Buying a business requires careful and well calculated procedures (unlike buying a home which often is an emotionally driven process). In any given large geographical area of the country, you can find nearly identical business priced at both extremes of the "asking price" spectrum. (See "Before You Sell Your Business). Purchasing the lower priced business may not always be a sound investment. Keep in mind that the phrase "Buyer Beware" is excellent advice.
With almost any business for sale, there are due diligence procedures which will allow an educated buyer to determine the validity of the financial statements offered by the seller. For example: A cautious buyer can determine the approximate income level of a coin operated laundry facility by simply determining the amount of water needed to complete a full wash cycle, divide the total water consumption for the year by the per cycle usage, and multiply the total number of calculated loads by the retail price per load. Added to this figure will be the amount of income anticipated to be derived from the dryers plus incidental income from the laundry products sold at the facility. Every business has some way of determining the correctness of the reported or stated income.
When buying a business, keep in mind the fact that working with a well established, experienced and reputable licensed Business Broker will be well worth your time. In most cases, the seller will be paying the commission to the Brokers involved, so there is usually no brokerage commission cost to the buyer. Having qualified representation during the purchase process can add to your peace of mind and will help remove any or most of the emotional aspects of the purchase.
At LVCBS, we pride ourselves in our client representation record. We are "Cooperating Brokers", which means we will work with any seller and any licensed real estate broker in the United States. We are members of several internet based business marketing institutions, which means we can locate available businesses listed by these institutions, anywhere in the United States.
When you first begin to consider purchasing any business, remember to work with a "cooperating broker" and to give us a call, because...
AT LVCBS, WE MEAN BUSINESS !!
Often times when a business is put on the market, it is priced and sells for an amount quite different from its actual worth. Sellers often put a price tag on their business based on how much money they need to retire comfortably or on how much money they need to purchase another high quality investment. This method of valuation usually leads to seller frustration, a considerable waste of time and the business rarely sells. On the other hand, some sellers become so anxious to sell that they establish a sales price far below market value, just to obtain a quick sale.
A few sellers will consult with their accountant and/or will read nationally distributed books on How to Price Your Business. The problem with either of these two methods is that neither the accountant nor the author are usually involved with enough business sales and frequently enough, to be considered as qualified to really know what the actual value of a specific business is in a specific geographical area of the country .
Before you sell your business, assuming that you want to derive the highest possible market price, you need to take some time to do some strategic planning. It is best if you can begin to posture your company for the sale at least one year prior to actually putting the business on the market. By the end of the prep year, the business should be reporting as much income as is possible and should be running as lean as practical. Books and records should be kept on a monthly basis. Profit and Loss Statements, along with Balance Sheets should be generated monthly.
Working with a well established and reputable licensed Business Broker will be well worth your time. A qualified Broker will be able to analyze your financial statement, make recommendations for increasing the value of your business, and, when the time comes, will be qualified to provide you with a business valuation, at no charge whatsoever.
At LVCBS , we do provide the services just mentioned. We also provide effective advertising, keeping your confidentiality as a very high priority. We are experienced and well qualified in working with buyers, writing acceptable offers, working with SBA loan programs, and in making the escrow process a pleasant experience for both buyer and seller. We are cooperating brokers, which means we will work with any buyer being represented by any licensed broker in the country. We dont limit our buyers as many other firms do.
When you first begin to consider selling your business, work with a cooperating broker and remember to give us a call, because...
AT LVCBS, WE MEAN BUSINESS !!
Commercial Property transactions (like transactions involving Business Sales and Purchases) can be complex and take up a lot of time and resources. Hence working with a well established, reputable and experienced Commercial Real Estate Brokerage company is worth your consideration. At LVCBS, our Commercial Real Estate experts have negotiated numerous leases and purchase transactions for various clients that are seeking to lease or purchase office or retail space.
As Tenant representatives we work with our clients to identify their current and future needs and obtain for them the best leasing rates and terms. As Landlord representatives we work to come up with a competitive leasing rate based on market conditions and assist the Landlord in qualifying prospective tenants.
LVCBS Commercial Real Estate specialists experience in both the sales and purchase side of transactions and knowledge of local markets make them reliable partners who can be counted on to streamline the process and make successful deals whether they are representing a Buyer or Seller.