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Advantages of Buying a Business for Sale by Owner

FSBO or Businesses ‘For Sale By Owner’

Today, a lot of people put their businesses up for sale. There are those who seek the assistance of a business broker. In hiring a business broker, you will be able to save time and effort. A business broker is no different than a realtor in the housing industry; they are paid by commission for handling a business transaction. While sellers benefit from businesses for sale by owner, it is the buyers who get even more benefits so long as they know what to look for in businesses for sale by owner. Buying a business is easy when you know where to look. Check out GlobalBX.com – they have over 40,000 business for sale listings and franchise opportunities. Best of all it’s a FREE site! 

Benefits of purchasing businesses for sale by owner

If you are interested to buy a business for sale by owner, the following are the benefits you can expect based on the different aspects of FSBO:

Selling price – FSBO deals are abundant in the market for many sellers do not prefer to hire the services of a business broker. Actual market value already includes sales commission. Take this for example – ABC Company is offered for sale at $250,000 with a 10 percent commission for the business broker. As such, the seller only sees $225,000 from that sale. While it is unlikely for the buyer to convince the seller to give in at that lowered price, he might actually ask the seller to split the difference. In the end, the buyer may just get lucky with a $12,500 savings, which is not bad at all.

Equipment – A business for sale by owner typically includes tools and equipment that are important to the operation of the business. It can be a big hassle for the buyer to spend additional money on replacing computers, printers, fixtures, and furniture. The buyer can ask the seller to give lower values on such items as these were purchased for some years already. In an FSBO transaction, the seller will most likely include all equipment in the deal, while the broker will insist that the buyer should pay for the fair-market price of every item included in a business for sale.

Inventory – With a business for sale by owner, the buyer can acquire items and equipment that are priced below market resale value, and the seller can get rid of equipment in his business as fast as possible.  

The financing – Not many buyers can purchase a business outright. Securing financing assistance is a must if resources are not enough to acquire a business. Financial assistance for purchasing a business usually comes from a credit union or from a bank. You may also use your retirement fund, borrow money from your relatives and friends, or look for a suitable business partner or co-investors. In the case of buying small businesses for sale by owner, you won’t have to go through the options mentioned above, because the best financial assistance provider you have is the seller of the business. Almost all FSBO businesses you can find these days offer seller financing. The rate is usually below the market’s current rate. The payment terms of small businesses for sale by owner are more lenient than what banks and credit institutions typically provide.  

The expertise – All business owners should be all knowing about their company, the industry, and the customers. Once they have decided to sell their business, a lot of sellers offer to stay for a while until the new owner adjusts to the process and management of the business. Ask the seller of the business for advice. The seller is the only person you can turn to when it comes to learning the basics and everyday works of the business. Asking for the seller’s advice can help you in successfully purchasing a business for sale by owner.

GlobalBX.com~GlobalBX~www.GlobalBX.com} provides a FREE business for sale exchange at www.GlobalBX.com connecting business buyers, sellers and lenders. Get free information on any businesses for sale in the US, Canada, UK, Australia and around the world. Click here to check out GlobalBX.com – a free business for sale listing exchange where you can buy or sell a business for free. You can also connect with over 307 lenders instantly and get loans for businesses and commercial real estate.