USABizMart > How To Buy Or Sell A Small Business Book
How To Buy Or Sell A Small Business - Book
Statistics show that only 20% of all potential business buyers actually buy a business and only 30% of all business owners who try selling their business actually succeed! The reasons for this vary, but all of the common mistakes of buying and selling a business are covered in this book so that both owner/sellers and business buyers will be 100% successful in their quest. For this book I interviewed hundreds of successful business owner/sellers, business buyers, and business brokers to determine what ingredients are needed to succeed in selling or buying a business. I share with you in this book all the tips, secrets, and knowledge so you beat the statistics mentioned above!
I have worked with thousands of business buyers, brokers, and owner/sellers both as a business broker and as a consultant, as well as buying small businesses for myself during my early entrepreneur years - this book shares my knowledge on what you'll need to be successful in ~ How To Buy or Sell A Small Business!
About the Author: Peter Siegel, MBA has started, sold or bought six of his own businesses, and brokered the sale or appraised thousands of businesses over a 12 year period as a business broker and consultant. He is currently the founder and president of www.USABizMart.com - USA Businesses For Sale. He has both an undergraduate degree in Economics and an MBA in Entrepreneurial Studies from UCLA. The ultimate authority on selling and buying businesses, Mr. Siegel has been written up in Entrepreneur Magazine, The Los Angeles Times, The San Francisco Chronicle and in numerous business journals and local newspapers.
Realistic About the Marketplace
Importance of Patience
Conclusion
Key Points from This Chapter
PREPARATION IS KEY FOR SELLER
What You Probably Thought of Already: Books/Records, Equipment List, Profile
Staging
Trial Run
Assemble Your Team
Why So Many Deals Fail
What You May Not Have Anticipated: Meeting with Landlord, Approvals, Transfer of Licenses
Financing Preparation
Delays Kill Deals
Conclusion
Key Points from This Chapter
BUYER PREPARATION IS VITAL
Communications
Assemble Team
Your Acquisition Resume
Financial Preparation
Time is of the Essence
Conclusion
Key Points from This Chapter
HOW A BROKER OR AGENT CAN HELP
What Brokers Do for Sellers
Why a Seller May Want to Engage a Broker
How Business Brokers and Agents Help a Buyer
Other Arrangements with a Broker or Agent
Conclusion
Key Points from This Chapter
SELECTING AND WORKING WITH A BROKER OR AGENT
Qualities to look for in a representative
Is it Worth the Fee?
Verify with References
How Buyers Can Work with Your Representatives
Good Broker Communication Imperative for Sellers
Some Alternative Arrangements for Sellers
Conclusion
Key Points from This Chapter
WHAT'S THE RIGHT PRICE? THE NET EARNINGS CALCULATION
It's Not Real Estate
And It's Not a Passive Investment
Two Reliable Factors that Mirror Reality
Calculate ROI for Owner/Operator
Multiple of Earnings
Measuring Cash Flow: Adjusted Net Income
Price Adjustments: Terms of the Deal, Extra Assets, Unusual Circumstances, Quick Sale
The EarnOut
Letting the Market Determine Price
Valuing Unreported Income
Conclusion
Key Points from This Chapter
Establishing the Down Payment
How Payments to a Seller Can be Structured
What is the Best Collateral for a Seller Who Carries Back Part of the Purchase Price
Tax Impact of a Business Sale Affects Pricing
Flexibility Helps Achieve Agreements
Conclusion
Key Points from This Chapter
SELLER'S GUIDE: OFFERING YOUR BUSINESS FOR SALE
Controlled Exposure
The Critical First 30 - 60 Days
Advertising
Broker Network
Initial Qualifying
The Package
Being the Bearer of Bad News
Conclusion
Key Points from This Chapter
ADVICE FOR BUYERS ON LOCATING A BUSINESS
On-line Listings
Classified Ads in Print
Business Brokers and Agents
Advertising for Businesses
Include Advisors and Vendors
A Guerrilla Campaign at the Source
And Some Smart Search Practices
Conclusion
Key Points from This Chapter
EVALUATING CANDIDATES
Seller Qualifies Buyer Prospects
Sample Approaches
Some Questions to Ask
How to Make the Most of Your Meeting with Buyer Prospects
Non-disclosure/Confidentiality Agreement
What if the Buyer Doesn't Appear Qualified
Buyer Sizes Up Business Offerings
Your Checklist
Conclusion
Key Points from This Chapter
THE OFFER
Letter of Intent
The Offer Includes
What is Getting Sold
What Usually is Not Sold
Tips for Buyers for Preparing Proposal Packages
Conclusion
Key Points from This Chapter
Don't Take it Personally
Remain Focused on Your Objective
Importance of Flexibility
Starting from the Bottom Line
Building from Consensus
Take a Time Out
Conclusion
Key Points from This Chapter
THE DEAL
What's Included in the Purchase/Sales Contract
Due Diligence
For Franchises
Conclusion
Key Points from This Chapter
PRICE ALLOCATION FOR SELLERS AND BUYERS
Allocating the Purchase Price
Ordinary Income Items
Capital Gains
Conclusion
Key Points from This Chapter
FINANCING THE PURCHASE
Seller Financing
The Cheapest Conventional Money
Bizbuyfinancing.com
Traditional Sources
Innovative Financing Strategies for Buyers
A Note of Caution
Shared Equity
Conclusion
Key Points from This Chapter
DUE DILIGENCE
Why Half the Deals Fail
An Accountant Working on Due Diligence Analysis
Other Due Diligence Tasks
Due Diligence Delays and Disturbances
Conclusion
Key Points from This Chapter
CLOSING: WHAT CAN GO WRONG AND TIPS FOR AVOIDING PROBLEMS
Surprises
Waiting
Major Changes After Sale
Conclusion
Key Points from This Chapter
AFTERWORD
RESOURCES
