I guess most of you know from my posts over the years that I started and have owned my delco for going on 12 years and my wife and I also own a specialy retail store but that what I do for a living is business brokerage, commercial property sales and leasing.
For the last 6 weeks and over the next couple of months, I will be adding “Certified Business Appraiser” to my credentials. It has been an interesting process since I have been so close to small business. On the one hand, a business (or anything else for that matter) is worth what a willing and able seller and buyer can agree on and appraisal is intended to forecast that result. On the other hand, we have all seen examples of businesses that sold for silly numbers both too low due to lack of a buyer or financing or too high due an emotional, irrational or uninformed purchase.
That these oddball transactions take place does not change the fact that there are some pretty solid foundations for the value of a business. We see desperate sellers on the board from time to time, dreaming newbies or first timers, people who seem to have pulled a bunny out of a hat and opened or purchased for amazingly low prices or outrageously high ones.
Without seeing those operations, none of us really knows whether we are talking about 1st class buildout, location and equipment poised for 7 figure sales or yet another “midnight autoparts” version of the pizza business that gives the industry its sketchy reputation with lenders and vendors.
If you are looking to buy, sell, lease etc, get some professional advice! Contact a qualified person in your area. Take what you read on these forums with a grain of salt. Some of what is posted is great information, some of it is BS, some of it is just wrong.
Most advice is worth what you paid for it and ALL education is expensive!
For the last 6 weeks and over the next couple of months, I will be adding “Certified Business Appraiser” to my credentials. It has been an interesting process since I have been so close to small business. On the one hand, a business (or anything else for that matter) is worth what a willing and able seller and buyer can agree on and appraisal is intended to forecast that result. On the other hand, we have all seen examples of businesses that sold for silly numbers both too low due to lack of a buyer or financing or too high due an emotional, irrational or uninformed purchase.
That these oddball transactions take place does not change the fact that there are some pretty solid foundations for the value of a business. We see desperate sellers on the board from time to time, dreaming newbies or first timers, people who seem to have pulled a bunny out of a hat and opened or purchased for amazingly low prices or outrageously high ones.
Without seeing those operations, none of us really knows whether we are talking about 1st class buildout, location and equipment poised for 7 figure sales or yet another “midnight autoparts” version of the pizza business that gives the industry its sketchy reputation with lenders and vendors.
If you are looking to buy, sell, lease etc, get some professional advice! Contact a qualified person in your area. Take what you read on these forums with a grain of salt. Some of what is posted is great information, some of it is BS, some of it is just wrong.
Most advice is worth what you paid for it and ALL education is expensive!
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