In case you haven't noticed what's happening as a result of the 2006/2007mortgage meltdown, the banking crisis and the recession that followed, you should know we now are conducting business in a New Economy.
It's an economy that challenges everyone from the small business buyer in California to the fiscal policy experts in Washington DC. In the business for sale marketplace, some of our chief problems are: limited access to business purchase funds, sellers with unrealistic expectations and the mood of uncertainty that hangs over us.
To succeed in this environment, we need to know how to adapt to these new realities with a fresh approach and smart tactics.
My mission in writing and publishing Buying a California Business in the New Economy, is to provide buyers with a context to understand some of the difficulties we face, and to offer a number of strategies that can help confront those difficulties, to make sure they don't prevent us from achieving our purchase goals.
Was it tough to buy a small business before the recession, when eight out of ten buyers were unable to find the right deal or close an escrow? Well, imagine the challenges faced by buyers now! The lender pendulum has swung from "easy money" to a habit of rejecting even solid loan applications submitted by credit worthy borrowers. Imagine -- if you haven't had the experience -- what it must be like to attempt to get a deal on a business purchase when there are so many unknown factors that will shape the future of our economy. If the sense of uncertainty isn't enough to scare you away, it might have that effect on a seller with whom you're trying to negotiate a transaction.
And to further complicate the workings of the new marketplace, the rising home prices and equity values on Wall Street promise to contribute to new opportunities in the next few years for California's smart business buyers.
After conversations and dealings with hundreds of business buyers as well as business sales intermediaries--brokers and agents""over the past few years, the book's consultants and I have been able to determine many of the strategies that are effective in clearing the path toward business ownership in the New Economy.
Critical Time In Buying A Business Marketplace
This is a particularly critical time in the California marketplace where businesses are bought and sold. The sales rate dropped from 21,689 transactions on small and mid-sized California businesses in 2008, to an average of about 14,000 deals each year since. That's a huge, 35% decline in total volume.
Here's why it's not a good time for our market to linger in that decline:
--Hundreds of thousands of Californians want to purchase a piece of the American dream by owning their own business, as an alternative to their frustrations trying to compete in the completely unsatisfactory job market. For many of us, business ownership is the only option for insuring a secure financial future
--Hundreds of thousands of California's business owners contemplating retirement will need to find a way to sell their companies in the next few years. For many, if not most, their wealth is associated with their companies, whether fast food, distribution, service, retail or other kinds of business. The money they receive, assuming they are able to sell a business, is what they've been counting on for much of their working lives, in order to fund that retirement.
--As the California economy thrives on the energy and innovation of small businesses, much of the state's economic future relies on the ability of our industry to accommodate the transition of hundreds of thousands of small and midsized businesses to new ownership. It's time for a new generation of people to take the state's many small businesses to the next level, to incorporate the new marketing tools, product choices, and other characteristics of the 21st Century into their operations.
Our aim in providing Buying a California Business in the New Economy, is to educate buyers about the innovative ways people are finding to successfully accomplish their purchase goals at a time when the challenges to finding and buying a good business have never been greater. The work covers all aspects of the market, including existing independent companies, franchises and business opportunities. It offers details about how successful buyers are finding good businesses. It reviews some of the ways to evaluate businesses, and devotes chapters to the increasingly demanding challenges of 1) negotiating a satisfactory agreement with a seller, 2) finding the money needed to close a deal, and 3) working intelligently with the professionals serving the market.
It's important that the business for sale market in California recovers from the dismal performance of the past few years and plays a role in expanding the state's economy. Our hope is that the ideas and insights in the new book will contribute to this effort.
To get your copy of this new eBook go to: http://www.smashwords.com/books/view/290706
About: Peter Siegel, MBA is the Founder & Senior Advisor (ProBuy & ProSell Programs) at BizBen.com (established 1994, 8000+ California businesses for sale, 500 new & refreshed postings/posts daily) working with business buyers, small business owners/sellers, business brokers, agents, investors, and advisors). Reach him direct at 866-270-6278 or 888-212-4747 to discuss strategies regarding buying, selling, (or financing a puchase of) California businesses.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Diane Boudreau-Tschetter: Escrow And Bulk Sale Services
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.
|Helen Yoo: Escrow & Bulk Sale Services - 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.
|Elizabeth McGovern: Escrow Services - SF 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.
|Brad Steinberg, Broker - Laundromat Specialists
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.
|Joe Sandbank, Esq. - Legal Services
I have provided legal counsel to business buyers, sellers and brokers for over 17 years. With prior experience as a business broker and SBA loan officer, Joe brings both a practical and legal approach to all aspects of the business acquisition process.
|Mark Chatow, Esq.: Legal Services For Buying, Selling Businesses
Mark has a broad range of small business purchase & sale experience from analyzing potential acquisition targets to successfully guiding buyers and sellers through the purchase & sale of small businesses. Mark can assist with contracts, negotiations, legal matters, etc. Reach Mark at 949-478-8393.
|Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Services
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.
|Janet Carrera - Escrow & Bulk Sale Services - 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.
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