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Buying A Business in California - The #1 Book On Selling A Business
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Selling your business can be a time-consuming and frustrating experience if you don't know the ideal way to go about it. This book explains what you need to do, have ready, and think about, before you can successfully sell your California business.
Over 70% of all California business owners who put their business on the market never end up selling! Reasons vary and the common ones are: too high a selling price, unrealistic deal structure, or not being ready for sale in the first place (the first month of the selling process is the most important - you have to be ready!) All business owners should be proactive and start thinking about the sale of their California business well in advance - not at the time they have to sell it. Having sold my own California businesses either myself or through business brokers and also having experience as a business broker and consultant for the past 15 years, I know what it takes to successfully sell a California business. In this book I share with you all the successful strategies it takes to be successful in ~ Selling A California Business. Also Available: Buying a California Business About the Author: Peter Siegel, MBA has started, sold or bought six of his own businesses, and brokered the sale or appraised thousands of California businesses over a 12 year period as a California business broker and consultant. He is currently the founder and president of www.BizBen.com - California Businesses For Sale (established over 8 years) - the largest website of thousands of businesses for sale / businesses wanted to buy in the California marketplace. He has both an undergraduate degree in Economics and an MBA in Entrepreneurial Studies from UCLA. The ultimate authority on selling and buying California businesses, Mr. Siegel has been written up in Entrepreneur Magazine, The Los Angeles Times, The San Francisco Chronicle and in numerous business journals and local newspapers throughout California. He is also the author of Selling A California Business - The Ultimate Guide For California Business Owners, and Businesses For Sale - How To Buy Or Sell A Small Business. |
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ARE YOU REALLY READY TO SELL? -- If you have unrealistic expectations or you're not willing to have your business carefully scrutinized-even criticized-you may not have the attitude required to sell successfully. The Reality Check Conform to Market (Not the Other Way Around) Be Forthcoming with Needed Information Demonstrating There's Nothing to Hide Do the Necessary Work Conclusion Key Points from this Chapter WHAT EXACTLY HAVE YOU GOT TO SELL? -- Buyers want a business with a successful past and a promising future. Will yours pass the test? It's Not Real Estate Outside Factors: Viable Market and Demand The Business: Well Positioned and Equipped with Lease, Assets, Favorable Agreements, Ability, Transferability Examples of Adjustments Made to Achieve a Sale Surprises Murder Transactions Conclusion Key Points from This Chapter PREPARATION - Many sellers manage to pull together the obvious things needed to satisfy a buyer. It's the items you might not think about that are likely to sabotage your sale. What you Probably Thought of Already: Books /Records, Equipment List, Profile Staging Trial Run Assemble Your Team Why Half the Deals Fail What You May Not Have Anticipated: Meeting with Landlord, Approvals, Transfer of Licenses Do the Hard Work Now to Reap the Benefits Later Conclusion Key Points from This Chapter BUYERS WANTED - Understanding the two kinds of buyers and knowing what they want can help you find the right person or company to purchase your business. Think as if You're the Buyer Getting an Industry Insider to Acquire Your Business Looking for an Owner/Operator to Take Your Place Other Kinds of Buyers Conclusion Key Points from This Chapter SHOULD YOU HIRE A BUSINESS BROKER TO HELP YOU SELL OR HANDLE IT YOURSELF? -- Here's what the professionals bring to a deal and why a disinterested person might be worth the fee. Brokers, Agents, Brokerages The Choice The Business Sales Process Benefit of Doing These Yourself And the Disadvantages of Being Your Own Broker Benefits of Engaging a Broker Is it Worth the Fee? Hybrid Agreements (Exclusive Agency, Open and One-party Listings) Should You Pay a Fee Upfront? Conclusion Key Points from This Chapter |
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HOW TO SET THE PRICE THAT'S RIGHT- 1 -- What does the market say your business is worth? Here are some ideas and tips to use in determining how much to ask. It's Not Real Estate And It's Not a Passive Investment Put Yourself in the Buyer's Wallet Calculate ROI for Owner/Operator Measuring Cash Flow: Adjusted Net Income aka Seller's Discretionary Cash Flow Compare to Start-up Costs for Industry Insider Price Adjustments: Terms of the Deal, Extra Assets, Unusual Circumstances, Quick Sale The Earn Out Letting the Market Determine Price Valuing Unreported Income Conclusion Key Points from This Chapter HOW TO SET THE PRICE THAT'S RIGHT - 2 -- The price for your business is an easy way to measure what you want to get out of a sale. But it's only one part of the successful seller's package. Look at the entire structure of the transaction to understand the place of your asking price. Price is a Piece of the Puzzle Establishing the Down Payment How Payments to a Seller Can be Structured What is the Best Collateral for the Seller Who Carries Back Tax Impact of a Business Sale Affects Pricing Flexibility Helps Achieve Agreements Conclusion Key Points from This Chapter PROMOTING YOUR BUSINESS FOR SALE -- How to find good buyer candidates and get them interested in your offering. Controlled Exposure The Critical First 30-60 Days Advertising Broker Network Initial Qualifying The Package Being the Bearer of Bad News Conclusion Key Points from This Chapter QUALIFYING BUYERS: A CRITICAL STEP -- Why qualifying buyers is so important and some tips on handling this critical step. How Business Brokers Walk the Tightrope Some Questions to Ask How to Make the Most of Your Meeting With Buyer Prospects Non-disclosure/Confidentiality Agreement What if the Buyer Doesn't Appear Qualified? Conclusion Key Points from This Chapter SOLICITING OFFERS -- What does it take to get from the conversation to the contract? Tips from business brokers and other salespeople. A Suggested Protocol The Hammer The Tweezers The Yardstick The Vise What To Include With An Offer Asset vs. Stock Deal Conclusion Key Points from This Chapter |
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NEGOTIATIONS -- How the experts cross the great divide to get two sides, with competing interest, to agree. It's Not Personal Don't Take Your Eye Off the Ball Remain Flexible And Consider All the Costs Knowing Your Threshold Building from Consensus Take a Time Out Conclusion Key Points from This Chapter THE DEAL -- What key components are included for everyone's protection? What's Included in the Purchase/Sales Contract (Basics-Lease & Capital Assets-Inventory-Employment Agreements-Special Provisions- Items Excluded-Contingencies-Escrow-Legal Provisions-Non-Disclosure Reminder) Due Diligence For Franchises Conclusion Key Points from This Chapter SELLER'S TAX CONSEQUENCES -- and things to ask your accountant Allocating the Purchase Price Ordinary Income Items Capital Gains Conclusion Key Points from This Chapter FINANCING -- The traditional and creative ways to find the money to accomplish your sale. Seller Financing The Cheapest Conventional Money Traditional Sources Innovative Financing Strategies Shared Equity Conclusion Key Points from This Chapter THE WORKINGS OF ESCROW -- What happens and how long does it take? Opening Escrow Waiting it Out The Close Conclusion Key Points from This Chapter WHY YOU WANT TO HELP YOUR BUYER SUCCEED Stay in Touch Conclusion WHAT CAN GO WRONG -- And what to do about it. An Unqualified Buyer Due Diligence Delays and Disturbances Escrow Surprises Major Changes After Sale Albert's Solution Conclusion Key Points from This Chapter HOW TO SELECT AND WORK WITH A BUSINESS BROKER -- What to look for when interviewing candidates and how to make sure the broker is effective. Improve Your Odds with an Able Business Broker Specific Characteristics to Look For How to Work With Your Business Broker Conclusion Key Points from This Chapter |
