What Is A Business ‘Closing’? A business closing is the final and last step of a business sale. Frequently conducted electronically, a business closing is where the written closing documents are signed and exchanged, the seller receives payment as called for in the purchase agreement, the parties reimburse one another for any customer deposits (held … Read more
Business Valuations Increase with Reduced Owner Role One key factor of business valuations is the extent to which the owner is personally involved in the operation of the business. The more absentee the owner is, the higher the valuation. Conversely, the more involved the owner is in the day to day operations of the business … Read more
Hiring the Best Business Broker The most critical step in selling one’s business is hiring the best possible business broker. The business broker will often be entrusted with confidentially selling a business that represents a business owner’s lifetime of hard work and perseverance. Maintaining a confidential sale throughout the sales process and obtaining the best … Read more
Business Sales Are Confidential Unlike real estate transactions, business sales are confidential in nature. This means that the actual identity of the business is kept confidential from the public, and all prospective buyers of the business must complete a Non-Disclosure Agreement (NDA) and financially qualify themselves prior to obtaining the confidential information about the business … Read more
What is a Franchise Resale? A franchise resale is the purchase of an existing and operating franchised business from a franchisee. A franchisee has the right to operate the franchise from a franchisor during a specified time period within a specified geographic area as outlined in a franchise agreement. This contractual right (along with obligations … Read more
Businesses Have Tangible and Intangible Assets Businesses have either tangible or intangible assets. Tangible assets include current assets (such as cash or accounts receivables) and long-term capital assets such as physical equipment, vehicles, and land. Conversely, intangible assets are non-physical in nature and include a company’s goodwill, brand, name recognition, customer base, employee relationships, leasehold … Read more
Non-Disclosure Agreement Protects Seller’s Confidentiality Every South Florida business seller should be aware of how critical it is to have all potential buyers complete and sign a proper Non-Disclosure Agreement (NDA). The NDA is a legal instrument by which a potential buyer of a business qualifies themselves by affirming their ability to buy the business … Read more
When A Buyer of A Business Gains Exclusivity A buyer of a business legally gains the exclusive right to purchase a business during a specified time period when there is a signed and agreed upon Letter of Intent or Purchase Agreement with the seller, which typically includes a refundable deposit from the buyer. Exclusivity in … Read more
Business Sales Different from Real Estate Sales Many business owners who are contemplating the sale of their business may wonder whether the sale will be publicly disclosed. Often times, such potential sellers of businesses wonder whether the terms of the deal including the purchase price will be made public. In fact, privately owned business sales … Read more
Business Brokers Generally Do Not Specialize Hiring the right business broker to sell one’s business is a very serious task. The seller of a business has often devoted the majority of their working life to the business, and rightfully expects the broker entrusted with the sale to be well informed and knowledgeable about the industry … Read more