Reinhart Commercial agent, Jay Houghton, specializes in selling businesses. Some points to consider from his experience:
- Most businesses don’t have real estate and are on leased property
- The top two reasons owners want to sell are burn-out; which may occur during the first 5-7 yrs of the business, or retirement
- Businesses on average take six months to sell and it may take another 60 days to complete due diligence and paperwork
- Every business’s worth is based on it’s individual characteristics like assets, location, earnings, revenue, etc. There is no set magic formula to determine worth
The government’s Small Business Administration’s website has information about buying a business.
Another good resource is Richard Parker’s website and book, How to Buy a Good Business at a Great Price, these are guides for buying an Online, Retail, Restaurant, Gas Station business and more.
Jay has a very profitable Burger Restaurant and Bar listed for sale which is located adjacent to the University of Michigan’s main campus in the heart of student housing. A rare opportunity to purchase a business in this location with a Class C Liquor license. This is a busy student hangout. Owner is retiring.