April 2012 Archives

Unless you already have a buyer, such as a fellow franchisee, a key manager, or a family member, use a business broker when selling your franchise. Even if you have a buyer, use a business broker.

Why?

It is helpful to hire business broker to expand the universe of those interested in your business and to confirm that you are getting a fair deal.

The law of supply and demand applies to businesses as well. If you have more buyers (higher demand) you should be able to command a higher asking price.

Brokers have specialized knowledge and experience dealing with multiple transactions a year, where you may only sell a business once in your life or only a handful of times.

In addition, don't underestimate the value that a broker provides by acting as a third party intermediary. They will screen unqualified buyers and help the serious buyers understand your business better.

Broker's have processes to deal with many buyers and will be able to efficiently and effectively reach a much larger audience than you could alone.

Your ideal buyer may contact your broker about another business they have listed only to learn it is not a match or already sold. Access to that database of buyers is usually well worth the commission.

Talk to multiple brokers, and when you interview them be sure to obtain and check references.

Hiring a broker is an important step. The wrong broker can cost you valuable time

This is an intriguing snippet from the IFA's Small Business Lending Summit. I would have liked to seen the break-out of remodel and upgrade costs from Calderia. We are likely going to see remodel and upgrade "holidays" if the franchisees cannot get the financing.

The housing market is going to take probably a generation before it becomes accessible as an ATM again. I don't see what the new sources of collateral are, and where they are coming from.

The basic problem for franchisees is that many of them are not seeing their usual loyal customers - they have become price shoppers. Loans cannot fix that supply problem.

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This page is an archive of entries from April 2012 listed from newest to oldest.

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