I received this question from a potential pre-school seller who asks:
" I have a preschool and am thinking about selling it but my lease is ending soon. What would be the best thing to do? Do I renew the contract or do I act the landlord to sign a contract to the new buyer? and is it a good time to sell?"
The best way to handle this situation is to go to the landlord now and ask him about extending the lease in the future. Too many potential business owners thinking of selling don't approach the landlord to get a feel of where management of the building may be headed in the future. At least if they are not open to extending the lease you won't waste your time in selling your business. Make sure that the landlord understands that you may be thinking of selling your business, and that that potential buyers (new owner of your business) would have to qualify on their own beforehand.
The answer to your second question about whether it's a good time to sell or not depends on several factors.
First - is your business profitable (adjusted net income), and can you prove it with tax returns and financials? If you can remove the lease hurdle mentioned above and you can can show you have a good business to sell with a steady clientele, and with a reasonable selling price - then yes there is a market for pre-schools that are for sale!
Do you have a question for our panel of experts? Call me (Peter Siegel) at 925-785-3118 with your question and we'll answer it in an upcoming BizBen blog!
Contributor:
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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.
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For over 25 years Peter Siegel, MBA has been providing niche business purchase financial advisory and loan placement services with SBA Loans, Non SBA Financing, Retirement Plan Conversions, Note Restructures, etc. Call me regarding business purchase financing and to get pre-qualified: 925-785-3118.
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I am the Founder Of BizBen.com. I consult daily with intermediaries, business buyers, owner/sellers & advisors daily about buying and selling California small to mid-sized businesses. Contact me today about joining & utilizing BizBen, consultations, & advisory services.
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Financing a business purchase, or getting cash for a down payment can take many forms. Hopefully the options listed below will give you some ideas where you can find the money to buy a California business!
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