Tick, Tock – Why Business Buyers Need To Make The Most Of Due Diligence

If you are in the midst of your business search, then a major step in the process to buy a business is coming your way – due diligence.

 

This step in the business buying process occurs once an offer from a buyer is accepted by a seller. The business is pulled from the market and placed in a sort of limbo so the buyer has a chance to review all business related documentation and then make a final decision about whether or not they wish to buy the business and how much they would ultimately like to offer.

 

This limbo phase is great for buyers because it essentially stops the access of other potential buyers to the business they want and gives them a chance to peek behind the scenes.

 

Due diligence is not, however, an indefinite period that can drag on forever. A typical due diligence period is two weeks. That’s it, and honestly that’s all you really need. We regularly get requests for due diligence periods of multiple weeks or months – but that extended amount of time is unnecessary and unfair to the business itself.

 

Why is an extended due diligence period unnecessary? If you’ve made an offer on a business, you’ve already seen a good deal of the financial information and have a decent understanding of the inner workings of the business – like the contractual agreements the business has with major clients (for example). You don’t start the due diligence process with a blank slate, it is instead a more in-depth look at something you are already familiar with.

 

Since you aren’t starting from scratch, you should use your due diligence time efficiently. You should review the documentation as soon as you get it, thereby giving yourself a few days to think about your upcoming decisions. You should also have your broker or your business transaction accountant help you if you have questions – but you need to get them any questions and any documentation promptly as they may not be able to get to it right away. Don’t wait until two days before due diligence is over to rush the paperwork to an accountant and then try to request an extension. Procrastinating during due diligence could mean you are rushed into a decision without having reviewed the information thoroughly – leading to unnecessary surprises down the road.

 

Why is an extended due diligence period unfair to the business? An extended due diligence period pulls a business off the market and shifts a seller’s focus to just one buyer. The seller has to take time away from the day-to-day operations of the business to provide requested information and answer buyer questions. At the end of an extended due diligence a buyer can then decide they don’t want to move forward with the business sale, leaving the seller to start over with the process of finding buyers after an extended absence from the market. To shift focus for a period of two or three weeks isn’t unfair – but to ask a business owner to change their focus for weeks or months is.

 

If you are in the market to buy a business, it is in your best interest to use the due diligence period to your advantage by working quickly with the information you are given and giving yourself the time to think about the decisions you need to make. It will alleviate some of the stress of the business buying process and allow you discover any surprises before they become a problem down the road.

 

Are you looking at businesses and are concerned that a two week due diligence period won’t be enough? Do you have more questions about what happens during due diligence? Ask us! Please leave any comments or questions and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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They Google You Too – Advice For Business Buyers

If you are in the market to buy a business, then what is one of the first things you will likely do when you find out the name and location of a prospective business? Hit a major search engine like Google and plug in the name.

 

What many buyers fail to realize, however, is once a seller finds out your name they will do exactly the same thing.

 

Buying a business is not at all like buying a car. When you are shopping for businesses, you are essentially shopping for a job – so just like a prospective interviewer would do, business sellers are going to look you up.

 

You also have to consider that the business you buy is someone’s baby, a business where they have invested countless hours and a great deal of money. For most sellers, there is an emotional connection to their business, and as such they won’t be willing to hand over the reins to just anyone. The legacy of their business can be just as important as the check you write.

 

In addition to the emotional connection, in business sales there is typically a training period of several weeks – so major personality differences between buyer and seller can cause a whole host of problems.

 

Another major factor that will cause a seller to look you up? Seller financing. In most small business transactions, the seller finances part of the deal. Since they are keeping some skin in the game, it will be very important to know who you (as a buyer) are and if you are the kind of person who will be responsible enough to pay back the debt.

 

If you are in the market to buy a business, ask yourself this. What happens when someone Googles your name? If you haven’t ever checked, you should.  

 

Your online presence will speak volumes to a seller who has never met you, and in some cases, brokers themselves will even Google you before agreeing to work with you.

 

What should you do if you are in the market to buy a business? The first thing you should do is set any social media you use for personal use to private. Only those people you know should be able to see things from your personal life, not prospective sellers.

 

You should set up a professional social media account on a site such as LinkedIn or a more professional Facebook page that sellers and brokers can see. You should also abide by basic social media guidelines that anyone would use if they were going into a job interview. No pictures of drunken debauchery, no rage-infused political rants, no dirty jokes – you get the idea.

 

If a cursory search for your name turns up nothing but pictures of you partying hard – it may reflect poorly on you as a competent professional and leave sellers uncomfortable with your ability to get the job done. Clean up your social media image before anyone looks you up.

 

Are you a buyer looking at businesses and hadn’t considered your online image? Would you like to know what else you could do to make yourself more appealing to sellers? Please feel free to leave any questions or comments here, and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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The Good, Bad And Ugly: How To See Past The First Impression

It’s an age-old adage that first impressions are of the utmost importance. It’s why business people wear suits and why car dealerships keep the cars on their lots shiny and clean. It might seem like basic sales knowledge that in order to sell something, you need to make sure it is ready for that all-important first impression.

 

Business buyers who come to the business marketplace looking for a shiny, clean business are in for some serious disappointment, and that disappointment may lead some to either give up their business search or continue searching indefinitely.

 

Why?

 

Businesses, and small businesses in particular, can be ugly monsters. At a cursory first glance, a business that has recently listed might seem outrageously overpriced, have seemingly unintelligible financial records and look like an unorganized mess teetering on the brink of collapse. These terrible first impressions, however, mean that buyers regularly pass over perfectly good businesses just because they aren’t perfect.

 

Why do they look so bad?

 

Small business ownership is a tough gig. Owners who are very capable of holding everything together and helping the business grow may not be so great at keeping their books organized or at explaining why they listed the business for the price they did. As a buyer, you want a strong business, so overlooking businesses because the current owners focus more on the strength and growth of the business instead of focusing on neatly curated paperwork would be a very big mistake.

 

Another major first impression hurdle is the aesthetics – peeling paint, outdated decor, dirty floors – but again the point here is you want a business whose owner focused on the bones of the business itself, not someone who only worried that the place stayed immaculate.

 

How do I see past the ugliness?

 

Get some professional help. Business brokers look at ugly (but wonderful) businesses every day, and they can help you as a buyer navigate the shoddy paperwork and stained carpet to see what you really would be buying underneath. When you buy a business, you aren’t really buying furnishings and a sign anyway – you are buying cash flow – so having someone to help you determine what the cash flow looks like for the businesses you find interesting can go a long way towards helping you make a decision.

 

As you start your business search try to remember that in the business for sale world, it’s not the first impression that counts.

 

Have you been searching for a business but haven’t found one that doesn’t come across as a complete train wreck? Would you like advice about how to see past the first impression to find great businesses? Please ask us! Leave comments or questions here and we would be happy to help.

 

 

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

http://www.infinitybusinessbrokers.com

 

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BEFORE You Get On The Plane – A Successful Business Buyer Trip

 

The rapid approach of another holiday season and the end of the year can cause a budding entrepreneur to rethink their current life and consider other options. New buyers come to the market curious about what life might be like as the owner of a business, and many who are visiting from northern climates experience the beautiful winter weather of Florida and seriously consider a move south.

 

There are amazing business ownership opportunities in the Sunshine State, and we would love to help you find the one that is right for you – but there is one very important element of the business buying process that buyers should know long before they set foot on a plane.

 

You absolutely, positively can’t call about a business one day and see it the next.

 

This one is frustrating for both business brokers and buyers alike. If you call us today and tell us you are only in town for another 24 hours and you want to see one of our businesses – the answer is no.

 

We would love to accommodate you, but it just isn’t possible, especially during this time of year.

 

In order to see a business, we would have to know that the business is right for you and that it is a business you could successfully afford. There is no sense in wasting your time looking at businesses you couldn’t or wouldn’t want to buy. Then you would have to sign the appropriate non-disclosure agreements. Then a showing would need to be coordinated between your schedule, the schedule of your broker, the schedule of the seller’s broker, the schedules of the sellers themselves and at a time when the business isn’t operating or when the employees will not be around (for confidentiality reasons).

 

This complicated mix of conversations, paperwork and meshing of schedules is going to be extremely tough during the holiday months in particular because many of the necessary parties are traveling or hosting family and won’t be available.  

 

It is possible, however, for all of the necessary background, non-disclosure agreements and schedule juggling to be done – with enough notice. Just realize that 24 hours or even a few days aren’t going to be enough.

 

If you are considering taking a trip south and looking at businesses, make contact with a broker and work on setting up these visits before you even buy your plane tickets.

 

We say this because we want your business search to be successful and we want you to find and see businesses that are right for you. The right business for you is going to depend on things we can’t know about you until we’ve had a chance to talk to you about your goals for business ownership and the amount of money you actually have available to buy a business. The right business for you will also be found by looking at many listings, reviewing financial statements and having conference calls with multiple sellers – all long before you set foot in an actual, physical business.

 

We also want you to be able to make the most out of your time here – so by researching and vetting the businesses that meet with your goals, by already talking to sellers via conference call – you can efficiently see the two or three businesses you are already serious about buying when you come for a visit.

 

Set yourself up for business buying success by starting your search before you buy your tickets to Florida!

 

Are you a buyer who has tried to see a business last-minute and would like to know more about why this isn’t possible? Are you curious about the business ownership opportunities available in Florida? Ask us! Leave any questions or comments here, and we would be happy to help you on your journey to business ownership.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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Buying A Business? The Importance Of A Narrow Focus

Here’s one we see all the time. We get a call or an email from a buyer who wants to sign 15 NDA’s on 15 different types of businesses so they can see where each is located and then decide which ones they like.



First of all, any business broker worth their salt is not going to disclose that many listings to a buyer all at once. Why? A buyer looking at 15 different types of business hasn’t narrowed their search, so disclosing all of those businesses puts the confidentiality of those businesses at risk unnecessarily. It is also a colossal waste of both the buyer’s and broker’s time to fill out all of that paperwork for nothing.



You might enter the business marketplace with only a vague idea of the kind of business you want, but you really need to narrow the focus of your search right away if you want to have any kind of success with finding businesses that will actually help you achieve your goals. There are hundreds of potential listings out there, and it can be easy to get overwhelmed by the choices.



How do you narrow your search?



Talk to a business broker first.



We will ask you about your goals for business ownership. What do you hope entrepreneurship will bring to your life? The freedom to make your own schedule? More money than you make at your current job? More time to spend with your family? The ability to grow a business to sell a few years later? These goals will be very helpful in eliminating businesses that don’t fit the bill.



We will ask you about your prior knowledge and experience. What industries have you worked in? What did you go to school for? Taking over a new business is hard enough, you probably don’t want to add learning a whole new industry to the mix at the same time.



We will ask you about your financial situation. How much do you have to invest? Are you looking for financing? Knowing from the very beginning exactly how much you have to work with will be instrumental to ensuring you end up with a business you can afford.



After having this type of discussion with your business broker, you can focus on businesses that will fit all of your needs and not waste any of your time looking at businesses that don’t. Narrowing your focus early also helps you keep from feeling like your search never ends.



Are you starting your business search and need help with narrowing your focus? Are you curious about what businesses are available in your area? Do a cursory business search by clicking here or leave us any questions or comments below.

 

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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Do You Really Want To Buy A Business? Prove It.

Why is everyone blowing me off?

 

If you’ve spent any time as a potential business buyer, you likely know what we’re talking about. No one will return your calls. Brokers seem apathetic at best. Sellers act like you are wasting their time. It’s like pulling teeth to get anyone to give you any information.

 

What gives?

 

It’s a numbers issue. The business-for-sale marketplace is full of buyers, but very few of them are serious. The stats show that a mere 10% of potential business buyers actually end up buying a business, so 9 times out of 10 a buyer really is wasting everyone’s time.

 

Ok, but I’m a serious buyer. How do I get everyone to take me seriously?

 

 

Be ready.

 

You need to be serious about buying a business before you start making phone calls. If you’re in the very preliminary stages – think several years before you plan on taking the entrepreneurial plunge, you need to make that clear when you talk to a broker. Explain that you are considering business ownership down the road, but would like their input on what types of businesses would fit your goals. If you are further along in the process and actually ready to buy – make that clear as well.

 

Know what you want.

 

You need to have clear goals for business ownership. What do you want out of owning a business? Do you want a more flexible schedule? Do you need more time with your kids? Are you looking to make as much money as possible and then sell the business in a few years? Your goals will guide what type of business is right for you, so you need to have those goals in place before you start asking for conference calls with sellers.

 

Be honest about your money.

 

Nothing is worse than getting close to a closing table, only to find out the buyer doesn’t have the money they said they did. You need to be 100% honest and upfront with your broker about the actual funds you actually have right now. You also need to listen to your broker when they tell you it’s a terrible idea to look at $100,000 businesses when you only have $100,000 to spend. You need to leave some working capital in your pocket so you don’t bankrupt your business immediately after buying it.

 

Make offers.

 

Once you know what you can afford and what your goals are, actively look for businesses. Once you’ve found one that fits – make an offer. The transaction process can’t begin until you do, and you can walk away from any business up until the moment the closing documents are signed – so making an offer doesn’t mean an absolute commitment to that particular business.

 

The message here is it can be tough to get the industry to take you seriously, and although it isn’t your fault that the numbers aren’t in your favor – there are things you can do to stand out from the crowd.

 

Have you always wanted to buy a business, but you aren’t sure where to start? Are you serious about buying but no one will give you the time of day? Please leave any questions or comments here, and we would be happy to help you on your journey to business ownership.  

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

 

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Buying A Business With A Partner? Why You Need A Break-Up Contract

 

Buying a business is a huge and sometimes overwhelming project, one that can oftentimes be better handled with a business partner to share the load. A good partnership means sharing the responsibilities, costs and schedule that buying and owning a business demands. Good business partners both bring their own unique and complementary skills to the table – allowing the partnership to help the business grow.

 

A good business partnership also has one all-important thing. A break-up contract.

 

What’s a break-up contract?

 

Similar in nature to a prenuptial agreement before a wedding, a “break-up” or partnership contract is an iron-clad and very detailed contract business partners sign that clearly states – in writing – the what and how if one of the partners decides to (or needs to) leave the business.

 

I’m buying a business with my best friend of 20 years, we don’t need a break-up contract.

 

Yes, you 100% do. Business partnerships fall apart every day, and sometimes it isn’t even because the relationship between the partners has soured. What if your best friend of 20 years gets divorced and his now ex-wife wants the business sold so she can have back the money they invested as a married couple when you first bought it? What if you have to leave to take care of a sick parent overseas and won’t be able to contribute to the business anymore? Having a predetermined plan in place makes the split easy at a time when life probably isn’t.

 

My business partner is going to think I don’t trust them if I ask to put together a contract like this.

 

First, if your business partner is making a judgement like this – they aren’t keeping their personal feelings out of what should be a purely business decision. Second, if you are worried that you might offend your partner – open the discussion by saying you both need to have a plan in place so the business can survive if something happens to one of you.

 

This seems like an unnecessary step.

 

Even if your business partnership ends amicably down the road, not having a contract in place can mean massive legal bills for both of you when it does happen. This is especially true if the split comes because of something like a divorce. You need to spend the small amount of effort and money now to protect both of you and the future of the business.

 

The message here is every business partnership will eventually end. That end can be a painful and expensive nightmare, or you can plan ahead and put together a business partnership contract that lays out what happens instead.

 

Are you thinking about buying a business with a partner, but hadn’t considered a “break-up” contract? Do you have questions about what a contract like this might look like? Please feel free to leave any comments or questions here.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

 

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Great Questions: What Business Buyers Should Be Asking

If you are beginning the process of buying a business, then conversations with business sellers will definitely be in your future.

 

You can find lists of questions to ask in many places, and although these traditional questions like “how much is the lease?” or “why are you selling?” are very important, there are some less-traditional questions that can be equally important to ask.

 

Why ask questions of the seller at all? Couldn’t they just be telling me what I want to hear? Isn’t it a better idea to let the numbers speak for themselves?

 

Yes and no. The hard facts, like the numbers in the books, like the contracts and client agreements – these can tell you much of what you need to know about a business and can bring forth facts that will be instrumental in your decision to buy or not to buy.

 

Buyers who don’t ask questions of sellers, however, are missing out on very important information. The person who is selling has lived and breathed this business for some time, and their experience, the reasons they’ve made the decisions they’ve made – this information can speak volumes to a buyer.

 

Why? It gives you a unique behind-the-scenes perspective you can’t see in black-and-white numbers on paper.

 

What kinds of non-traditional questions should you ask? Here’s three:

 

What parts of the business keep you up at night?

 

This one is important because the answer gives two very important insights. One, it shows any problems that might not be readily apparent in the books and two, it will give a buyer a chance to see what might need to be addressed early on in their ownership. 

 

If you could start over from scratch, what would you do differently?

 

This question also gives two insights. First, like the previous question this one will highlight any issues with the business. The seller will probably express that they would make changes to avoid the problems they currently face. Second, it will give a buyer fantastic advice as to the changes they could make right out of the gate to help the business grow in the future.

 

What are you going to do if the business doesn’t sell?

 

If a seller answers “close the doors and walk away”, then a buyer needs to take a closer look at why the current owners would be willing to give the business up. Is it because of a personal issue that they must attend to like moving to another state to care for family? Is it because of a health issue that would preclude the seller from performing their daily duties? Is it because the business is teetering on bankruptcy?

 

On the other hand, a more positive answer to the “what if it doesn’t sell?” question like “keep the business running and growing until I find the right buyer” says a lot about the health of the business and the current owner’s faith in the future of the business.

 

Asking these non-traditional questions and even coming up with a few of your own will be very helpful in determining whether or not a business you are considering is right for you.They also make it possible to see past the black and white numbers to see what life has been like for the seller (and what life will be like for you should you buy). Ask great questions and you will have a far better chance of finding the right business for you!

 

Have you started looking at businesses and have more questions about the kinds of things you should ask? Do you need help figuring out what questions to ask for a particular business? Ask us! Please feel free to leave comments or questions here and we will be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

 

 

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Experience Counts – Why You Need A Veteran Of The Transaction Process

You’ve just entered the business market with the intent of buying yourself a small business, and you are shopping around for a business broker to help you.

 

There are many factors that separate the good brokers from the bad – but one of the big ones is experience.

 

Rookie brokers make lots of mistakes, and if you’ve hitched yourself to their wagon for your transaction then you get to live those mistakes right along with them.

 

As experienced brokers, it can be very frustrating to try and work with these newbies, but it becomes increasingly difficult when they are trying their hand at the business alone and without any guidance – or if they have an experienced broker whom they work for who has given little to no training of any kind.

 

One of the major ways this lack of experience shows through? Too many showings.

 

What do we mean by too many showings?

 

If you’ve ever bought a house, you know that going to see a plethora of homes is part of the game, especially in a fast-moving market where a house has multiple offers the first day it lists. This is not, however, how business sales works – so newbie business brokers, especially those fresh out of the real estate industry, will sometimes try to play the same game by attempting to line up a litany of businesses for their clients to see. It doesn’t work.

 

First of all, when you are buying a business, you are buying an existing business – one that is open and running with staff and customers. The importance of confidentiality means that the staff and customers can’t know the business is for sale. Therefore, a business seller can’t have a parade of semi-curious buyers waltzing through the front door on a regular basis – it would make confidentiality impossible.

 

If done properly, the process to go see/tour a business is much more extensive:

 

It starts by having a conversation with your business broker about what you are looking for in a business and what your goals are. You will also talk about how much capital you have to invest in a business, and your broker will then take that information and find you a number of listings to look at that will be within your budget and meet your entrepreneurial goals. Out of that initial batch of potential businesses, you will typically be asked to narrow down the choices to just a few – think two or three – that peak your interest. You will then sign non-disclosure agreements for those listings in order to receive the marketing package, complete with the name and physical location of the business. After thoroughly reviewing the marketing materials for your few choices, you will probably prefer one business over the others. Your broker will help you form a list of additional questions you have for the sellers, and you will be given an opportunity to ask those questions during a conference call including the sellers, the brokers involved and you. After all of those steps have passed and you are still very interested in the business, your broker will set up a walk-through of the physical location of the business either before or after business hours when the staff and customers are gone.

 

What you can’t do in this process is decide that you want to spend a few days touring businesses and line up 5, 10 or more “showings” with your broker. No experienced broker worth their salt is going to waste their seller’s time by trying to coordinate a visit when the buyer hasn’t even bothered to narrow down their choices or ask any good questions. It’s just not going to happen. They’re also not going to put the confidentiality of the business at risk by having too many unfamiliar people coming to the business to meet with the seller during business hours as the staff will know something is up.

 

If you ask for this type of multi-tour approach and your broker says “Sure!”, beware that you probably have a rookie on your hands. The experienced brokers on the other side of the table aren’t going to play along, and you will be stuck seeing only the businesses listed by fellow rookie brokers.

 

If you are serious about buying, get yourself an experienced broker and go through the proper steps. You will end up only seeing the businesses that are right for you instead of wasting your own time looking at businesses that don’t fit the bill.

 

Are you a first-time buyer with more questions about the business buying process? Have you had an experience with a rookie broker that you’d like to share? Please feel free to leave comments or questions here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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Weighing Advice: How Business Buyers Should Deal With “Help”

Everyone is an expert, right?

 

We all have that person in our life who talks confidently about every subject while knowing little to nothing about the things they speak of. They string together urban legend, conjecture and memes from the internet into what sounds like a coherent piece of genuine information when, in fact, it is nothing of the sort.

 

If you are thinking about buying a business and you’ve told the people in your life about this new pursuit, then these fact-free advice givers will come out of the woodwork. Everyone, at one time or another has considered what life would be like as a business owner – and as such almost everyone feels qualified to offer their entrepreneurial advice. You will get unsolicited advice from seemingly everyone: your brother-in-law, the mailman, your dentist, your neighbors. While everyone’s intentions are good – to help you – the information you are given should be taken cautiously. Even the opinions of those you trust, like a very close friend, should be taken within the context of whether or not they actually know anything about buying or running a business.

 

Take, for example, the rent payments on a waterfront restaurant. If you are considering buying a large waterfront restaurant, especially one in a desirable location, then you should expect the rent to be high. That high rent, however, when compared to comparable businesses in the same area will probably be right in line with what you should expect to pay. Also, a desirable location means more customers in the door – meaning you will be perfectly capable of paying that high rent so long as you don’t run the business into the ground.

 

What unfortunately happens to many new buyers is they mention this high rent rate to someone who knows little to nothing about either the restaurant industry or the area in question and they balk at the number, exclaiming “That’s ridiculous!!! Don’t buy that business!” when the opposite is true. It’s a great business and falls right in line with both the buyer’s budget and their goals for business ownership.

 

There are many, many examples of instances where bad advice has driven a buyer from a perfectly good business – particularly when discussing matters of price. We’re not telling you that you shouldn’t listen to the opinions of those you trust, we’re just saying that you should consider their expertise in the matter before you take their advice as doctrine.

 

Who should you listen to? Your business broker is a good source of information because they eat, sleep and breathe business transactions and a good broker will know their local industry inside and out. Your business broker is also a reliable source of information because it is in their best interest if you succeed in your new business. You may refer them the business owners or business buyers you meet if you are happy in your business decision, and when the time comes to sell they hope you will use them again. A great business broker gets a great deal if their business from referrals and repeat clients.

 

You should also listen to the advice of your business transaction attorney and your business transaction CPA (if you end up using one) as they too know the industry well.

 

Notice we said “business transaction” attorney and CPA, not any attorney or CPA. Your friend who practices labor law and your uncle who does accounting for a rental car company aren’t going to be able to give you good advice about buying a restaurant because that’s not what they do. It would be similar to asking your car mechanic his advice about whether or not you should undergo back surgery – it’s not his area of expertise.

 

The most important person you should listen to? Your own common sense. Take the information you gather from all of your sources, weigh the validity of their opinions based on their real expertise in the matter – and then decide for yourself. You are the one buying the business, not the peanut gallery, so if the decision makes sense to you then that’s all that really counts.

 

Are you looking at businesses to buy and getting all kinds of advice at the same time? Do you have questions about some of the advice you’ve already been given? Please feel free to leave your questions and comments here, and we will be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907




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