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 Best and Worst Franchises Ranked by SBA Loan Default Rates

This is an article by William Bruce containing a list of the best and worst franchises as ranked by SBA loan default rates. Continue reading

Posted in Business Valuation & Appraisal, Franchises, Valuing, Buying or Selling a Business | Tagged , , , , , , , , , , , , , , , , , , , | 32 Comments

Buying or Selling a Business? You Must Know the Differences in an Asset Versus a Stock Sale.

The differences in buying or selling a privately held business as an asset versus a corporate stock sale can be critical. We discuss the advantages and disadvantages of each. Continue reading

Posted in Valuing, Buying or Selling a Business | Tagged , , , , , , , , , | Leave a comment

How to Conduct Due Diligence When Buying a Business

Due diligence is a fancy term. In practical use, it can be summarized as that phase in the purchase of a business when (1) you verify the accuracy of the information that you’ve previously been furnished and (2) you make sure that there are no serious, undisclosed problems with the business. Continue reading

Posted in Valuing, Buying or Selling a Business | Tagged , , , , | 15 Comments

Buying or Selling a Business? Use These 7 Negotiating Tips.

Once an initial and contingent written offer to buy or sell a business has been made, the transaction usually enters the negotiation phase. The negotiation phase is really not complicated. Most likely you’ve already bought a car and/or a home. The negotiations over the price of a business are similar. Here are seven suggestions to help.
Continue reading

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged , , , , , , , , | 8 Comments

Here’s How to Write an Offer to Purchase a Business.

Let’s say you have looked at several businesses for sale and narrowed it down to the one that you want to pursue. You think you might want to make an offer on this business, but you’re not quite sure. You have a little anxiety about the unknowns. You wish you had more in-depth details on the business. This blog post shows you how to handle the situation like a pro. Continue reading

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged , , , , , , | 179 Comments

What Are the Rules of Thumb for Business Valuation?

Estimating the value of a business based on appraisal rules of thumb and guidelines using a multiple of cash flow or a percentage of revenue. Continue reading

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged , , , , , , , , , , , , , , , | 209 Comments

Business Broker Training From the American Business Brokers Association

Do you want to become a professional business broker?  If so, there is no better option than the business broker training program offered by the American Business Brokers Association. For individuals considering becoming business brokers, the business broker training seminar … Continue reading

Posted in Business Valuation & Appraisal, Valuing, Buying or Selling a Business | Tagged , , | Leave a comment

Here’s How to Value a Restaurant or Bar Business

Certain situations require a formal, fully documented business appraisal. However, what we’re talking about here is not a formal appraisal but rather the informal methods of quickly approximating the value of the restaurant or bar. All of the guidelines we’ll quote are averages derived from hundreds of completed transactions reported to regional and national databases. There are two methods of quickly approximating the value of a business …
Continue reading

Posted in Business Valuation & Appraisal, Franchises, Valuing, Buying or Selling a Business | Tagged , , , , , , , , , , , , , , , , , | 41 Comments

How to Sell a Business: First, Have a Good Reason When Selling a Business

How to Sell a Business. The decision to sell your business may not be easy. In fact, it may be agonizingly difficult. In this series of articles we will explore the issues involved in selling your business. Continue reading

Posted in Valuing, Buying or Selling a Business | Tagged , , , , , | 7 Comments

The 3 Most 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 , , , , , , , , , , , , , | 24 Comments