Category Archives: buying a business

Investigate these 7 Points When Buying a Business

Buying a business can be a great move but it takes a lot of due diligence investigation. Due diligence is often thought of as “finding the bad stuff” but it is also important so that you understand what it will take to operate the business after you own it. OJT (on the job training) is […]

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So You have a Deal to Buy a Business, now what?

  Congratulations but don’t pop the champagne yet. Now is when the real work begins in your quest to buy a business. Essentially, there are 3 fundamental phases to orchestrate before your final takeover of the company. Keep in mind that each business or industry may have several variations of the progression. Here are some general […]

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Business Sale: Tangible vs Intangible Assets a Quick Analysis

We find a wide variety of views and preconceived notions about business value from individuals as they review a business sale. Most the time, the discussion turns quickly to the business assets. That inevitably leads to a discussion of Tangible and Intangible Assets. Investors involved in a business sale generally have a reasonable understanding of […]

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Why Do People Buy a Business?

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What on earth is a coverage ratio in financing with an SBA Loan?

When dealing with financing of various sorts you will come across the term “coverage ratio”. It my be in the context of “Interest coverage ratio”  or “debt coverage ratio” or some other similar nomenclature. Here’s the basic concept of a coverage ratio. The coverage ratio is designed to determine what margin for error there is […]

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What Price is the Right Price to buy a Small Business

If you decide you want to buy a business you need to prepare yourself for the rather inconsistent pricing methodologies used for setting the asking prices for small businesses. You shouldn’t confuse the asking price for a business with the value of the business or what finance professionals call a Business Valuation or Business Appraisal. […]

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The best business planning tool?

If you plan to be in business you’d better have a Business Plan. If you plan to start a small business this tool can be the difference between success and losing everything. If you think this Business Plan tool is expensive wait til you see how expensive it is to NOT have a well thought […]

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Business Buyers 7 Deadly Sins

Buying a Business – The 7 Deadly Sins Buying a business could be the best decision for you but you need to approach the task methodically and with a clear understanding of yourself as well as the businesses you consider. Here are the mistakes many business buyers make. We call them the Business Buyer’s 7 Deadly Sins: Buyer Sin […]

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Confidentiality in the Sale of Small Businesses

Business sellers and buyers often look at confidentiality requirements in different ways. However, in the end, they both have the same interests. The reason to maintain confidentiality is to protect the business from the possible negative impacts of  a sale. Read more here…………

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What Does Patricia Kluge Bankruptcy teach us about business ownership?

A messy business failure can always be learned from. The Patricia Kluge bankruptcy has lessons for small business owners with partners, both known partners and unknown partners. I once heard a wise man say, “Pick your business partners twice as carefully as you pick a spouse..because a spouse can only take half of what you […]

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