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 a scuba diving shop on the list if you do not swim.
They are:
A. Start a business from scratch and build it slowly while maintaining your existing job.
Doing this allows you to learn all about the industry you are going into. There will be few surprises by the time the business hits its break-even point. Look at all the people that go on TV shows to raise capital for their expanding business. They have a solid direction, and will succeed if they have good business basics.
B. Buy an existing business that claims it is making a profit level that you can support your family and your life planning. Read more
When I was in college, 1965-1969, we talked about the $200,000 billion underground economy. Now 50 years later it must be 10 times that big. A high percentage of small businesses I look at have some cash payroll or some undeclared cash sales. Because of the competitiveness of the market, those that are not paying some or all of the required payroll taxes or sales taxes can quote better prices then those that are paying union wages and benefits or are paying all of the required payroll taxes. This is fraud in business. Read more
When a business broker tries to play both sides of the buying and selling process, it can mean trouble for the buyer, seller, or both. Don’t get had by a “dual agent” broker.
Okay, you’ve made the decision to buy a business. You have a lender lined up; an attorney is on the ready line and your CPA is standing by; now you just have to complete the due diligence work. It would be convenient to have either your CPA firm; or law firm perform the due diligence work; however, they have quoted hourly rates at $250/hour (or more) with no cap on the number of hours it might require to complete the work. Who knows what the total bill could be…$8,000…$10,000…$12,000?
There is just one problem. You’ve never performed due diligence before and questions keep rolling around in your head. “Where do I begin? What information do I ask the Seller to provide? What am I looking for? How do I interpret the information provided by the Seller?” Read more
Business Buying Services tells you everything you need to know about whether or not you should buy a corporation.
Since I became a CFE (Certified Fraud Examiner) and started going to National conventions, I have been finding out some very interesting facts about white collar crimes.
White Collar Crime’s Financial Cost 15x Higher than Violent Crime
Violent crimes, including theft, armed robbery, and murder cost the legal and prison system about $20 billion per year. White collar crimes cost a total of $300 billion per year. That is 15 times larger than violent crimes yet we hear little about white-collar crime. Read more
15 Questions you should ask before making an offer, when buying a business.
Most people have questions they need answered before making an offer and before hiring help to evaluate, audit or review the business. The most commonly asked questions are as followed: Read more
In my years of doing due diligence for business buyers, the biggest complaint received from buyers is that the information presented on the web, or by the listing broker, does not match up with the information received from the seller after a deal has been negotiated. Read more
Glynn was a nice guy who was given $500,000 by his mother to buy a business, since his photography business went into the toilet. The money was burning a hole in Glynn’s pocket.
One evening Glynn met Joe at a local networking group. They started spending time together and became casual friends. Joe told Glynn he was an entrepreneur who owned different successful business in town. At least that is what he said.
One day, Joe told Glynn that he was opening a taco restaurant with two experienced restaurant partners. The business needed a taco machine with cost $10,000 and Joe was tight on cash. He asked Glynn to make a loan, secured by the taco machine. He would pay 10% interest-only payments for one year. Read more
California Licensed Real Estate Broker #00529559
Certified Public Accountant (CPA) # 106752
Certified Fraud Examiner (CFE) #594927
Professional Certified Business Broker (CBB) designation
Business Buying Services
PO Box 2734, Seal Beach, CA 90740-2734
Phone: 805-428-2063
Fax: 562-446-0575
