Investing in stocks of a small business is merely an extension of buying a small portion of a business run by someone else and enjoying your cut of the earnings. Small businesses sometimes are seen as wonderful gifts that, when well-nurtured, can produce a lifetime of...
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What a Buyer May Really Be Looking At
Jun 1, 2020 | Buying a Business, Commercial Real Estate
Buyers, as part of their due diligence, usually employ accountants to check the numbers and attorneys to both look at legal issues and draft or review documents. Buyers may also bring in other professionals to look at the business’ operations. The prudent buyer is...
The Entrepreneur: Both Sides
May 28, 2020 | Buying a Business, Entrepreneurship
Strong Points Flexible and positive attitude Creative and comfortable with risk-taking Goal-focused and committed to success Organized Energetic Weak Points Impatient with achieving goals Distractible; tolerant of interruptions Distrustful of “the new” (especially...
What Makes a Deal Close?
May 26, 2020 | Buying a Business
For every reason that a pending sale of a business collapses, there is a positive reason why the sale closed successfully. What does it take for the sale of a business to close successfully? Certainly there are reasons that a sale might not close that are beyond...
Similar Companies Can Have Huge Value Differences
May 19, 2020 | Buying a Business
Can two companies in the same industry have very different valuations? In short, the answer is a resounding, yes. Let’s take an example of two companies that both have an EBITDA of $6 million but with two very different values. In fact, Business One is valued at five...
Questions Business Buyers Want Answers To
May 18, 2020 | Buying a Business, Selling a Business
If you are even thinking about selling your business, it’s important to know the questions that buyers generally want answers to. For example, the first question almost always asked by buyers is: If this is such a good business why is it for sale? How you answer this...
Who Exactly Owns Personal Goodwill and Why Does it Matter?
May 18, 2020 | Buying a Business
Personal goodwill can have a profound impact on both small and medium-sized businesses. In fact, it can even impact the sales of larger companies. Ultimately, understanding how personal goodwill is cultivated is of great value for any company. During the process of...
Red Flags Are Not a Pretty Sight
May 16, 2020 | Buying a Business
When it comes to selling a business, sellers simply must pay attention to red flags. Problems can always pop up, and that’s why they need to keep their eyes open. Rarely does a “white knight” ride in and rescue a business with no questions asked. And if this were to...
Three Easy & Effective Ways to Negotiate When Buying or Selling a Business
May 15, 2020 | Buying a Business
Far too many prospective business buyers and sellers overlook just how important negotiations can be. But they can also be tricky. In general, there are three approaches to negotiations. Thinking through your negotiation strategies well before the time to buy or sell...
Tackling Growth Delusions When Buying a Business
May 13, 2020 | Buying a Business, Entrepreneurship, Money and Finance
There is no doubt about it, it can be exciting to buy a new business. However, in the process, it is very important that you don’t become unrealistic about future growth. Keep in mind that in the vast majority of cases, if a business is poised to quickly grow...
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