Los Angeles, California Blogs & Discussions

After investing years of time and talent into a company, many small business owners want to feel like they are leaving their business in good hands and for that reason, some sellers opt to sell their business to an employee. Let's talk about the pros and cons to taking this route.

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.

To understand the pros and cons of diverting funds from your retirement funds towards the purchase of a business, it is first necessary to brush up on some investment basics. Before approaching the issue of using retirement funds to buy a business, let's take a quick look at stocks and bonds.

Recognizing that 70% of the California small and mid-market-sized businesses offered to buyers are never sold, and that some of the obvious reasons - over-pricing, inadequate records, insufficient lease - have been discussed in detail, it might be useful to point out lesser known problems.

Choosing a business broker to sell your business can be crucial to the success of it selling. A broker who you have an exclusive listing agreement with, which I recommend vs. open listing, will essentially be your partner during the listing term in getting your business sold. Joe Ranieri explains.

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.

The idea to buy a business with seller financing is clearly understood by most people whose career move is to purchase their own company. But not everyone knows how to structure a deal with the seller carrying back part of the price. Be prepared for three situations when negotiating your purchase.

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.

A properly prepared purchase agreement is of foremost importance in any business purchase. Lee Petsas, a Southern California business broker defines what should be in a purchase agreement when buying a business.

Due to the current state of the credit markets and bank financing, seller financing when selling a California small business is more important then ever in a business sale. Lee Petsas, Southern California business broker walks us through the nuances of owner carry notes - seller financing.

Let's be honest, typically it takes a while (6 months to a year) to sell a business, from listing to close of escrow, and so it's common that many sellers are anxious as the close of escrow nears with a buyer. Joe Ranieri (Business Broker) examines common seller mistakes owners should stay clear of.

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?

First, we must define, who are the Millennials? The exact years are up for debate, but Millennials were born during approximately between 1981-1986, which today would be between 22 and 37 years of age. Joe Ranieri looks at what these buyers are looking for and what qualities they seek in businesses.

Lee Petsas a Southern California business broker writes about his experiences relating to when to tell employees the business is for sale or has been sold.

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.

Being prepared when potential buyers contact you about your business for sale is a good idea. Too many sellers (and brokers) are unprepared & miss good opportunities or get involved with unqualified buyers. This Discussion post and answers from ProIntermediaries on BizBen assist with this issue.

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.

Was just asked the question from a business owner what the "typical commission" amount is for a broker 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).

A seller just posed this question to me in a BizBen ProSell session. Any feedback for this business owner, potential seller? I would like to hear some feedback from my fellow BBNers on this topic. Make sure you're comfortable with the person with whom you are dealing.

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?

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.

Recently a business owner asked me on the phone, "Why do you keep the sale of a business confidential? How do you keep the sale confidential - any good tips?" Would like to hear from other Members - what would be your answer to this business owner? ProIntermediaries on BizBen discuss this topic.

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.

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.

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.

Business buyers many times ask in my ProBuy consulting sessions - how long should I ask for due-diligence when buying a small business? The answer really depends on several factors. They include: type of business, demand for the business, complexity of the business. Advisors weigh in on this topic.

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.

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.