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why should someone buy an existing business rather than start one?
an existing business has a track record and should generate enough cash flow to offset the initial investment from the first day of acquiring the business. successful businesses tend to be those that have been running for three years or more. at the closing the buyer obtains all the assets of the business, which allows for the continuation of the cash flow.
what do buyers want to know?
- how much is the down payment?
- why is this business unique, special or different?
- how can the business grow?
- how much income can the new owner expect?
- why is the seller selling?
- will the owner finance any part of the sale?
- will the owner stay and work with the buyer?
- are there any surprises the new owner will encounter?
tips for sellers
- resolve any current business problems and/or pending litigation if possible if its going to be a stock sale.
- make sure all of the business records are current in addition to the financial records. are all licenses, operating certificates, corporate minutes and records up to date?
- have you talked to your outside tax advisors and alerted them to the possibility of a sale? a business broker professional may be the first person to visit with to get a feel for asking price and market conditions.
- are you prepared to provide some seller financing? doing so is usually necessary to achieve the highest possible price.
- are you really serious about selling? do you know what you will do after you sell? are your family members, or partners if any, in agreement? it’s prudent to get ready now, but don’t go to market unless you are ready to sell.
tips during the listing
- have up to date financial information available
- prepare a current list of fixtures and equipment
- maintain normal business hours
- spiff up the business
- be willing to negotiate
- gather all of the information a buyer might like to review
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security systems
category: $5 million +
location: midsouth
Exciting Roll-Up Opportunity in High-Growth Industry.
spa / salon business
category: salons
location: southeast louisiana
Become a part of the lucrative Beauty + Wellness Industry!
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