Comments on: buying a small business, broker turned me down? http://www.businessbrokersguide.com/blog/buying-a-small-business-broker-turned-me-down/ Thu, 17 May 2012 09:01:23 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Brad http://www.businessbrokersguide.com/blog/buying-a-small-business-broker-turned-me-down/comment-page-1/#comment-311 Brad Sun, 15 Feb 2009 22:18:39 +0000 http://www.businessbrokersguide.com/blog/buying-a-small-business-broker-turned-me-down/#comment-311 Hi You did a great job with this blog. I loved s Broker Guide Hi You did a great job with this blog. I loved s Broker Guide

]]> By: Brad http://www.businessbrokersguide.com/blog/buying-a-small-business-broker-turned-me-down/comment-page-1/#comment-265 Brad Fri, 13 Feb 2009 10:17:54 +0000 http://www.businessbrokersguide.com/blog/buying-a-small-business-broker-turned-me-down/#comment-265 I think you did a great job writing s Broker Guide. Bravo. I think you did a great job writing s Broker Guide. Bravo.

]]> By: Brad http://www.businessbrokersguide.com/blog/buying-a-small-business-broker-turned-me-down/comment-page-1/#comment-264 Brad Thu, 12 Feb 2009 18:21:47 +0000 http://www.businessbrokersguide.com/blog/buying-a-small-business-broker-turned-me-down/#comment-264 s Broker Guide was interesting. You seem very knowledgeable in insurance broker chicago. s Broker Guide was interesting. You seem very knowledgeable in insurance broker chicago.

]]> By: Gem http://www.businessbrokersguide.com/blog/buying-a-small-business-broker-turned-me-down/comment-page-1/#comment-123 Gem Sun, 01 Feb 2009 19:33:58 +0000 http://www.businessbrokersguide.com/blog/buying-a-small-business-broker-turned-me-down/#comment-123 Banks are not lending money to anyone right now. Especially small business. We have a business that has been around over 25 years. We have a line of credit that we have had and made on-time payments on for over 6 years. Our loan officer is avoiding us and it looks like they are going to "call" the note. Even though we have never been one minute late on the payments AND have a co-signer worth over $6million. The broker is telling you the truth. If you find one that says differently, he is lying and you are going to lose your cash. Good luck Banks are not lending money to anyone right now. Especially small business.

We have a business that has been around over 25 years. We have a line of credit that we have had and made on-time payments on for over 6 years.

Our loan officer is avoiding us and it looks like they are going to “call” the note. Even though we have never been one minute late on the payments AND have a co-signer worth over $6million.

The broker is telling you the truth. If you find one that says differently, he is lying and you are going to lose your cash.

Good luck

]]> By: quizzard123 http://www.businessbrokersguide.com/blog/buying-a-small-business-broker-turned-me-down/comment-page-1/#comment-122 quizzard123 Sat, 31 Jan 2009 07:42:56 +0000 http://www.businessbrokersguide.com/blog/buying-a-small-business-broker-turned-me-down/#comment-122 The broker is trying to be realistic for you. You will not find a business selling for $185k which returns a $100 k net profit. You just won't, it would be worth closer to $500k-$1 million. If you DID have a business such as this, it obviously has little in the way of assets, but consists totally of 'goodwill'. Goodwill is the value of a business over and above it's actual physical assets. For a small business, that means actual good will, in other words the reputation and connections the owner has made over the years. If the seller was foolish enough to sell to you without a large down payment, he risks you screwing up his goodwill, and if you do, what does he have to repossess? It is VERY common for banks and other lenders to demand a much higher net worth before supporting a business. If nothing else, the cashflow of the company needs to be buttressed by personal wealth, or it become very unstable, working hand-to-mouth. so to speak, and will quickly fail. The primary cause of small business failures is lack of capitalization, lack of money to operate in other words. The broker is trying to be realistic for you.

You will not find a business selling for $185k which returns a $100 k net profit. You just won’t, it would be worth closer to $500k-$1 million.

If you DID have a business such as this, it obviously has little in the way of assets, but consists totally of ‘goodwill’. Goodwill is the value of a business over and above it’s actual physical assets. For a small business, that means actual good will, in other words the reputation and connections the owner has made over the years. If the seller was foolish enough to sell to you without a large down payment, he risks you screwing up his goodwill, and if you do, what does he have to repossess?

It is VERY common for banks and other lenders to demand a much higher net worth before supporting a business. If nothing else, the cashflow of the company needs to be buttressed by personal wealth, or it become very unstable, working hand-to-mouth. so to speak, and will quickly fail.

The primary cause of small business failures is lack of capitalization, lack of money to operate in other words.

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