Bridging the Way BayState Business Brokers blog

A Blog by BayState Business Brokers

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...

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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....

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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...

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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...

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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...

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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...

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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. ...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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How to Sell a Business Using Online Marketing

The use of online marketing, by advertising businesses for sale on the Internet, has greatly expanded the marketing of businesses.  With the use of search engines, like Google, a buyer located anywhere in the United States or the world can find out about a business...

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Buying or Selling a Business? Communicate or Lose

You’ve probably heard this before from your spouse or partner.  This is not a blog about your marriage or relationship.  It’s about buying or selling a business. There is a saying in getting a deal done: “Time kills deals”.  I will add another, “Lack of communication...

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Selling a Business: Should you accept an earnout?

An earnout is deferring part of the sale price of the business to a post-closing payment that is based on the performance of the business after the sale.  It is common in larger business sales where the seller stays on with the business after the sale.  In these...

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What assets are included in the sale of a business?

This is probably the most asked question when I meet with a business owner thinking of selling their business.  It’s a good question.  What is being sold, or included in the sale price, depends on how the business is being marketed.  However, there are some things...

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7 Big Mistakes Business Buyers Make

The first thing you should know if you are buying a business is that you are competing with many other buyers.  It is not unusual for the seller of a good business to receive multiple offers.  Here are some tips on what not to do if you want to buy a business. Don’t...

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You Can’t Buy a Business from a Brochure

The process of buying a business starts with a buyer learning about a business for sale that we are marketing and requesting the Confidentiality Agreement.  After the business buyer is qualified and signs the Confidentiality Agreement, they receive the Confidential...

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How to Price a Business, Part 2

In my first blog on this topic, I covered the basics of how you price a business.  When you look at actual sales of businesses, you see a large variation in the multiples at which businesses sell.  In this blog, I want to discuss the reasons for the variation in the...

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How to Price a Business, Part 1

When you are ready to sell your business, one of the most important decisions to make is what price to ask for your business.  If you price your business too high, it will sit on the market.  If you price your business too low, you give away money.  How to price a...

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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...

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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...

read more

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...

read more

Tips on How to Buy a Liquor Store

Buying a liquor store can be a profitable and enjoyable experience. But, there are a few things to consider before you buy a liquor store. Many buyers want to buy a liquor store because they have the expectation that liquor stores are unusually profitable and...

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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...

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