Insurance companies figured out real fast that it is in their best interest to make sure that real estate buyers do what was in the best interest for the buyers – which is to protect themselves from the sellers. Read more
In the business broker community there is a review process that helps a buyer determine if a business purchase makes sense or not. This check can be done by a Fortune 500 company where everything is figured down to the penny and takes 1000 hours of research or it can be done by a small main street shop buyer who figures it out in one hour. Each item in this review process requires a decision. Read more
He came to me after signing the escrow instructions and purchase contract, as his agent had said he should. His agent said he needed to hire someone to do the due diligence after he opened escrow. When I read the escrow instructions, I was shocked.
Read more to see how it turned out.
The financing of a business is a relatively straight forward process, if you are aware of what lenders are looking for and generally what they will and will not do. They will be looking at your credit, your experience and the sort of down payment you have and information about what sort of note the seller is willing to take back when selling you the business. Read more
Putting a value on a business is a separate function from auditing, evaluating or doing “due diligence.” There are three or more generally accepted methods of valuing a business. These are:
We have developed a comprehensive questionnaire in order to help you determine the value of an auto body shop before purchasing it.
15 Questions you should ask before making an offer, when buying a business.
Most people have questions they need answered before making an offer and before hiring help to evaluate, audit or review the business. The most commonly asked questions are as followed: Read more
This article is written as a general discussion on the subject of Due Diligence and how to evaluate a small business for purchase. It is for informational purposes and not intended to be a definitive guideline for your exact situation. You should consult the appropriate professionals with regards to your specific transaction or situation. Further, this article is in no way advocating, suggesting or implying that anyone engages in any type fraudulent activities whatsoever. These are simply things a buyer should be aware of when doing Due Diligence in buying a business. Read more
It has been said that you cannot judge a man until you have walked a mile in his shoes. Over the years I have done all four functions when someone asked me to help them.
But since setting up Due Diligence Assistance for buyers six months ago I have gained a whole new respect for what knowledgeable CPAs have to work with when assisting their clients in buying a business. With very limited information they must determine if the books are cooked (false and incomplete) and if they are, by what amount.
There is a lot of interest to purchase e-commerce or web based businesses. I have been getting more than a normal amount of calls from buyers who are very interested in this area. After reviewing hundreds of financials, I can see where this area looks very attractive. It is only because I have done due diligence and appraisals on e-commerce and youtube.com based businesses, that I understand why even though the buyers want to buy and the sellers want to sell that no deal is struck. The two sides do not understand each other. Let me try and shed some light on the problem. Read more
California Licensed Real Estate Broker #00529559
Certified Public Accountant (CPA) # 106752
Certified Fraud Examiner (CFE) #594927
Professional Certified Business Broker (CBB) designation
Kismet Business Brokers
PO Box 2734, Seal Beach, CA 90740-2734
Phone: 805-428-2063
Fax: 562-446-0575
