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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12/7/05

The Numbers Just Don't Add Up

Today I have a meeting to sell a restaurant with another broker. It's someone who actually saw the place a long time ago and has now come back into the picture. The difference between selling something quickly or not has a lot to do with the credibility of the numbers.
When I first got the listing I posted the numbers the seller gave me. Every time I went in there he was slow. I sent so many people to go see the place and the one comment that keep coming back to me was,"it was kinda slow the day I went".
It was kinda slow every day, it seemed. I finally told him are you sure these are your numbers? That's when he admitted he might have exaggerated a bit.
I redid sales and now it looks more in line but think of all the time we wasted and the potential buyers that walked away.
From now on when I think it's not right I'm just going to speak up faster and call a spade a spade. Comments & Advice From Peter:Business owners can be unrealistic, not in tune with their financials, and sometimes downright wrong about the "financial aspect" portion of their business. Before taking a listing I always recommend to brokers to take a look at all financial information and documents for at least the previous three years - tax returns, financials etc - never take an owners word for "how the business is doing", 90% of the time you'll get burned - and what a waste of time for all parties involved in the deal!• Technorati • del.icio.us • Digg It • Furl • ma.gnolia • Spurl • Yahoo MyWeb
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