Businesses For Lease

A fist-time business buyer should consider several factors when choosing the company he or she will purchase. Location is very important. A location with plenty of traffic is a good start, but traffic is not necessarily the most important factor. Try to find a location that has no competing businesses nearby but does have complementary ones (for example, a shoe store next to a clothing store).

The First Step for Any Business Buyer

The first step that a prospective business buyer should take is to get an appraisal of the company he or she intends to purchase. Appraisals are done by an independent agent. That agent will generally look at one (or more) of five different types of valuation: historical earnings, future earnings, earnings before taxes and interest, assets and owner-operator compensation. With these statistics, the agent then determines the general worth of the business and thus sets the basic price. This price is not necessarily final. Other factors can determine how much a company will sell for, like how anxious the owner is to sell the company.

If the prospective buyer is working with a broker, he or she will have access (through the broker) to the International Business Brokers Association (IBBA) database. This is a comprehensive list of closely held companies for sale or lease. The broker will also likely supply the appraisal and aid in filing the necessary paperwork. First-time buyers can benefit from this level of support.

For more information on buying or leasing a business, contact RPI Commercial at 1-877-549-5210 or by email at info@rpicommercial.com.