BayState Business Brokers Blog

Marc Gudema

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How to Avoid Roadblocks When Selling a Franchise Business

Posted by Marc Gudema on Thu, Jul 11, 2019 @ 12:48 PM

An established franchise business can be a great business to buy.  As opposed to starting a new business, they offer a number of benefits to the owner.  Some of these are immediate favorable name recognition for the brand,  a system for operating a business, and training and support.  When selling the business, there are some potential roadblocks that the buyer and seller should be aware of in order to avoid them and have a smoother sale.

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

How to Sell Your Property Management Business for the Best Price

Posted by Marc Gudema on Thu, Feb 21, 2019 @ 09:14 AM

There are many potential buyers for a property management business.  It’s an industry where many businesses grow by acquiring other companies in the industry.  The recurring revenues also make the business attractive to individuals looking for a business to buy.  But, property management companies don’t all sell for the same price.  Here are some tips on what you can do to increase the selling price of your business.

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Tags: how to sell a business for the best price, how to sell a property management business

3 Big Reasons to Buy the Assets, not the Corporation, When you Buy a Business

Posted by Marc Gudema on Tue, Dec 04, 2018 @ 02:10 PM

When you buy a business, you have a choice, should you buy the assets of the business or buy the legal entity, typically a corporation?  In most sales, it is better for the buyer to buy the assets.  Here are the reasons why.

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Tags: buy a business, asset sale, asset allocation

When is the best time to sell your business?  The best time may be sooner than you think.

Posted by Marc Gudema on Mon, Nov 19, 2018 @ 11:50 AM

Most of our sales are for business owners who are selling for lifestyle, not financial, reasons.  Common lifestyle reasons are retirement, becoming tired of the business, health, or the need to move elsewhere.  The reason we say that these are lifestyle reasons rather than financial is that the motivation is based on lifestyle considerations, rather than financial.  In most business sales of a successful business, the return on the sale proceeds, after taxes on the sale price, will be less than the owner was earning out of the business.

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Tags: how to sell a business for the best price, how long does it take to sell a business

Should you rent out your business rather than sell it?

Posted by Marc Gudema on Wed, Aug 22, 2018 @ 11:04 AM

Every so often a business owner will ask me whether they should rent the business to a potential buyer rather than sell the business to them.  These business owners also own the real estate so it makes sense to them to get rent for a long time rather than sell the business for a one-time payment.  Renting a business to a potential buyer is not the same as renting real estate, and not a good idea.

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Tags: sell a business

Buying a Business?  Don’t Put the Cart in Front of the Horse.

Posted by Marc Gudema on Thu, Aug 02, 2018 @ 02:55 PM

When you buy a business, there are usually two agreements that are signed.  The initial agreement has the important terms of the deal – such as price, terms, training, what assets are included, and contingencies.  The usual contingencies are for due diligence, financing, obtaining a lease if the location is important, and agreeing on the final purchase and sale agreement.  Some buyers make the mistake of wanting to deal with the contingencies(the cart) before an agreement is signed(the horse).  This is a mistake.

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Tags: buy a business

Get the Best Price for your Business by Selling the Business Without a Price

Posted by Marc Gudema on Thu, Jun 07, 2018 @ 02:58 PM

We are all familiar with the typical process to make a large item purchase.  Someone puts a price on it and we make an offer lower than the asking price.  Then, we negotiate to reach a deal, typically in the middle somewhere.  This is not the way the sale of large businesses is done if a merger and acquisition advisor is handling the sale.  They are usually marketed without a price.  Here’s why, how this sale is done, and if selling your business without an asking price is best.

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Tags: strategic value,, how to sell a business for the best price, selling a business to an industry buyer

An Industry Veteran May Not Be the Best Business Broker

Posted by Marc Gudema on Tue, May 15, 2018 @ 01:04 PM

It’s not unusual for someone to become a business broker after selling their business.  Business owners who want to sell their business are attracted to them.  They know the industry and the business owner may know, and trust, them.  Those are good attributes; but they are not enough to make someone the best choice to sell a business.  Here are some other questions you should ask.

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7 Rules When Selling a Business to an Industry Buyer

Posted by Marc Gudema on Wed, Mar 14, 2018 @ 02:00 PM

For many business owners, selling the business on their own to an industry buyer is attractive  -- particularly when they've been approached by an industry buyer.  They may avoid some of the work involved in preparing to put the business on the market.  They may maintain the confidentiality of the sale by dealing with only one buyer.  They save on the broker’s commission.  But, as with most things in life, there is a cost  -- usually a lower selling price and other terms of the deal.  In many of the sales I've done to industry buyers, many of the industry buyers who didn't buy the business made very low offers.  Here are some rules to remember when dealing with an industry buyer on your own.

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Tags: selling your business, selling a business to an industry buyer

Buying a business? What a business broker would like to tell you.

Posted by Marc Gudema on Mon, Feb 12, 2018 @ 10:30 AM

Buying a business is different from buying anything else. Understanding how business brokers think and operate can help you to be a better buyer. Here are some truths that we operate from:

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Tags: buy a business, business broker, business brokers, how to buy a business

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