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Archive for August, 2010

Who is the best Buyer for A Business?

By Hoke - Last updated: Sunday, August 1, 2010

In most cases your ongoing business will present the most value to a new First Time Business Buyer. They will need training and will respect the Business Seller’s expertise. More experienced, Industry Insiders may only value the Customer List, disregarding the Employees and Equipment. The Industry Outsider Buyers greatly outnumber Industry Insider Buyers creating a […]

What is the key experience factor when selecting a Business Broker?

By Hoke - Last updated: Sunday, August 1, 2010

In any profession, the best means to get experience is to actually do the specific work from beginning to end. The more times the better. Unrelated or partially related prior experience while helpful is not a predictor of success in a different field. Business Brokerage is a transactional business not a tenure business. Experience is […]

What is an “Automatic” Business?

By Hoke - Last updated: Sunday, August 1, 2010

Like the proverbial money tree, the Automatic Business makes money steadily and regularly. These are the most desirable form of small business. The Profits of an Automatic Business are not proportionate to the amount of effort the Owner exerts. The Owner may do little work. Some established retail stores, manufacturers and wholesalers could be classified […]

I can’t reduce my price because I will lose money.

By Hoke - Last updated: Sunday, August 1, 2010

A too-high price that doesn’t sell is an illusion that can end poorly if the Business Seller really must sell.

How important are Tax Returns as a means of proving Discretionary Income?

By Hoke - Last updated: Sunday, August 1, 2010

Tax Returns are just one of several means to validate Income. Some Buyers think that Tax Returns are absolute. However, they are not foolproof. There are cases where the Business Seller overstated the Tax Returns. Commercial Banks typically require the recent three years of Seller’s Tax Returns when making a Business Acquisition Loan.

How important is the Initial Ask Price?

By Hoke - Last updated: Sunday, August 1, 2010

Getting the Initial Ask Price right is a key to maximizing sales value. If the initial price is too high, the business stays on the market too long creating doubt with Business Buyers and weakening the Business Seller’s negotiating position. If the Ask Price is too low, the business may sell quicker, leaving some of […]