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Entries in business valuation (7)

Thursday
22Oct2009

How Much is my Business Worth?

DateThursday, October 22, 2009 at 10:43AM

The California Association of Business Brokers (CABB- a non profit trade organization) says if a small business owner is looking to sell their business but is waiting for the economy to turn around, use this time to start preparing. One of the most vital steps in this process is to understand what the business is worth.

Ron Hottes, president of CABB and of several Business Team Business Brokerages says that a business broker’s opinion of value can provide small business owners with an objective view of what a business is worth and is an important piece in determining the asking price. “A business broker’s opinion of value gives you a realistic starting point to work from and can give small business owners direction when determining the right time to sell.”

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AuthorBusinessesForSale.com Staff | Comment3 Comments |
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Thursday
16Jul2009

Business Valuation - Auto Dealerships

DateThursday, July 16, 2009 at 12:18PM

From Forbes: How to value an auto dealership

The global recession and credit crunch have been devastating for the U.S. auto industry. Just a few years ago, automakers moved 14 million to 15 million vehicles a year; now that number is an anemic 9.5 million, roughly the same as in the early 1980s. Result: major job losses in Detroit, government invention and a massive rationalizing of the supply chain.

Auto dealers collectively pull in $400 billion in revenue - making autos still the largest retail sector in the U.S - but that pile is getting smaller. According to IBIS World, the number of auto dealerships is expected to contract by 19%, to 17,582, this year vs. 2008.

Read the full article here.

AuthorBusinessesForSale.com Staff | CommentPost a Comment |
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Tuesday
19May2009

Should you buy a business now?

DateTuesday, May 19, 2009 at 6:09AM

The answer is a resounding yes! If you have cash and have the ability to work a business for a small return, then buy now!

I know...you think this is self serving. The business broker wants you to buy a business. While that is absolutely true, I am giving my own family members this timely advice to jump into the entrepreneurship pool.

Business valuations are down. Valuation multiples and the income used in the calculations are at historic lows. We will all be looking back at this time and remark "I should have bought that business I always wanted in 2009."

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AuthorAndrew Cagnetta | CommentPost a Comment |
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Monday
18May2009

May 2009: State of the Market

DateMonday, May 18, 2009 at 11:09AM

The market of buying and selling companies fell off a cliff during the fourth quarter of 2008. The blame is widespread; lack of financing, investors losing their capital in the marketplace, business revenues declining, etc. The fact remains the market had a radical change in 2008, and it has continued into the first half of 2009.

If you are a medical company, or one that supplies to the government, you were probably not affected by any of these factors to a large degree. Your company can still be sold for the valuations afforded businesses in 2007-2008, and your buyers can still get funding. But for the other 90% of small businesses, you are in a different world.

Is there a Market?

There is good news and bad news. First the good news – the need for some to buy, and others to sell, small businesses has not disappeared, and if anything is growing since more parties are entering into it on both sides of that equation. The marketplace is not dead, and will never be.

The effect that the Baby Boomers will have on the marketplace has yet to materialize, but be sure that it will. The first Baby Boomer turned 60 in 2006. It is estimated that 54% of the Baby Boomers own their own business. With the number of Baby Boomers at somewhere around 80 million, that is a lot of business owners that will retire over the next 20 years.

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AuthorKen Ducey | CommentPost a Comment |
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Friday
01May2009

Buy a Business for $1

DateFriday, May 1, 2009 at 7:31AM

 

From Wall Street Journal Blogs: Would you buy a business for $1?

Thinking of buying a business? Not in this market? How about for $1?

That’s the asking price for an appliance store in Missouri. The current owner says he has plans to go back to school and he runs two other businesses. He’s simply too busy, he says. (No word on how much the recession has affected sales.) So for $1, you can start hawking washing machines and refrigerators. You take over the $3,300 monthly lease.

The number of businesses sold and the prices paid by buyers dropped dramatically in the first quarter of 2009. Interested buyers have less cash and face tough borrowing standards.

That said, it's a buyer's market out there, but those selling businesses can still give themselves the best possible chance of a successful sale.

Read the full article here.

AuthorBusinessesForSale.com Staff | CommentPost a Comment |
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