If you’re like me, you trust but verify. Early on in life, we decide
if we see the world with a glass is half full or half empty view. It certainly
wouldn’t be hard to become jaded doing what I do for a living, but I am still a
glass is half full kind of gal until proven otherwise. Everyone has a sixth
sense about what is really going on in a situation, you just have to decide to
listen to the little voice that is trying to tell you something.
I have met with so many sellers over the years and I have heard
many stories about why they want to sell. Retirement is a favorite among
sellers and brokers, sometimes it’s true. If you meet with a seller that’s had
his business for 20 years and he’s at least in his sixties, then there’s a good
chance that he is being truthful. If he’s 35 and he’s owned the business 5
years, probably not.
I will tell you that people say all kinds of things but use
common sense when deciding if the business is for you or not and try not to get
wrapped up in the why unless you see red flags. A good example of a red flag is
when a business has transferred multiple times in short periods. 2 years is a
common time period for someone to see that it just isn’t profitable. If the
business transferred 3 times in 6 years, then that flag is neon red.
Last year I listed and sold a huge E-Commerce business. When I
originally spoke with them they said it was due to a partnership dissolution
and I wasn’t sure they were being honest, just because the business was so great
and growing every day. It turned out they were being 100% honest, these guys
had a fabulous business, but they hated each other and the business was
suffering daily. I sold it to a strategic buyer and they kept their respective
positions but no longer were forced to communicate directly with each other, a
win win.
Buyers need to balance the information. You should be aware of
what is really happening in the business but also at the same time, buying the
business for what you can bring to the party. Trust people, but verify the
information is accurate so you understand what you’re buying.
Deal with a professional get professional results
Christina Lazuric Woscoff
PH# 949-257-7823 or email us at
info@californiabusinessbrokers.com
www.californiabusinessbrokers.biz
