Category Archives: Business Buyer Information

Post and articles of interest to business buyers.

When is the Best Time for Business Buyers to Negotiate The Lease

A new lease is usually one of the more critical issues during a business ownership transition. This fact causes some people to start the process of purchasing a business with the lease negotiation. The reasoning is usually that if an acceptable lease cannot be negotiated, the transaction won’t work for the buyer. This is usually a mistake. The… Read More »

What is SDE and Why is it Important?

SDE stands for Seller’s Discretionary Earnings and is also sometimes referred to as Cash Flow. What it reflects is the actual cash that should be available to a new owner of a business for sale. The Main Street Business arena is mostly filled with enterprising people that see being in business better than working for someone else. That… Read More »

Why do some business for sale listings have financial information and others not?

Businesses list for sale on the internet come in many varieties. Some listings are from professional brokers, some better than others and some are from the owners themselves. Assuming the person listing the business is a qualified professional they may choose to leave out most if not all of the financial information. The reasons may be: The seller… Read More »

What is the difference between an asset sale & stock sale when buying a company?

What is an asset sale for a transition in business ownership? Main Street Businesses are most often structured as asset sales. This means the buyer and seller identify assets tangible and non-tangible that are included in the ownership transition. Sometimes there will be liabilities assumed by the new owner, but these are usually limited to accounts that are… Read More »