Defend Valuation in Formal Due Diligence An often overlooked role of a business broker in closing a business deal is defending the valuation of the business during the formal due diligence phase. Formal due diligence is a contingency of a business sale and occurs after a deal is ‘under contract’ by virtue of a signed … Read more
Business Sales Should Not Be Disruptive Business owners expect that the sale of their business should not disrupt, disturb, or otherwise interfere with the regular operations of their business. Indeed, the first and foremost role of a professional business broker is to safeguard the confidentiality of the business sale from any party other than qualified … Read more
What Is A Property Management Company? A property management company operates one or more real estate properties for a fee on behalf of the owner. The property may be communal property owned by a Home Owner Association (HOA) or private residences (such as townhomes, condos, or single family homes) owned by the landlord. The property … Read more
Terms of the Deal When it comes time to sell their business, most business owners would love to receive a big check at the closing table for the full amount of their asking price. In the case of most business deals – especially for larger businesses worth over $1M – this seldom happens. In order … Read more
What are Self-Service Laundromats? Self-service laundromats or coin laundromats are retail facilities where patrons get their clothes washed and dried with little or no professional assistance. Most self-service laundromats are in close proximity to population centers lacking access to their own washer and dryer. Some are also located near college campuses for students in rental … Read more
What is An Earnout? When making an offer to purchase a business, some buyers propose that the seller accept an earnout as a part of the transaction. An earnout is future payments made to the seller after the sale, contingent upon the business reaching future financial targets. The earnout may be extra consideration to the seller … Read more
Trust Key Element of Business Deal Unlike a piece of property or real estate, a business has non-physical intangible assets. The value of a company’s intangible assets such as goodwill, branding power, name recognition, customer base, and employee relationships change over time and is not easily discerned. It requires subjective judgments as to the level … Read more
Jewelry Store Sales in South Florida The sale of jewelry stores is quite common in South Florida as they often make attractive profitable niche investments for both active and absentee-minded owners. Jewelry stores include small retail shops, chain stores with multiple locations, and e-commerce sites lacking a brick and mortar location. Many higher-end jewelry stores … Read more
Selling Growth Business A growing business is characterized by a demonstrable record of multi-year historical increases in its sales and profits with more expected growth to occur in the future. Since businesses are primarily valued as the present value of its future income stream, growth businesses with higher expected future profits are valued at a … Read more
Multiple Bidders Creates Negotiating Leverage Some business owners mistakenly assume that they may safely rely on only one buyer when selling their business. Such a buyer is often an employee, family member, or competitor in the industry who has expressed interest in buying the business. It is generally not a good idea to attempt such … Read more