Selling one's business can be a traumatic and emotional event. In fact, "seller's remorse" is one of the major reasons that deals don't close.
In many cases, the buyer and seller reach a tentative agreement on the sale of the business, only to have it fall apart. There are reasons this happens, and, once understood, many of the worst deal-smashers can be avoided.
41% joined the family business;36% wanted more control over their future...
Before answering the question, it makes sense to first ask why people want to be in business for themselves. What are their motives? There have been many surveys addressing this question. The words may be different, but the idea behind them and the order in which they are listed are almost always the same.
Most prospective business buyers really don't know from the outset the exact type of business they want to buy. Experienced business brokers and intermediaries know that many business buyers end up with what is sometimes a far cry from what first captured their imagination.
Today's independent business marketplace attracts a wide variety of buyers eager for a piece of ownership action. Buyers of small businesses are most likely replacing lost jobs or searching for a happier alternative to corporate life. Buyers of mid-sized and large operations are, typically, private investment companies seeking businesses to build and eventually sell for a profit.
Buyers buy a business for many of the same reasons that sellers sell businesses. It is important that the buyer is as serious as the seller when it comes time to purchase a business. Here are just a few of the reasons that buyers buy businesses:
The following is some basic information for anyone considering purchasing a business. Is may also be of interest to anyone thinking of selling their business. The more information and knowledge both sides have about buying and selling a business, the easier the process will become.
Statistics reveal that out of about 15 would-be business buyers, only one will actually buy a business. It is important that potential sellers be knowledgeable on what buyers go through to actually become business owners. This is especially true for those who have started their own business or have forgotten what they went thorough prior to buying their business.
To find the real value of a business, we must go to its very heart: the attitude, work habits, managerial style, customer/marketplace savvy, and community reputation of the person in charge.
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"Fred is well positioned to fill a real need in the business community. As a CPA who has participated in many business transactions, I believe Fred's education and experience is ideal to serve the both the business owner and potential purchaser of a business. I have worked with and known Fred personally for many years and he is a real pleasure to work with and has the ability to get things done."
"Fred’s work with our company has been invaluable to its growth and acquisition strategies. He has the ability to build trust and credibility among the various parties to a transaction and the skill to manage the countless details involved. He recently spearheaded the negotiation and simultaneous closing of eight retail outlets (with real estate) in four states as part of a multi-million dollar sale/leaseback transaction involving our company. We look forward to utilizing Fred in future transactions and can recommend him as a transaction broker without reservation. "
"I have been practicing law as a transactional attorney for twenty years and have had the pleasure of working with Fred on number of business deals. He has always impressed me with his professionalism, integrity, knowledge and ability to ‘get the deal done’ in a timely fashion through creative, practical solutions to the myriad of issues, seen and unforeseen, that arise in every transaction. His skills as a communicator are very valuable in negotiating and overseeing a transaction from initial contact through closing. If you find yourself in need of a quality broker, I highly recommend that you give Fred a call."
"Fred Wood is a perfect fit for his profession with a background as a corporate attorney and having successfully run two companies. Even that's still not his best qualification. His integrity and values will always be the greatest benefit to his clients."
"I know Fred on both a personal and professional level. While at ALLTEL, Fred consistently demonstrated integrity, legal expertise and unique abilities in the art of negotiation. I highly recommend Fred as your business broker."