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Are you looking to buy a business... check out Larry's Listing Spotlight...
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Inventory: A Key Component to the Business Sale

Written by Ralana D. Shelley, CBI March 28, 2011 Article 5 in the "Prepare Your Business For Sale: Everyday Business Issues" series... One of the most overlooked but important issues in the health of any business is inventory. Inventory plays a pivotal role throughout its entire lifecycle, from purchase to storage to sale. It is just as important how inventory is kept and sold as who it is bought from, how much is paid for it, and how much one can charge a customer for it. Below are three key issues to consider about inventory and how it affects the health and future sale of your business. Inventory Accounting... Once a business has purchased its inventory, it becomes important how that business is going to handle it. How quickly or slowly it is turned over can have a direct impact on business value... To include in the purchase price or not to include... Most businesses offered through an intermediary will clearly state up front whether inventory is included in the purchase price, or whether it is in addition to the price... Counting Inventory at Closing... There are basically two ways to count inventory before closing... Inventory is not so simple when considering its impact on the value of a business both while running it and while trying to sell it. It is certainly somethign to handle and track carefully, and prepare it you are thinking of selling your business now or in the future. to read the full article and learn more about inventory's impact... click here.

Check out... Former executives want to be their own boss

Laid-off office workers tired of rat race; seeking their own businesses with $100,000-plus income.

by Tanya Mannes
October 12, 2010
San Diego Union Tribune

As high-level corporate jobs dry up, some executives are embracing the idea of trading rush-hour traffic and hectic schedules - as well as steady paychecks - for a chance to be their own boss.

The economic collapse has eliminated millions of jobs, slashed pension programs and gutted home equity and stock portfolios, making the idea of self-reliance more attractive.

Peter Siegel, founder and chief executive of BizBen.com, a California business-for-sale website, is seeing a surge of former executives - many in their 40s, 50s and 60s - seeking a business with an adjusted net income of $100,000 or more.

To read the full article... click here.

Business For Sale market has flatlined...

BizBuySell.com has recently released its latest economic data for Third Quarter of 2010. The company's data, which tracks trends in the business-for-sale marketplace, suggests that the business-for-sale market has bottomed out, but a recovery will still be slow in coming.

The number of closed transactions reported to BizBuySell.com in Third Quarter 2010 was 1,117, exactly equal to 1,117 reported for this same time period a year ago.

These numbers indicate that the business-for-sale market has flat-lined, with earlier signs of recovery stalling out in the second half of this year. Although we do see a slight 1% increase compared to the 1,106 closed transactions reported for Q2 od 2010, the market is still down considerably from previous years...

The biggest problem remains a lack of available credit for small business acquisitions, which continues to make life tough for business brokers and business owners looking to sell.

To read the full article... click here.

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check out... Getting an SBA Loan: 5 Things You Need to Know

Getting an SBA Loan: 5 Things You Need to Know

Getting a business loan is tough -- especially these days. But the Small Business Administration can still be a great lending partner. How to cut through the red tape and secure an SBA loan.

Chasing a Small Business Administration loan these days is a little like going to a carnival and expecting to win one of those giant stuffed animals. It might happen, but the odds are probably against you. As Christine Reilly, the president of small business lending for CIT, points out, about a year ago, the federal government tinkered with the formula for getting an SBA loan, and for a brief shining time, even during the Great Recession, SBA loans were semi-easy to come by.

Of course, it's still possible to get an SBA loan -- Reilly is the first to admit it -- and it can be a great way to infuse your company with cash. But how can you navigate the red tape and make sure all the effort pays off? Here are five things you need to know.

• Know the lingo.
• Document everything.
• Got collateral?
• Do your homework. Seriously.
• You are not a risk taker

to read the full article … click here.

Buying a Business: 5 Things You Need to Know

Buying a existing business can be easier than starting one from scratch. How to find the right opportunity, raise enough money, and get a good price.

By Darren Dahl
With increasing signs that the economy is improving, and the credit markets beginning to loosen up again, the business-for-sale market is sure to see an uptick. In fact, the number of businesses sold during the first quarter of 2010 rose 6.3 percent over the fourth quarter of last year, according to BizBuySell, an online marketplace for business postings. Sometimes, buying an existing business can be a lot easier than starting one from scratch. What are the best ways to get started? Here are five things you need to know.

1. Know what kind of business is right for you.
2. Line up your financing ahead of time.
3. Assemble a team of professionals.
4. Place a value on the business.
5. Start looking and spread the word.

To read the full article click here...

Then, let's discuss...

SOLD ANOTHER GREAT RESTAURANT!

Congrats Kelsic Group on the purchase of the Danville Pizza King...

How To Get Business SBA Approved - Doing so as a seller can help make your business more attractive to buyers.

By Richard Diomo, Bizquest Business for Sale Blog

Question:How do I get my business SBA approved? It seems like doing so would help to move the sale of my business faster.

Answer:This is a great question and you should be commended for being proactive about the financing portion of selling your business. The process is actually quite simple: if you engage a business broker, this is something they can do on your behalf. If you are selling the business on your own, then you should contact a local Preferred SBA lender. They will provide you with a list of documents required to complete the pre-qualification process. These will generally include:

• The most recent three year's of company tax returns
• Accompanying P & L statements and Balance Sheets
• Your W2
• Recent interim statements
• Asset list

From this they will determine if, under the right deal terms, the buyer will qualify for the SBA program. Plus, there will be some additional conditions relative to the buyer qualifications. They will be able to determine how much they are prepared to lend, what amount the buyer will need as a down payment, what amount (if any) they may ask you, the seller, to finance, and the fees involved to complete a transaction.

Keep in mind that this step is only a pre-qualification and, like all lenders, they will have plenty of disclaimers. However, once you obtain a pre-qualification status, it will provide you with a huge advantage when advertising your business. Make certain that you do not make any claims to prospects about the financing. This is only an initial pre-qualification.

SOLD!