Lease terms should be determined early in the acquisition process. It obviously makes no sense investigating and negotiating the acquisition only to discover a suitable lease cannot be obtained. Preliminarily, the buyer would want an estimate of the essential terms, including the proposed rent, rent escalations, ancillary charges, length of lease and option periods. Other
The value of a small business is often defined as the value of its location. This is particularly true in the retail trades where the economics of the business are directly tied to the location From the seller’s perspective the sale-ability of the business depends on the availability of a suitable lease for the
1). Expertise: BizBrokersUSA does more than find buyers. BizBrokersUSA, as a professional in the buy-sell process, will help you through each stage of selling. Expect valuable assistance in “packaging” in the business negotiation, valuation and closing. 2). Confidentiality: If confidentiality is a concern, a BizBrokersUSA can provide a degree of secrecy not obtainable if you
Legal positioning of the business has two broad objectives: To clear any legal impediments to the sale. To attend to the legal matters necessary to insure an ordinary sale and transition of the business. Clearing the Legal Obstacles: Sellers oftentimes bring a sale to the point of near completion only to find the sale
Re-Structuring the Balance Sheet The next objective of financial positioning is to fine-tune the assets and liabilities of the business to facilitate a sale. Review the balance sheet with the objective of making the company as “lean” as possible, towards this objective: a). Inventory should be physically tabulated. Many sellers do not know the actual
Financial Positioning The seller and his accountant should financially position the business. Small businesses are notorious for their poor financial records and may businesses remain unsold, or are sold for far less than their true market value because the buyer could not decipher the financial past or project the financial future from the scant records
Making the Decision There probably isn’t an owner who hasn’t at one time or another thought of selling their business. The pressure of owning a business can be difficult and the stress of the day to day operations becomes overwhelming at times. For most owners, however, the urge to sell passes. You eventually find solutions
A most common question is whether you should buy a business with a partner or buy on your own. You can consider the answer much as you would a franchise, for in reality a franchise is a form of partnership. What are the pro’s and con’s of bringing in a partner or two? Advantages:
The most important decision in the entire acquisition process is selecting the business opportunity that’s right for you. Where do you begin? The first place to start is with you. You are the one most important factor in selecting the “right” business. Certainly, you want to select a business that will be successful and
There are now over 2,500 franchise systems in the United States. These franchisors have over half a million outlets and generate close to 40% of all retail sales. And the franchise industry continues to grow at an astounding rate. With such a dominant position on the business scene, the possibility of acquiring a franchised business