Buying a Business Archives – Page 2 of 3 – Patriot Mergers and Acquisitions

Goodwill and Its Importance to Your Business

By Patriot M&A / March 2, 2019 / Comments Off

What exactly does the term “goodwill” mean when it comes to buying or selling a business? Usually, the term “goodwill” is a reference to all the effort that a seller puts into a business over the years that he or she operates that business. In a sense, goodwill is the difference between an array of…

Determining Your Company’s Undocumented Value

By Patriot M&A / January 19, 2019 / Comments Off

Business appraisals are not one-dimensional. In fact, a good business appraisal is one that factors in a wide range of variables in order to achieve an accurate result. Indisputable records ranging from comparables and projections to EBITDA multiples, discount rates and a good deal more are all factored in. It is important to remember that…

The Importance of Understanding Leases

By Patriot M&A / December 8, 2018 / Comments Off

Leases should never be overlooked when it comes to buying or selling a business. After all, where your business is located and how long you can stay at that location plays a key role in the overall health of your business. It is easy to get lost with “larger” issues when buying or selling a…

The Deal Is Almost Done — Or Is It?

By Patriot M&A / October 8, 2014 / Comments Off

The Letter of Intent has been signed by both buyer and seller and everything seems to be moving along just fine. It would seem that the deal is almost done. However, the due diligence process must now be completed. Due diligence is the process in which the buyer really decides to go forward with the…

What Do Buyers Really Want to Know?

By Patriot M&A / March 25, 2014 / Comments Off

Before answering the question, it makes sense to first ask why people want to be in business for themselves. What are their motives? There have been many surveys addressing this question. The words may be different, but the idea behind them and the order in which they are listed are almost always the same. Want…

Key Factors on the Acquirer’s Side

By Patriot M&A / August 26, 2013 / Comments Off

There are several key factors on the acquirer’s side of a sale, most of which are necessary to achieve a successful closing. Just as a seller has to deal with quite a few factors, the acquirer must also. Some of the more important ones on the acquisition side are: Sufficient financial resources to complete the…

Buying or Selling a Business: The External View

By Patriot M&A / July 10, 2013 / Comments Off

There is the oft-told story about Ray Kroc, the founder of McDonalds. Before he approached the McDonald brothers at their California hamburger restaurant, he spent quite a few days sitting in his car watching the business. Only when he was convinced that the business and the concept worked, did he make an offer that the brothers…

Advantages of Buying an Existing Business

By Patriot M&A / April 26, 2013 / Comments Off

1. Established. An existing business is a known entity. It has an established and historical track record. It has a customer or client base, established vendors, and suppliers. It has a physical location and has furniture, fixtures, and equipment all in place. The term “turnkey operation” is overused, but an existing business is just that,…

Today’s Business Buyer

By Patriot M&A / June 27, 2012 / Comments Off

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…

Dispelling a Buyer Myth

By Patriot M&A / June 27, 2012 / Comments Off

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…