By Troy Frank, Owner — Indiana Equity Brokers Estimated read time: 8 min
The short answer: Small businesses in Indiana are most commonly purchased by individual first-time buyers using SBA financing — this describes the majority of Main Street transactions under $1 million in earnings. Other buyer types include strategic buyers (often competitors who pay a 20–30% premium), search fund buyers...Read More
Sellers
Don’t have a valid reason for selling.
Are testing the waters to check the market and the price. (They are similar to the buyer who is “just shopping.”)
Are completely unrealistic about the price and the market for their business.
Are not honest about their business or their situation. The reason they want to sell is that the business is not viable, it has environmental problems or...Read More
For a business to sell, there has to be a seller – and a buyer. The buyer of today is a bit different than the one of yesterday. Today’s buyer is not a risk-taker, is concerned about the financials, and seems to be overly concerned about price. Unfortunately, buyers have to understand that they cannot buy someone else’s financial statements. The statements might be a good...Read More
Most prospective business buyers really don’t know from the outset the exact type of business they want to buy. Experienced business brokers and intermediaries know that many business buyers end up with what is sometimes a far cry from what first captured their imagination.
Take, for example, the old story of the buyer who saw (and probably smelled) a doughnut shop in his business...Read More
Statistics reveal that out of about 15 would-be business buyers, only one will actually buy a business. It is important that potential sellers be knowledgeable on what buyers go through to actually become business owners. This is especially true for those who have started their own business or have forgotten what they went thorough prior to buying their business.
If a prospective business...Read More
