BayState Business Brokers Blog

5 Reasons Why Franchise Businesses are a Great Buy

Posted by Sarah Grossman on Tue, Dec 05, 2017 @ 10:19 AM

Franchise businesses can be a great business to buy, especially for first time business owners. At BayState Business Brokers, we have sold many types of franchises, and Principal Sarah Grossman pinpoints the top reasons to purchase a franchise.

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Tags: buy a franchise, buy a franchise business, franchises

How to Sell an Auto Repair Shop for the Best Price

Posted by Marc Gudema on Mon, Dec 04, 2017 @ 12:30 PM

Make Sure Your Auto Repair Shop is Ready to Sell When You Are

Auto repair is a big business.  According to IBISWorld, the total revenues of auto repair shops is $63 billion dollars.  It is also a steady, growing, business and there are many buyers interested in buying an auto repair shop.  If you are thinking of selling your auto repair business, now or in the next few years, here is some information you should know to sell your auto repair shop for the best price.

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Tags: how to sell a business, how to sell an auto repair shop, how to increase the value of a business, how to sell a business for the best price

How to Increase the Selling Price of Your Day Care Center

Posted by Molly Hanson, CFP® on Mon, Oct 30, 2017 @ 10:21 AM

Whether or not you are ready to sell your day care center, you are reading this because either the idea has crossed your mind or because you want to know the selling price of your greatest asset – and maximize it.  Owners often ask me: “What will my business sell for?”  I thought it would be helpful to give you a few insights.  Here goes.

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Tags: sell a daycare center, how to sell a day care center, sell a day care center, sell a childcare center, sell a child care center

The Early Bird Buys the Business

Posted by Marc Gudema on Tue, Oct 03, 2017 @ 07:20 AM

I once was selling a small landscaping business.  The business had about $500,000 in revenues and a small amount of equipment.  They did landscape maintenance in several high-income suburbs.  We had an interested buyer who owned a landscaping business with about $2,000,000 in revenues.  Over the course of two months, the potential buyer asked about everything you could about the business he planned to buy.  What he didn’t do was present an offer.  One day, another buyer, who owned a landscape supply company, and his son, who was experienced and educated in the business, presented an offer, negotiated the details, and signed an agreement to buy the business.  They closed on the business sale a few months later.

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Tags: buy a business, business buyer

How do you sell a smaller business that few individual buyers are looking for?

Posted by Marc Gudema on Wed, Mar 08, 2017 @ 03:40 PM

There is a well-organized system for selling businesses.  Smaller businesses, generally with revenues under $10,000,000, that are primarily owned and operated by individuals, are sold by business brokers.  Much larger businesses, such as ones with revenues of $1 Billion or more, are marketed by Investment Bankers to a select group of potential organizational buyers.  These are other companies in the industry or a related industry, Private Equity Groups, Family Offices, and other business organizations.  Businesses with about $15,000,000 to $200,000,000 in revenues are sold by M & A intermediaries.  Since the potential buyers for these businesses are primarily other businesses, these M & A intermediaries use the same process – identifying and pursuing business organizations that are potential buyers -- as Investment Bankers to market the businesses.

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Year-End Checkup: Is Your Business Ready to Sell?

Posted by Marc Gudema on Wed, Dec 14, 2016 @ 03:15 PM

Year-end is a perfect time for business owners preparing to sell their business to review the main factors that could increase the attractiveness of the business or discourage potential investors. 

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Tags: Preparing a Business for Sale

How to Sell a Customer Base or Customer List

Posted by Marc Gudema on Wed, Jul 20, 2016 @ 09:59 AM

Most business sales are of businesses that will continue to operate as a separate entity after the sale, but with a new owner.  However, in some cases, particularly when the business is not doing well, the best sale may be one in which the business is merged into another company in the industry.  In this situation, the primary asset being sold is the customer base.  The customer base is the group of customers that buy from the business on a regular basis.  The business is, by definition, one that does business with other businesses.

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Tags: sell a business

Don't Forget About Working Capital When You Buy or Sell a Business

Posted by Marc Gudema on Tue, May 17, 2016 @ 01:31 PM

When you buy a business, don’t just think about buying the goodwill and the equipment and hiring the key people, consider where your working capital is coming from. If you don’t plan on where it is coming from, you may have to provide it out of your cash after the sale closes. The typical sources of working capital are the seller, a lender, or you.  Which of these sources is used depends, to some extent, on the size of the business being sold.

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Tags: business sale, working capital, net working capital

How Much is a Book of Business Worth?

Posted by Marc Gudema on Wed, Sep 16, 2015 @ 09:57 AM

The typical business sale is one in which a buyer continues to operate the business as a standalone business.  But, there can be other situations where a business sale will generate more value to the seller and the buyer when it is sold as a book of business.  A book of business is the customer base of a business that sells to other businesses.  These are the customers who buy from the business on an ongoing basis.  In the sale of a book of business, it is typical for the buyer to merge the purchased business into their business.  They are likely to keep key employees, particularly those with the customer relationships.  On the other hand, they are not likely to want to buy most of the equipment because it would duplicate equipment the buyer already owns.

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Top Ten Reasons Not to Sell Your Own Business

Posted by Marc Gudema on Thu, Jun 11, 2015 @ 12:14 PM

Business owners are a pretty self sufficient bunch. We learn to do things to save money, we learn to do things because there is no one else to do them. You are probably the most capable person at your business.  You’ve probably also developed a lot of self-confidence. You feel you can do almost anything.

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Tags: business broker, how to sell a business

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