First the dreaded statistic: 80% of all buyers looking to buy a small to mid-sized business in California never end up doing so! A shocking statistic to most buyers of small businesses. Below are some helpful hints to make you a successful buyer of a California small business.
Many of the helpful hints I chat about in my new eBook Buying A California Business - The Ultimate Guide For Savvy Business Buyers! - and in the ProBuy And ProSell Programs I developed for both California business buyers and sellers. If you follow all of these tips you will be a successful buyer of a small to mid-sized California business.
WHAT MOST BUSINESS BUYERS DON'T KNOW - BUT SHOULD ABOUT THE BUYING PROCESS
1. Most buyers of California small to mid-sized businesses don't realize that 70% or more of business brokers and agents don't cooperate on their listings - meaning they don't share their information with other brokers and agents either intentionally or unintenionally by not advertising or promoting their listing(s) to other California business brokers, agents, and intermediaries.
2. Most buyers call only a few brokers or agents thinking/hoping the broker will "find" or "search" for them and find the ideal business to purchase. Most business brokers and agents are so busy trying to sell their own set of listings that they rarely have the spare time to do non-paid searches for a buyer who may not end up buying a business.
3. 60% of all California businesses for sale are not advertised or marketed - they are "pocket listings", "unadvertised listings" - these are listings that business brokers and agents don't have listed but know about because of their daily dealings with small business owners in California who want to sell but will not give a contract or written listing to a broker or an agent. They will sell if the broker or agent brings them a "serious buyer". What this means to you as a serious business buyer is that you have to get the word out to as many California business brokers and agents as possible to widen your "comprehensive search process".
4. In all business brokers directories only the main broker is listed - in most instances there are more (sometimes up to 10-100+ agents) that aren't listed but have great "pocket" or "unadvertised listings" that others in the office don't know about - you need to reach all these agents directly because of #3 listed above.
STEPS ALL SERIOUS BUSINESS BUYERS SHOULD DO TO BE SUCCESSFUL:
1. If you know what types or locations of businesses you are searching for you need to post and keep posted at all times a Business Wanted To Buy Announcement or utilizing the BizBen Business Buyer ProBuy Program and get the word out to as many California business brokers, agents, intermediaries, and owners as possible - you need to be highly visable - this step provides that!
2. You need to scan the new and refreshed business listings for sale (Save all interesting listings to your BizBen My Admin section when you are logged into your FREE BizBen Account) posted everyday at BizBen. On average over 400 new and refreshed postings / listings are posted and in many instances offers and letters of intent come quick on the more popular new listings - don't miss out on these - check the new listings daily on BizBen (but don't forget to search on all older posted listings too and Save them to your BizBen My Admin section).
3. Sign up for a FREE BizBen User Account to receive new listings by Instant Email Alerts and Daily Email Reports of all new and refreshed postings / listings posted that match your search and buying criteria. Make sure you put @bizben.com in your "Safe List" in your email program/software so these Email Alerts / Reports don't end up in your spam filter - you do not want to miss out on any great new listings posted and sent to you.
4. Contact as many of the brokers and agents listed in the California Business Broker Directory with your request (let these brokers and agents know you saw their info in BizBen) - what types, locations, prices, adjusted net income - what you want in your ideal business you are searching for. Make sure you get them a Buyer Profile, and a Non-Disclosure on any of their listings they may be selling (fax these back with their NDA/Confidentiality Agreements). Stay in touch will all of these brokers and agents on a consistant basis - see step #1 above - post a Business Wanted Announcement - the buyers who are more active and visable tend to be the ones who get the better businesses that are sold!
If you follow the above steps - and I mean all of them you will be successful in buying the best California small to mid-sized business that match your personal needs and search criteria!
Categories: BizBen Blog Contributor, Buying A Business, How To Buy A Business
Contributor:
Helpful Resources To Assist In Selling And Buying California Businesses |
![]() |
Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 805-428-2063. |
![]() |
Helen Yoo, New Century Escrow - Escrow Services In Southern California New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151. |
![]() |
Janet Carrera: Escrow & Bulk Sale Service - SF Bay Area Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741. |
![]() |
Diane Boudreau-Tschetter: Escrow & Bulk Sale Services - CA California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100. |
![]() |
Brad Steinberg, Business Broker: Laundromat Specialist PWS is the leading laundromat broker in California. Since 1968 PWS has brokered over 2,500 laundromat sales. With over 90 employees dedicated to the coin laundry industry, PWS has 18 licensed agents, a 3 person in-house finance department, 10 service technicians and a 20 person parts department. |
![]() |
Shalonda Chappel-Pilgram: Escrow & Bulk Sale Services - Southern California Escrow services to brokers/agents, sellers, & buyers. Established 43 years. Extraordinary service. Experienced with handling difficult transactions. One stop for all your escrow needs: Bulk sales, lien searches, UCC searches, liquor license transfers, publishing & recording services. 951-808-3972. |
![]() |
Elizabeth McGovern: Escrow Services - San Francisco Bay Area 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. |
Related Articles, Events, Blog Posts, Discussions, Videos, Interviews |
![]() |
Selling A Business Without Getting Sued: 5 Tips For Business Sellers/Brokers
How do I sell my business without getting sued, isn't a subject just for discussions with lawyers. A seller can take some precautions to reduce potential legal problems. Peter Siegel, MBA Founder Of BizBen and BizBen's ProSell Program discusses this topic for business owners/sellers and brokers. |
![]() |
Why Deals Fall Out: Unrealistic High Asking Prices Are Usually The Reason
The unfortunate truth is that approximately 50% of all small business sales transactions fall out. While failed transactions can happen for a many reasons, Peter Siegel, MBA (BizBen Director & Business Purchase Financing Expert) discusses the main reason deals fall through; steep asking prices. |
![]() |
What Is The Typical Business Broker Fee For Sellers And Buyers? Who Pays It?
Was just asked the question from a business owner what the "typical commission" amount is for a broker or agent and if upfront fees are common? Thought this might be a great Discussion topic on BizBen for both business owner/sellers and potentially for business buyers (buyer representation). |
![]() |
Valuing A Business - Do You Add The Inventory Amount To The Price Or Not?
A business buyer asks how to handle the inventory amount in the purchase price of a business. Do you add the inventory value to the business value? Peter Siegel, MBA (ProBuy & ProSell Program Advisor - Lead Facilitator ) answers this question with the BizBen Network of advisors and resources. |
![]() |
5 Myths About Selling A California Business: Best Tips For Sellers & Brokers
Peter Siegel, MBA (at 925-785-3118) - BizBen Director discusses myths associated with the process of selling a business and some of them can actually cause deals to fall through. Don't let your sale be comprised, be aware of these common misconceptions related to the process of selling a business. |
![]() |
Absentee Run Small Businesses - Is That Really A Possibility For Buyers?
Is buying a absentee run small business really a possibility? Peter Siegel (BizBen ProBuy Director) gets asked this question a lot in his consulting sessions with business buyers. Read more about what other Advisors and Intermediaries feel about this topic on this popular BizBen Discussion! |
![]() |
How Do I Navigate Through The Negotiation Process When Buying A Business?
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. |
![]() |
Before Buying A California Business, 10 Questions You Should Ask Yourself
Before buying a business, all serious business buyers should ask themselves some key questions about possible buying a small California business, franchise, or opportunity - from Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy & ProSell Program Advisor with BizBen) at 925-785-3118. |