mrfranchiseman

Once upon a time there was a business buyer who encountered sellers he could not deal with. Have you met anyone who fits one of these descriptions?

Admit it, we all have met one who fits one or two profiles below.

 

1. The beggar seller. Take this business please, I am sick of it, my wife hates it, I am burned out, make any reasonable offer just get me out of it. My books and records are a mess(like me), I owe lost of money all over town, I should never have been in business. I promise I will work for you for 30 days to teach you the business, for free, and I can see you will do much better than me..........(desperado!)

2. The Take it or Leave it seller. This is my price, I make XX dollars a year, you can trust me on that as I am a member of the Rotary club and the Chamber of Commerce, and I have been doing the same business for 20 years. I don't want to negotiate the price and do not like going back and forth.......(no bedside manner!) 

3. The dreamer seller. This is a solid business, I need one million dollars so I can retire in Tahiti, its yours. My accountant says I should get that price and I can then retire. You will have no issues, everyone will stay and help you run it....(retirement pricing!)

4. The regretting seller. I paid $400,000 for it two years ago and that's what I want for it. I should never have bought it as I did not do my proper due diligence, but that's what I priced it this time because my wife said I should not take a penny less........(he overpaid, so should you!)

5. The desperate seller. I have to sell because of my divorce, my health is suffering, I am running out of money, I have only a one year lease left and no options, sales are down because I am not paying much attention to it, but its a great business....(value dropping by the day!)

6. The skimmer seller. I show a profit of $100,000, but I need $600,000 for the business because I do not put all my sales into the business. $100,000 goes into my pocket. Clever tax planning right? I will show you what I do and how I do it, you can do the same or you can be stupid and show all the sales and pay taxes. Do what you want when it is yours......(Shady trader! what else is he hiding?)

7. The optimistic seller. Everything is great, sales are improving by 1% every year, don't worry about the competition we are the best, all customers know me and come to me, and I am sure they will come to you as we are the best in the market, you should have no problems , we have 360 days of sunshine in my business and no gloomy days, my employees never quit....(he always sees the glass as half full, even as the glass gets taller!)

8. Disorganized seller. I think my sales are up, so are my profits, the P&L is here somewhere. I will find my lease somewhere, and the inventory is about $20,000 and always has been for 20 years but I don't know exactly what it is today. I have all the figures in my head, don't worry I can tell you anything you want to know so you don't need to do due diligence........(his head will explode one day!)

9. Best in town seller. I know I am the best because people say so, and that has to be worth a lot of goodwill. Eventually that will translate into a 100% sales increase from today so you should buy this now while sales are low, then go out and market to all my loyal customers and cash in on what I cannot today. It is only a matter of time, and you can ask anyone in town about my business....(future seller!)

10. Cash only seller. Its got to be your cash only or from loan proceeds, that's why I priced the business so low. No, I will NOT take a seller note because how do I know you will not run the business to the ground and leave me hanging?.......(seller with no faith!)

11. Flexy Fixed price seller. MY price is $500,000, and I make $200,000 a year and I am not negotiable, unless you give me all cash and close escrow in 30 days; then I can discount it to $350,000, and don't call me after the sale as I will be retired on Tahiti. But that is an amazing discount I am offering I am sure you will agree.......(past life spent in an eastern bazaar!)

12. The everybody's dream seller. Finally one who understands the process!. The price is negotiable and I have it backed up with a valuation. My books and records are clean, available, and up to date. We can count the inventory when we do due diligence. Yes, I will entertain a seller note and standby after 30 days of free training, in case you need me. I am also available as a consultant. Would you mind if I drop in every week to say hello to everyone, and check on your progress and my devoted , life long employees? You can count on me to exchange ideas if you come across a difficult customer situation or an opportunity to scale up the business; I would like to smooth that process for you as a continuance of my goodwill if you need it. Of course I would like to meet the advisors on your buying team as well as your family; can we do dinner one day at my house?.........( DON'T WASTE TIME. IF IT PASSES DUE DILIGENCE BUY IT!!!)  

 

WANT TO FIND MORE WINNERS LIKE #12 ABOVE? call me about my search process where we only entertain winners who fit your buying profile and make sure you buy a business the right way, with the right deal structure and safely. It is worth protecting your life savings, is it not?

Call me for a consultation quote..........