Biggest Myths about Selling Businesses
While containing a lot of humor, article exposes ten timeless “fairy tales” about selling a business. Some of these myths sound reasonable, but experience tells us otherwise. This article will give you unbiased reasoning that will help you separate the truth from fiction.
1) Foreign Visa buyers will overpay with buckets of cash.
2) Businesses that do not (generate positive) cash flow are still worth a multiple or a percentage of gross.
3) Strategic buyers pay more because they will have synergies.
4) There is conventional financing for business acquisitions beyond SBA guaranteed loans.
5) This business is 100% absentee.
6) I am a part-time business broker and make lots of money.
7) My backers will give me the money when I find the right business.
8) Assets alone can make a business more valuable.
9) I’ve been in business brokerage for years and I have seen everything!
10) Unreported cash doesn’t count toward valuation.
To read the entire article and the complete exposure of these myths, click: Biggest Myths about Selling Businesses.
The Summit Acquisitions Group — Business Brokers and M&A Advisors — specializes in the sale, appraisal, and financing of privately owned companies ranging in valuation from $750,000 to $25,000,000. Contact their offices in Atlanta, GA or Charlotte, NC for a free consultation.