Just Elementary, Inc. » Entries tagged with "business"
How to Sell a Business to an E-2 (E2) Visa Buyer
If you are the seller of a business in the United State and you are considering selling to a buyer of an E-2 (E2) visa, here are some facts that you should be aware of: What is an E Series Visa For? The E Series visas are designed for foreign nationals who wish to immigrate to the United States to conduct business. The Two Types of E Series Visas: The first is the E-1 Treaty Trader … Read entire article »
Filed under: Business Tips
Discounting Inventory & Deferring Payments During Escrow
In the middle of a transaction of selling your business, the topic comes up of counting the Inventory. You say, of course, to ‘do it’ so an accurate sales price can be determined for the business plus the inventory at your cost. You also let the buyer know that the inventory amount is ($500,000 for example), and it is all in good saleable condition. The buyer asks you how often you turn the inventory and … Read entire article »
Filed under: Business Valuation, Due Diligence, Negotiation
Business Valuation Too High Using Wrong Methodologies
Many a client we have come across has a business valuation in their hands that is much higher than reality dictates. The reason for this is multi-faceted. Let’s start with unscrupulous M&A sounding firms who claim to be able to sell businesses for outrageous multiples based on future earnings. Often, these types of firms put on slick presentations and claim to have sold many businesses for great premiums. … Read entire article »
Filed under: Business Valuation, Featured
How You Benefit from a Small Business Valuation
It is a simple question: Why should I get a valuation for my business, especially if I am not planning on selling business anytime soon? As business intermediaries, we can tell you why. Reason #1 to Get a Broker’s Opinion of Value: Checkup for your business One good reason to get a Broker Opinion of Value (BOV) from an experienced business broker is to help you find out where you are losing value in your business. In our experience, we … Read entire article »
Filed under: Business Valuation
Why You Can’t Get an SBA Loan
People complain that securing an SBA loan is too difficult. There are many factors at play, here we consider the impact of a Borrower’s Business Experience on their qualifications. In the early part of the past decade, as the economy grew at astronomical rates, the rate at which business bank loans went bad shrunk to and hovered at minuscule levels. Once this failure rate was super low for too long, enforcement of the experience criterion became … Read entire article »
Filed under: Business Tips, SBA
Leasing Second Generation Restaurant Space – Saving Time & Money
Eating Someone else’s leftovers doesn’t sound like the greatest of deals. But, when it comes to your money, you’ll have to figure out if you want to buy an existing business ( e.g. leftovers), or make something new from scratch. Should you buy an existing business? Should you start a new business? That depends on you and the team you are going into business with. There is a Right and Wrong answer for you. We will layout some points for you to consider to help you make an informed decision that will feel, well, Just Elementary! Reasons to Buy: You want an established track record and proven business model. You will be open for business the day you take possession. Trained employees in place with a seller to offer additional buyer training. Reasons to Start: You have your own … Read entire article »
Filed under: Business Opportunity For Sale, Business Tips, Commercial Leasing, Negotiation
Business Valuations, Where is the Value?
If you poll business owners about how much their business is worth, you will get a broad range of answers. Ascertaining the actual value of a business is not a simple matter. The first step is to determine the type of value being analyzed. Are we talking about Resale Value, Liquidation Value, Merger/Acquisition Value, Book Value, Divorce Sale Value, etc. All of these situations present different circumstances, which lead to different valuations. Merger/Acquisition Value The Merger/Acquisition (M&A) value … Read entire article »
Filed under: Business Valuation
Auto Salvage Yard For Sale
Just listed for sale recently is a prime Auto Salvage Yard business in the heart of Los Angeles. Located on a lot that is over 50,000 sq ft, the current owner has cleaned up the yard and refocused the business on a sweet spot of popular late model cars. Additionally, there are Three (3) Sublessees paying weekly rent that subsidize approximately 75% of the monthly rent on the property. This location has been established as a Salvage Yard for over (50) Fifty Years. Valid licenses for Glass, Dismantling, Repair and a Salvage Yard are in place for the Industry. Very hard to open or start a business like this given the space required and shortage of properly zoned space in Urban Southern California. Gross Sales and SDE (Adjusted Net) are projections … Read entire article »
Filed under: Business Opportunity For Sale
Unhappy Franchisees
I am sure there are more of these, and that most franchise brands have their own franchisee run website for gripes about the franchise, but Unhappyfranchisee.com is a resource to hear some horror stories to educate yourself on things to watch out for when getting into a franchise network. That is the one thing I have noticed in my years as a broker, so many people get into a business or franchise without knowing all of the relevant facts, and like they said on G.I. Joe, knowing is half the battle. What you don’t know will lead to horror stories like the kind you will find on Unhappyfranchisee.com … Read entire article »
Filed under: Business Tips, Featured, Franchises
HOT or NOT? Buy Now Or Forever Hold Your Peace!
Well, it is not quite that simple. The most likely market trends for the next 3-5 years is FLAT. Hopefully not a Flat-Line. There are three kinds of markets I can think of, #1 HOT, #2 Imploding Crashing Markets and #3 the flat & boring market. So, probably not a good idea to buy while the markets are still crashing like Fine China falling from a Display Case. Also, it is a risky proposition to extend a lot of leverage in a hot market, lest your exit strategy be too long and you get stuck holding asset(s) into a Crashing market. Thus, if we are now finally into the beginning of the LONG, Flat and Boring Portion of the Market, then it is time to buy all the assets that you … Read entire article »
Filed under: Business Tips
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