A Blog by BayState Business Brokers
Buying a business? What a business broker would like to tell you.
Buying a business is different from buying anything else. Understanding how business brokers think and operate can help you to be a better buyer. Here are some truths that we operate from: At least 90% of the prospective buyers who contact us won't buy a business from...
How Long Does it Take to Sell a Business?
One of the questions we frequently get from business owners is “How will it take to sell my business?” This is the time from when a business owner signs our listing agreement to the closing on the sale of the business. The quick answer is that it usually takes about...
Owners Cash Flow – What it is and why it is the most important number if you are buying or selling a business.
If you are going to sell a business or buy a business, it is important to understand Owners Cash Flow and how it is used to value a business. In most small business sales, the seller is operating the business and the buyer plans to do likewise. Because of this, the...
Buying or selling a business? Be sure the owners cash flow is accurate.
When an individual is buying a business, the owners cash flow (also called sellers discretionary earnings) is usually the most important number in terms of valuing the business. In an owner-operated business, the owners cash flow is all of the income and benefits...
5 Reasons Why Franchise Businesses are Great Businesses to Buy
Franchise businesses can be a great business to buy, especially for first time business owners. At BayState Business Brokers, we have sold many types of franchises, and Principal Sarah Grossman pinpoints the top reasons to purchase a franchise. There is a Proven...
How to Sell an Auto Repair Shop for the Best Price
Make Sure Your Auto Repair Shop is Ready to Sell When You Are Auto repair is a big business. According to IBISWorld, the total revenues of auto repair shops is $63 billion dollars. It is also a steady, growing, business and there are many buyers interested in buying...
How to Increase the Selling Price of Your Day Care Center
Whether or not you are ready to sell your day care center, you are reading this because either the idea has crossed your mind or because you want to know the selling price of your greatest asset – and maximize it. Owners often ask me: “What will my business sell...
The Early Bird Buys the Business
I once was selling a small landscaping business. The business had about $500,000 in revenues and a small amount of equipment. They did landscape maintenance in several high-income suburbs. We had an interested buyer who owned a landscaping business with about...
How do you sell a smaller business that few individual buyers are looking for?
There is a well-organized system for selling businesses. Smaller businesses, generally with revenues under $10,000,000, that are primarily owned and operated by individuals, are sold by business brokers. Much larger businesses, such as ones with revenues of $1...
Year-End Checkup: Is Your Business Ready to Sell?
Year-end is a perfect time for business owners preparing to sell their business to review the main factors that could increase the attractiveness of the business or discourage potential investors. The circumstances leading to a sale could occur due to market or...
How to Sell a Customer Base or Customer List
Most business sales are of businesses that will continue to operate as a separate entity after the sale, but with a new owner. However, in some cases, particularly when the business is not doing well, the best sale may be one in which the business is merged into...
Don’t Forget About Working Capital When You Buy or Sell a Business
When you buy a business, don’t just think about buying the goodwill and the equipment and hiring the key people, consider where your working capital is coming from. If you don’t plan on where it is coming from, you may have to provide it out of your cash after the...
How Much is a Book of Business Worth?
The typical business sale is one in which a buyer continues to operate the business as a standalone business. But, there can be other situations where a business sale will generate more value to the seller and the buyer when it is sold as a book of business. A book...
Top Ten Reasons Not to Sell Your Own Business
Business owners are a pretty self sufficient bunch. We learn to do things to save money, we learn to do things because there is no one else to do them. You are probably the most capable person at your business. You’ve probably also developed a lot of self-confidence....
Who is Representing You When You Buy or Sell a Business?
Whether buying or selling a business, it is important to understand the role of the business broker you are working with, who they represent, what their obligations are, and where their duties lie. The Seller’s Agent Let’s say you have a business you want to sell, and...
Selling a Business: 5 Reasons to Offer Seller Financing
The decision has been made. You’ve decided to sell your business, and your business broker has managed to attract several potential buyers; none of whom can get the financing to close the deal. You are not alone. Many buyers, or businesses, do not meet the criteria...
How to Sell a Business with Too Much Inventory
It is not unusual for businesses that have been in business for a long time and have been doing well financially, to have much more inventory than is necessary for their type of business. Since most businesses have some inventory, I’m primarily referring to...
How to Get Paid More for Your Business By Selling to a Strategic Buyer
In my last blog, I explained what the strategic value of a business is. The strategic value of a business is the extra value of a business – beyond its financial value – to a particular buyer. The problem is knowing who those buyers are and getting them to pay you,...
When you sell your business, what is its strategic value?
If you are thinking about selling your business, you may have heard that you can get more for it if you can sell it to a strategic buyer. That is probably right, but it raises some questions: What is the strategic value of your business? How do you get paid for the...
It’s Not Just About the Money, How Good of a Business Buyer are You?
Although the money in a business offer is an important consideration for most business owners selling their business, it is not the only factor. If the owner decides that the likelihood of getting that money (closing on the deal) is not good, then they may accept...
How to Buy A Business – Be Prepared for the Competition
When you are making an offer on a business, don’t be surprised to find that there are other bidders. In many of our business sales, we are receiving multiple offers. This is a common occurrence in sales of larger businesses by investment bankers and the buyers are...
Should your business broker use an auction to sell your business?
An auction process is frequently used to sell middle market businesses (those with sales of $5,000,000 to $1,000,000,000). The primary reason for using an auction is to raise the selling price of the business. An auction is rarely used in the sale of smaller...
Exit Planning? Update Your Marketing
When I meet with business owners who are preparing to sell their businesses, it is not uncommon to find that their marketing hasn’t changed much for several years. They still pay for the yellow pages. They may not have a website – or, if they do, they don’t know how...
Do you have the skills to become a business broker?
The outlook for business brokerage is very good and a successful business broker can make a very good income. According to IBISWorld, the business brokerage industry – revenues earned on the sale of businesses at a price of $2,000,000 and under -- should surpass $1...
5 Terms to Be Reasonable About If You Want to Sell Your Business
You may have a great business to sell, but if your selling terms are not reasonable, it may not sell. Or, it may take a lot longer to sell the business and result in you getting a lower price. Keep in mind that no matter how good your business is, a buyer doesn’t...
Should You Buy an Existing Franchise or Open a New One?
If you are thinking of buying a business, franchises have a lot of appeal. They have a track record. Many are household names. Most have an operating manual that gives you the information on how to operate the business. If you need assistance, they have people...
How to Buy or Sell a Business with Real Estate
One of the more difficult problems for business brokers is how to advertise a business with real estate. Should we advertise the income and price of the business with, or without, including the real estate? What adjustments need to be made in presenting the business...
Be Sure to Get the Training You Need When You Buy a Business
When a person buys a business, they usually recognize that getting trained to run it is important. But, it may not be given the attention and importance that it should. If you are buying a business, here are some things to remember when you are working out the...
When You are Looking for a Business Broker, Don’t Choose a Cowboy
When I think of a cowboy, I think of a tough individual who doesn’t need anything or anybody to do his job. That may work on the range, but it doesn’t work well when you are buying or selling a business. If you have ever bought or sold a house, you probably used a...
Don’t Kill A Deal To Buy A Business At The 1st Meeting With The Owner
Buying a business is different than buying a used car. If you act as though it’s the same thing and treat the owner of the business like a used car salesman, you will suffer. That can result in the owner deciding not to sell to you, giving you a worse...
How to Sell Your E-Commerce Website For More Money
Have you ever wondered what your website is worth? Have you ever thought about the changes you can make to your website to increase its value? If you own a website, chances are you have thought about selling your website or you are interested learning how much your...
The 7 Steps You Must Take Now to Buy a Business This Year
The first thing that you need to know is that you have a lot of competition in your search for a business to buy. If the extent of your search for a business to buy is looking at Internet ads, it’s likely that when you find the right business, you won’t be successful...
Are Non-Compete Agreements in Massachusetts Worth it?
Marijo McCarthy is a principal in the firm of Widett and McCarthy, located in Newton, Massachusetts. Marijo specializes in providing business contract and other legal advice to smaller businesses. Marijo publishes a newsletter and this blog is from her recent...
What to do Now if You are Thinking of Selling Your Business
If you are thinking of selling your business, there are a number of things you should be doing now. If you want to sell your business within the next twelve months, you should contact a business broker or M & A consultant to start the process now. It will take...
Looking for a well paying sales job? Become a business broker.
If you are a salesperson with experience selling to businesses and are looking for a good opportunity, you should become a business broker. Here’s why: You can make a good income. You have flexible hours. You are in a growing market. Your competition is limited....
Important Things to Know if You are Planning to Buy a Liquor Store
A liquor store can be a profitable business to buy but, like any other business, requires good management, organization and people skills to operate. You should be able to manage employees and direct tasks to maximize profitability for your store. If you plan to work...
Selling Your Business? Beware of Bottom Feeders
If you’ve been in business for awhile, you probably know many of your competitors and other owners of businesses in the same industry. If you are getting near retirement age, some of them may have told you to contact them when you are ready to sell your business. ...
Renting Out Your Business, Rather than Selling It, is a Bad Idea
If you are thinking of selling your business, and own the real estate, you may have had someone approach you to rent the business and real estate, from you rather than buy the business and rent the real estate. This may seem attractive. You keep the property and...
How to Use a Term Sheet to Make an Offer to Buy a Business
What is a Term Sheet? According to Wikipedia, “a term sheet is a bullet-point document outlining the material terms and conditions of a business agreement. After a term sheet has been "executed", it guides legal counsel in the preparation of a proposed "final...
Who is the Expert? Your Attorney or Your Accountant?
Small business owners generally do not have a Board of Directors or other peer group to turn to for advice on the many issues which come up in the course of running a business. After years of association, many business owners turn to their attorney or accountant for...
How to Get a Loan to Buy a Business
The majority of our business sales are financed with an SBA 7A loan. This type of financing is a win-win situation for both the buyer and seller when compared to seller financing. The buyer benefits from a lower down payment and longer financing period. The typical...
How is Working Capital Handled When You Buy or Sell a Business?
There are a variety of ways to handle the sale of working capital when buying or selling a business. In accounting terms, working capital is the difference between current assets and current liabilities. By working capital, I’m generally referring to the sale of...
Why You Should Not Hire A Real Estate Agent To Sell Your Business
Business owners sometime think of hiring a real estate agent to sell their business. This seems like a good idea for a few reasons. If the real estate agent is charging a lower commission rate than the business broker, the owner figures he can save money on the...
7 Good Reasons to Buy an Auto Repair Business
Unlike businesses which rise and fall when fashion or technology changes, car repair continues to offer stability and opportunity for the business buyer. If you are looking for a business to buy, here are 7 good reasons to buy an auto repair shop. Reason...
How to Buy a Business the Ed Pendarvis Way
Last night I had the pleasure of hearing Ed Pendarvis speak at the monthly meeting of the New England Business Brokers Association. Ed Pendarvis started Sunbelt Business Brokers, a chain of franchised business brokerage offices. After selling it, he started Business...
When you are selling your business, a low offer may not be so low.
One of the biggest mistakes a business owner can make is not being realistic about the value of their business. By value, I mean the likely selling price. This can happen when the revenues and profits of the business are declining. The problem is that by not...
How to Sell Your Business to an Industry Buyer
Over the years, I’ve made a number of sales to industry buyers. These were good deals for the buyer and seller. I’ve also seen offers from industry buyers that were very low – perhaps a fraction of what the business sold for. If you are considering selling your...
How Private Equity Groups & Individuals Differ in Pricing a Business
This blog was guest written by Cody Boyte, Marketing Manager of Axial Market In most small business sales, there are generally three main types of acquirer: individual buyers, private equity groups and other businesses in the same industry. For the sake of this...
How Online Marketing Has Changed M&A
Before there was an Internet, an M&A consultant would market a business by identifying the potential buyers and contacting them directly about the business for sale. The goal was to generate interest from several qualified buyers in order to have competition for...
Do you Own a Business or a Job?
Kirsty Dunphey wrote a blog asking the question, Is Your Business a Business or Just a Well-Paying Job? In it, she gives several examples of people who make a very good income out of their business, but whose business income is dependent on them personally providing...
Is This a Good Time to Buy or Sell an Auto Repair or Auto Body Business?
If you have been thinking of buying or selling an automotive business, you are probably concerned about how these businesses are going to do after the shutdowns end. In the Northeast, the amount of driving is lower -- with a big impact on the revenues of auto repair...
How to Avoid Roadblocks When Selling a Franchise Business
An established franchise business can be a great business to buy. As opposed to starting a new business, they offer a number of benefits to the owner. Some of these are immediate favorable name recognition for the brand, a system for operating a business, and...
How to Sell Your Property Management Business for the Best Price
There are many potential buyers for a property management business. It’s an industry where many businesses grow by acquiring other companies in the industry. The recurring revenues also make the business attractive to individuals looking for a business to buy. But,...
5 Reasons Why Franchise Businesses are Great Businesses to Buy
Franchise businesses can be a great business to buy, especially for first time business owners. At BayState Business Brokers, we have sold many types of franchises, and Principal Sarah Grossman pinpoints the top reasons to purchase a franchise. There is a Proven...
How to Sell an Auto Repair Shop for the Best Price
Make Sure Your Auto Repair Shop is Ready to Sell When You Are Auto repair is a big business. According to IBISWorld, the total revenues of auto repair shops is $63 billion dollars. It is also a steady, growing, business and there are many buyers interested in buying...
How to Increase the Selling Price of Your Day Care Center
Whether or not you are ready to sell your day care center, you are reading this because either the idea has crossed your mind or because you want to know the selling price of your greatest asset – and maximize it. Owners often ask me: “What will my business sell...
Do you have the skills to become a business broker?
The outlook for business brokerage is very good and a successful business broker can make a very good income. According to IBISWorld, the business brokerage industry – revenues earned on the sale of businesses at a price of $2,000,000 and under -- should surpass $1...
Should You Buy an Existing Franchise or Open a New One?
If you are thinking of buying a business, franchises have a lot of appeal. They have a track record. Many are household names. Most have an operating manual that gives you the information on how to operate the business. If you need assistance, they have people...
Important Things to Know if You are Planning to Buy a Liquor Store
A liquor store can be a profitable business to buy but, like any other business, requires good management, organization and people skills to operate. You should be able to manage employees and direct tasks to maximize profitability for your store. If you plan to work...
7 Good Reasons to Buy an Auto Repair Business
Unlike businesses which rise and fall when fashion or technology changes, car repair continues to offer stability and opportunity for the business buyer. If you are looking for a business to buy, here are 7 good reasons to buy an auto repair shop. Reason...
3 Big Reasons to Buy the Assets, not the Corporation, When you Buy a Business
When you buy a business, you have a choice, should you buy the assets of the business or buy the legal entity, typically a corporation? In most sales, it is better for the buyer to buy the assets. Here are the reasons why. Liabilities - If you buy the corporation,...
Buying a Business? Don’t Put the Cart in Front of the Horse.
When you buy a business, there are usually two agreements that are signed. The initial agreement has the important terms of the deal – such as price, terms, training, what assets are included, and contingencies. The usual contingencies are for due diligence,...
Buying a business? What a business broker would like to tell you.
Buying a business is different from buying anything else. Understanding how business brokers think and operate can help you to be a better buyer. Here are some truths that we operate from: At least 90% of the prospective buyers who contact us won't buy a business from...
Owners Cash Flow – What it is and why it is the most important number if you are buying or selling a business.
If you are going to sell a business or buy a business, it is important to understand Owners Cash Flow and how it is used to value a business. In most small business sales, the seller is operating the business and the buyer plans to do likewise. Because of this, the...
Buying or selling a business? Be sure the owners cash flow is accurate.
When an individual is buying a business, the owners cash flow (also called sellers discretionary earnings) is usually the most important number in terms of valuing the business. In an owner-operated business, the owners cash flow is all of the income and benefits...
5 Reasons Why Franchise Businesses are Great Businesses to Buy
Franchise businesses can be a great business to buy, especially for first time business owners. At BayState Business Brokers, we have sold many types of franchises, and Principal Sarah Grossman pinpoints the top reasons to purchase a franchise. There is a Proven...
The Early Bird Buys the Business
I once was selling a small landscaping business. The business had about $500,000 in revenues and a small amount of equipment. They did landscape maintenance in several high-income suburbs. We had an interested buyer who owned a landscaping business with about...
Don’t Forget About Working Capital When You Buy or Sell a Business
When you buy a business, don’t just think about buying the goodwill and the equipment and hiring the key people, consider where your working capital is coming from. If you don’t plan on where it is coming from, you may have to provide it out of your cash after the...
Who is Representing You When You Buy or Sell a Business?
Whether buying or selling a business, it is important to understand the role of the business broker you are working with, who they represent, what their obligations are, and where their duties lie. The Seller’s Agent Let’s say you have a business you want to sell, and...
It’s Not Just About the Money, How Good of a Business Buyer are You?
Although the money in a business offer is an important consideration for most business owners selling their business, it is not the only factor. If the owner decides that the likelihood of getting that money (closing on the deal) is not good, then they may accept...
Deciding to Sell & Retire is Not Always Easy. Our Story.
We have all read the statistics of the baby boomers nearing retirement, the great resignation and the effect of the pandemic on accelerating timelines to hand over the reins. As business brokers, we work with business owners every day who are thinking about selling...
A Look Back to Look Forward: What Will the Market Look Like for Buying or Selling Businesses in 2022?
A new year. A time to reflect, looking back to look forward. As business brokers, we reflect on last year and share our thoughts on what we think will carry forward into this year. Many were happy to see 2021 end: especially as the pandemic continued affecting home,...
Doing the Dirty Work
The Entrepreneurs’ Organization In a recent interview with Entrepreneurs’ Organization, Boston Chapter, Sarah Grossman of BayState Business Brokers discusses the common myths and misconceptions of owning and selling a business, as well as the role of leadership in a...
Selling Your Business in 2021
Radio Entrepreneurs’ live interview with Sarah Grossman and Molly Hanson from BayState Business Brokers The pandemic was a boon to some businesses and has had a negative impact on many others. Whether you are thinking of selling your business as a direct result of the...
Now Is the Ideal Time to Buy or Sell a Business in the Health Care Industry
Several market dynamics are creating a boom in the health care industry, making now an ideal time to buy or sell a business in this market. At BayState Business Brokers, we have deep experience selling a wide variety of health care businesses, including home health...
The Right Time to Buy or Sell a Business in the Child Care Services Industry!
BayState Business Brokers can help you reach your goal. As the pandemic winds down and employees head back to the office, it’s no surprise there’s an increasing demand for child care. Whether you’re a business owner looking to sell the child care services company...
Business Valuation: A Critical First Step When It’s Time to Sell Your Business
If you’re a business owner and thinking about selling, it may feel like a daunting challenge. The reality is, that going through this process on your own can be overwhelming. However, having experts who can guide you through each and every step of the process can...
When You Need to Sell Your Business Quickly: The Critical Role of an Expert Business Broker
It can be daunting when a business owner suddenly faces a situation that requires them to sell their company quickly. The process of selling a business involves multiple essential steps, from securing a sound business valuation to having a smart strategy for marketing...
How Can You Sell Your Business and Continue Your Legacy?
While every owner looking to sell their business wants to find a highly qualified buyer, many also want to maintain their legacy. That was the case with the owners of Watertown, MA-based Community Rehab Care (CRC), who were seeking to sell their business and retire....
Six Reasons Why It’s a Great Time to Sell a Business in the Construction Trade
Prospects are bright if you’re considering selling a business in construction-related trades. Here are six reasons why: 1. Some construction-related trades are virtually recession proof. Skilled trades with recurring sales (e.g. HVAC and plumbing businesses) have a...
Time to Sell Your Business?
Contact our experienced, knowledgeable and passionate business brokers to achieve your goals.
Call us at 617-562-5700 or Contact
Looking to Buy a Business?
Work with one of our experienced business brokers with local market knowledge and industry knowledge.
Call us at 617-562-5700 or Contact