Category Archives: selling a business

When buying or selling a business….timing matters… a lot!

I am often asked when is the “right” time to buy or sell a business. Unfortunately the answer is complicated. When I’m asked that question my response is “as compared to when?”. Below is an example: Mary wants to buy a business and John thinks he wants to sell his small business. The Biz: In […]

Also posted in buying a business, small business loans | Leave a comment

Guest Post on SBA Lending

Why SBA Loan Production is DownSheila Spangler, CBI, Capital Strategies, Boise, ID  There was an article recently on CNNMoney.com that said SBA loan production is down 36 percent from 2008. As business brokers, many of us have felt that pinch first hand, but have you wondered why SBA loans have waned along with the rest […]

Also posted in financing, Small business administration, small business loans | Leave a comment

Good Article on Corporation vs S Corporation in Sale of Business

Tax Issues, Benefits and Risks.  Click Here for Source Article.

Also posted in due diligence, legal issues, taxes | Leave a comment

Should you have your small business books audited?

For the vast majority of businesses with revenues under $2,000,000 the answer is no. Unless, you have external requirements from bonding company, shareholders, finance companies, etc. However, even if you don’t have those direct external requirements for Audited financials you should have your books at least “Reviewed” by an independent CPA. A Review is not […]

Also posted in Business plan, financing, management | 1 Comment

Run your business like you’ll own it forever..and remember it’s always for sale..

Sounds like a contradiction right? Well it isn’t. You never know when the opportunity to sell will present itself. The best course of action is to run your small business like a a buyer will determine how much they are willing to pay you for your business tomorrow. Run it well, do the right things […]

Also posted in Business plan, businesses for sale | Leave a comment

Due Diligence when Buying a Small Business – Part 4

In a previous post, Due Diligence Part 3, we talked about how to deal with tax returns, in Due Diligence Part 2 we talked about Sales Tax issues. Here in Part 4 we’ll talk about a background check you might considered getting when you are in the due diligence process of buying your small business. […]

Also posted in buying a business, due diligence | 2 Comments

SBA Loans have new underwriting policy

A few days ago the SBA came out with a new lending policy to be used when buying a business. Business brokers are very excited about this change since it will facilitate more financing for small business purchases. About 15 months ago the SBA made a draconian change in their underwriting that eliminated business acquisition […]

Also posted in business broker, businesses for sale, buying a business, financing | Leave a comment

When buying a small business – Allocation of Purchase price is important!

Allocation of Purchase Price is done for tax purposes when buying the assets of a small business. The allocation is important because it effects how the person buying a business and the person selling a business will be taxed and what deductions are possible. Always do the allocation of purchase price before closing the transaction, […]

Also posted in business broker, buying a business, due diligence, taxes | Leave a comment

Confidentiality in the Business Sales Process.. why it’s important to buyers, sellers and business brokers…

One of the most misunderstood aspects of selling or buying a business is the confidentiality issue.Why do owners who are selling a business want to maintain confidentiality? Why is everyone so paranoid? Here’s a short list: If employees find out the business is for sale they often assume the worst even though it’s not true […]

Also posted in business broker, businesses for sale, buying a business | Leave a comment

Due Diligence when selling a business Part 1

First in a multi-part series on due diligence. When selling your business …. know your buyer. Even in the rare instance of an all cash deal it is a good idea to do a background check on a potential buyer. They’ll be getting your employees, customers and the good name you’ve built in your industry. […]

Leave a comment