7 Mistakes to Avoid When Selling a Privately Held Business

Top Reasons Why Some Businesses Don't Sell

Author: Lewis Martin

You have spent many years and countless hours building and nurturing your business. While it has provided a good living for you and your family, at some point in time you would like to walk away, wind down, and spend more time just enjoying life. It has always been your hope and plan that the business would fund a good part of your retirement. So what seems to be the most logical way to extract maximum value from the company? It is by selling the company as a "going concern" ... an operating business with customers, suppliers, employees, and necessary equipment already in place. You feel that just about any buyer would be very fortunate to step into a ready-made business like yours where they begin reaping the rewards right off the bat. Of course the cost for this would be substantial. All your hard work and sacrifice carries a premium value.The prospective buyer should expect no less. 

The fact of the matter is that fully three-quarters of business sellers don't receive the payment they expect from selling their company, with many never selling for more than the liquidation value. These owners become disillusioned and worse - financially disadvantaged when they put their business property on the market. Most often this is due to seven (7) costly mistakes that many owners make when it comes time to sell the business. Continue reading this article to find out how to avoid these mistakes and give yourself the best chance for a successful outcome.

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Categories: Business Brokerage




Important Considerations in Exit Planning

Easing the Emotional, Financial, and Psychological Impact of Selling Your Business

Author: Lewis Martin
Ease the emotional, financial, and psychological impact of selling your business through preparation and proper planning. Besides start-up and early development, selling a closely held or family business is one of the most difficult tasks facing business owners. You have probably spent the better part of your adult life tending to the care, growth, and well-being of your enterprise. This can have a similar affect as nurturing a child ... the business has become the owner's baby. So it is not surprising that many owners steer clear of thoughts about parting ways with the company until the last minute. Many times this is prompted by some external factor or event, such as divorce, disability, or partner dispute. In addition, when it comes to thinking about one's business it is extremely difficult to maintain objectivity. The business owner has devoted five, ten, twenty or more years in building a business that has provided the means for the owner and family to enjoy a great lifestyle and to live comfortably. At the same time, much of the owner's wealth remains highly illiquid  - tied up in the equity of the business. So how does the business owner unlock this wealth and convert it into liquid assets that carry into the next stage of life? Generally, the most feasible liquidity event takes the form of a business transfer transaction - either to family members, company management, or third party buyer. While the process can be very emotional and time consuming, there are a number of important issues to consider in preparation for this undertaking. 
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Categories: Advisory Services




How to Successfully Buy a Profitable Business

A Step-By-Step Guide To Getting Your Piece Of The American Dream - Final

Author: Lewis Martin
This is the final installment in a series of articles on buying an existing business. If you have followed thus far, the preliminaries are out the way, and you are now ready to complete the process. In this final section, you will learn about business pricing/valuations, financing options, structuring the deal, conducting due diligence, and closing the transaction.
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Categories: General




Thinking of Buying a Franchise?

Important Information Contained in the Franchise Disclosure Document

Author: Lewis Martin

Prior to investing in any franchise system, obtain a copy of the Franchisor’s Disclosure Document. Under the Franchise Rule, which is enforced by the Federal Trade Commission (FTC), you must receive the document at least fourteen (14) days before you are asked to sign any contract or pay any money to the franchisor or to any affiliate of the franchisor. You have the right to ask for a copy of the disclosure document once the franchisor has received your application and has agreed to consider it. Therefore it may be in your best  interest to get a copy of the franchisor’s disclosure document before incurring any due diligence expenses.

The franchisor may give you a copy of its disclosure document on paper, via email, through a web page, or on a disc. The cover of the disclosure document should have information about its availability in other formats. Make sure you have a copy of the document in a format that is convenient for you, and keep a copy for future reference.

As a general rule, you should read the ENTIRE disclosure document. Do not be reluctant to ask for explanations, clarifications, and/or answers to any of your questions.

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Categories: Franchise Sales




Commercial Property Owners: 7 Mistakes to Avoid When Leasing Space

How You Can Spot and Avoid the Seven Mistakes that Can Literally Ruin Your Commercial Property Investment

Author: Lewis Martin

Commercial Property Owner:

Even though leasing commercial property space is fairly commonplace, leasing a prop­erty correctly is like finding an honest politician. Plus, when you put a property on the market at a time you think may be "the right time" you're still subject to those SURPRISES that can cost thou­sands and make that "great investment" a real loser. You can prevent your next lease transaction from being a loser by avoiding the following certain mistakes.

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Categories: Commercial Real Estate


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