Category Archives: Business Purchase

Selling your business?

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Businesses are all about contracts; from your lease, to your employees, to your vendors and customers. What’s in your contracts, what’s not in your contracts, or no contracts at all can become a problem when it comes time to sell your business. What can or should go into a specific contract will usually be determined by the type of contract, however, an assignability clause is beneficial to you in almost ever contract. If you’re a […]

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How to determine the value of a business

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There are numerous methods for determining the value of a business, however, as a general rule a business is valued at 2 to 4 times the business owners benefit based upon the businesses financial records. The business owners benefit will typically include their salary, dividends, health insurance, company car and any other expenses paid by the business for the benefit of the owner. Although this is the general rule, there are many factors that can […]

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Financing the sale of your small business

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When it comes time to sell your small business there are traditionally 4 methods of paying the sale price … cash, bank loan, private loan, seller loan. Often times, the sale involves a combination of 2 or more of these methods. If you are the seller, you typically want to get paid in full at the time of the sale, whether its cash, a bank loan, a private loan, or any combination of those 3. […]

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The best time to sell your business

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The goal of most small business owners is to create a business that they can sell to finance their retirement. Unfortunately, most small business owners are ill-prepared to sell their business because they fail to plan for it. There are a lot of things a small business owner can do to make the business more sellable and to increase its value. However, as a small business owner, a lot of what you do is focused […]

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Creating a sellable business; avoid the small business mindset

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You’ve invested years of hard work and sacrifice into your business, but have you created a business that has value to someone else? Have you created a business that someone is willing to buy? Most small businesses are run by owners that have little or no business background, and consequently suffer from the “small business mindset”. They are passionate about their business, and control virtually every aspect of the business. After all, no one can […]

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