<img src="//bat.bing.com/action/0?ti=5203200&amp;Ver=2" height="0" width="0" style="display:none; visibility: hidden;">

BayState Business Brokers Blog

Challenging Times Can Still Lead to Successful Sales

Posted by Sarah Grossman on Wed, Jan 27, 2021 @ 04:32 PM

Selling a business is an important decision, and how to prepare for a sale has become more challenging due to the pandemic and government disruptions. Stress and anxiety can cause business owners to become paralyzed with indecision or to act rashly. While these times are certainly difficult, taking a thoughtful approach to a sale will help you make good decisions and sell when the time is right. 

Read More

Tags: sell a business

Proper Planning Avoids Many Pitfalls in Business Sales

Posted by Sarah Grossman on Tue, Dec 08, 2020 @ 02:01 PM

Selling a business doesn’t have to be a process to fear.  It can go much more smoothly with efficient planning and working with key advisors. Doing important prep work can help you avoid problems during the sale process and significantly boost the value of your business and post-sale profit.

Read More

Tags: sell a business, exit strategy, exit planning, how to prepare a business for sale

Create Notes Now of How Covid-19 has Affected Your Business.

Posted by Marc Gudema on Tue, Jul 07, 2020 @ 12:41 PM

Many businesses are being affected by the Covid-19 shutdowns and their effect on business results. Because of this, it is likely that business buyers and lenders will consider this in valuing your business and approving a loan for a business buyer when you sell your business. But how it is considered will depend on your particular situation. Businesses in the same industry are being affected differently. It is likely that business buyers and lenders will want to dig deeper into what your business did during this time and how it was affected. Now is the time to create notes, or a journal, of what is occurring. Here are some suggestions on what to include in the notes.

Read More

Tags: sell a business, exit planning, covid-19

Will Anyone Buy My Business Now? Selling Your Business During the Covid-19 Pandemic

Posted by Sarah Grossman on Thu, May 28, 2020 @ 03:35 PM

For the last two months, most business owners have been feeling the pain of either reduced sales or their business being closed entirely.  At the same time, they’ve had to pay their bills and figure out what to do with their staff.  Prior to Covid-19, many business owners, perhaps including you, were thinking of selling their business. Covid-19 presents new business challenges related to reopening with social distancing measures in place, which may increase expenses and reduce income.  These business challenges, which will last a few years, may be having you think even more of selling.  So, you may be wondering, how can I sell my business now, and who would want to buy it?

Read More

Tags: sell a business

Is This a Good Time to Buy or Sell an Auto Repair or Auto Body Business?

Posted by Marc Gudema on Wed, May 13, 2020 @ 03:59 PM

If you have been thinking of buying or selling an automotive business, you are probably concerned about how these businesses are going to do after the shutdowns end.   In the Northeast, the amount of driving is lower -- with a big impact on the revenues of auto repair and auto body businesses.  What does the future hold?

Read More

Tags: sell a business, how to sell an auto repair shop, sell an auto body business

Now is Not the Time to Deal with Only One Buyer for Your Business

Posted by Marc Gudema on Tue, Apr 14, 2020 @ 10:55 AM

Dealing with only one buyer for your business is not a good idea in good times.  It’s an even riskier idea now.   It’s not unusual that a business owner, who is interested in selling their business, to be contacted by a potential buyer.  There are many reasons why dealing directly with only one buyer is a bad idea.

Read More

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

Selling Your Business in the Face of the Coronavirus and Economic Uncertainty

Posted by Molly Hanson, CFP® on Wed, Mar 18, 2020 @ 02:33 PM

Many business owners are asking us if they should defer the decision to sell their business because of COVID-19. It is a fair question. After all, the impacts that the coronavirus may have on some small businesses are significant. 

Read More

Tags: sell a business, coronavirus, covid-19

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.

Read More

Tags: sell a business

How Long Does it Take to Sell a Business?

Posted by Marc Gudema on Thu, Feb 01, 2018 @ 08:31 PM

One of the questions we frequently get from business owners is “How will it take to sell my business?”  This is the time from when a business owner signs our listing agreement to the closing on the sale of the business.  The quick answer is that it usually takes about 6 to 9 months to sell a business.  This can vary; this blog is about what the steps are that take time and how long they take.  I’ll go through them, chronologically.

Read More

Tags: sell a business, how to sell a business, how long does it take to sell a business

Owners Cash Flow - What it is and why it is the most important number if you are buying or selling a business.

Posted by Marc Gudema on Wed, Jan 24, 2018 @ 02:33 PM

If you are going to sell a business or buy a business, it is important to understand Owners Cash Flow and how it is used to value a business.  In most small business sales, the seller is operating the business and the buyer plans to do likewise. Because of this, the best measure of the earning power of the business is the total income and benefits available to the owner, not the reported net profit of the business. In many small businesses, the owner is not trying to maximize net profit. The owner is trying to take out as much as possible in tax deductible salary and benefits. When buying or selling an owner-operated business, it is important to understand, and know, the Owners Cash Flow of the business. This is the best measure of the earning power of a small business.

Owners Cash Flow Defined
Owners Cash Flow is defined as the income before deducting the primary owner's compensation and benefits, other discretionary, non-operating, or non-recurring income or expense, depreciation, interest, and taxes. This is also referred to as Sellers Discretionary Earnings. This is the amount of money available to pay the buyer an income, pay off debt, and provide for capital to operate the business. In order to accurately calculate Owners Cash Flow, we use tax returns, income statements, and other financial records.

Read More

Tags: buy a business, sell a business, owners cash flow

Contact Us

Sign-Up for the Blog by Email

Latest Posts

Follow Me