As usual in the business purchase process, emotions play a huge role in negotiating a purchase price. Sellers are selling their babies and need emotional comfort and conviction that they are not giving them away. Frequently, they discuss the offered price with their accountants and in most cases accountants will not push in the...
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Seller’s Remorse – Hesitations When Receiving a Good Offer
July 1, 2007
By Omar KettaniA large number of business sellers experience a period of indecision right after receiving an excellent offer for their businesses. When the dream of selling the business is so close to come through, sellers struggle with their emotions. Their businesses are their babies. Separation is very painful. How to recognize seller's remorse? In most cases, sellers...
How to Deal with Business Brokers
May 27, 2007
By Omar KettaniBusiness brokers specialize in helping business owners sell their businesses. Most business brokers represent the sellers rather than the buyers. As a result, business brokers are responsible for qualifying buyers to weed out "tire kickers" and make sure that only buyers with the motivation and financial resources to purchase a business are presented to...
Business Buyers’ Myth: Only Bad Businesses are for Sale
May 21, 2007
By Omar KettaniWhen we present our businesses for sale to some of our buyers, we are frequently asked: if this is such a good business, why is it for sale? Why would somebody sell a business that makes money? While we recognize that some business owners are selling their businesses because they are not making decent income,...
The Necessary Leap of Faith to Buy a Business
May 21, 2007
By Omar KettaniStatistics about the sale of businesses in North America have shown that 90% of people actively looking to buy a business never buy any business in their lives. This represents tremendous waste in time and effort. These people not only waste their own time and money but also brokers' and sellers' time. Business buyers generally...
Emotions While Selling or Buying a Business!
May 21, 2007
By Omar KettaniMost business buyers underestimate how emotions can impact the business purchase process. A lot of money, time and effort is repeatedly wasted on business transactions where buyers and sellers fail to deal with each others' emotions. From the seller's perspective: Business owners have spent a lot of time and energy building their business and...
Baby Boomers Looking for Successors.
May 2, 2007
By Omar KettaniIn our marketing efforts to find new business listings, we find that baby boomers in the retirement age represent a large percentage of business sellers. In most cases, selling their business is the only remaining option. Their children are often not interested in taking over the business for multiple reasons:
- Children are seeking...
Buy an Exiting Business or Start a New One?
April 30, 2007
By Omar KettaniThe skills and personality traits necessary to start a new small business and make it successful are much different from the skills necessary to take over an existing business and grow it . A small business start up needs an entrepreneur who has a vision and is passionate about his/her idea....
How to Value a Small Business?
April 30, 2007
By Omar KettaniThe most frequently used method in valuing a small business is Seller Discretionary Income (SDI) multiple. The SDI for the business is calculated by using the income statement and correcting it by adding back to the profit figure all perks and benefits that the owner receives from the business. Then, a multiple (generally between...
Business for Sale Listings
April 30, 2007
By Omar KettaniBusiness buyers are constantly looking for new business for sale listings. Some spend long hours looking in different newspapers and magazines. Others rely mostly on networking, asking everybody they know about business opportunities on the market. Accountants and lawyers are also considered a source of information about new businesses for sale.