Acquiring an existing business is the most effective way to increase the value of an existing business or become a new owner. The value of a working profitable business is a huge advantage versus doing it yourself. Procedures, best practices and customer lists are already in place allowing the focus to be on growth and profitability. There is also a revenue stream in place to pay off the debt that was acquired when buying the business.

The Quality of Revenue, Quality of Earnings and Quality of Life are some of the metrics that should be considered when determining the value of a business. The value of a business is not just some multiple of Sales or EBITDA. These metrics are important but these numbers can’t value the human asset a new owner can bring to the balance sheet. Assessing the combination of financial's and prospects for new ownership is "the art of the deal".

A strong marketer can double the revenue of a business that typically does little or no marketing. Manufacturing, laundromats, and restaurants are a good example of such businesses. Some new owners have created explosive revenue growth exceeding 50% by doing simple things like improved customer service and executing simple marketing plans. Buyers should find opportunities where their personal assets add to the balance sheet. If you would like us to assist you in your search, please fill out the form below. You are under absolutely no obligation and all fees are paid by the seller. We have access to National Databases and clients who have expressed interest in selling their business. If we can find you a close match, you will be contacted so you may review the prospectus of the business. Find list of current Businesses For Sale Here.

 

Funding Your New Acquisition

After soul searching, business selection and due diligence has been done, where exactly does the money come from to acquire your new business? Most business purchases are done with bank financing, seller financing and buyer financing in some part or combination. The two extremes are the seller financing 100% of the purchase which every buyer wants but is highly unlikely. The other extreme is that the buyer will finance 100% of the purchase a bank, which is also highly unlikely. Privately held companies usually have a combination of seller, buyer and bank. Sometimes the bank may step in with just a line of credit which is extremely helpful with the purchase of a new enterprise. A seller that isn't willing to hold paper or finance some part of the deal isn't worth dealing with. A buyer gets something more valuable from seller financing than capital; the buyer gets mutual benefit in the future success of the business after you own it. The business will be left in far better physical and fiscal shape if the seller has some interest beyond the closing.

Diplomacy is usually required to come to an agreement, particularly when it comes to seller financing. The seller wants to be comfortable that they are going to be paid. But, just as important is the proper care of the ego of the seller. The seller may want his business to represent some legacy to their past efforts or, that the buyer pays proper homage to the past owner recognizing their achievements in the business. Lawyers and accountants can't communicate these things, The buyer has to make motions that satisfy the sellers senses.

Any deal proposed at the extremes of 100% seller financing will likely be rejected and create animosity. Everyone wants a fair deal that is reasonable. A profitable business will rarely be given away if it's truly a good business. By all means negotiate and demand the seller finance part of the deal, but the best deals involve a joining of both the buyer, seller and the bank. If the bank likes the deal and you like the deal and the seller agrees to the deal, you likely have a great deal !

 

Bizprofitpro will advise you every step of the way at no cost to you in most cases. If there is a fee, you will be advised well ahead of time so you can decline the service or make other arrangements. Listed below are just some of the ways we help buyers reach their goal of buying a profitable business:

 

We Help Buyers Find Great Deals

Searching through our database of sellers that have listed their business for sale with Bizprofitpro.

Affiliations with other brokers allow us to see all available business listings.

Contact owners of businesses that have not been listed on your behalf to see if they are willing to sell.

Review financial's of target companies to compare with industry norms as part of due diligence.

Available business and financial coaching after the sale to get up to speed fast.

 

You can search our current inventory of available businesses being offered for sale. To get detailed information you will be required to sign and fax to Bizprofit a non-disclosure agreement. This document can be downloaded here. You may also fill out the confidential buyers form below and we will search our database for business that match your criteria. Bizprofitpro will also save your buyers profile and alert you when business opportunities meet your criteria. You will recieve business opportunities to your email before they are listed giving you a chance to make a deal before the public knows the opportunity is available.

 

Business Buyers Profile Search Form