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Synergy Law Group LLC
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Due Diligence and Financial Consulting
Willard Michlin

Nationwide Listings For Buying And Selling A Businesses

"Buy or Sell Locally - Advertise Nationally"

Buy a Business

Finding a right business and business services professionals is always challenging to the buyer. All business buyers are interested to buy a business which have more cash flow and are profitable. Bizworldusa is an interactive website offering a business for sale advertisement; a prospective buyer can find desired businesses which are available for sale. You can search with different criteria such as keyword, geo graphical, price, and type of business etc. Majority of business for sale advertisement have sufficient information with audio clips and video clips to narrow down your search and that will help you to find a find a good business.

We are also offering buyer resource column, broker directory, franchise directory, and business intermediary professional’s directory which may help you or assist you for your business requirements. Bizworldusa making available of some model business documents, flow charts, changing of the ownership and other business related subjects, which may help to you find right solutions for your business needs. Our legal and friendly business associates has publishing a blogs / articles for the benefit of the business buyer, a prospective buyer can contact them further if they desired to get a help from them.

Bizworldusa is a user friendly web portal with 24/7 accessibility that allows you to navigate and search for the business for sale advertisements, franchise opportunities and professional business services. We think that Bizworldusa is the best business web portal as it has excellent tools and allows you to get maximum benefit for your time.

If you need assistance, please contact us on 415-234-8833, or email us at support@bizworldldusa.com.

Click On Any Question To Get It's Answer.
Why are businesses for sale?
Any person or entity who owns a business can sell the business for several reasons, such as:
  • Retirement of the owner
  • Major health issues
  • Partnership disputes
  • Family relocation
  • Burned out owner
  • Negative cash flow
  • Unable to manage
  • Looking for a better opportunity
  • Local law changes / Zoning or Area changes
  • Changes in the neighborhood
  • License violations
  • Landlord problems
  • Lease problems
  • Employee problems
  • Unable to compete with competitors
  • New similar business built in the neighborhood
  • Bad location

Since there are so many possible reasons that why a business may be listed for sale, the prospective buyer not only has to evaluate the financial situation of the business, but also must understand why the business was listed for sale. This process will help the buyer evaluate the possible risk of buying the business.
When can I buy a Business?
There is no time frame or age to buy a business. Purchasing of a business is a personal or family decision such as when to buy, where to buy, why to buy etc. However many business purchase analysis reports show that most business buyers have some kind of working experience with or exposure to some type of business similar to the business that was purchased.
Why should I buy a business?
Buying a business can lead to financial freedom. Owing a business is a one of the best ways to achieve financial security. You will operate the business according your ideas, and that may bring a cash flow to achieve or fulfill your dreams.

The following are the commonest reasons people buy a businesses:

  • To Make Money
  • To work for your self
  • To control your financial situation
  • To leverage your skills and abilities
  • To provide an employment opportunity
  • To have an estate to pass on to your heirs

Business success has many components. One of the keys of success is Pride of Ownerships. A successful business owner is happy when business operating successfully. Cash flow is very important whether you run the business as a sole proprietor or have employees. The chosen business must have a positive cash flow as such cash flow must be sufficient to pay all your current bills and provide income for yourself.
What is the best business to own?
Beauty is in the eye of the beholder. A case study shows that there are specific businesses that are more successful than others - even in the same industry. Most of the prospective Buyers want to own a profitable and well-managed business in the business industry that holds a personal interest for them. On the other hand, some prospective Buyers may look for opportunities that offer turnaround potential, where they can apply their special skills. Your financial advisors / brokers can help you to choose a business that matches your interest and abilities.
What kind of business can I buy?
You can buy almost any business that is for sale. However the prospective buyer should only consider businesses that he or she can feel comfortable owning and operating. You must also consider how much time and effort you are willing to contribute to the business you are considering purchasing. You should also consider the amount of required investment, your risk tolerance for the business, nature of the business, viability of the business, rate of returns, and your experience in this type of business etc.
Do I need to discuss with my family members before buying a business?
The first and foremost step is to talk with your family members and discuss why you are planning to buy a business. Family approval can also bring the family support to help to run the business. Your family members may also have new ideas for your business which could lead to increased cash flow.
Do I need advice from the professionals before buying a business?
It is always to be good idea to talk with your financial advisers such Attorney’s / Financial Planner/ CPA etc regarding the purchase of business. They can evaluate your financial needs and also they may be able to help to find available cash sources needed to buy a business. Your advisers can also point out any areas of concern about the business you are considering purchasing. Professional advice should make you more comfortable and confidence in your decision to buy a business. .
Can I start the Business rather than buying an existing business?
Yes, you can and you have every right to start a new business. However in order to start the business you need to identify the location, get a master lease, apply for the Permits, apply for the licenses, and enough cash to improve the premises. It takes anywhere between 3 to 6 months time. In some cases you may not get all the permits and licenses as government entities are selective and zoning or area restrictions may apply. A newly opened business requires 8 to 12 moths or even more to establish good sales, whereas an existing business has a proven track record. The failure rate in small business is largely in the start-up phase. Existing businesses have demonstrated that there is a need for that products or services in a particular area or locality.

Also financing is one of the key factors. Financial institutions are reluctant to lend to a new business as there is a higher risk involved. An existing business has a proven track record that a financial institution can you use to approve lending decision.
Do I need business broker services to buy a business?
Brokers are Qualified and Licensed Persons / Entities who are specialized / authorized to conduct the buy / sell/ financial transactions. They conduct the business transactions very professionally and legally. They can provide / assist with all kinds of services such as selection of the bushiness, writing the contract, helping provide the requested information from the seller or other broker, getting the licenses and permits, providing the right place to complete the transactions to protect your funds, transferring the business by coordinating with all parties etc.

Brokers are the excellent source of information about the businesses as they are familiar with markets, can advice about the trends, pricing, local area changes, etc
Which Business Broker should select?
It is always to good idea to hire brokers who have specialized in the particular type of business sale and also preferably a local broker who can have more knowledge on the local business sales and local market trend. Read the profile of the broker, read and review his works and public comments from his customers. You can also check with government authorities to see about the license status. Once you narrow the list of possible brokers, talk with them and make your selection. Before signing any documents get the copy of the license and E&O insurance. Also make sure you always get copies of all signed documents.
Do I need an Attorney?
In realty you many not; however it is always good to get an opinion from your attorney for all contracts, such a lease, franchise agreements, oil supply contracts, indemnity contracts, assuming the notes, seller carry notes, reviewing of CC&R etc. This service could cost some money however their opinion can help you avoid future problems and keep you more confident and comfortable in buying a business. The attorney you hire should specialize in business contracts.
Do I need a CPA / Accountant?
Unless you feel you are capable to review the seller’s financial information, you should hire a CPA. Your CPA/ Accountant can review the seller’s Federal Tax, State Tax, Local Tax, VAT, UST, other taxes, Invoices, balance sheets, profit and loss statements, point of sale reports, etc. This service will cost some money however their opinion/ review will tell the profitability and risk of the business. This gives an assurance on the business cash flow and also gives the value of the business.
What is the Business worth and what is the difference between value and worth?
Both are closer or inter linked relation but both have different definitions. The Business worth is a market value of the business given by the Appraiser / Broker Price Opinions / Other Valuation professionals based on the combination of Tangible and Non Tangible assets. Value is the income generated by the particular business without considering the fixed assets. Surprisingly in the market it is very common to see some of businesses value is more than worth and vice versa.
What should I do once I like the business?
If you have broker, ask him to write an offer with all of your conditions and submitted to the seller with all necessary documents.

Most offers contain following documents:

  • Offer letter / contract/ purchase agreement
  • Proof of the funds for the down payment
  • Buyer CV/ Resume
  • Pre Approval Letter if bank financing involved
  • EMD Check
What is the FMV (Fair Market Value) ?
It is the value of the business in the current market. To know more about the FMV, CASH FLOW, VALUATIONS, WORTH, please read the business valuation column where you can obtain detailed information.
What is the confidential agreement (CA /NDA / SA/ CDA/ PIA /CA) and why should I sign?
This legal mutual contract creates a confidential relation between the two or more parties / entities/ or both to exchange the confidential materials, knowledge, business trades, and secrets etc. This protects all parties for misuse of the received non public information.

Some brokers use a non disclosure agreement (NDA), which is similar to a Confidential Agreement (CA)/ Confidential Disclosure Agreement (CDC) / Proprietary Information Agreement (PIA), or Secrecy Agreement (SA).
Why should I sign NDA / CA etc?
These are the common reasons why the sellers / Brokers want to sign the NDA/ CA/ SA/ PIA etc.

  • To prevent misuse of Business Information
  • To see the seriousness of the Buyer
  • To avoid harm to the business being sold
  • To avoid losing employees
  • To prevent information being provided to the competitors of the business being sold
  • To avoid general disruption caused by uncertainty
  • To give consent and authorization so buyer can perform due diligence using the seller information
What can I do once I sign the NDA / CA etc?
  • Contact the Broker /seller from time to time for all necessary information
  • Arrange series of meetings with owners in the presence of the Broker / Mediators and clarify each and every item pertaining or related to the Business
  • Get experts opinions and reviews on the Business
  • Work on Good Faith Estimate
  • Respect the Seller and his confidentially
What are the things that I cannot do once I sign the NDA / CA?
  • Talk with employees, clients, vendors, or competitors without written consent and approval from the Seller or Sellers Representative such a Broker/ Attorney
  • Visit the store in the absence of the seller or seller representative
  • Disclose the fact that the business is for sale except with professional advisors.
  • Contact the owner directly without consent and approval of the Broker.
  • Waste time As Time is of the Essence
What is meant by DD (Due Diligence)?
An investigation or audit by the buyer / buyer representative. Due diligence serves to confirm all material facts in regards to a sale. This a systematic and professional investigation process which includes both quantitative information, such as daily sales, monthly sales reports, invoices, paid in, paid outs, monthly, quarterly years taxes, of local, sales, vat, block, state, federal and other related tax data and qualitative information, such as an assessment of the existing management, operations, existing licenses, permits, violations, zonal changes, lease , etc. This is a process of acquiring and analyzing information by buyer or buyer’s agent and deciding whether or not to proceed with a proposed business purchase transaction.
What are the adverse signals on DD. (Due Diligence)?
  • Hiding key information.
  • Limited or No access to information which is vital to make the decision
  • Unclear or Unacceptable explanations for the delay in providing necessary documentation
  • Misleading or false information / Documentation
  • Not showing the books / licenses/ copies etc.
  • Uncooperative seller with No Good Faith Estimate work.
What should I do if I see the adverse signals while I am doing DD. (Due Diligence)?
  • Notify the seller / Broker
  • Ask your representative in a timely manner for all important documents
  • Increase the time frame for the due diligence procedures to ensure a realistic assessment of the business.
  • Ask for additional information to fully analyze the business and find out the extent of the risk of the business
  • Arrange a meeting with the owner in the presence of the Broker / Representative to clarify all supplied or missing information
  • Get an experts opinion / Third Party verification / Audit on the Business
What should I do if I finish due diligence and want to buy a business?
As per your contract you have to open an escrow and deposit the funds as per the contract. Now apply for the license and permits as per the business requirements and coordinate with all person concerning the business such as appraiser, attorney, lender, cpa etc. Once every thing set, the escrow will do all necessary paper work to transfer the ownership to your name. As time is of the essence all have to work in a timely manner to close the escrow.
What is the EBITDA?
EBITDA is Earnings before Interest, Taxes, Depreciation and Amortization
What are the DE /SDE?
A common word used in the business industry which means Discretionary Earning (DE) or Seller Discretionary (SDE) which is an estimate of the total financial benefits of a full time Owner Operated Business on an annual basis. It can also call as Cash Flow (CF), Adjusted Cash Flow (ACF), Owner Benefit (OB), Owner Profits (OP) Recast Earnings (RE) or Normalized Earnings (NE).Annual Earnings (AE). This is an important factor used by the Seller /Broker / Appraiser for the valuation of the business.
What is financing and how many types are available in the market?
This is an amount of money required to buy / acquire the business Owner ship. Currently there are two types are available in the market.

Seller financing is usually the best, fastest and easiest to obtain. It also tells the Buyer that the seller has confidence in the business. There are no loan fees and the interest rate is usually higher than the bank rates and the term of the loan is often shorter. Seller carry notes are the fastest way to close a business escrow and businesses closed in this manner tend to be successful.

Banks/ Financial Institutions will loan / lend money on businesses that show a strong earnings history on the tax returns. They require a lot of documentations and the payment of upfront fees. In recent years, the financial institutional may ask additional collateral such as a real property in addition to business assets collateral. It is time consuming procedure but the financial institutions will investigate more than the buyer to assess the risk of the business. Longer loan term and lower interest rate are the advantages.
Do I need to keep the Book Keeper/ Accountant?
The most importance thing to the business owner is bookkeeping. This not only tells about your business track record; you can also check or verify at any time to know your business direction. There is no law that requires a business owner should to have a bookkeeper or accountant. That is up to the business owner discretion. Based on the market survey, the majority of successful businesses have bookkeepers / accountants. They are highly professional; maintain record of sales, invoices, profit and loss, employee payroll, inventory track, all expense bills, etc. It is very important for any business to have accurate records. They can also represent you for all kinds of problems: also these records are needed to file your tax returns (federal, state, local, ust, vat, sales tax etc). Records are necessary to get credits from the vendors or loans from lending institutions. If you ever plan to sell your business, you will need the records to get FMV.
How can I run my business profitable and successfully?
There is no special way to run your business in a profitable manner. However, the world business market analysis says there few common things that influence the success of your business.

Prepare a business plan and update it frequently.

Study the market trends and your competitors business. Make adjustments to your business based on your findings.

Most of the small businesses will be successful because of owner involvement. Spend some time each day to review your business operational methods and adopt changes as needed.

Attract customers with well trained employees and maintain a clean and attractive business premises. Treat the clients with respect and make them feel comfortable. Friendly customers are the repeat customers that all business needs to prosper
What are the common reasons for the failure of the business?
There are many reasons for the failure of the businesses; however these are a few the most common reasons:

  • Overpaid for the business: Poor business analysis before taking over the business.
  • Improper management
  • Bad customer service
  • Lack of right products
  • Change in the neighborhood
  • License violations
  • Outdated products
  • Lack of marketing
  • Unsafe environment
What is the Escrow and why should I use it?
Escrow companies are licensed neutral third parties that change the ownership. Sometimes they may either attorney/ broker, who can conduct the escrow services. They are familiar with all local laws, state laws, and they coordinate with all parties involved in the transactions to close the sale. Escrow service cost money; however escrow protects all parties and gives piece of mind.
How much down payment will I need to buy a business?
Down payment is the amount of the hard money / cash investment or injection by you in order to buy / get the ownership of the business. This amount varies from transaction to transaction and the balance of purchase price is a loan from a financial institution or the seller. Case study shows that the down payment amount usually be 20 to 40% of the sale price.
Do I need to pre qualify to buy the business?
It always good to pre qualify with a bank or other financial institution. Every seller wants to see that the buyer is serious. You will be reviewed by the financial institution and it will determine the maximum amount that they can lend to you. That information is necessary, so that you only look for the business that you can afford.
Some sellers or brokers are not responding my calls or emails?
  • Most of the sellers or brokers will return your calls or emails but here are few common reasons why they did not call you back.
  • Maybe you did not fax or send an NDA
  • Maybe they are unavailable for some reason
  • Maybe you did not you give correct call back number
  • Maybe your requested information is already on the web
  • Maybe your information request is not clear
How can I get more information on the buying business?
To get further information regarding the purchase of business and related services please read our buyer resource column where you will get detailed information regarding buying a business. Also you can contact us by email at support@bizoworldusa.com. We can ask one of the Free Business Professional Advisors who lives in you area to contact you.
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