Pet Business Due Diligence “Bill” and his family were looking for a dog kennel and went on to the internet and started looking at various “Businesses for Sale” web sites. He located a dog kennel for sale with real estate in another state. Bill and his family had experience with boarding animals so it seemed the perfect business.
https://www.kismetbusinessbrokers.com/wp-content/uploads/2011/11/dog-boarding-kennel.jpg424980Willard Michlinhttps://www.kismetbusinessbrokers.com/wp-content/uploads/2023/06/logo-kbb-rek2-4080x864-1.pngWillard Michlin2018-11-17 14:49:242019-01-07 07:56:32Business Buying Horror Story: Dog Kennel – He Never Got His Questions Answered
When you buy a business it usually comes with a lease already in place.
If the lease is not coming due shortly the seller tells you to assume and qualify for the lease. They think this gets them off the hook, but it doesn’t. The seller then becomes a guarantor of the lease in case the buyer defaults. Only if a new lease is written is the seller fully off the hook and the buyer can negotiate new terms and conditions with the landlord.
It is in the buyer’s best interest to negotiate a new lease with terms and conditions acceptable to the buyer.
Read more to find out more about leases and buying a business. Read more
https://www.kismetbusinessbrokers.com/wp-content/uploads/2010/09/477570551.jpg483726Willard Michlinhttps://www.kismetbusinessbrokers.com/wp-content/uploads/2023/06/logo-kbb-rek2-4080x864-1.pngWillard Michlin2018-09-02 02:21:522018-09-04 10:21:03Business Buying Pitfalls: Should You Sign a Personal Guarantee on a Lease?
Whenever you make an offer for a business and put down a deposit you are putting yourself at risk that it could be forfeited to the broker and/or seller. Here are a few things you can do to make sure that does not happen:
Business purchase deposit protection
Write LOI (Letter of Intent). This is not a binding document, and no deposit is necessary. Then after you have agreed with the seller on the price and major terms, a formal offer can be written. At this point you can afford to pay to have the purchase contract reviewed by your attorney, or due diligence CPA, before being signed. Read more
https://www.kismetbusinessbrokers.com/wp-content/uploads/2012/07/165167635.jpg487721Willard Michlinhttps://www.kismetbusinessbrokers.com/wp-content/uploads/2023/06/logo-kbb-rek2-4080x864-1.pngWillard Michlin2018-06-12 03:21:132018-06-18 08:54:355 Ways to Protect your Purchase Deposit from Theft
The underground economy is the illegal way to avoid paying payroll taxes and workers compensation insurance.
Of course when and if you get caught, the penalties are quite high. If you do the bulk of your work yourself and only hire low paid staff that has low payroll expenses, you can compete with the underground economy.
There are millions of cars that need a smog check every year in California. So buying a smog shop can be a good investment, or it can be a bad choice. How can you tell if it is a good idea?
The State of California allows smog centers to either test the car’s emissions or to repair the car to meet the requirements. The Department of Consumer Affairs/Bureau of Automotive Repair directs vehicles that are more likely to fail, called high emitter profile, to a Test Only Center.
This article was originally written in 2010 and updated in 2015. The disaster mentioned was part of the crash in the real estate, stock market and general economy in 2008.
The hardest hit industries in these economic times are real estate agents, furniture and accessory stores, clothing stores and fast food restaurants. The first thing consumers cut out when they are on a tight budget is their expensive coffee drinks and lattes.
The teenagers, who are a big part of the fast food consumers, have found that they also do not have money because their parents have cut their allowances or stopped them all together. When there is money for fast food, or the family decides to eat out, they now pick the places with the cheapest prices. Lower priced establishments get the business and the higher priced pizza places do not. Read more
https://www.kismetbusinessbrokers.com/wp-content/uploads/2015/03/466061213.jpg338508Willard Michlinhttps://www.kismetbusinessbrokers.com/wp-content/uploads/2023/06/logo-kbb-rek2-4080x864-1.pngWillard Michlin2017-12-05 10:46:502018-02-02 16:42:22Fast Food Franchise “A Disaster in This Market”
Up until World War II middle America bought its products primarily from the small merchants in town. Then after the war the Big Box stores started. When the internet became popular the trend away from people making their retail purchases from “brick and mortar” store became more and more popular. Read more
https://www.kismetbusinessbrokers.com/wp-content/uploads/2017/09/7223384344_4c7173c228.jpg225496Willard Michlinhttps://www.kismetbusinessbrokers.com/wp-content/uploads/2023/06/logo-kbb-rek2-4080x864-1.pngWillard Michlin2017-12-05 10:42:192018-07-18 07:02:54Purchasing An E-Commerce Business – 4 things You Must Know
“The books do not show all the money, but I guarantee you that this business will clear $10,000 a month after taxes.”
How often have you heard these words?
Wouldn’t it be great if you could actually get a guarantee from a seller when buying a business? You can. But you have to ask for it, and you have to give the seller a good reason for them to give it to you. I assure you a seller can have a lot of good reasons for not wanting to give it — and some are totally legitimate.
So, when are you justified in asking?
There are several conditions to look for. To find out what conditions to look for Read more
https://www.kismetbusinessbrokers.com/wp-content/uploads/2017/07/buying-a-business.jpg183275Willard Michlinhttps://www.kismetbusinessbrokers.com/wp-content/uploads/2023/06/logo-kbb-rek2-4080x864-1.pngWillard Michlin2017-07-10 11:27:472017-07-10 11:34:55Business Due Diligence or a Seller Warranty? Which is Better…
When working with buyers as a business broker and a CPA doing due diligence, the buyers universally ask one question. “Why is the seller getting out?
This is a good question but the question I ask is, “How do you know if the seller is telling you the truth?” Read more
https://www.kismetbusinessbrokers.com/wp-content/uploads/2012/04/469697387.jpg484725Willard Michlinhttps://www.kismetbusinessbrokers.com/wp-content/uploads/2023/06/logo-kbb-rek2-4080x864-1.pngWillard Michlin2017-03-21 03:28:422017-03-21 08:59:47Finding Out the Seller’s Motivation
I have been a business broker for 25 years, and after selling hundreds of businesses, I have some very strong feeling about successful business owners selling their businesses.
Story #1: Abe Michlin (my father) and his recycling business.
Dad died in November 2016 at 96 years old. His primary goal for the since 1980 was to turn the business over to one of the children or grandchildren. Which person that would be changed every few years. When I was in college, I thought it would be me. But by the time I was 27 years old, and my mother died, it became clear that I had bigger dreams then my dad. I left to become a buyer of foreclosure real estate, and make my first small fortune. My brother-in-law, Jerry came into the business along with Shana, my new step-sister. Jerry ran sales and production. Shana ran the office and handled anything dad needed to be done. Dad ran the business but on a part time basis. His new wife wanted dad to smell the roses and see that there was more to life then business. Dad loved business and regretted every retiring at all, even when he physically and mentally was forced to.
https://www.kismetbusinessbrokers.com/wp-content/uploads/2017/02/generations-462134_1280.jpg6041280Willard Michlinhttps://www.kismetbusinessbrokers.com/wp-content/uploads/2023/06/logo-kbb-rek2-4080x864-1.pngWillard Michlin2017-02-07 08:50:542017-02-07 09:00:51Is it Ethical to Sell a Successful Family Business When You Have Children and Grandchildren?
Business Buying Horror Story: Dog Kennel – He Never Got His Questions Answered
/in Business Due Diligence Horror Stories/by Willard MichlinPet Business Due Diligence “Bill” and his family were looking for a dog kennel and went on to the internet and started looking at various “Businesses for Sale” web sites. He located a dog kennel for sale with real estate in another state. Bill and his family had experience with boarding animals so it seemed the perfect business.
Business Buying Pitfalls: Should You Sign a Personal Guarantee on a Lease?
/in Business Buying/by Willard MichlinWhen you buy a business it usually comes with a lease already in place.
If the lease is not coming due shortly the seller tells you to assume and qualify for the lease. They think this gets them off the hook, but it doesn’t. The seller then becomes a guarantor of the lease in case the buyer defaults. Only if a new lease is written is the seller fully off the hook and the buyer can negotiate new terms and conditions with the landlord.
It is in the buyer’s best interest to negotiate a new lease with terms and conditions acceptable to the buyer.
Read more to find out more about leases and buying a business. Read more
5 Ways to Protect your Purchase Deposit from Theft
/in Business Buying, Due Diligence, Newsletters/by Willard MichlinWhenever you make an offer for a business and put down a deposit you are putting yourself at risk that it could be forfeited to the broker and/or seller. Here are a few things you can do to make sure that does not happen:
Business purchase deposit protection
Expert Business Advice: On Avoiding Worker’s Compensation Insurance
/in Business Buying/by Willard MichlinThe underground economy is the illegal way to avoid paying payroll taxes and workers compensation insurance.
Of course when and if you get caught, the penalties are quite high. If you do the bulk of your work yourself and only hire low paid staff that has low payroll expenses, you can compete with the underground economy.
Read more
Buying a Smog Shop
/in Articles/by Willard MichlinBuying a Smog Shop in California
There are millions of cars that need a smog check every year in California. So buying a smog shop can be a good investment, or it can be a bad choice. How can you tell if it is a good idea?
The State of California allows smog centers to either test the car’s emissions or to repair the car to meet the requirements. The Department of Consumer Affairs/Bureau of Automotive Repair directs vehicles that are more likely to fail, called high emitter profile, to a Test Only Center.
What is High Emitter Profile? Read more
Fast Food Franchise “A Disaster in This Market”
/in Business Buying/by Willard MichlinThis article was originally written in 2010 and updated in 2015. The disaster mentioned was part of the crash in the real estate, stock market and general economy in 2008.
The hardest hit industries in these economic times are real estate agents, furniture and accessory stores, clothing stores and fast food restaurants. The first thing consumers cut out when they are on a tight budget is their expensive coffee drinks and lattes.
The teenagers, who are a big part of the fast food consumers, have found that they also do not have money because their parents have cut their allowances or stopped them all together. When there is money for fast food, or the family decides to eat out, they now pick the places with the cheapest prices. Lower priced establishments get the business and the higher priced pizza places do not. Read more
Purchasing An E-Commerce Business – 4 things You Must Know
/in Business Buying/by Willard MichlinPurchasing An E-Commerce Business – 4 things You Must Know
Today I received the Business Broker Press© release of the ten top selling businesses. At the top of the list was E-Commerce. E-Commerce refers to web based business that sells products online. This can be anything from cosmetics and clothing to automobiles and dating services to meet the future mother of your children.
Up until World War II middle America bought its products primarily from the small merchants in town. Then after the war the Big Box stores started. When the internet became popular the trend away from people making their retail purchases from “brick and mortar” store became more and more popular. Read more
Business Due Diligence or a Seller Warranty? Which is Better…
/in Due Diligence/by Willard MichlinThe seller told the buyer
“The books do not show all the money, but I guarantee you that this business will clear $10,000 a month after taxes.”
How often have you heard these words?
Wouldn’t it be great if you could actually get a guarantee from a seller when buying a business? You can. But you have to ask for it, and you have to give the seller a good reason for them to give it to you. I assure you a seller can have a lot of good reasons for not wanting to give it — and some are totally legitimate.
So, when are you justified in asking?
There are several conditions to look for. To find out what conditions to look for Read more
Finding Out the Seller’s Motivation
/in Articles, Business Buying, Newsletters/by Willard MichlinWhat Motivates a Business Seller?
When working with buyers as a business broker and a CPA doing due diligence, the buyers universally ask one question. “Why is the seller getting out?
This is a good question but the question I ask is, “How do you know if the seller is telling you the truth?” Read more
Is it Ethical to Sell a Successful Family Business When You Have Children and Grandchildren?
/in Articles/by Willard MichlinI have been a business broker for 25 years, and after selling hundreds of businesses, I have some very strong feeling about successful business owners selling their businesses.
Story #1: Abe Michlin (my father) and his recycling business.
Dad died in November 2016 at 96 years old. His primary goal for the since 1980 was to turn the business over to one of the children or grandchildren. Which person that would be changed every few years. When I was in college, I thought it would be me. But by the time I was 27 years old, and my mother died, it became clear that I had bigger dreams then my dad. I left to become a buyer of foreclosure real estate, and make my first small fortune. My brother-in-law, Jerry came into the business along with Shana, my new step-sister. Jerry ran sales and production. Shana ran the office and handled anything dad needed to be done. Dad ran the business but on a part time basis. His new wife wanted dad to smell the roses and see that there was more to life then business. Dad loved business and regretted every retiring at all, even when he physically and mentally was forced to.
From 1980 to 2005 he planned his exit strategy.
Read more