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Archive for 'The Business Buyer' Category

Buyers Are An Informed Group

By Hoke - Last updated: Thursday, August 5, 2010

In today’s Internet age, the typical Business Buyer is well informed. They have been looking at tens or hundreds of businesses for sale and understand more about Business Valuation than most Business Sellers who have not conducted such an intense investigation prior to deciding to put their business on the market. The typical Buyer intuitively […]

What are typical questions Business Buyer’s ask?

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

1. What is the age of this business? 2. What are the Revenues for the previous three years? 3. Are the Revenues and Profit shown on the Financial Statements and Tax Returns? 4. Will the Financial Statements and Tax Returns correlate with the Bank Statements? 5. If no to #3 and #4 above, how can […]

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 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 […]

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.

Who Is The Best Buyer For My Business?

By Hoke - Last updated: Thursday, July 22, 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.