Burnout: An Ever-Present Threat

Burnout: An Ever-Present Threat Burnout is an often-used reason for an owner selling his or her business. Potential buyers may have trouble accepting this as a valid reason for sale. However, burnout is a valid reason for selling one’s business. A business owner can experience burnout even with a business that’s successful and growing. Many independent business owners feel they’ve worked hard, made their money, and now is a good time to cash out and move on, before burnout endangers the health of the business. The following warning signs should remind a business owner that cashing out beats burning out: You are overwhelmed on a daily basis. When a business owner is a one-man show, even small tasks and minor decisions can seem bigger than Mount Everest. These owners have been shouldering the burden alone for too long, and the isolation has taken its toll. You sense a failure of imagination. Burnt-out owners are so close to their work that they lose perspective. … [Read more...]

June 2013 Client Testimonial

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Why Sell Your Business?

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...]

Business-for-Sale Transactions reach highest level since Q4 2008

The BizBuySell Insight Report is a nationally-recognized economic indicator that tracks the health of the U.S. small business economy. Each quarter, BizBuySell analyzes sales and listing prices of small businesses across the United States based on approximately 45,000 businesses for sale and those recently sold. The BizBuySell Insight Reports focus on over 70 major U.S. markets and publish local, regional, state and national data for trending and analysis. An expert on small business issues, BizBuySell and BizQuest Group General Manager, Mike Handelsman, discusses the trends revealed by the Insight Reports in various media outlets. Handelsman has been featured in numerous news publications regarding small business.   First Quarter 2012 Insight Report Summary Business-for-Sale Transactions Jump Nearly 4% from First Quarter of 2011 According to BizBuySell.com Insight Report BizBuySell's Q1 data indicate most business sale transactions since fourth quarter of … [Read more...]

Retail Store In Los Angeles Sold To A Confidential Buyer

Retail Store In Los Angeles Sold To A Confidential Buyer in 3 months. The store is very elegantly decorated and the smooth plaster walls create an amazing finishing touch. Sells gourmet artisan chocolates, serves chocolate dipped strawberries,medallions,and serves a unique sipping chocolate for those who enjoy drinking rich dark chocolate. Authentic French macaroons are also sold and have proven to be a very popular item. What is the deal with deal glue and why do I need it? Jason Alan Los Angeles Business Broker 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 … [Read more...]

Los Angeles Business Brokerage Why Sell Your Company?

Selling one's business can be a traumatic and emotional event. In fact, "seller's remorse" is one of the major reasons that deals don't close. The business may have been in the family for generations. The owner may have built it from scratch or bought it and made it very successful. However, there are times when selling is the best course to take. Here are a few of them. Burnout - This is a major reason, according to industry experts, why owners consider selling their business. The long hours and 7-day workweeks can take their toll. In other cases, the business may just become boring - the challenge gone. Losing interest in one's business usually indicates that it is time to sell. No one to take over - Sons and daughters can be disenchanted with the family business by the time it's their turn to take over. Family members often wish to move on to their own lives and careers. Personal problems - Events such as illness, divorce, and partnership issues do occur and many times force … [Read more...]

Rating Today’s Business Buyers

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...]

Buying (or Selling) a Business

The following is some basic information for anyone considering purchasing a business. Is may also be of interest to anyone thinking of selling their business. The more information and knowledge both sides have about buying and selling a business, the easier the process will become. A Buyer Profile Here is a look at the make-up of the average individual buyer looking to replace a lost job or wanting to get out of an uncomfortable job situation. The chances are he is a male (however, more women are going into business for themselves, so this is rapidly changing). Almost 50 percent will have less than $100,000 in which to invest in the purchase of a business. More than 70 percent will have less than $250,000 to invest. In many cases the funds, or part of them, will come from personal savings followed by financial assistance from family members. He, or she, will never have owned a business before. Despite what he thinks he wants in the way of a business, he will most likely buy a … [Read more...]

Why Do Deals Fall Apart?

In many cases, the buyer and seller reach a tentative agreement on the sale of the business, only to have it fall apart. There are reasons this happens, and, once understood, many of the worst deal-smashers can be avoided. Understanding is the key word. Both the buyer and the seller must develop an awareness of what the sale involves--and such an awareness should include facing potential problems before they swell into floodwaters and "sink" the sale. What keeps a sale from closing successfully? In a survey of business brokers across the United States, similar reasons were cited so often that a pattern of causality began to emerge. The following is a compilation of situations and factors affecting the sale of a business. The Seller Fails To Reveal Problems  When a seller is not up-front about problems of the business, this does not mean the problems will go away. They are bound to turn up later, usually sometime after a tentative agreement has been reached. The buyer then gets … [Read more...]