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.Read More
BayState Business Brokers Blog
When a person buys a business, they usually recognize that getting trained to run it is important. But, it may not be given the attention and importance that it should. If you are buying a business, here are some things to remember when you are working out the training with the seller.
Buying a business is different than buying a used car. If you act as though it’s the same thing and treat the owner of the business like a used car salesman, you will suffer. That can result in the owner deciding not to sell to you, giving you a worse deal, or not being as helpful to you as he could be after you do buy the business. Here are some important things to keep in mind when you meet with the owner.
This first thing to do is move quickly. In most of the businesses we sell, the seller will receive multiple offers. Get your offer to buy the business in before the others and get the business under agreement. The best buyers can do this because they are experienced and know when they have found a business they want to buy. Experienced business buyers know how much they are willing to pay and make an offer that has a good chance of being accepted. How do you become this type of business buyer? By learning about the process, looking at businesses for sale, and meeting with owners. Moving quickly is probably the most important attribute of successful business buyers.
The first thing you should know if you are buying a business is that you are competing with many other buyers. It is not unusual for the seller of a good business to receive multiple offers. Here are some tips on what not to do if you want to buy a business.
It’s not uncommon for a business owner who is considering selling his business, to ask me what percent of businesses we sell. The business owner looks at this figure like a batting average – a measure of how good we are and what the chances are that her business will sell if she lists it with us. Unfortunately, this percentage doesn’t really give that information. The biggest factor that affects this percentage is how selective a business broker is in choosing what businesses to sell, similar to how a baseball player’s batting average goes down the more bad pitches they swing at.