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What Price To Pay

What price to pay is foremost in any potential purchaser’s mind. The thoughts usually revolve around what funds I currently have, what funds can I borrow and ultimately what is my total maximum price that I have available to negotiate with. Stating the obvious, knowing your maximum price is essential but sometimes taints the buying process with the mindset that if I can afford it, it’s

Here's How to Validate Sales Data Before Buying a Business

Buying a business is a huge decision and probably one of the most important decisions you'll ever make.That is why you need to be very careful and to weigh up a lot of factors before you make that BIG decision. One of the critical steps you need to take is to review sales data so you can project the future of the business you're buying. Ask for three years' sales data: It's n

What's Your Business?

It’s important to know what your business is. Sounds pretty simple, doesn’t it? But you’d be surprised by the lack of understanding and business definition most businesses operate under. Why is it important? Largely, it does two things: Provides focus and prevents waste. A lack of understanding of what your business actually does could lead you into being lured by evil temp

Buying a Business? Here's What You Need to Know About Goodwill

Goodwill is the difference between the purchase price and the fair market value of a business. Put simply, goodwill represents the intangible quality of the business you are buying that is not represented by its hard assets. Goodwill is the one and only asset that competition cannot undersell or destroy. -Marshall Field For example, you’ve agreed to a purchase price of $100,000 for the

Buying a Business? Listen and Take Notes

Throughout the course of your dealings with the seller or their representatives, they will make certain representations to you that support their business sale proposal. And some of these representations may somewhat stretch the concept of honesty. For whatever motive, those representations (and even warranties) are made to make the business sound attractive to you, the seller. These may involv

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