Buying or Selling a Business with Mel Vaz

  Seller financing, a financing arrangement where the seller of a business provides financing to the buyer, is a common strategy in business sales transactions. This arrangement offers advantages for both parties involved but also comes with potential risks and drawbacks. In this article, we will delve into the advantages and disadvantages of seller financing in the sale of a business.   Advantages of Seller Financing:   Expanded Buyer Pool: Seller financing can attract a broader pool of potential buyers, including those who may face challenges securing traditional financing from banks or lending institutions. This can increase the likelihood of finding a suitable buyer for the business. When selling a business for $500K vs. $500K with $250K down, there are more buyers out there with $250K, than $500K. Additionally, every buyer would like to leverage their capital.  Even if they have $500K liquid, they would prefer to buy a business with $250K down and keep the other...

Embarking on an entrepreneurial journey is an exciting endeavor, and one of the crucial decisions an aspiring business owner must make is whether to start a new venture from the ground up or acquire an established business. Both options come with their own set of challenges and opportunities, but in this article, we will explore the benefits of buying an existing business as opposed to starting one from scratch.   Immediate Revenue and Cash Flow: One of the most significant advantages of buying an established business is the immediate access to revenue and cash flow. Unlike startups that often take time to generate income, an existing business already has a customer base, operational systems, and a proven track record. This allows the new owner to start making profits from day one, reducing the financial strain often associated with starting a new business.   Established Customer Base and Reputation: Acquiring an established business means inheriting an existing cu...

This is a great article by  Mary Friese http://www.allbusiness.com/entrepreneurship-true-job-security-happiness-102369-1.html

These are great points to keep in mind when seeking alternative start-up funds.  http://www.forbes.com/sites/amyfeldman/2016/01/28/the-tax-consequences-of-crowdfunding/#219b25c43d2b

1.  I want a transaction to make sense for both buyer and seller.  I recommend that all buyers carefully review our buyer registration form before signing anything.  Feel free to ask questions.  This reduces confusion and/or mis-communication for both of us.     2.  All of my seller clients will be asked to sign a business profile form in which they attest that all figures they have provided are true and accurate.  I cannot make any representations toward the accuracy of any figures because I do not own or run the business.   I expect sellers to be honest as it is in their best interest and that of the potential buyer.  Any inflation of numbers is to the detriment of all parties.  I highly recommend that all potential buyers use an accountant to help in reviewing financials for their own protection.   3.  Remember, some sellers keep better records than others, but most are doing their best to keep...