The Upstart Guide to Buying, Valuing, and Selling Your Business

by Gabehart, Scott

• ISBN13: 9781574100877
• ISBN10: 1574100874
• Edition: Disk
• Format: Paperback
• Copyright: 1997-10-01
• Publisher: Dearborn Trade Pub

Summary

A comprehensive guide covering the top three critical issues every business owner faces, this book ensures that all parties understand each other's needs, thus clarifying a complex process and opening the door to successful negotiations. The volume includes an extensive stand-alone glossary of relevant terms and concepts, as well as comprehensive lists of business opportunity sources, contact lists, and reference materials. The disk contains all the forms from the book.

Table of Contents

List of Figures	vi	(2)
Foreword	viii	(2)
Preface/Acknowledgments	x	(2)
About the Author	xii
Chapter 1 Choosing the Right Business	1	(28)
Self-Assessment Questions	1	(3)
Start-Up Businesses	4	(7)
Franchises	11	(2)
Due Diligence Procedures for Franchises	13	(4)
Relocatable Businesses	17	(1)
Business Categories	18	(9)
Why Businesses Fail	27	(2)
Chapter 2 Using Professionals	29	(25)
Business Brokers	29	(2)
Broker Interview Questionnaire	31	(8)
The Listing Contract	39	(2)
Accountants	41	(1)
Attorneys	41	(2)
Escrow Companies	43	(2)
Business Appraisers	45	(1)
Sample Forms	46	(8)
Chapter 3 The Buying Process	54	(10)
Step 1: Decide to Buy	55	(1)
Step 2: Choose the Type, Category, and Size of Desired Business	55	(3)
Step 3: Interview and Select Professional Team	58	(1)
Step 4: Locate and Preliminarily Investigate Opportunities	58	(6)
Chapter 4 Preparing Offers or Letters of Intent	64	(60)
Step 5: Write Offer or Letter of Intent	64	(3)
Stock versus Asset Sale	67	(12)
Price, Down Payment, and Repayment Terms	79	(1)
Promissory Note, Bill of Sale, and Chattel Security Agreement	80	(12)
Contents of Standard Purchase Offer	92	(29)
Escrow Documents	121	(3)
Chapter 5 The Purchase Agreement	124	(12)
Sample Purchase Contract	124	(12)
Chapter 6 Final Negotiations and Due Diligence	136	(24)
Step 6: Conclude Negotiations	136	(1)
Deal-Breakers	137	(8)
Step 7: Perform Comprehensive Due Diligence	145	(3)
Business Evaluation Procedures	148	(12)
Chapter 7 Addressing Pre-Closing and Transition Issues	160	(29)
Step 8: Address Pre-Closing Issues	160	(8)
Step 9: Orchestrate Successful Closing	168	(5)
Step 10: Deal with Transition Issues	173	(16)
Chapter 8 Introduction to Business Valuation Techniques	189	(6)
Concepts of Value	190	(3)
Valuation Categories	193	(2)
Chapter 9 Review of Valuation Techniques	195	(26)
Cash Flow-Based Methods	196	(22)
Asset-Based Methods	218	(2)
Revenue-Based Methods	220	(1)
Chapter 10 Market Comps and Rules of Thumb	221	(11)
Market Comparables	221	(4)
Rules of Thumb	225	(7)
Chapter 11 Valuation Analysis	232	(11)
Excess Earnings Method	234	(2)
Rules of Thumb	236	(1)
Capitalization of Earnings Method	237	(1)
Ability to Pay Method	238	(1)
Discounted Cash Flow Method	239	(2)
Adjusted Book Value Approaches	241	(1)
Conclusion	242	(1)
Chapter 12 Selling Your Business: The Basics	243	(14)
Preparing for Selling Your Business	244	(13)
Chapter 13 Selling Your Business: Key Contractual Issues	257	(20)
Stock versus Asset Sale	257	(6)
Important Contract Provisions	263	(9)
Closing	272	(5)
Chapter 14 Financing Issues	277	(20)
Debt Financing	278	(2)
Equity Financing	280	(9)
Creative Financing	289	(8)
Appendix A: Present Value Interest Factors	297	(3)
Appendix B: Useful Web Sites for Buying, Valuing, and Selling Businesses	300	(2)
Glossary	302	(9)
Bibliography and Recommended Reading	311	(4)
Index	315	(7)
How to Install and Use the Software	322