| First thing a
fictitious ad to reply to -
Established Sports Bar
This is a GREAT
turnkey sports bar for someone
interested in getting into the
bar business. We have an
established location with a
loyal and regular customer base.
Owner relocating and currently
considering reasonable offers.
Reply to this ad with a first
name and number so we can call
and disclose more or call us at
555 555-1212.
Your initial contact
does not matter either email (replying
to the ad) or call them. We suggest
emailing them to begin a physical chain
of information that the seller - or
broker- can not go back on later on.
With all of the fraud and illegal
practices being done - having a strong
body of information (evidence) only
protects you.
Start by calling or
emailing the contact on the ad. IF they
ask you to sign confidentiality
documents then GOOD FOR THEM and good
for you because the integrity of the
business is likely intact. Ask the
following FIVE questions...
1. Why they are
selling? - and make sure they give
you a clear and concise answer - and
probe. If they are retiring ask them
what their plans are. No matter the
reason probe for the full explanation.
If not comfortable then move on!
2. What is the
asking price? - even
if the asking price is posted ask again
- this is a great way to catch them in a
lie. And if they write the price then
say or "best offer" beware as this
business is almost surely distressed or
closed. If they will not provide you an
asking price then move on!
3. How long has it
been for sale to the public?
- a business for sale on the public
market has a shelf life of 6 months before sales
run dry! You need to be VERY leery of businesses
for sale by owners published in the
public view - customers, clients and
employees are likely moving on and the
competition is likely running with it.
4. Can you see the
financials? - unless this business
is openly published as being a "closed"
business then there is no reason that
they can't provide you their financials.
Even if the business has no profit the
financials can help you with more than
numbers such as proof of ownership and
the fact the business is operational. If
no financials then move on!
5. Do they have a
business valuation?
- EVERY motivated seller should have a
third part business market valuation
done to prove the value to you. It
protects and helps the owner and helps
and protects you by showing the concrete
facts about the financials! If they can
not demonstrate the value of their
business then do your own valuation or
move on! |
