Find Your Passion In Your Work When Buying A Business

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The most common comments I hear from business buyers are “What is a good business to buy?

I am open to any business that can make me money” They also bring up this question whenever they find any company that looks interesting. “Is this a good industry to be in?” What they are not getting is that every industry is a great industry for the few doing well and a terrible industry for the rest of the world. I would say that 50% of all business owners just barely get by, 30% do average, and 20% of the business owners make a profit that they are proud of. It has nothing to do with what industry it is but everything to do with the management of the company.

So if it is all about the management, how do you know if you are going to be good top management material?

Well there are several things.

Let’s review some of those traits. Read more

Why Should Inventory and Accounts Receivable be Part of the Purchase Price?

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Why should Inventory and Accounts Receivable be Part of the Purchase Price?

The standard procedure when a broker takes a listing, on a small main street business, can be with or without the inventory being included in the listing price. Including it actually presents a more honest picture, to the buyer, of what is required to buy and run the business. The reason it gives a better picture, with the inventory included, to a buyer, is because when the buyer looks at the net cash flow figure (SDE) and then compares it with the asking price, the buyer sees that it a high multiple. Let’s take an example. Net cash flow is $100,000. The price without inventory is $200,000 and with inventory is $300,000. The price is 2 x without inventory but 3 x with inventory. This might make the asking price look too high but in fact that is the real multiple.

Read the full article to find out why this is so important.

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What Business is Right for You?

Purchasing A Business? Find The Right One For YOU!

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Are you interested in purchasing an existing business? What type of business will you excel in owning? Start here with our help and save yourself stress, time and money!

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A Fresh Approach to Finding a Business

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If you have gotten tired of looking at the same old main street businesses, I would like you to know you are not alone.

You should be prepared to look for up to two years to find the right fit. Read more

Should I Buy a Corporation?

Does it makes sense to buy business in these COVID-19 crises times?

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As I was picking up my daily e-mails, the above question was staring me in the face. I thought, “Wow” this is a great question? What I have been noticing is the way consumer business is changing. A lot of those changes are permanent and not just in place because of the virus. Let’s look […]

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Find Your Passion In Your Work When Buying A Business

/in , /by

The most common comments I hear from business buyers are “What is a good business to buy?

I am open to any business that can make me money” They also bring up this question whenever they find any company that looks interesting. “Is this a good industry to be in?” What they are not getting is that every industry is a great industry for the few doing well and a terrible industry for the rest of the world. I would say that 50% of all business owners just barely get by, 30% do average, and 20% of the business owners make a profit that they are proud of. It has nothing to do with what industry it is but everything to do with the management of the company.

So if it is all about the management, how do you know if you are going to be good top management material?

Well there are several things.

Let’s review some of those traits. Read more

Business Buying Opportunity: Should You Buy A Distressed Business?

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Everyone wants to buy a good profitable business making over $100,000 per year. The problem is there are only a limited amount of these businesses on the market. The reason for this  is everyone wants the same thing.  The results is the pricing is too high and the availability is too low.  Read more

The Art of Getting Financial Records Before Signing a Letter of Intent

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How to handle brokers wanting offers before due diligence We have all heard of “The battle of the sexes”. What is not as well-known but as difficult a battle “is the one between “brokers and business buyers” regarding getting a business’s financial information. This article will discuss: 1. How to get listing brokers to release […]

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Protect Yourself From A Bad Purchase Agreement

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It is important to protect yourself from forfeiting your deposit when you sign a purchase contract. This would seem to be a very obvious statement. Except, what is not obvious is that so few people know how to do that. The result of inexperience is that too many people lose their purchase deposit. The deposit checks vary from $5,000 to $50,000 or even more. Read more

Business Due Diligence or a Seller Warranty? Which is Better…

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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 you have to ask for it, and you have to give the seller a good reason for them to give it to you.  Read more