Who Is Today’s Buyer?

01 Jun Who Is Today’s Buyer? Posted at 03:25h in Uncategorized by bbpadmin It has always been the American Dream to be independent and in control of one’s own destiny. Owning your own business is the best way to meet that goal.  Many people dream about owning their own business, but when it gets right down to it, they just can’t make that leap of faith that is necessary to actually own one’s own business.  Business brokers know from... Continue Reading →

Why Deals Fall Apart — Loss of Momentum

24 May Why Deals Fall Apart — Loss of Momentum Posted at 03:23h in Uncategorized by bbpadmin Deals fall apart for many reasons – some reasonable, others unreasonable. For example: • The seller doesn’t have all his financials up to date.• The seller doesn’t have his legal/environmental/administrative affairs up to date.• The buyer can’t come up with the necessary financing.• The well known “surprise” surfaces causing the deal to fall apart.... Continue Reading →

Personal Goodwill: Who Owns It?

Personal Goodwill has always been a fascinating subject, impacting the sale of many small to medium-sized businesses – and possibly even larger companies. How is personal goodwill developed? An individual starts a business and, during the process, builds one or more of the following: • A positive personal reputation • A personal relationship with many of the largest customers and/or suppliers • Company products, publications,... Continue Reading →

The Three Ways to Negotiate

20 Apr The Three Ways to Negotiate Posted at 03:18h in Uncategorized by bbpadmin Basically, there are three major negotiation methods. 1. Take it or leave it. A buyer makes an offer or a seller makes a counter-offer – both sides can let the “chips fall where they may.” 2. Split the difference. The buyer and seller, one or the other, or both, decide to split the difference between what the buyer is willing to offer and what the... Continue Reading →

Due Diligence — Do It Now!

Due diligence is generally considered an activity that takes place as part of the selling process. It might be wise to take a look at the business from a buyer’s perspective in performing due diligence as part of an annual review of the business.  Performing due diligence does two things: (1) It provides a valuable assessment of the business by company management, and (2) It offers the company an accurate profile of itself, just in case the... Continue Reading →

Considerations When Selling…Or Buying

05 Apr Considerations When Selling…Or Buying Posted at 03:14h in Uncategorized by bbpadmin Important questions to ask when looking at a business…or preparing to have your business looked at by prospective buyers. • What’s for sale?  What’s not for sale?  Does it include real estate? Are some of the machines leased instead of owned? • What assets are not earning money? Perhaps these assets should be sold off. • What is proprietary?... Continue Reading →

Keys to a Successful Closing

The closing is the formal transfer of a business. It usually also represents the successful culmination of many months of hard work, extensive negotiations, lots of give and take, and ultimately a satisfactory meeting of the minds.  The document governing the closing is the Purchase and Sale Agreement.  It generally covers the following: • A description of the transaction – Is it a stock or asset sale? • Terms of the agreement – This covers the... Continue Reading →

“Red Flags” in the Sunset

Mar 22, 2016 | CABB Blog
Unlike that poetic title of an old-time standard song, Red Sails in the Sunset, red flags are not a pretty sight. They can cause a deal to crater. Sellers have to learn to recognize situations indicating there might be a problem in their attempt to sell their business. Very, very seldom does a white knight in shining armor riding a white horse gallop up, write a large check and take over the business – no questions asked. And, if he did, it... Continue Reading →

The Confidentiality Myth

16 Mar The Confidentiality Myth Posted at 02:57h in Uncategorized by bbpadmin When it comes time to sell the company, a seller’s prime concern is one of confidentiality. Owners are afraid that “if the word gets out” they will lose employees, customers and suppliers. Not to downplay confidentiality, but these incidents seldom happen if the process is properly managed. There is always the chance that a “leak” will occur, but when handled... Continue Reading →

A Selling Memorandum

10 Mar A Selling Memorandum Posted at 02:54h in Uncategorized by bbpadmin A sellers memorandum includes all those points one would normally expect to see in any business plan, to wit: an executive summary, a business description, financial requirements, target market niche, identification of top management, an operations review, analysis of strengths and weaknesses, and current financial statements and projections. Guide to Mergers and... Continue Reading →

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