About This Blog
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Peter Siegel, MBA is a nationally known consultant and author - with over 25 years experience on the topic of selling, buying, and niche financing (the purchase of), small to mid-sized businesses. His clients include: business buyers, business owners/sellers, small business advisors, and business brokers. |
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This Blog contains observations, tips, news, events, and case studies relating to selling or buying a small business. |
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This Blog is ideal for business buyers, business owners, advisors, business brokers & agents. |
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Contact me by phone
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Disclaimer
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Opinions expressed on this site do not necessarily represent those of BizBen. |
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Opinions expressed here do not constitute legal advice. Those interested in specific guidance for legal matters should seek competent professional advice. |
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BizBen Blog Contributor
The following posts are in the bizben blog contributor category.
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Posted on August 26, 2009 Contributed by Steve Fitzgerald
Factors That Influence When To Sell A Business
Factors that influence a business sale include: {1} if someone offers you substantially more than what the business is really worth, {2} if you have reason to believe you have significant health issues ahead of you, {3} if your spouse hates the business and wishes that you were no longer involved in owning it, {4} if you are ready to retire or want to move on to other opportunities, and {5} if you can accurately predict forthcoming doom and gloom coming in either your industry or in the overall economy. Steve Fitzgerald, business broker in San Diego explores these issues with BizBen Blog readers.
Posted at 8:25am | 5 Comments
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Posted on August 18, 2009 Contributed by Lee Petsas
Selling A Business: When And How To Tell Employees
Lee Petsas a Southern California business broker writes about his experiences relating to when to tell employees the business is for sale or has been sold. If you are thinking of or in the process of selling a small business but not sure when to approach your employees read this article for different approaches and ideas.
Posted at 8:08am | 5 Comments
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Posted on August 17, 2009 Contributed by Cyrus Safavian
Buying A Business With Retirement Funds: Pros & Cons
In light of today’s lending difficulties, have you considered purchasing your small business or franchise through a self-directed 401(k) investment plan? If so, you are not alone. Accessing the funds in one’s IRA, 401(k), SEP or other tax-deferred retirement account to as investment capital for a new business is a very attractive option – especially since it can be done without incurring early distribution taxes or penalties. Cyrus Safavian walks us through this process in this article.
Posted at 8:13am | 2 Comments
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Posted on August 17, 2009 Contributed by Jeff Back
Working With The ABC: Inside Look At Liquor Licenses
What you will read in this article you will probably not find in any manual or set of instructions provided by the ABC. What I write about in this article is about the many things I have learned the hard way over 20 years of working as a restaurant broker with the ABC to transfer beer and wine and full liquor licenses. This blog post/article is written by Jeff Back a restaurant sales specialist.
Posted at 8:03am | 5 Comments
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Posted on August 12, 2009 Contributed by D. Joe Atchison, CBI, CBB, CPA, MBA
Selling & Valuing Your Business – 101
Selling your business is not like selling residential or commercial real estate. Business broker D. Joe Atchison, Business Broker, CBI, CBB, CPA, MBA covers with our readers the differences in selling a small business vs. real estate, and valuations of small businesses.
Posted at 8:40am | 6 Comments
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Posted on August 11, 2009 Contributed by Ron Hottes
New Types Of Business Buyers Emerge In Current Economy
As the country continues to struggle with the ups and downs of the economy, and California sees its way through a troubling budget, many things are being forced to change. One change that is emerging from the challenged business brokerage industry is several new types of business buyers many business brokers and agents are now seeing. Ron Hottes (business broker in Southern California) discusses the traits of these business buyers.
Posted at 8:16am | 4 Comments
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Posted on August 11, 2009 Contributed by Willard Michlin
Mentoring In How To Buy A Business
Mentoring can be an important process when buying a small business. Willard Michlin, a due diligence specialist shares his views on the mentoring process in this article about how business buyers can "profit" from such a relationship.
Posted at 7:40am | 4 Comments
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Posted on August 6, 2009 Contributed by Chuck Post
Buying A Coin Laundry: What All Buyers Need To Know
Buying a coin laundry like other types of small business purchases has its nuances. Chuck Post a business broker specializing in assisting those selling and buying coin laundries shares his knowledge with coin laundry buyers.
Posted at 7:34am | 4 Comments
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Posted on August 4, 2009 Contributed by Lee Petsas
Allocation Of The Purchase Price In A Business Sale
There are a handful of key asset categories in allocating or breaking down the purchase price of a business during the sale process. In many instances buyers and sellers have different desires in how to “chop up” the purchase price. The allocation in required to complete the transaction. In this blog post/article Lee Petsas covers the most common used asset allocation classes.
Posted at 6:15am | 4 Comments
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Posted on July 29, 2009 Contributed by Tawnya Gilreath, CBB
How Escrow Protects You In A Business Transaction
In dealing with business sales, often times the Seller or the Buyer will ask about the use of an escrow company. The seller may say, Why can't the buyer just pay me cash or give me a cashier’s check? Tawnya Gilreath a Los Angeles County business broker discusses why it's always a good idea to utilize specialized escrow services to close a deal.
Posted at 8:29am | 9 Comments
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Posted on July 28, 2009 Contributed by Lee Petsas
Selling Your Business Note After You Sell Your Business
It definitely helps to sell your business if you carry a note for the buyer. What about selling your note after the close of escrow? Do you want to effectively “cash out” of the sale? There are companies who specialize in purchasing Business Notes (of course at a discount). You can sell all or part of your note. Lee Petsas discusses this entire process in his latest article on BizBen.
Posted at 8:05am | 4 Comments
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Posted on July 22, 2009 Contributed by Jeff Back
Buying A Restaurant? Make Sure You Check Its Karma!
Checking a restaurant's Karma before buyinig can make a big difference not only in the success of the restaurant but also its possible effect on valuation. Jeff Back, a business broker specialist who specializes in selling restaurants discusses what he looks for when sizing up a potential restaurant for sale.
Posted at 6:20am | 3 Comments
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Posted on July 16, 2009 Contributed by Steve Fitzgerald
What Is Involved In Selling A Franchised Business?
When buying a small business franchise in California, most people focus on the rules and their rights to operate their companies, and don't give much thought to the provisions of the franchise agreement that will become pertinent when they go to sell. Before purchasing a franchise, it's a good idea to know what will be involved, either a few, or several years from now, when it's time to retire or move on to another business. Steve Fitzgerald a Southern California business broker discusses parts of the franchise agreement that pertain to sale of the franchise, and should be understood.
Posted at 9:01am | 4 Comments
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Posted on July 15, 2009 Contributed by Tawnya Gilreath, CBB
Why Earnest Money Deposit Requirements Can Be High
Tawnya Gilreath a Los Angeles area business broker explains why earnest money deposits serve two purposes. First, they show the Seller that you are serious about buying the business. Secondly, in the event that you as the Buyer default on the purchase agreement after due diligence and other contingencies have been removed, the earnest money deposit typically serves as liquidated damages to the seller.
Posted at 8:09am | 7 Comments
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Posted on July 14, 2009 Contributed by Joe D. Robertson
When Do I Tell My Employees The Business Is Being Sold?
With the multitude of factors that come into play when deciding the appropriate time to inform your employees that your business is for sale, I do not offer a standard or general answer. When sellers consult me as to my opinion on when it is the right time, I like to review the major issues that will affect the decision.
Posted at 9:36am | 6 Comments
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Posted on July 14, 2009 Contributed by Ron Hottes
Cash Flow/SDE: Determining The Worth Of A Business
The value of the small business is mostly determined by the cash flow (or business brokers use the term "Seller's Discretionary Earnings" instead to be more accurate). Seller's Discretionary Earnings (SDE) is defined as net income before taxes (operating income); interest; depreciation and amortization; owners compensation; owners benefits; and non recurring expenses. James Jun, MBA - Vice President with Business Team in Southern California (Ron Hotte's office) explains how he calculates the value of a business.
Posted at 9:01am | 6 Comments
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Posted on July 9, 2009 Contributed by Lee Petsas
Structuring Owner Carry Notes
Due to the current state of the Credit Markets and Bank Financing, Seller financing is more important then ever in facilitating the actual close of escrow in a Business Sale. Everyone is aware of the difficulties in procuring financing on small businesses these days. Everything must be perfect. At one point a few years ago I think I could have gotten my family dog a loan. Today worthy buyers are still getting rejected. The bail out has not reached Main Street. Lee Petsas, business broker walks us through the nuances of owner carry notes - i.e. seller financing.
Posted at 6:25am | 5 Comments
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Posted on July 7, 2009 Contributed by Willard Michlin
Adjusted Net Income Defined By Due Diligence Service
Adjusted net income is sometimes a difficult concept to grasp when buying or selling a business. Willard Michlin who provides a due-diligence service for business buyers in the Ventura and Los Angeles County area gives us his definition. Willard Michlin defines adjusted net income in this blog post/article.
Posted at 6:32am | 5 Comments
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Posted on June 29, 2009 Contributed by Joe Sandbank
Successor Liability When Buying A Business
A major concern of anyone buying a business should be whether or not they will be exposed to any of the seller’s liabilities. This blog post/article by attorney Joe Sandbank covers: Stock Purchase instead of an Asset Purchase, Public Policy Exception for Manufacturing Businesses (the “Product Line Successor” rule), Failure to Comply with Bulk Sale Laws, Taxes.
Posted at 5:52am | 6 Comments
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Posted on June 29, 2009 Contributed by Tawnya Gilreath, CBB
Selling A Business With A Month-To-Month Lease
There is no "one size fits all' answer or solution in business transactions. That is part of the challenge. Every business is unique as is every Buyer and every Seller. Tawnya Gilreath explores the issue of month to month leases in this blog/article.
Posted at 5:15am | 4 Comments
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Posted on June 25, 2009 Contributed by Ash Rasaei
First-Time Business Buyers: What You Need To Know
Making the transition from worker bee to small business owner involves a great deal of time, effort, money, and personal commitment. It is not a decision to be made hastily nor taken lightly. There are certain questions you need to ask and certain elements to consider, with every step along the way a potential pitfall. Ash Rasaei with Prudens Business Advisors discusses what first time buyers should know before buying a small business.
Posted at 9:14am | 8 Comments
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Posted on June 23, 2009 Contributed by KC Choi
How Is A LOI Different Than A Purchase Agreement?
While a purchase agreement is a binding contract with rights and obligations for each party that contains all the terms and conditions of the transaction; a preceding Letter Of Intent (LOI) is often overlooked for its significance. Business broker, KC Choi explains the difference between an LOI and a purchase agreement in this BizBen article.
Posted at 8:58am | 4 Comments
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Posted on June 18, 2009 Contributed by Christina Lazuric
A Business Brokers Perspective On The Present Economy
Christina Lazuric a business business broker in Southern California expresses her thoughts and approach to our current California economic condition. Whether you are thinking of buying, starting, or selling a business Christina offers her ideas of getting through this period.
Posted at 8:18am | 5 Comments
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Posted on June 16, 2009 Contributed by Joe D. Robertson
Important List Of What Brokers Need From Sellers
Joe D. Robertson, an Orange County business broker provides a list of important items, documents, and paperwork of what he feels is important for sellers to give to brokers (and agents) before the business for sale process begins. If an intermediary is truly serious about selling a business opportunity they should read this blog post/article and see what types of information should be provided to potential business buyers.
Posted at 7:03am | 6 Comments
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Posted on June 11, 2009 Contributed by Christina Lazuric
Broker Stories: When Taking A Listing - Does It Feel Right?
When you first start out in business brokering, you’re aware of the statistics of failure. 90% failure rate is intimidating so one can assume that for someone to even attempt to get into the business they have to be aggressive, confident and determined. In the beginning you’ll take almost any kind of listing to get your business moving but over time you realize the sense in being a little more discriminating. Christina Lazuric, an Orange County business broker warns about listening to your gut before taking on a new listing.
Posted at 9:05am | 5 Comments
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Posted on June 11, 2009 Contributed by Ron Hottes
Business Sellers Need To Be Optimistic, But Realistic As Well
If you are a small business owner thinking of selling your company you need to be realistic on how the sale will move forward. You need to put just as much preparation into the sale of your business as you did when you started it. A seller needs to be optimistic about their expectations, but realistic as well. Ron Hottes, a business broker in Southern California notes several items business owners should think about before going to market to sell their business.
Posted at 7:56am | 4 Comments
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