This incredible and unique situation may have you wondering if you should wait another year or 2 to sell your business, not necessarily. The following Top 5 Things to Consider message applies to business owners that had good stable businesses with steady growth prior to the COVID-19 outbreak and were considering selling. If you are concerned with what 2020 has done to your P&L and Balance Sheet, your concerns are valid. However, what happens after will determine if your business can be sold and for what price. Top 5 Things to Consider: #1. Obviously, the top winners, if there are
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HAVE you decided that it’s time to divest ownership of your restaurant? If you’ve ever bought or sold a business, you know it can be a rather cumbersome process. It all comes down to you and the buyer settling on the “fair market value” of your restaurant. However, fair market value is a relative term. There are some financial computations that are typically used in establishing a fair price for the sale of a restaurant. However, there are many other variables that also weigh heavily on establishing the final price. Here are some to consider when selling your establishment. The
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I’ve sold many wholesale/distribution businesses and there are some particular things that you should considering when making the decision to purchase this type of business. Evaluating this type of business takes on the same method and considerations as any other type of business with a few unique factors that we must consider. When I evaluate a business the first factor I take into consideration is how long the business has been in business. I use a weighed multiplier method since there is no exact science for valuing a business. There is a range of justification, a scale of high to
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Many business types grow through acquisition, tax practices and CPA firms are such businesses. If you think about it, it would take a very long time and a lot of money in marketing to get 100 new clients. If you market to 1000 people, you would be lucky to get 30 people to even call you back, and out of those you might close a few. So growing through acquisition definitely makes sense in this industry. When determining whether the practice is a good fit you, there are several key components. Whether it’s a tax service business or a CPA
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As a business broker, I’ve sold many different types of businesses but I have especially sold many coffee businesses. In my experience, a coffee shop presents a few different sets of circumstances that should be considered before and during the purchase. Ah, nothing beats the smell of roasted coffee beans. If you’re buying a coffee business that presently isn’t roasting on the premise but your thinking that would be an important part of your concept for improvement, then you better make sure it’s ok with the landlord first. Think about it, you’re roasting the beans and the smoke they give
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A broker with a large and strong base of referral sources can also leverage their referral base to help introduce potential buyers for a business — lawyers, accountants, and other trusted professionals often know when their clients are in the market to buy a business. If you’ve been thinking about selling but your concerned with the market…don’t be! There are many qualified buyers out there looking to start a new life and purchase a profitable business. Sellers have to be realistic about selling prices, what you paid isn’t relevant. Listing prices are mostly generated on net sales. Want to sell your
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