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Buying an Existing Business Chapter 7 Chapter 7: Buying a Business For Sale
Key Questions to Consider  Before  Buying a Business ,[object Object],[object Object],[object Object],[object Object],Chapter 7: Buying a Business
Key Questions to Consider  Before  Buying a Business ,[object Object],[object Object],[object Object],Chapter 7: Buying a Business
Advantages of Buying a Business ,[object Object],[object Object],[object Object],[object Object],[object Object],Chapter 7: Buying a Business
Advantages of Buying a Business ,[object Object],[object Object],[object Object],[object Object],Chapter 7: Buying a Business (Continued)
Disadvantages of Buying a Business ,[object Object],[object Object],[object Object],[object Object],[object Object],Chapter 7: Buying a Business
Disadvantages of Buying a Business (Continued) ,[object Object],[object Object],[object Object],Chapter 7: Buying a Business
Valuing Accounts Receivable Age of Accounts (days)   Amount   Probability   of Collection   Value   0-30 31-60 61-90 91-120 121-150 151+   Total $40,000 $25,000 $14,000 $10,000 $7,000 $5,000   $101,000 . 95 .88 .70 .40 .25 .10 $38,000 $22,000 $9,800 $4,000 $1,750 $500   $76,050        
Disadvantages of Buying a Business (Continued) ,[object Object],[object Object],[object Object],Chapter 7: Buying a Business ,[object Object]
Acquiring a Business ,[object Object],[object Object],[object Object],[object Object],[object Object],Chapter 7: Buying a Business Kwik-Mart
Acquiring a Business ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Chapter 7: Buying a Business Kwik-Mart
Five Critical Areas for Analyzing an Existing Business ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Chapter 7: Buying a Business
The Legal Aspects of Buying a Business ,[object Object],Chapter 7: Buying a Business ,[object Object],[object Object]
The Legal Aspects of Buying a Business ,[object Object],[object Object],Chapter 7: Buying a Business
Determining the Value of a Business ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Chapter 7: Buying a Business
Understanding the Seller’s Side ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Chapter 7: Buying a Business
Understanding the Seller’s Side ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Chapter 7: Buying a Business ,[object Object],[object Object],[object Object]
The Five Ps of Negotiating. Preparation  - Examine the needs of both parties and all of the  relevant external factors affecting the negotiation before you sit  down to talk. Poise  - Remain calm during the negotiation.  Never raise your voice or lose your temper, even if the  situation gets difficult or emotional. It’s better to walk away and calm  down than to blow up and blow  the deal. Persuasiveness  - Know what your most important positions are, articulate them, and offer support for your position. Persistence  - Don’t give in at the first sign of resistance to your position, especially if it is an issue  that ranks high in your list of priorities.  Patience  - Don’t be in such a hurry to close the deal that you end up giving up much of what  you hoped to get. Impatience is a major weakness in  a negotiation.

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Chapter 7

  • 1. Buying an Existing Business Chapter 7 Chapter 7: Buying a Business For Sale
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  • 8. Valuing Accounts Receivable Age of Accounts (days)   Amount   Probability of Collection   Value   0-30 31-60 61-90 91-120 121-150 151+   Total $40,000 $25,000 $14,000 $10,000 $7,000 $5,000   $101,000 . 95 .88 .70 .40 .25 .10 $38,000 $22,000 $9,800 $4,000 $1,750 $500   $76,050        
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  • 18. The Five Ps of Negotiating. Preparation - Examine the needs of both parties and all of the relevant external factors affecting the negotiation before you sit down to talk. Poise - Remain calm during the negotiation. Never raise your voice or lose your temper, even if the situation gets difficult or emotional. It’s better to walk away and calm down than to blow up and blow the deal. Persuasiveness - Know what your most important positions are, articulate them, and offer support for your position. Persistence - Don’t give in at the first sign of resistance to your position, especially if it is an issue that ranks high in your list of priorities. Patience - Don’t be in such a hurry to close the deal that you end up giving up much of what you hoped to get. Impatience is a major weakness in a negotiation.

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