Just Elementary, Inc. » Entries tagged with "Escrow"
Realtor & Real Estate Agents Referring Business Owner Clients to Business Brokers
Often times Real Estate Agents and Realtors are asked by their clients to help them sell an on-going business. (The industry jargon for selling businesses, is ‘Business Opportunity Listings’). But, can Real Estate Agents and Realtors sell businesses? In California they can, as the Department of Real Estate licenses Real Estate Salespersons and Real Estate Brokers to sell Real Property (Real Estate) and Chattel Real (Business Property). However, most real estate offices do not specialize … Read entire article »
Filed under: Real Estate Tips
Negotiating Lease Assignment Clauses for the Sale of a Business
An often overlooked and under-negotiated clause in any commercial lease is the lease assignment clause. No matter how long your lease is, and how long you plan to maintain ownership of the business, you need to negotiate a good lease assignment clause for proper exit strategy planning. What are some common things to consider in a lease assignment clause? Lease Assignment Fee Landlords will usually write into leases a fee for their time and consideration of your request … Read entire article »
Filed under: Commercial Leasing, Landlord, Negotiation, Selling A Business
Pros and Cons of Using an Inventory Service During Escrow
Should you use an Inventory Service when you are buying a business? We’ll give you a breakdown of when it will be handy and when you might no get enough benefit for the cost. Reasons Not to Use an Inventory Service: #1. When the amount and quantity of the inventory is small enough that the buyer and seller can count it all in a relatively small amount of time. #2. When you need to get to know the … 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
Who Pays Sales Tax on FF&E for a Bulk Sale Escrow
When buying and selling a business in California, there is the not so little matter of paying sales tax. Yes, sales tax when buying a business, just like you would pay sales tax on a pair jeans at the department store. The theory is that when you are buying a business, you are not just buying the Goodwill, but you are also buying tangible equipment critical in the operation of the business. That tangible property … Read entire article »
Filed under: Business Tips, Due Diligence
Buying a Business, Do I really need an Escrow?
A common misconception is that escrows are only for buying a house or commercial property. Often times a novice business buyer will buy a business and simply hand a check to a seller. Yikes! Using a bulk sale escrow is an important legal step in buying a business in California. What is a bulk sale escrow? Glad you asked! … Read entire article »
Filed under: Business Tips, Due Diligence
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