I’ve been in banking for over 40 years. Over that time and then as a business broker, I’ve seen a lot of businesses change hands. Most business sellers do not want to finance the transaction and risk getting the business back. Most banks want to know that they can be paid back and have a plan to get whole if that does not happen. Thus, whether your selling or buying, some important points are:
- A good and positively trending business financial performance according to the business tax returns for the most recent few years is critical.
- A selling price with an adequate down payment that shows that a buyer can pay himself and pay the bank back based on the historical performance of the business.
- A existing business model that suggests after the sale that good financial performance will continue for many years.
- A buyer that has the relative experience for that particular acquisition and a seller that will help in a smooth transition.
Thanks and give me a call if you’d like to talk about business selling or buying
The Business Brokers, Inc.