5 Ways to Protect your Purchase Deposit from Theft

Whenever you make an offer for a business and put down a deposit you are putting yourself at risk that it could be forfeited to the broker and/or seller. Here are a few things you can do to make sure that does not happen:

Business purchase deposit protection

  1.  Write LOI (Letter of Intent).  This is not a binding document, and no deposit is necessary. Then after you have agreed with the seller on the price and major terms, a formal offer can be written. At this point you can afford to pay to have the purchase contract reviewed by your attorney, or due diligence CPA, before being signed.  Read more

Business Evaluation Pitfalls: How to Evaluate the True Worth of a Business: Sanity Check-Buying A Business

Getting the True Value of a Business.

In the business broker community there is a review process that helps a buyer determine if a business purchase makes sense or not. This check can be done by a Fortune 500 company where everything is figured down to the penny and takes 1000 hours of research or it can be done by a small main street shop buyer who figures it out in one hour. Each item in this review process requires a decision. Read more

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 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

Find Your Passion In Your Work When Buying A Business

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 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 you have to ask for it, and you have to give the seller a good reason for them to give it to you. I assure you a seller can have a lot of good reasons for not wanting to give it — and some are totally legitimate.

So, when are you justified in asking?

There are several conditions to look for. To find out what conditions to look for  Read more

Due Diligence Pitfalls: What are the biggest barriers to doing Due Diligence?

When buying a business one has to see what is not on the financial documents provided by the seller.

To do that you need to graduate the Sherlock Holmes College of Observation.  Mr. Holmes was famous for seeing small clues that appeared to other to be meaningless, but in truth, were the keys to solving the case.

In the 20 years of doing business due diligence I have concluded it is not about the information that is given to me but the information that is withheld or forgotten to be provided.

Read more

Why We Need Due Diligence Just to Sign a Purchase Contract

Henry is an educated business man. He has real estate license, but wanted to find a method of earning extra income. He has been looking at various businesses. He was now interested in a Laundromat. He collected the necessary preliminary information and sent it to me, along with a signed accepted offer, to review and discuss. Prior to the Laundromat, Henry and I had reviewed two other businesses together that he passed on.

When I had reviewed what he had sent me, I gave him my insight into the coin laundry industry and pointed out things he should be concerned about. Read more

Who Can I Trust?

When Making a Business Acquisition, Whom Can You Trust?

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.

Read more

What Business is Right for You?

Purchasing A Business? Find The Right One For YOU!

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!

Read more

Crime Does Pay When Buyers Don't do Due Diligence

Crime Does Pay When Buyers Don’t Do Due Diligence

Don’t let your business purchase lead you into becoming the victim of white-collar crimes. Find out more from our business buying experts.

Read more