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Archive for '1. HOW TO SELL A BUSINESS' Category

I Don’t Want Employees Or Competitors To Know The Business Is For Sale

By Hoke - Last updated: Thursday, July 22, 2010

An experienced Business Broker requires that all Business Buyers sign a confidentiality agreement before exposing the name of the business. In addition, the advertising must provide enough information to encourage a Business Buyer to inquire without exposing the business to an employee or competitor. There are various ways to provide a heavier level of confidentiality […]

My business makes a great living yet shows little profit.

By Hoke - Last updated: Thursday, July 22, 2010

A skilled Accountant will minimize Income and therefore taxes. A skilled Business Broker will be able to professionally recast the Financial Statements and Tax Returns to maximize Income and therefore business valuation.  As an example, Interest and Depreciation increase Discretionary Income for the purpose of a Financial Statement Recast. An understated Financial Statement Recast can […]

What Should I Look For In A Business Broker?

By Hoke - Last updated: Thursday, July 22, 2010

Selling a business is a personal effort with a complex product (The Business). An experienced Business Broker has the ability quickly size up your business. He can explain what factors make your particular business successful and desirable in terms of the Business Buyer.  You should ask the prospective Business Broker; “What makes my business attractive […]

How Many Months Should The Exclusive Representation Agreement Be?

By Hoke - Last updated: Thursday, July 22, 2010

An Exclusive Representation Agreement is a written contract which can be difficult to rescind so the Business Seller must be careful with Business Broker selection. The length depends upon the length of time the Business Broker estimates it will take to sell the business, usually six to twelve months. A Business Broker who is confident […]

Is an Exclusive Listing necessary?

By Hoke - Last updated: Thursday, July 22, 2010

A high quality Business Broker views the Representation Agreement as a commitment that he will do the best he can to get a listing sold. The Business Broker makes a time and financial investment in Listing. The Business Broker has a right to expect a commitment from the Business Seller.

The Attributes of an Attractive Business

By Hoke - Last updated: Thursday, July 22, 2010

Stable or growing Revenues. Over three years in business (more is better) Good Accounting Records Easy to Run (or the Business Buyer has experience in this industry) Good Lease situation

The Month to Month Lease can be Problematic

By Hoke - Last updated: Thursday, July 22, 2010

The value of a month to month lease depends upon the disposition of the Landlord. A Landlord who values a new long-term tenant will be pleased to issue a favorable new lease. An opportunistic Landlord may attempt to dramatically raise the rent or add tough conditions thereby reducing the sales value of the business and […]

Does my Business Broker need to have experience with my specific Industry?

By Hoke - Last updated: Thursday, July 22, 2010

Ultimately a Business Broker is selling an investment. So it is better to be represented by a Business Broker who is highly versed in the financial issues regarding the Business-For-Sale rather than one who understands the specific industry but is not an expert in the financial issues. In the rare case that the Business Broker […]