The Six Most Common Types of Buyers: Pros & Cons

Business owners considering selling should realize that they have many different types of prospective buyers. Today's prospective business buyers are more sophisticated and diverse than ever before. Let's take a closer look at the different types of prospective buyers and what you should know about each of them. 1. Family Members Family members often buy businesses from other family members. There are many reasons this happens. For example, a family member is already very familiar with the business. If a family member is treating the responsibility seriously and has prepared years in advance for the responsibility of owning the business, then selling to a family member can work. However, there are many potential problems when it comes to selling a business to a family member. One problem is that the family member simply lacks the cash to buy the business. This can cause disruptions. If the family member is unprepared to run the business, then the business can suffer a range of … [Read more...]

5 Things You Need to Know About Confidentiality Agreements

Confidentiality is a major concern in virtually every business. Quite often business owners become a little nervous when it comes time to sell their business; after all, business owners usually want to keep the fact that they are selling confidential. Yet, at the same time, business owners want to receive top-dollar for their businesses and sell that business as quickly as possible. In order to sell a business quickly and receive top-dollar, it is usually necessary to present the business to a range of prospects. The simple fact is that you can't sell a business without letting prospective buyers know that it is for sale. All of this adds up to one simple conclusion: you will need a confidentiality agreement when selling a business. Let's look at a few of the key points your confidentiality agreement should cover. Type of Negotiations First, your confidentiality agreement should cover whether or not the negotiations are open or secret and exactly what kind of information can be … [Read more...]

Oceanfront Restaurant Opportunity

Plymouth, MA - Harbourtown Plymouth development.  Two second floor restaurant spaces available in this proposed development.  Approximately 6,000 SF being offers with rooftop decks and patios.  Unbelievable opportunity to join the growing Plymouth waterfront! More info coming soon.... Email Adam Bauer at abauer@tbxllc.com for more information … [Read more...]

Financing the Business Sale: 6 Questions to Know

How the purchase of a business will be structured is something that must be dealt with early on in the selling process. The simple fact is that the financing of the sale of a business is too important to treat as an afterthought. The final structure of any sale will be the result of the negotiations between buyer and seller. In order for the sale to be completed in a satisfactory manner, it is vital that the seller answers six key questions: What is your lowest “rock bottom” price? It is important for sellers to know what is the lowest price they are willing to accept before they begin negotiations. Far too often, sellers have not determined what price is their “lowest price” and this can literally cause negotiations to fall apart. What are the tax consequences of the sale? Just as sellers often don't know what their lowest price is, it is also true that sellers often don't think about the tax consequences of the sale. Interest rates are no small matter. It is important to … [Read more...]

SOLD! The Cranberry Cottage Wareham, MA

  Wareham, MA - ***SOLD***The Business Exchange (TBX) is pleased to announce the sale of 246 Marion Rd. Wareham, Massachusetts d/b/a Cranberry Cottage.  Adam Bauer Principal at TBX exclusively arranged the sale.  TBX represented the sellers LAJOBR INC and procured the buyers Cranberry Cottage II Inc.  Financing was arranged by Charles Desimone of Cape Cod Cooperative with participation from Matt Collins of Granite Stated Development Corp an SBA lender.  Attorney Frederick Grosser handled the closing process. The new owners will continue the breakfast tradition at the Cranberry Cottage.  They will likely be adding a signature breakfast item that was once a thriving component to the prior business that preceded the Cranberry Cottage.  Keep an eye out!   … [Read more...]

“Dunbar House” Restaurant & Historic Home

Sandwich, MA - The Business Exchange (“TBX”) is pleased to offer for sale this historic tea room & restaurant business known as “The Dunbar House Restaurant & Tea Room”.  The property boasts a 2,625 sq. ft. +/- , restaurant property overlooking Shawme pond on a half acre lot.  In addition to the restaurant property there is a magnificent ten (10) room four (4) bedroom four (4) bath single family home that was formerly a Bed & Breakfast built circa 1750!  The present zoning would allow for a change of use if desired by future operators.  The home has been tastefully updated and offers over 3,000 sq. ft +/- .  Period details, country kitchen, meandering gardens all make this Historic Sandwich home & restaurant a once and lifetime offering. The property has only changed hands 5 times over that span hence the rare opportunity presented. The restaurant offers seating for 99 patrons including an additional 30 seats on the outdoor patio. The Dunbar winter hours are 11 am—5 … [Read more...]

Defining Goodwill

You may hear the word “goodwill” thrown around a lot, but what does it really mean? When it comes to selling a business, the term refers to all the effort that the seller put into a business over the year. Goodwill can be thought of as the difference between the various tangible assets that a business has and the overall purchase price. The M&A Dictionary defines goodwill in the following way, “An intangible fixed asset that is carried as an asset on the balance sheet, such as a recognizable company or product name or strong reputation. When one company pays more than the net book value for another, the former is typically paying for goodwill. Goodwill is often viewed as an approximation of the value of a company's brand names, reputation, or long-term relationships that cannot otherwise be represented financially.” Goodwill vs. Going-Concern Now, it is important not to confuse goodwill value with “going-concern value,” as the two are definitely not the same. Going-concern … [Read more...]

Barnstable County Liquor Store

Barnstable County, MA - Fantastic opportunity to add to your liquor store portfolio.  Located in growing plaza on major cape artery this store was established in 2012.  Approximately 5,000 SF ample parking.  22% profit margin, 2016 revenue $1.8M+! Extremely favorable rent terms only 2% of revenue ($3200 per month)! 2017 sales are already up by over 10%! Buyer's are not required to purchase the seller's inventory. Serious inquiries only. Asking $995,000 email Adam Bauer at abauer@tbxllc.com non disclosure and confidentiality agreements required. … [Read more...]

A Deeper Look at Seller Financing

Buying a business requires a good deal of capital or lender resources. The bottom line is that a large percentage of buyers don't have the necessary capital or lender resources to pay cash and that is where seller financing comes into play. The fact is that seller financing is quite common. In this article, we will take a deeper look at some of the key points to remember. Is Seller Financing a Good Idea? Many buyers feel that a seller's reluctance to provide seller financing is a “red flag.” The notion is that if a business is truly as good as the seller claims it to be, then providing financing shouldn't be a “scary” proposition. The truth is that this notion does carry some weight in reality. The primary reason that many sellers are reluctant to provide seller financing is that they are concerned that the buyer will be unsuccessful. This, of course, means that if the buyer fails to make payments, that the seller could be forced to take the business back or even forfeit the … [Read more...]

Cape Cod Mall Ice Cream & Smoothie Business

Hyannis, MA - Non franchise business opportunity in the Cape Cod Mall food court.  In addition to delicious frozen yogurt treats, you will find fruit smoothies, soft serve ice cream and more! Soft-serve ice cream, and milkshakes have always been popular rewards among kids and adults, but smoothies made from low-fat yogurts, ice creams and fresh fruits have also become so popular among consumers. They also have increased the variety of flavors and options for lovers of all things frozen & concoctions. Asking $75,000 Email Seana Gaherin at sgaherin@tbxllc.com for more info. … [Read more...]