TIPS FOR BUYING OR SELLING BUSINESSES
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Guttman Realty Advisors’ Tips for Selling Your Business
These are some vital steps you need to take to sell your business:

1.       You should have resolved any outstanding business issues.  Be certain the lease is in order and any options or changes are in writing. If you have a partnership, make sure you all agree on the sale.

2.       Your financial records need to be available and in order. Everyone knows about the sale of restaurants and the operating expenses associated with them, but you need to establish the amount of money being generated by the business on a weekly and monthly basis with bank records.

3.       Price sometimes comes with assisting the buyer with some type of financing for the business so get ready and think about it. What you are looking for is a reasonable down payment, a note that has a reasonable term and payments that make sense for the business.

4.       Think about your pricing. If you are interested in a reasonably quick sale, then price it with the market and do not over price the business. Ask other business owners or friends, but don’t waste your time with an overpriced asking price.

5.       Hire a professional business broker to market your business in a confidential manner. He will work for you and represent you in assessing the offers, establishing the price and terms, qualifying the buyer and structuring the sale and closing.

6.       Establish a relationship with the business broker that becomes a team with mutual trust and with the common goal of selling the business successfully.

7.       Your Business broker should assist you in pricing and structuring, preparing the marketing strategy, determine the right buyers, educate the buyers on the process, keep you informed about the market reaction, present offer and point out weakness and strengths of each offer, and permit you to continue to work the business while the business broker handles the negotiations required to conclude the sale.

Guttman Realty Advisors’ Tips for Buying a Business: 
The best guide for buying a business comes from your business broker who has the experience and expert guidance of past transactions. The business broker will act as glue for both the buyer and seller by guiding the process. Here is what you should be ready to discuss with your business broker:

1.       Are you ready? Do you have the necessary funds to buy the business? Is your cash readily available? What is your time frame? What are your expectations about the business you are thinking of purchasing?

After your first meeting with your business broker, he will show you businesses that fit your requirements and are feasible. You will be signing a confidentiality agreement and non disclosure agreement before receiving any confidential information.

2.       Do you have an attorney? All businesses have contractual documents like leases which need to be reviewed and understood. How long is the lease, what are the owner’s obligations, what are your obligations, is there an option to extend the lease, is there a security deposit, etc. You need to have legal counsel ready to start reviewing the lease and the sale agreement as soon as you decide you want to proceed.

3.       Do you want to be your own boss? Most of the buyers of businesses are ready to make the decisions for themselves and are looking for a business where they can work the hours they want, hire whom they want and generally take on all of the responsibilities of the day to day grind of owning a business.

4.       What is the business worth? You need to rely on the business broker for the basic information here, but other sources of value can come from other owners of similar businesses and suppliers, etc. Remember that a business is worth what you are willing to pay and the seller is willing to receive.  If you are paying all cash it may be worth less than if you are offering to pay a down payment with a note to be paid off over several years.

5.       Why is the seller selling at this time? You should evaluate the reason for the current owner to sell this business. Is there a disguised problem or is this an unusual opportunity?

6.       Are you emotionally ready? Your business will soon become your life and you will be making real sacrifices for the success of the business. You will work long hours, realize your hopes and dreams, and seek the personal gain that you have always dreamed of. Are you ready?

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