Demonstrating sufficient cash flow to cover a business acquisition loan is key to getting a lender's approval. But buyer must be knowledgeable. Support a business acquisition loan with the target company's cash flow. And know how to determine the actual cash flow amount. Peter Siegel, MBA explains.
Before you buy a dry cleaners small business, read these critical tips about this industry. Discover why a dry cleaner needs to be "green" to be profitable. Peter Siegel, MBA (BizBen ProBuy, ProSell Program Advisor) explores this topic and other helpful strategies on buying a dry cleaning store.
Trying to purchase a business with no money down is usually a waste of time if you want a good business. But leveraging into a business with a relatively small cash down payment can often be accomplished using some of these suggested strategies in this article on buying a business with limited cash.
The idea to have a buying a business checklist follows the adage that it's always useful to start with a plan when searching to buy a small business for sale. Peter Siegel, MBA Founder of BizBen.com and top advisor of the BizBen ProBuy Program suggests six items for all business buyers to utilize.
An often overlooked aspect of selling (or buying) a small business is taking back-up offers during the entire process of selling (or buying) a business. Most sellers (or buyers) don't realize that over fifty percent of all deals/contracts fall out escrow or contract for one reason or another.
The key to finding the ideal business broker or agent and selling a small business is asking the right questions and getting the right answers back! Peter Siegel, MBA with BizBen & several top business brokers and agents in California (ProIntermediaries) contribute to this topic to assist sellers.
The latest BizBen.com survey of Business Brokers and Agents outlined what it takes to be a top ten percent performer in the business brokerage industry. From good communication to utilizing your resources, these traits are something to take note of and put into practice to be successful.
Only 30% of all small businesses for sale that are put on the market overall are sold! A surprising statistic to most business owners, agents, and brokers trying to sell a small business! If however you follow the strategies (BizBen Protocol Method) in this blog post you should see success!
Peter Siegel, MBA - BizBen.com & SBALoanAdvisors.com Founder discusses the difference between a hands on owner and an absentee owner. It covers why someone would want to be an absentee owner and then goes on to discuss the pros and cons of buying an absentee run small to mid-sized business.
As an Advisor On BizBen I talk to many California business owners, business buyers, brokers, and agents on a daily basis about valuing California small to mid-sized businesses. Many key factors go into this analysis including market demand, history of earnings, and even how the deal is structured.
Peter Siegel, MBA - Lead Advisor with the BizBen.com ProSell Program discusses critical steps to prepare a small to mid-sized business including: which documents will be needed, key advisors to have involved, pricing the business, and how to attract the right business buyers to your listing.
One of the most difficult challenges when purchasing a small business is expressed by this prospective buyer of a liquor store who is told by the seller that there is more money being made than shows up on the books. Should the buyer accept that statement by the seller & go ahead with the purchase?
Even without meaning to be dishonest, sellers or brokers talking to someone who wants to buy a small business often make statements that are not true. And sometimes what is said is known to be a lie. The buyer is smart to carefully evaluate what they hear - six untrue statements sometimes told.
Buyers search for an absentee business, wanting to collect profits generated by a successful enterprise without having to stand at the sales counter or cash register, without having to cook, operate equipment or talk to customers. Peter Siegel, MBA offers his intake on absentee run businesses.
Peter Siegel, MBA - BizBen Founder & Director of the ProBuy/ProSell Programs explores why earnest money deposits when opening escrow (and bulk sale) serve several important purposes when buying or selling a small business in California. For Buyers not offering a realistic deposit may be a problem.
Successful sellers of small businesses need a game plan to sell their California small business for maximum price and for the best terms. Peter Siegel, MBA discusses these seller strategies with BizBen Blog readers based on his experience as the lead Advisor with the ProSell Program on BizBen.com.
Being an Entrepreneur has its perks, it can also be challenging. You need to make sure you're ready for the challenge. Here's a list of 10 important questions to get you started when buying a business. Peter Siegel, MBA (BizBen Founder) reviews this topic for business buyers of small businesses.
Often business buyers actions cause a deal to tank but they never know why. Peter Siegel with the BizBen ProBuy Program discusses what mistakes business buyers make in the search process to buy a business with some of the best business brokers and recent sellers on BizBen about this topic.
Many California small business investors want to buy a restaurant. People always need to eat; there should be plenty of business. And some buyers think there is prestige to owning a popular eating establishment. But it isn't an easy purchase. Here's what not to do when planning to buy a restaurant.
Since most people who want to acquire a business for sale spend their time and energy responding to ads, it's no wonder that a majority never find a company they want to buy. Meanwhile, proactive buyers "push" their requirements and qualifications to purchase, and attract owners ready to sell.
Telling potential business buyers about unreported income could come back and bite you if not careful. It's best to be honest when dealing with business buyers but you should also highlight what's reported in the tax returns and what cash may be seen "between the lines".
Approaching business owners directly to see if they want to sell can sometimes work well for business buyers searching to buy a small business. Another way is to broadcast your search criteria via the BizBen ProBuy Program to all brokers, agents, and intermediaries who are selling a small business.
Californians who buy smoke shops can enjoy profitability if the businesses are chosen carefully. Despite the anti-smoking movement, enterprises that sell cigarettes, cigars and smoking paraphernalia serve a market that remains substantial. But it's important to understand your purchase options.
Looking to buy a small business? There is good news regarding business purchase financing. More financial institutions are coming back into the market with business purchase financing. After years of being selective many lenders are more open to financing deals they would not have in the past years.
Restaurant franchise offerings are among the most popular of the business types potential business buyers seek. What many would-be owners don't realize is that there are specific tips for buying fast food or restaurant franchises that don't necessarily apply to independent restaurants for sale.
To be successful in buying a small business you must be able to look objectively at the company and determine whether or not it is a business that will be able to grow into the future. The key to long term survival is when a business is able to change and grow along with the needs of their consumer.
If you are planning to offer your small business for sale, you ought to learn about your chances of succeeding. The probability of making a sale depends largely on which of seven seller types describes you. Use this self-test to find out what kind of seller you are and determine if you'll succeed.
Buying a nail service business requires careful consideration during the due diligence process. Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy & ProSell Program Advisor with BizBen) at 925-785-3118, discusses the important factors to focus on when valuing & buying a nail salon shop.
The Veld Group provides a refreshing approach to Business Brokerage, Mergers & Acquisitions and Business Consulting and Valuations. From Your Street to Wall Street, we cater to Main Street Businesses as well as more complex Strategic Firms and Start-Ups.
ServingSouthern California
If your business involves alcoholic beverage sales, we can help. Obtaining a liquor license transfer or selling a business with a license in California does not have to be a frustrating and overwhelming process. We have procured thousands of licenses for our clients.
ServingAll Of California
Laundry consulting, due diligence, buyer representation: We preview laundries for you and evaluate them. 28 years laundry industry experience: buying, selling, valuing, retooling, analyzing, consulting services for laundry buyers and entrepreneurs in California. Contact us today about our services.
ServingSouthern California
Cheryl's a restaurant business broker, over 25 years in the bar and restaurant industry coupled with a J.D. Cheryl works tirelessly to create successful strategies and effective negotiations for those who wish to purchase a new or sell an existing bar, restaurant, cafe, or night club. 415-309-2722
ServingCity Of San Francisco
McGovern Escrow Services, Inc., is a leading independent escrow company. We are a trusted partner with our clients, assisting them through the tangled bulk sale & liquor license transfer process. We provide attentive, quality & innovative customer service. Phone Elizabeth McGovern at 415-735-3645.
ServingSan Francisco Bay Area, North Bay, Central Valley
In my experience working with the "right banks and financial institutions" repayment ability sometimes overrules collateral pledged by someone needing financing for a business purchase or a down payment. Peter Siegel, MBA - BizBen's ProBuy, ProSell Lead Facilitator explores this important topic.
Should owners who offer a business for sale reveal to prospective buyers any income that is not recorded in the books? This is a controversial topic with arguments both for and against. Most business sales intermediaries believe if you don't pay tax on it, you can't claim it. Some sellers disagree.
When seeking large SBA business acquisition financing loans, it helps to review seller's add backs (cash flow analysis) as a source of funding to service the debt. Peter Siegel, MBA - SBALoanAdvisors.com Founder covers this specific topic for business buyers, owner/sellers, agents, business brokers.
Most business acquisition financing strategies involve borrowing money to meet the purchase price. But an entirely different approach, equity sharing, is sometimes pursued if borrowed money is not wanted, or is not available to complete the purchase. Peter Siegel, MBA - BizBen.com covers this topic.
What is your goal in 5 years? Do you want to become a business owner? Buying a business can be an exciting, safe opportunity to gain financial freedom. But how to buy the right business? This article will walk you through the process of buying a business.
Buying a small to mid-sized business can be a confusing and/or frustrating process for many buyers. Statistics show that over 80% of all buyers never end up buying a business. The ProBuy Program assists potential buyers with the process of finding, evaluating & buying a small to mid-sized business.
Peter Siegel, MBA discusses buyers who want to buy a business or franchise know about asking the seller to provide part of the financing with a carry-back note. Many business buyers need some cash to help fund the down payment and for working capital. Here are four ideas about how to get that money.
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...
What are actual adjusted net earnings (cash flow) of a small business being purchased with business acquisition SBA Loan financing? That's an important amount that lenders need to know. Peter Siegel, MBA (BizBen.com, SBALoanAdvisors.com Founder) reviews this important concept with BizBen Blog users.
Selling a business is hard enough but using the wrong word, text, and strategy can really delay or outright kill a campaign to sell a small business successfully. Peter Siegel, MBA Founder of BizBen.com shares what words, phrases, and strategies work (and not) when selling a small business online.
The unfortunate truth is that approximately 50% of all small business sales transactions fall through. While failed transactions can happen for a variety of reasons, Peter Siegel, MBA (BizBen Founder & Lead Advisor) discusses the most common reason deals fall through; unrealistic asking prices.
This webinar is designed for business buyers, owner/sellers, business brokers, agents, and advisors who can benefit on the latest information and strategies on procuring large SBA loans to buy or sale a "large" small business - typically priced between $500K to $10M. Peter Siegel, MBA is the host.
The use of add backs & sellers discretionary cash is common among sellers of businesses when showing their financial information & explaining that the buyer will actually enjoy more profit than is shown. But buyers are cautioned to review documents closely. Peter Siegel, MBA with BizBen explains.
To start a business or try something new, starting a franchise business is a great option. In this blog, we'll break down everything you need to know about buying a franchise in simple, easy-to-understand terms. This guide is for business owners, whether experienced or new.
Owners should keep the fact that they want to sell their small business confidential. Before releasing information to prospective buyers, buyers should commit to confidentiality in writing & should understand why it is important. Peter Siegel, MBA a ProBuy and ProSell Advisor with BizBen explains.
First the dreaded statistic: 80% of all business buyers looking to buy a small business never end up doing so! Peter Siegel, MBA BizBen.com Founder & ProBuy Director) covers successful tactics & strategies all business buyers of small to mid-sized businesses should utilize now to buy a business.
SBA large loan expert and advisor Peter Siegel, MBA (BizBen.com & SBALoanAdvisors.com Founder) shares his views and experience for getting the right SBA loan for larger deals, getting deals professionally prequalified & analyzed, and getting that loan through underwriting with fewer complications!
Many times when buying a business there are reasons why buying stock or buying assets is the better business decision. We explore these options on the BizBen Blog Post of which option may be better depending on the circumstances of the buyer (and seller) involved in the transaction taking place.
Many business owners fail to maximize their business' value because they don't have a proper strategy in place to do so. Failure to maximize your businesses value will make it harder to attract the most qualified buyers. Have a plan that ensures your business is as attractive & valuable as possible.
A business buyer in our ProBuy Program searching to buy a business asked me to sum up what I though the biggest mistakes business buyers make when they search for and bought a small business. I asked ProIntermediaries on BizBen their thoughts on the matter and received a diverse response.
Don't confuse a business opportunity with a going business for sale. In the broadest sense, an existing business being offered on the market is sometimes called a business opportunity. But for a buyer's purposes, seeking to invest in a business to own and operate, there are important differences.
Lee Petsas, a Southern California business broker explores: How much consideration should I give as deposit? Are Deposits refundable and when? Cashing deposits & opening escrow, Return of deposit to buyer, Why do we take a deposit from buyers when preparing & executing a purchase agreement contract?
It is not uncommon for business Owner/Sellers to get uncomfortable when a potential Buyer requires a SBA loan to purchase the Seller's business. Often times Owner/Sellers will say "the Buyer is the one getting the loan; why am I the one under the microscope?" This blog post addresses this topic.
Depending on the type of business being sold, a month-to-month situation can be severely detrimental to the value of the business. Peter Siegel, MBA Founder of BizBen (and Lead Facilitator at BizBen) explores the issue of month to month leases in this blog/article.
Throughout the recession, it was very difficult to get approved for business purchase financing. If you are considering incorporating some alternative funding sources in your next small business acquisition, here is what you need to know to protect yourself and your investment.
Using an earn out can benefit both buyer & seller of a business purchase. A recent question by a buyer in the BizBen ProBuy Program about the best way to structure a business earn out prompted me to ask a panel of BizBen Resources how they would deal with the buyers question on earn out structures.
In this month's Business Buyer survey for BizBen.com, we asked participants in our ProBuy Program and 250 other random business buyers what they look for and avoid when looking at a business for sale postings online. Of the 20 potential posting characteristics we asked about, 8 stood out.
In my opinion and experience, an LOI may very well be appropriate for lower middle market transactions of $5,000,000 or more; but, for deals less than that an Asset Purchase Agreement ("APA") with contingencies on the actions of the buyer (and seller) is much more efficient and effective.
For those who don't know, a non-compete agreement is a contract between a buyer and seller of a business, which after the sale, prohibits the seller from engaging in direct competition with the business they previously sold. Joe Ranieri (Business Broker) adds this topic to a BizBen Discussion Post.
In our BizBen.com June 2021 Monthly Report the top ProIntermediaries and ProAdvisors on BizBen offer their thoughts about the current status of the business for sale marketplace with trends and predictions for Business Buyers, Owner/Sellers, Business Brokers, Agents, Advisors in the near future.
Can a seller of a small business back out of an ongoing escrow? Probably, yes, it all depends how far along the escrow is, which will dictate how messy things will get for both owner & buyer. Joe Ranieri (Southern California Business Broker) gives his feedback with others on this BizBen Discussion.
Sometimes business brokers just can't win with their clients, because if an offer comes in too fast & too early then they must have lowballed the price & the seller is suspicious, and if not enough offers come in after putting the business on the market - they may look unproductive to their clients.
Changing hands of business ownership can seem both exciting and daunting to all parties involved, but it's important that a smooth transition occurs to maintain or achieve success of the business. Here are some tips I recommend ensuring things go smoothly when buying a California small business.
As the year winds down, it's tempting for business brokers to go through their old files and throw them out to make room for new client's folders, but that would be foolish. Joe Ranieri (Orange County Business broker) discusses strategies for saving files - a key annual strategy for brokers/agents.
Should small business owners/sellers or brokers/agents give potential buyers direct access to past company tax returns and financials (profit & loss statements) either before or pre the due diligence process? Multiple ProIntermediaries and ProAdvisors discuss this topic on this BizBen Discussion.
Every business broker knows that a listing taken is not a listing sold, in fact the ratio of listed vs. sold could be discouraging if you really thought about it. Joe Ranieri (Orange County Business Broker) discusses what you should do if you finally have to close the doors and call it quits.
50% of all California small business for sale transactions fail to complete. Why do businesses for sale fall out of escrow? Joel Miller (a senior care business specialist) discusses his 5 top reason why businesses fall out escrow along with other brokers, advisors on this BizBen Discussion.
When seeking SBA loan financing many potential business buyers have wrong information about the process of securing the best financing to buy a business. Peter Siegel, MBA a business purchase financing expert delves into the myths regarding SBA financing and business purchase financing.
We're hearing more and more about "crowd funding" through sites like gofundme and kickstarter as a possible way to raise the cash needed to buy a small business. This method of collecting funds has proven successful in other kinds of situations. Could this strategy work when buying a small business?
We all understand the idea of paying too much for a small business. But is there such a thing as not paying enough? That seems like an odd notion, but I'm familiar with situations in which a buyer acquired a small business for a figure substantially under what probably was market value.
What are some ways a broker can prevent a buyer and seller from doing a deal behind their back and what to do about it if it happens? Joe Ranieri (Orange County Business Broker) discusses ways a business broker or agent can protect themselves from buyers and sellers trying to circumvent them.
A huge part of any exit strategy is properly planning for that moment in time when employees find out the business is for sale or, preferably, has been sold. Your workers have been kept in the dark for as long as possible. Some won't be a bit surprised. Others may be devastated.
Buying a small business is hard enough when there is no competition, so how might a buyer navigate the process when there is additional competition from other buyers? Peter Siegel, MBA (BizBen ProBuy Program) and others explain a few of the ways that a buyer can beat out other buyers.
When purchasing a small to mid-szied business, there are a multitude of things to evaluate. One area that is often overlooked is the business's culture. Peter Siegel, MBA with BizBen discusses with potential buyers the importance of understanding how the business runs on a day-to-day basis.
Negotiating the terms of a business deal is a delicate process, where one wrong move can cost you the business that you wanted to purchase. Peter Siegel, MBA (BizBen ProBuy Program) discusses the ins and outs of negotiations, and how to work well with the seller to get a deal done.
What qualities should you look for in a escrow and bulk sale service when buying/selling a business? I often get asked this question by other brokers and business sellers. See what I tell others and what other BizBen Advisors have to say on this topic in this Discussion.
What are the Pros & Cons of selling a business yourself? I get asked this question all the time and would like to share with other Intermediaries on BizBen all the angles of business owners taking the initiative and selling their own business.
Buying a business with a partner/partners, family members can make one think twice about ever doing it twice! However in this BizBen Discussion Post I chat with others about identifying roles, defining goals, attorney visits, and other relating issues.
It's important to remember that selling a business takes time. Unlike selling a house, which can be sold relatively fast, a business can take up to six months to a year to sell. I discuss this topic with other advisors and intermediaries on this BizBen Discussion.
There are a lot of misconceptions about what enhances the value of a business. The following factors in this Discussion are aspects of a business that really drives its value and pricing. A business owner asked me this question today so I wanted to get others view points as well in this Discussion.
It can take months, sometimes longer to sell a small business. Here are 6 questions plus other information from myself plus other BizBen Users to ask yourself to help you determine why your small to mid-sized California business isn't selling. You might be surprised what those reasons are!
Should I Sell My Business During The Holidays Or Wait Till After The New Year? Business Broker Joe Ranieri and others chime in on this BizBen Discussion about selling a business during the Holiday Season.
Applying for a business acquisition loan can be challenging for someone who hasn't been through that process in the past. If one has a mortgage one knows that the value of the property being pledged has to at least equal the amount of the loan, SBA loans to buy a small business are very different.
Yes, there are ways to find businesses with growth potential that can be purchased with modest investments. But before offering any ideas about finding cheap businesses, it's important to review some of the risks involved. Peter Siegel (BizBen ProBuy Program) discusses this topic with others.
