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Sellers Withholding Information Become Buyers Nightmare


Business Sellers - please, please do not withhold any negative information regarding your business.  The success of the sale depends on it!  Many seller's wait until the very last minute (once in escrow) to disclose critical information regarding the business.  In most cases the buyer will not renegotiate and the deal will ultimately collapse.

Disclosing certain negative issues in the beginning of the purchase could be negotiated to suite the buyers needs.  As a seller, promoting the perks of your business is easy however; withholding information in fear of not achieving Top Dollar for your business could have awful consequence.

Working with an experienced agent, allows you as the seller to disclose and discuss the best strategy to present the business to perspective buyers.  Honesty is always the best policy

Some issues sellers neglect to disclose:

 

 

1.  Equipment Lease Issues

2.  Old Inventory Issues

3.  Lawsuits

4.  Downward Trends

5. Family Employees That Are Overpaid

6. Customer Sales Concentration

7.  Terminated Contracts

As a seller, you may think your problem is unique, but most of the time, an experienced agent has come across your situation and has been able to successfully complete the purchase. That's why having an experience agent involved in your transaction is important.

About The Author:  KC Choi founder of Power Business Solution, Inc. offers business brokerage services to both buyers and sellers in the Los Angeles and Orange County areas. His business team includes 15+ professionals (multi-lingual) with extensive experience and knowledge with business transactions.  KC can be reached by phone at 714-345-6774.

Watch for more blog posts / articles from me in the future!

Categories: BizBen Blog Contributor, Selling A Business







  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.

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.

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.

Rick Carlson, Business Broker - Southern California

You Will Never Feel Lost In The Shuffle. Many Brokers Simply Send Out An NDA And That's The End Of Communication. All Buyers Receive A Personal Meeting With An Ace Acquisition Specialist So They Can Recommend The Perfect Business For You. Phone Rick direct at 800-985-4939.

Lee Petsas, Business Broker - Southern California Area

Lee Petsas has been selling businesses with UBI Business Brokers in Southern CA since 1981. In 1999 he became the Owner and Broker for UBI. He has been approved multiple times by Courts as an Expert Witness in the area of Business Valuations.

William Park, Business Broker - Southern California

Highest Volume Broker in California, Simply Check our HUNDREDS of Listings! Over 25 Associates, Speaking Dozen Languages, Helping Buyers and Sellers of Small Business since 1982, Centrally Located between Los Angeles and Orange Counties, while Riverside & San Bernardino Counties are Very Accessible.

Mani Singh CBB, M&AMI, Business Broker, Southern California

I have successfully represented clients sell & acquire multitude of businesses ranging from Gas Stations, Liquor Stores, Markets, Super Markets, Smoke Shops, Postal Stores, Restaurants, General Retail, Auto and Construction related. Phone me for assistance with selling or buying at 951-296-7646 Cell


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