King bell
VIP Contributor
Buying a business is a very different ordeal than buying a regular home. If you’re considering selling your business and want to understand the differences between the two,
A buyer should consider three main factors before making an offer on a business: location, revenue per month and age of company. Ideally, you’ll want to find a business where the location is already producing revenue, ideally with a track record of success. Ideally you’ll also want to find an older company that has been around for at least 3 years. Having liquid assets will help you get through the buying process and give you cash while you wait out lender approval. If you have these three things already in place, then consider adding these other 3 factors as well:
The seller should be able to prove their earnings by providing tax returns and financials that were prepared by their CPA.
An ideal business owner will have some sort of insurance policy on the company in case something happens to it and the bank can claim it back.
The business should have a solid reputation in the industry. This way customers will have faith in you and be willing to make the purchase.
Once you’ve found a business that fits your needs and is ready to sell, it’s time to prepare for your deal. Start by asking around – talk to family members, friends, ex-coworkers – find out who has recently sold a similar business and what their experience was like. If you already know the company well, there are other ways of finding out about them as well: online references, Google hits and LinkedIn connections can help you find out about the company.
A buyer should consider three main factors before making an offer on a business: location, revenue per month and age of company. Ideally, you’ll want to find a business where the location is already producing revenue, ideally with a track record of success. Ideally you’ll also want to find an older company that has been around for at least 3 years. Having liquid assets will help you get through the buying process and give you cash while you wait out lender approval. If you have these three things already in place, then consider adding these other 3 factors as well:
The seller should be able to prove their earnings by providing tax returns and financials that were prepared by their CPA.
An ideal business owner will have some sort of insurance policy on the company in case something happens to it and the bank can claim it back.
The business should have a solid reputation in the industry. This way customers will have faith in you and be willing to make the purchase.
Once you’ve found a business that fits your needs and is ready to sell, it’s time to prepare for your deal. Start by asking around – talk to family members, friends, ex-coworkers – find out who has recently sold a similar business and what their experience was like. If you already know the company well, there are other ways of finding out about them as well: online references, Google hits and LinkedIn connections can help you find out about the company.
