What is ‘Work in Progress’? The term ‘Work in Progress’ (WIP) in the context of most business sales generally refers to ongoing jobs or projects that have been started by a business but have yet to be completed. In manufacturing industries, ‘Work in Progress’ refers to partially finished goods awaiting completion. ‘Work in Progress’ is … Read more
Selling Sushi Restaurants There are now close to 20,000 sushi restaurants in the United States, and the numbers keep rising every year. Most sushi restaurants are single locations (usually owner-operated) while some expand and become chains with multiple locations. Better established and growing sushi restaurants with a transferable customer base and a solid lease and … Read more
Business Sales Average Six to Twelve Months Business owners should generally give themselves six to twelve months to sell their business. This time frame represents when business is listed for sale and ends when the business is actually sold. Most professional business brokers require twelve month listing agreements in order to allow a sufficient time … Read more
Keeping Business Sales Confidential from Employees When selling their business, many business owners wish to maintain the confidentiality of the sale from their employees. Business owners are justifiably fearful that their employees may panic or even quit if they find out that the business is for sale. This disruption is at best bad for employee … Read more
Methods of Accounting Used When Selling Businesses In order to properly price and sell a small business, it is critical to use a correct and consistent method of accounting when evaluating and presenting its financials. The difference between the two methods of accounting – the accrual basis and cash basis – has to do with … Read more
SBA-Financed Business Deals Many buyers of businesses use loans backed by the Small Business Administration (SBA) in order to purchase businesses. SBA-backed loans absorb lending risk for banks by guarantying the loan used to buy a business. Both the buyer of the business and the underlying business itself must properly ‘qualify’ under SBA guidelines for … Read more
Selling Dental Practices Privately owned dental practices focus on general dentistry (cleaning and maintenance) as well as a broad array of specialty services including orthodontics, periodontics, endodontics, pediatric, dentures, and prosthetics. When it comes time to sell a dental practice, it is important to value the practice properly and to target the correct kind of … Read more
Valuing Tow Truck Businesses Tow truck companies pick up damaged or disabled vehicles, and typically transport them to a vehicle service center or an impound lot. The impound lot is invariably owned or leased by the tow truck company, which offers a means of generating ancillary income from selling abandoned vehicles (or their parts). Tow … Read more
What Is A Manufacturer? Manufacturers transform raw materials into finished products. The conversion of raw materials into finished products adds value (increasing the price of the finished product) for which the manufacturer is compensated. The more specialized and efficient the manufacturer, then the more value will be added. Examples of manufacturers are found in the … Read more
What Is An Equestrian Business? The equine or horse-related industry services domesticated horses which typically reside on horse farms. Equestrian businesses primarily provide hay, feed, nutrients, and specialized equipment for the feeding, caring, and housing of these gentle giants. The annual feeding costs of horses ranges up to $4,000 per year, and many horse farms … Read more