Category: Negotiating & Structuring The Deal

A common and reasonable concern for any business buyer is to be certain that the business is sustainable after you take over the company. Of course, it would be nice to buy a business and have the seller provide you…

I received an interesting question this week and felt it would be helpful to discuss it on the blog in case you run into a similar situation. The lesson here is that a good buyer always plays "what if" and…

Question: A friend and I are planning to buy a business together as a partnership. We have already created an LLC, but we were recently told that we should have a ?Buyout Agreement? in place before we move forward. We…

Question: I'm interested in buying an existing transmission franchise. My attorney says it is usually difficult to make any modifications to the franchise agreement. That doesn't mean I shouldn't try anyways. I was wondering if there's anything that I will…

Question: I'm talking with a seller who has a business broker involved in the deal. I have signed their non disclosure agreement and have seen their financials and tax returns. They have requested my personal financial statement listing my assets…

Question: I'm thinking about buying a 20 year old wholesale/distribution business. They have many longtime clients. I have some experience with this type of business. The current owner will be retiring to Europe from Florida. He is scheduled to leave…

Question: I am interested in buying a business, but the seller is looking for a valuation that is more than three times the average earnings multiple for his industry. How can I convince him that he is simply asking too…

I am interested in opening a retail shoe store, but I don't have enough capital. My friend is willing loan me the capital for a stake in the business. I will do all the work and my friend will be…

Q: I came across a listing on BizQuest that I'm pretty sure is for a competitor of mine. If so, I would be interested in making an offer. But I am afraid that he is not going to want to…

Q: What advice do you have for negotiating the royalty fee (i.e. 6%) for the purchase of multiple franchise units? Are there rules of thumb for lowering the royalty fee when a number of units are purchased? A: Unfortunately, there…