Martin The Biz Broker

Ever wonder why two businesses with the same revenue can sell for very different prices. A lot of it comes down to whether you are selling a service or a product.

Service businesses get judged on how much the owner is needed day to day. If clients only trust you, or only you can do the specialized work, buyers see risk and price it in. Recurring contracts and a team that can run without you change that story fast.

Product businesses get judged more on the tangible side. Inventory, equipment, margins, and supplier relationships all factor into the number. A clean inventory count and healthy margins go a long way here.

The good news is both types of business can build value the same way. Reduce how much the business depends on you personally, keep clean financials, and build repeatable systems.

Helping owners figure out what their can actually tell them about their business worth is what I do every week, whether you run a service shop or a with a warehouse full of product in .

What matters more for your business, the people or the equipment? Comment below.

Here is something most business owners do not know until they are in the middle of it. A large share of businesses that go up for sale never actually close.

It usually is not because the business is bad. It is because the listing went up before the business was ready. Price too high, financials too messy, or the whole operation too dependent on the owner to hand off smoothly.

The good news is every one of those problems can be fixed. Clean up the books, document your processes, work on stepping back from daily operations, and price the business based on real numbers instead of a wish.

Businesses that go through that kind of prep before listing sell faster and for stronger prices, plain and simple.

If you own a business and selling is even a thought in the back of your mind, what is the one thing you think would be hardest to fix before listing? Comment below, happy to share some perspective.

One of the most overlooked parts of buying a business is working capital, and it trips up more buyers than almost anything else.

When you purchase a business, you are not just buying equipment and customer lists. You are also expected to leave enough cash, inventory, and receivables in the business to keep it running smoothly on day one under new ownership.

The tricky part is that this number, often called the working capital peg, gets negotiated and it is easy to get wrong if nobody looks closely at how it was calculated.

I have seen sellers unintentionally strip cash out of a business in the months leading up to a sale, which then creates a real problem at closing when the buyer expected a certain cushion and it is not there.

If you are buying a business, ask early how working capital is being calculated and who is responsible if the actual number comes in short.

Have you run into working capital surprises in a deal before? I would love to hear about it.

Had a conversation this week with a business owner who was surprised to learn brokers do not get paid unless the business actually closes. It is a common misconception.
Here is the short version. Business brokers work on commission, usually a percentage of the final sale price, paid at closing. For most small businesses that runs around 8 to 12 percent. Larger deals sometimes use a sliding scale where the rate drops as the price climbs.
The part that matters most for sellers is this. A good broker is financially motivated to get you the best price and terms, because their paycheck depends on the deal actually closing well.
If you are ever talking to a broker and cannot get a clear, simple answer on how they get paid, that is worth paying attention to.
Have you ever wondered what a broker actually does to earn that fee. Comment below, happy to walk through it.

Here is something I tell every business owner who mentions they might sell someday: your financials tell the story before you ever say a word to a buyer.
I have watched solid, profitable businesses lose value at the negotiating table simply because the books were disorganized. Personal expenses mixed in. Missing records. Numbers that did not match between the tax return and the internal P&L.
The good news is this is fixable, and it does not require you to be a numbers person. A few things that make the biggest difference: keeping three years of clean tax returns and P&Ls that actually match, separating any personal expenses out of the business, and reconciling your accounts every month instead of scrambling later.
Buyers pay for confidence. Clean, consistent financials build that confidence faster than almost anything else you can do to prepare for a sale.
If you own a business and selling is even a maybe someday, the earlier you start cleaning up your financial picture, the smoother and more profitable that eventual sale will be.
Have you looked at your business financials with a buyer's eyes lately? Comment below or message me if you want to talk through where to start.

If you have ever inquired about a business for sale, you have probably received a document called a CIM (Confidential Information Memorandum) or sometimes a CBR (Confidential Business Review). Same purpose, different name depending on the broker.
Think of it as the business's resume. It covers the history, the financials, the customers, the operations, and why the owner is selling. A good one gives you enough to decide if the opportunity is worth a phone call. A bad one leaves you with more questions than answers.
For sellers, this document is often the difference between generating serious interest and getting ignored. Buyers are usually looking at several opportunities at once, and the CIM is doing the first impression work before you ever speak with them.
I always tell clients the same thing. Spend real time getting this right before going to market. It pays off.
Have you ever reviewed a CIM for a business you were considering buying? What stood out to you, good or bad?

Thinking about buying a business but not sure where to even start looking?

Most first time buyers head straight to the big listing sites, and that is a reasonable first step. But here is something I tell every buyer I work with. The businesses sitting on public marketplaces for months are usually the ones other buyers already passed on.

The better opportunities often move through business brokers, industry contacts, and direct conversations with owners before they ever hit a public listing. If you are serious about buying, it pays to build relationships, not just bookmark websites.

A few places worth exploring: broker listings in your target industry, local trade associations, and even a direct conversation with an owner whose business you admire. You would be surprised how many owners have thought about selling and just have not told anyone yet.

What industry are you hoping to buy into? I would be glad to point you toward what is out there.

If a buyer looked closely at your business this week, what would they find?
That is really what due diligence is. A buyer verifying that the business is exactly what it looks like on paper.
The businesses that sell smoothly usually have a few things in common. Financials that match the tax returns. Steady or growing revenue. A spread of customers instead of one or two big ones. Systems that do not fall apart if the owner takes a month off.
The businesses that struggle to close usually have the opposite. Numbers that do not add up, one customer carrying the whole company, or an owner who is the business rather than someone who runs it.
The good news is almost all of this is fixable if you start early enough.
If you are a business owner in Southern California and curious what a buyer would flag in your business today, comment below or message me. Happy to give you an honest read.

Ever had a buyer offer you a great price for your business, but part of it is tied to how well the business performs after you leave? That is called an earnout.

An earnout means you get paid over time based on the business hitting certain revenue or profit targets after the sale closes. It can be a smart way to bridge a gap between what you think your business is worth and what a buyer is willing to pay today.

But it also means your final payday depends on decisions made by someone else, the new owner. That is why the details matter so much. Who controls operations during that period. How are the targets measured. What happens if the buyer changes how the business runs.

I have seen earnouts work beautifully and I have seen them turn into headaches. The difference almost always comes down to how clearly the terms were written before closing.

If you are thinking about selling and a buyer brings up an earnout, do not sign anything until you understand exactly how it protects you. Have you run into an earnout in your own deal or business? Comment below, I would love to hear about it.

Ever wonder what actually happens between someone deciding to buy a local business and the day they take over? It is not as fast as people think. From the time a buyer makes an offer, due diligence alone usually takes a month or two, then financing and closing add another month or two on top of that. If you have ever passed a shop or restaurant and thought about what it would take to buy something like it, the process is more structured than most people realize, and there is usually more time to plan than you would expect. I work as a business broker helping people in the area buy and sell businesses, always handled discreetly.