About This Blog
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Peter Siegel, MBA is a nationally known consultant and author - with over 25 years experience on the topic of selling, buying, and niche financing (the purchase of), small to mid-sized businesses. His clients include: business buyers, business owners/sellers, small business advisors, business brokers, and agents. Mr. Siegel can be reached directly by phone at (925) 830-3447. |
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This Blog contains observations, tips, news, events, and case studies relating to selling or buying a small business. |
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This Blog is ideal for business buyers, business owners, advisors, business brokers & agents. |
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Opinions expressed on this site do not necessarily represent those of USABizMart. |
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Opinions expressed here do not constitute legal advice. Those interested in specific guidance for legal matters should seek competent professional advice. |
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11/5/05
Give Me Some Real Numbers!
So you think you are a good negotiater, be careful, cause you can negotiate your self out of a deal!... I have done due diligence on 8 businesses since May, every one of them had a problem when it came to matching tax returns to the financials, etc.
They do not match, why because the Listing agent or seller or the accountant went in and added to that adjusted net number! More money than what's on the tax returns...So you start negotiating for the good price on the business, and you find out that the owner is not ready to sell his/her business for the real price they want to retire on the false numbers! their accountant created...
Good Business for a good price, it seems to be very elusive quest... Comments & Advice From Peter:It is amazing how many times I hear this from potential business buyers. Business owners and a large percentage of untrained business brokers need to understand they are going to be wasting alot of time if they don't get it right the first time!
When taking a business to market make sure your numbers line up! Buyers are going to do due diligence before they hand over their money to buy a business. Always perform a self due diligence before putting a business for sale on the market and selling a business, that way there are no suprises like the ones above that kill a deal!
Another factor is make sure your price is fair in accordance to the numbers being presented. Get a professional third party valuation performed before you sell your business and go to market and make sure the price you are seeking is one that is realistic!• Technorati • del.icio.us • Digg It • Furl • ma.gnolia • Spurl • Yahoo MyWeb
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