It is a common assumption that the main reason people want to buy a business is to make money, or often specifically, "to get rich". Obviously, buyers do not want to buy a business that fails to earn enough money for them to live on. When buying a business, a buyer looks for one that appears to at least be able to support whatever size family the buyer has.
There are many factors to consider when buying any business, but here are some to consider when you are interested in buying a franchise:
Only one out of approximately 15 of potential buyers will actually buy a business and it's important that sellers be aware of what buyers go through when considering business ownership, especially for those who have started their own business and have forgotten their own experiences prior to buying their business.
It's important that a business owner looking to sell be able to prove the success and value of the company's earning potential. For investors, particularly, as the "excess" cash in a business, after paying expenses and employees, demonstrates what will be used to pay investors or back to the owner.
Full disclosure will improve your chances of qualifying and create a more cohesive lender relationship
Is your company prepared for the changes? With changes in the healthcare arena, Patient Protection & Affordable Care Act (PPACA), more companies are looking for ways to keep up with the demands the federal government has placed on them.
Engineering based cost segregation studies permit commercial real estate owners to reclassify real property for depreciation purposes and reclassify it as more rapidly depreciating personal property. This reclassification results in significant cash flow benefits in both present and future years through considerably shorter depreciable tax life and accelerated depreciation methods.
Research shows that you, the Millennials, are making more than most people realize, and are doing a pretty good job of putting money away, but are not even considering life insurance, which means you are not properly covered. With September being Life Insurance Awareness Month, this seems a perfect opportunity to bring this to your attention. Life insurance can strengthen your financial plan, while providing protection that can also provide cash value.
There is no single merchant services provider that can be considered the best. Even within a reputable merchant services provider organization, sales tactic and pricing may vary from one rep to the next. Before a merchant researches providers they should have a grasp on their specific needs and limitations with an understanding of the basics of merchant services. Finding the right fit for a merchant service provider varies from business to business based on the size and number of transactions a business processes.
When disagreements emerge during negotiation between buyer and seller, it is typically around price. This does not have to halt the entire negotiation process if you consider using an earn-out strategy to bridge the gap.