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Why Deals Don’t Close When Buying Or Selling A Business

March 12, 2013 By 1 Comment
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Sellers ·Don’t have a valid reason for selling. · Are testing the waters to check the market and the price. (They are similar to the buyer who is “just shopping.”) · Are completely unrealistic about the price and the market for their business. · Are not honest about their business or their situation. The reason they want to sell is that the business is not viable, it has environmental problems or some other serious issues that the seller has not revealed, or new competition is entering the market. · Don’t disclose that there is more than one owner and they are not all in agreement. · Have not checked with their outside advisors about possible financial, tax or legal implications of selling their business. · Are unprepared to accept seller financing or now unwilling to accept it.   Buyers · Don’t have a valid reason to buy a business, or the reason is not strong enough to overcome the fear. · Have unrealistic expectations … [Read more...]

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Selling Your Business? Expect the Unexpected!

November 26, 2012 By Leave a Comment
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Selling Your Business? Expect the Unexpected! According to the experts, a business owner should lay the groundwork for selling at about the same time as he or she first opens the door for business.  Great advice, but it rarely happens.  Most sales of businesses are event-driven; i.e., an event or circumstance such as partnership problems, divorce, health, or just plain burn-out pushes the business owner into selling.  The business owner now becomes a seller without considering the unexpected issues that almost always occur.  Here are some questions that need answering before selling: How much is your time worth? Business owners have a business to run, and they are generally the mainstay of the operation.  If they are too busy trying to meet with prospective buyers, answering their questions and getting necessary data to them, the business may play second fiddle.  Buyers can be very demanding and ignoring them may not only kill a possible sale, but will also reduce the … [Read more...]

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What is the deal with deal glue and why do I need it? Jason Alan Los Angeles Business Broker

November 7, 2012 By 5 Comments
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by Jason Alan, Los Angeles Business Broker After continuously witnessing the intangible aspects of each and every business transaction I have experienced, I had to come up with a word that contained them all.  Trust, confidence, good faith, and deal strength are the traits that hold each deal together.  Industry experts agree that most deals have a tendency to fall apart 3 times before close, thus deal glue was born. The Bonding Agent A business broker handles many aspects of the transaction.  The broker confidentially manages the confidential marketing process behind selling a business.  You can think of the broker as a catalyst, something that ignites a reaction between two elements.  The broker brings buyer and seller together to form a bond, while at the same time acting as a mediator between them.  Finally, the broker handles all of the paperwork so everything gets done right. A seasoned Business Broker usually posses a certain set of skills to effectively … [Read more...]

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The Entrepreneurial Generation

November 5, 2012 By Leave a Comment
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Personally I believe the school of hard knocks is the best way to go, but here is a alternative view on college and small business. Check out what the Princeton Review had to say about The Entrepreneurial Generation. … [Read more...]

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What Does a “Unique Business” Mean?

October 1, 2012 By Leave a Comment

Quite commonly, business owners feel that their business is unique, but is it really?  There are a variety of different ways that businesses can be unique.  Yet, there are some key variables and factors that simply must be in place if a business is to be simultaneously unique and valuable.  This leads us to an important question, are these unique and valuable factors transferable to a new owner?   Here are five key factors to look for in a business. Factor One-The Assets Having an intangible asset, such as the perfect location with a locked in long-term lease (which would, of course, transfer to a new owner) is of vital importance.  However, this is not the only example of critical intangible assets.  Other examples would include a robust mailing list of past and current clients that was built up over a series of years, a popular franchise relationship, trademarks and copyrights or a respected and known product line.  Factor Two-Is the Business Easily … [Read more...]

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Who Are Potential Buyers?

July 17, 2012 By 1 Comment
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Who Are Potential Buyers? Once a business owner has made the decision to sell, he or she should be aware of the variety of possible business buyers. Just as small business itself has become more sophisticated, the people interested in buying businesses have also become more divergent and complex. The following are some of today's most active categories of business buyers: Family Members Members of the seller's own family form a traditional category of business buyer – a category of buyers that is “tried” but not always "true." There is something appealing about a family member taking over the business. There is a sense of keeping the business in the family and an assumption that such an arrangement will translate into the prime advantage of continuity. Continuity may in fact be the result as long as the family member buying the business treats the role as something akin to a hierarchical responsibility. This can mean years of planning and diligent preparation, involving … [Read more...]

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Why Sell Your Business?

June 15, 2012 By Leave a Comment
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Why Sell? There are a number of different explanations why selling a business can possibly be an emotional event. The business may have been in the owner's family for generations. The owner may have built it from scratch or purchased it and then poured the necessary energy into it to grow it into a successful, profitable business. For these and many other reasons, "seller's remorse" is actually one of the major causes of a deal falling through. However, despite the emotional ties to a business, there are times when selling is the best course to take. Here are just a few examples of those times. Burnout According to industry experts, burnout is a major reason owners consider selling their businesses. In time, the long hours and 7-day workweeks can take their toll. On the opposite end, business owners who thrive on challenge may get to the point that the business has just become boring - the challenge of creating it or growing it has been replaced with the mundane daily … [Read more...]

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San Fernando Valley Small Business Broker – Standards and Practices In a Business Transaction – Be that guy not THAT GUY!!!

June 9, 2012 By 11 Comments
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By Jason Alan San Fernando Valley Small Business Broker   June 9, 2012 Los Angeles, California Standards and Practices In a Business Transaction - Following these guidelines could improve your chances of completing the sale or purchase of a small business. Be that guy not THAT GUY! The following are helpful hints to help relieve the pain, panic and pressure of buying or selling a small business. Time kills all deals! Always do as you say and follow through no matter what on time, every time. If you say that you’re going to return a document by a certain time or perform any task by a certain point always follow through, showing up to appointments on-time is helpful too. The stress and anxiety caused by not following through or delivering by a promised time could cause a deal to completely collapse without warning. People like to know that you’re dependable and trustworthy, this can prove even more important if there is a element of seller financing involved in the … [Read more...]

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Rating Today’s Business Buyers

January 11, 2012 By Leave a Comment

Once the decision to sell has been made, the business owner should be aware of the variety of possible business buyers. Just as small business itself has become more sophisticated, the people interested in buying them have also become more divergent and complex. The following are some of today's most active categories of business buyers: Family Members Members of the seller's own family form a traditional category of business buyer: tried but not always "true." The notion of a family member taking over is amenable to many of the parties involved because they envision continuity, seeing that as a prime advantage. And it can be, given that the family member treats the role as something akin to a hierarchical responsibility. This can mean years of planning and diligent preparation, involving all or many members of the family in deciding who will be the "heir to the throne." If this has been done, the family member may be the best type of buyer. Too often, however, the difficulty … [Read more...]

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Today’s Business Buyer: A Profile

January 11, 2012 By Leave a Comment

Today's independent business marketplace attracts a wide variety of buyers eager for a piece of ownership action. Buyers of small businesses are most likely replacing lost jobs or searching for a happier alternative to corporate life. Buyers of mid-sized and large operations are, typically, private investment companies seeking businesses to build and eventually sell for a profit. This is the broadest possible look at the types of buyers out there. Business owners considering putting their business on the market should be aware of the finer "distinctions" among buyers, as well as what they are looking to buy, and why. 1. Individual Buyer This is typically an individual with substantial financial resources and with the type of background or experience necessary for leading a particular operation. The individual buyer usually seeks a business that is financially healthy, indicating a sound return on the investment of both time and money. If these buyers do not have the amount of … [Read more...]

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