Buyer and Seller : Be Ready for Sell Your Business With Due Diligence2. Customer Concentration:
This is included in all sorts of lists of concerns whether it's valuing, buying, or selling a
business. However, it is a serious issue. Companies with just one or two major customers
are at great risk. The loss of only one or two major customers could then impact the
company's very survival.
ThirdParty Approval :
Franchises may be a good Mergers and Acquisitions Business for Sale with good business
opportunity, but when it comes to selling, being a franchise may present a real obstacle.
The franchiser usually has the right to approve the buyer and may impose other
conditions such as an overhaul of the facility or a complete facelift. Franchisers may also
have the first right of refusal, which makes it more difficult to sell. Most buyers don't
want to compete with a franchiser and the more difficult the franchiser, the more likely
the buyer is to drop the deal.
Other factors that may impact the valuation are: ESOP ownership too many owners;
inventory too much or dated inventory can present a problem; and intangible assets
patents, copyrights, brand names, goodwill, etc. may have great value but can be very
difficult to quantify.
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