February 22, 2024
February 13, 2024
Understanding Small Business Pricing
In the world of small business transactions, understanding the methodology behind business valuation and pricing is crucial for both buyers and sellers. Central to this process is the standard, yet often misunderstood assumption: small businesses are evaluated as if they will be run by an owner-operator. This principle is fundamental, not only for ensuring a standardized comparison between different businesses...
November 29, 2023
Understanding the handling of prepaid items in a business acquisition
Understanding the handling of prepaid items in a business acquisition When a business changes hands, it is important to address the handling of prepaid items such as gift cards and coupons as these items represent a future liability for the buyer. Prepaid items such as gift cards, coupons, and similar commitments represent both a business asset and a liability. Many...
November 27, 2023
How to effectively inquire on Business for Sale listings
Business Buyer Tips: Navigating the Process of Inquiring on Listings When venturing into the world of business acquisitions, it’s crucial to approach the process with professionalism and tact. Understanding the nuances of inquiring about business listings is key to establishing yourself as a serious buyer and facilitating a smooth transaction. Here are some essential tips for prospective business buyers: Expect...
November 22, 2023
Buying a Business with No Money Down
There’s a common misconception, sometimes fueled by misleading advice, that purchasing a business with 100% seller financing, or with a minimal down payment such as 10%, is a feasible option. However, this scenario is rare and, frankly, can be perceived as a lack of respect towards business owners. To understand why such arrangements are uncommon, it’s crucial to look at...