| What is it about most of us who decide that "cheap" is | | | | the business is worth, you actually loose 23% total!! Not |
| better? We do it when buying clothes, shoes, furniture, | | | | a good deal, but a daily occurrence. |
| car, etc, only to find out, in most instances, that our | | | | 2. Buyers decide not to use a lawyer fearing a |
| decision was not a good one. Why?? Because in the | | | | $1000.00 plus charge and eventually find themselves |
| very short term, clothes look like hell and soon | | | | loosing thousands of dollars in litigation fees. |
| deteriorate, shoes fall apart and last only a few | | | | 3. Buyers decide not to use a CPA/Accountant to |
| months, and our furniture rips apart easily, forcing us to | | | | perform a due diligence on their purchase (they do not |
| go buy the same things within months-- doubling our | | | | want to spend the $500-$1000 required) only to regret |
| expense!! We do the same when buying a house. We | | | | it and lose thousand of dollars, if not all of their |
| forgo the best location--in front of a lake or preserve-- | | | | investment in the process. |
| to save a few thousands only to lose thousands more | | | | 4. Buyers want to buy a business based on price |
| at the time of sale. Remember, location, location?? | | | | (normally lower price) rather than looking for a quality |
| Unfortunately, the same thing happens when selling or | | | | business with great bottom line results. Crazy!! It is |
| buying a business. Some examples: | | | | better to pay $50K more for a business than to lose |
| 1. Sellers normally look to lower their commission on the | | | | $100K on a bad business during your first year of |
| sale of their business, instead of looking to get better | | | | operations!! Right?? |
| results. Most good Business Brokers charge a | | | | So, please do what makes sense when selling or |
| premium 2% over their competition because they | | | | buying your business. Stay away from "cheap" and |
| know they can get you a better price. Do the math. If | | | | get quality instead-get professional help when buying |
| the good broker sells your business for 100% of its | | | | or selling your business. |
| value and a mediocre broker sells it for 75% of what | | | | |