Thinking of buying a Franchise? Do Your Homework!

Thinking of acquiring a franchise?  You’ll want to do your homework.  It is said that buying a franchise allow new owners to be in business for themselves but not bythemselves. Most franchisers charge royalty fees to the franchisee for systems and operational support, marketing and oftentimes, product discounts. Franchises vary greatly in the depth and quality […] Read more »

Time to Buy a Business or (Is the Glass Half Full)?

As I am writing this morning, I am thinking about several retail businesses that have recently shut their doors, mostly due to the downturn in the economy.  I represented a few of them as a broker so I am aware of the details and reasons behind their closings.  The largest single reason is under capitalization […] Read more »

Ready to Sell Your Business? It’s All About EARNINGS!

Buyers buy earnings!  They look at and admire shop decor, operational functionality, great customer service, and a unique marketing plan, but they buy earnings!  Businesses are valued by a multiple of earnings so it makes sense to maximize your earnings, and multiply your selling price. So you are ready to sell your business and you […] Read more »

No Lease, No Business!!

An interesting thing happened on the way to a closing. We are 5 days away from finalizing a transaction for the sale of a small sandwich shop, and I get a call from the buyer… but I digress My seller’s lease was up at the end of February and he was ready to get out […] Read more »

EBITDA or What is The Basis for a Valuation of The Business?

I wrote last week that businesses are acquired for their earnings or their potential for earnings. And buyers look at earnings when establishing a price they will pay for the business. Typically this is a multiple of earnings. Last week I defined Seller’s Discretionary Earnings or SDE, a common measure used to assess the earnings […] Read more »

Seller’s Discretionary Earnings, What are they?

Earnings Defined, or How to Arrive at a Selling/Offering Price for the Business. Businesses are acquired for their earnings or their potential for earnings. And buyers look at earnings when establishing a price they will pay for the business. Typically this is a multiple of earnings. So what are earnings and how are they defined? […] Read more »

Fast Food Paradise!

Hamburgers, Pitas, subs, sandwichs & sushi.  What better way to feed your hungry customers and make money at the same time. Did you ever dream about starting a restaurant, making it your own, and with a name well known locally and a customer base that comes from distant places? How about spinning that idea off […] Read more »