Price or Terms: The Structure of the Deal
An old saying in negotiating the sale of a business goes like this: The buyer says to the seller, “You name the price, and I get to name the terms.” Another saying used to explain the actual value of the term full price: “If we could find you a business that nets you $250,000 a year after debt service, and you could buy it for $100 down, would you really care what the full price was?” It...Read More
PPP Loans: Financing Business Purchases, Part 2
By Corrie Thrasher, partner, Starfield & Smith PC This article originated on the blog of the legal firm of Starfield & Smith Corrie Thrasher, partner, Starfield & Smith PC As discussed previously in my first article, many uncertainties exist when the owners of a business who received a Paycheck Protection Program (“PPP”) loan wish to transfer their business to a...Read More
Considering Generational Strategies in Business Relationships
When you are buying or selling a business, you might very well end up making a deal with someone from another generation. Therefore, it only makes sense to take the time to understand that individual’s background and how that might change how they behave. It is important to understand their collective experiences and the trends that shaped their identities and...Read More
The Biggest Mistakes Business Buyers Make
By Peter Siegel MBA, BizBen Founder The biggest mistake made by buyers is not seeking professional representation and guidance before closing the purchase transaction. Without an experienced broker or attorney on their side, a buyer is prone to making numerous mistakes, some of which can jeopardize the viability of the business. Even in those transactions that involved a business escrow and...Read More
How You can Help Local Restaurants Survive
By Hannah Eisenband, a Customer Service Specialist at We Sell Restaurants Restaurants are struggling. Restaurants have defined our economy for generations. In 2019, restaurants generated almost $900 billion in sales and employed more than 15 million people. It is estimated that 20-30% of restaurants will not survive this pandemic. This would mean that up to 4.5 million employees will...Read More
Essential Meeting Tips for Buyers & Sellers
The buyer-seller meeting is often a “make or break” meeting. Your business broker or M&A Advisor will do everything possible to ensure that this meeting goes smoothly. Understand that there is rarely any offer before buyers and sellers actually meet. The crucial offer usually comes directly after this all-important meeting. As a result, you want to ensure that...Read More
Negotiating the Price Gap Between Buyers and Sellers
Sellers generally desire all-cash transactions; however, oftentimes partial seller financing is necessary in typical middle market company transactions. Furthermore, sellers who demand all-cash deals typically receive a lower purchase price than they would have if the deal were structured differently. Although buyers may be able to pay all-cash at closing, they often want to structure...Read More
6 Tips and 90 Days to Protect Your Business
The next 90 days could make or break the futures of business owners trying to navigate the choppy waters of the COVID-19 pandemic, according to Inc. contributor Brian Hamilton. In his April 2020 COVID-19 centered article, “6 Actions to Take in the Next 90 Days to Save Your Business,” Hamilton, Founder of the Brian Hamilton Foundation, outlines six things owners should do now to survive the...Read More
GABB Covid-19 Update: Loans, Lending and Liability
The second round of the SBA’s Paycheck Protection Program funding, released Monday April 27, is being distributed by SBA lenders, and is expected to be depleted within just a few days, David Brindley, VP of Small Business Lending at Live Oak Bank, told the GABB in a Zoom meeting on April 28. David Brindley Brindley also said the new round of PPP funding is tied to the SBA’s 7(a)...Read More