The Very Expensive Desk Lamp
This is a story based on a true incident – only some of the details have been changed. The buyer and seller were ready to close on a business when the buyer asked to look at the list of fixtures and equipment that were to be included in the sale. After a few minutes reviewing the list, the buyer said that the desk lamp on the owner’s desk was not listed. The seller explained that...Read More
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How Important is the Asking Price?
Depends on whom you are asking. If you’re the seller, you might say that the asking price is too low. The buyer would say, obviously, that the asking price is too high. How can they both be right? Who decides? Most sellers have an idea of what they want for their business. It can be based on their knowledge of the industry and what similar businesses have sold for. It may be, however,...Read More
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Why Your Business Won’t Sell
What are the odds of your business actually selling once you have made the decision to sell? Well, if the annual sales of your business are $750,000 or less, research indicates that the odds of your business selling are only 18 percent. If your annual sales are $750,000 to $2 million, your odds increase to 25 percent. If your annual sales volume is above $2 million, the odds increase to 30 +...Read More
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Selling Your Business — What’s the Reason?
There was a study done, years ago, that showed that the reason businesses were for sale had a direct relationship to its probability of sale.Reason for Sale %Reason for Sale %Probability of SaleRetirement 10-15% 30-35%Health Problems/Death 15-20% 25-30%Partnership & Family Problems/ Divorce 5-10% 15-20%Burnout/Other Business Investments 15-20% 15-20%Under-capitalization...Read More
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Finding a Buyer Is Just the Beginning
Many people who are selling their business think that once they find a buyer, the business is sold. Unfortunately, the real work is just beginning. Once a buyer is interested, there are the inevitable questions that must be answered. After the questions are answered and the buyer has satisfied himself or herself that the financial aspects of the business are satisfied, the buyer is probably...Read More
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