FDM-April2019

Page 68

FOR SALE

Getting Real About Resales

A

by Diana Capirano Certified Franchise Consultant

s a specialist in franchise resales, I’ll go on record saying that you’re as likely to find a flawless resale as hit a mega-lotto jackpot. But people continue to search for the diamond in the rough. “I’m looking for a business with a motivated seller, with low investment/high return, excellent cash flow (mid-six digits), and seller financing.” Sound familiar? Newsflash: EVERYONE is looking for the same thing. Lightheartedly I respond, “Wow! That sounds great. I’ll take 10!” Many resales fall into the distressed category, something like buying a house with good bones but needing work and TLC. Premium resales may never even hit the open market because they sell internally (within the franchise system) or to personal/professional referral networks. Most great resales that hit

68

FranchiseDictionaryMagazine.com

the web portals come and go very quickly. Some business seekers who concentrate only on existing entities can search web portals as a full-time job for years, logging countless hours, only to get beat out and then feel beat up. I’m not saying this to discourage you from looking for resales, but to caution you to be realistic and consider using a reputable resale consultant who can inventively search for them and then help navigate and vet the opportunities (Part 2 of this article in next month’s issue). THREE MAJOR CONSIDERATIONS 1. Investment level: First, determine a comfortable investment level, the necessary profitability, and a desirable industry. Please understand that you will probably not get high cash flow from a low investment. Also,


Turn static files into dynamic content formats.

Create a flipbook

Articles inside

Low-risk, high reward

1min
page 56

Tune in to a great opportunity

1min
page 52

A franchise to feel good about

1min
page 54

Cover Story

2min
pages 48-49

Conserva Irrigation

1min
page 57

Renew Crew

1min
page 50

Take comfort

1min
page 82

Interview with David Banfield

1min
pages 70-71

Getting Real About Resales

3min
pages 68-69

Wrenching Decision

3min
pages 64-67

Growth Spurt

2min
pages 60-61

Handy and Hands-on

2min
pages 58-59

Hitting a Home Run

9min
pages 46-50, 52, 54, 56-57

Move over, guys

2min
pages 44-45

Why buy? Weigh everything in the franchise package

2min
pages 40-41

An innovator who runs her business with passion

1min
pages 36-37

Consider financing via your 401(k) even if your CPA advises against it

2min
pages 34-35

Special Legal Considerations for Home Services Franchisees

2min
pages 30-31

Franchisee of the Month

2min
pages 28-29

Here they Grow

1min
page 26

Flood Zone

1min
page 25

Cave Man

1min
page 22

SERVING THE INDUSTRY

1min
page 20

Rude Awakening

1min
page 20

Beyond the bottom line

1min
page 17
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.