Category Archives: Valuing, Buying or Selling a Business

A discussion of the issues involved in buying or selling a business by William Bruce, president of the American Business Brokers Association.

The Top 3 Critical Issues in Buying or Selling a Business

More and more individuals are now viewing small business ownership as a viable alternative to the vagaries of corporate America. As the founder of Sunbelt Business Brokers said recently, “There is no more job security. The only job security you’ve got nowadays is the person looking at you in the mirror.” These are the top 3 issues involved in buying or selling a business. Continue reading

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged , , , , , , , , , , , , , | 16 Comments

Here’s How to Value a Retail Business

What is a retail business worth? Here are some rule of thumb guidelines to quickly estimate value. Continue reading

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged , , , , | 10 Comments

What Are a Company’s Discretionary Earnings?

What is discretionary cash flow? It is NOT the profit or loss that you show Uncle Sam on your tax return. It’s important because it provides an accurate picture of the true cash producing ability of the business. In effect, it uncamoflages the bookkeeping praqctices of most business owners. This article exlpains how to compute the important number. Continue reading

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged , , , , , , , , | 22 Comments

Considering Buying a Business? Here’s a List of the 6 Most Frequently Asked Questions.

The most frequently asked question by individuals who are considering buying a business and answers by William Bruce, President, American Business Brokers Association. Continue reading

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged , , , , , , , , , | 4 Comments

What Do Business Brokers Do?

What do business brokers do? Very few people know, as the profession usually operates under the radar. Business brokers are intermediaries who facilitate …. Continue reading

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged , , , , , , , , , , , , , , , , , | 11 Comments

The Two Dramatically Different Definitions of “Amortization.”

The term amortization has two distinctly different meanings. It’s confusing to have such distinctly different meanings attributed to the same word, with both being used in the financial world.  We hope this article helps a bit to clear up the misunderstanding we frequently encounter. Continue reading

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged , , , , , | 2 Comments

What is Intellectual Property? How Do You Value It?

Intellectual property is something originally created in the mind.  Among other things, it can be an invention, a  written manuscript or a company logo including words, phrases and images used in business. How do you place a value on intellectual property? Continue reading

Posted in Valuing, Buying or Selling a Business | Tagged , , , | 2 Comments

Family Businesses Are Now Less Likely to be Passed on to the Next Generation

The most surprising result of the survey is that among family-owned businesses contemplating a transfer of ownership within the next five years, only about half of the owners plan to pass the business on to the next generation of the family. This is down from 74 percent two years ago and is the lowest percentage in 17 years. Continue reading

Posted in Valuing, Buying or Selling a Business | Tagged , , , | 2 Comments

Selling a Business: Here’s How to Successfully Meet with a Prospective Buyer.

Previous articles have discussed the importance of having a good reason for selling your business, getting the business ready for sale, setting the right asking price, taking your business to market and buyer acquisition financing. In this article, we will share some advice on how to successfully hold the first face-to-face meeting with a prospective buyer of the business. Continue reading

Posted in Valuing, Buying or Selling a Business | Tagged , , , , | 2 Comments

How to Use the SBA 7(a) Loan Program to Buy a Business

Except for the SBA 7(a) program, banks generally do not make loans to individuals to buy a business.  This statement will surprise a lot of people. Most people will think first of a conventional bank loan when seeking financing to … Continue reading

Posted in Valuing, Buying or Selling a Business | Tagged , , , , , , , , , | 3 Comments