Why Do Deals Fall Apart?
November 27, 2014
In many cases, the buyer and seller reach a tentative agreement on the sale of the business, only to have it fall apart. There are reasons this happens, and, once understood, many of the worst deal-smashers can be avoided. Understanding is the key word. Both the buyer and the seller must develop an awareness of what the sale involves–and such an awareness should include facing potential problems before they swell into floodwaters and “sink” the sale.
What keeps a sale from closing successfully? In a survey of business brokers across the United States, similar reasons were cited so often that …
[Read more...]Filed Under: Buyer Articles, Seller Articles
Who Is the Buyer?
November 27, 2014
Buyers buy a business for many of the same reasons that sellers sell businesses. It is important that the buyer is as serious as the seller when it comes time to purchase a business. If the buyer is not serious, the sale will never close. Here are just a few of the reasons that buyers buy businesses:
- Laid-off, fired, being transferred (or about to be any of them)
- Early retirement (forced or not)
- Job dissatisfaction
- Desire for more control over their lives
- Desire to do their own thing
A Buyer Profile
Here is a look at the make-up of the …
[Read more...]Filed Under: Seller Articles
Why Sell Your Company?
November 27, 2014
Selling one’s business can be a traumatic and emotional event. In fact, “seller’s remorse” is one of the major reasons that deals don’t close. The business may have been in the family for generations. The owner may have built it from scratch or bought it and made it very successful. However, there are times when selling is the best course to take. Here are a few of them.
- Burnout – This is a major reason, according to industry experts, why owners consider selling their business. The long hours and 7-day workweeks can take their toll. In other cases, the business
Filed Under: Seller Articles
Rating Today’s Business Buyers
November 27, 2014
Once the decision to sell has been made, the business owner should be aware of the variety of possible business buyers. Just as small business itself has become more sophisticated, the people interested in buying them have also become more divergent and complex. The following are some of today’s most active categories of business buyers:
Family Members
Members of the seller’s own family form a traditional category of business buyer: tried but not always “true.” The notion of a family member taking over is amenable to many of the parties involved because they envision continuity, seeing that as a prime …
[Read more...]Filed Under: Buyer Articles, Seller Articles
Valuing Your Business
July 17, 2020
When a business owner puts the business on the market, arriving at the proper value, and subsequent the asking price, for the business is critical. Too often owners place unrealistic, unachievable, and arbitrary asking prices on the business and then proceed into the sale process only to be disappointed with the market’s response. This frequently results in price reductions, delays, and lost opportunities to sell to qualified buyers who are put off by unsupportable asking prices that are not in line with the value of the businesses.
The bottom line is that the intrinsic values of all businesses are rooted …
[Read more...]Filed Under: Seller Articles, Valuation