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Permalink Reply by Ron Ingber on December 29, 2009 at 3:31pm

The "business for sale" ads I have seen on Craig's List provide relatively little information, and I have never seen any financial numbers in the ad. The ad should describe the type of business and general location, and provide an email address for inquiries. It is not unreasonable for you to ask how much money they have available toward purchase of the business, and how much additional funds are available for personal living expenses while they are running the business in the beginning.
If they don't want to tell you directly, offer to have their attorney contact your attorney (you do have an attorney, don't you?) so that all information is completely confidential.
If they won't (or can't) discuss resources, they are tire kickers, and not serious candidates to buy a business.
Of course, you want to make sure that all of your financial paperwork (including tax returns) are in order.

Ron, the Country Guy

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Permalink Reply by John P on December 29, 2009 at 5:20pm

DON'T put your business for sale on Craigslist. Use a business broker, have it evaluated for it's true worth, and look for a more serious clientele. Owners are too emotionally connected to their business, often over value and it can lead to a rather large headache. It's business, treat it as such.

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Permalink Reply by Alun Evans on December 29, 2009 at 5:41pm

I can only echo and endorse John's salient comments here. I have not soild through a broker, but have PURCHASED through a broker. For me, as a buyer, I would never use an online resource as (ahem...potentially dodgy) as craigslist to buy a business. The reverse should therefore also be clear- a serious seller would not sell online. Using a broker costs the seller, for sure, but it also pretty much means that the business should have a decent chance of being sold in a fairly quick time. Brokers have huge networks of potential buyers, they have resources to advertise a business. The Broker can also provide solid, and reliable financials to a potential bjuyer- something a buyer using an online site would have to rely on the seller to produce. Most importantly, if they can not sell the business...they do not get paid!!! An incentive in anyones books I would say.

John P said:

DON'T put your business for sale on Craigslist. Use a business broker, have it evaluated for it's true worth, and look for a more serious clientele. Owners are too emotionally connected to their business, often over value and it can lead to a rather large headache. It's business, treat it as such.

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Permalink Reply by Marshall Fuss on December 31, 2009 at 6:19pm

A few thoughts. What are you actually selling? Assets? The whole corporation/LLC? Have you discussed how to structure the sale with your accountant and lawyer?

Is the lease assignable and have long to run? Are the trademarks included (and do you have clear rights, if they are?)? Do you own the equipment free and clear of lenders? Be prepared to explain how your continuing to compete a block away will/will not impact the buyer.

And, yes, keep the conversation short until you've seen financials.

Hope this helps!

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