise, sandwich shops, bagel shops, coffee shops, as well as good old fashioned sit-down restaurants. Half!
Business Sale Price Pitfalls: Should you knowingly overpay for a business?
I remember growing up hearing from sellers the following sales pitch for why I should pay them top dollar. “You can get fresh oats for a fair price or you can get oats that have gone through the cow for a lot cheaper.” The other one I heard was “Quality remains long after price is […]
Willard Michlin, CPA, CBB, CFE
California Licensed Real Estate Broker #00529559
Certified Public Accountant (CPA) # 106752
Certified Fraud Examiner (CFE) #594927
Professional Certified Business Broker (CBB) designation
Contact Us
For Business Due Diligence, Expert Witness and Consulting Services
Business Buying Services
PO Box 2734, Seal Beach, CA 90740-2734
Phone: 805-428-2063
Fax: 562-446-0575
