Brisbane Australia (PRWEB) October 30, 2009
Business Brokers are all too aware that on average 80% of small business buyers look at businesses for 18 months - and still don't buy. This means there are 4 buyers for every seller and the Broker wastes an enormous amount of time and effort on deals that don't go ahead.
Why is this? Why is it that ordinary Moms and Dads who have a dream of buying their small business or franchise and achieving the independence, security and satisfaction of doing things their own way end up backing out of deal after deal?
As Fitzgibbon shares, "I believe it's mainly Fear - Fear of being caught out by the seller because they know something the buyer doesn't, Fear of paying too much, Fear they may not make a success of it, Fear they may be falling into a trap or are being conned……….. and of course the biggie today, Fear of buying in a recession"
The book explains in simple language the steps necessary to properly check out a business and avoid the many traps. It then teaches the buyer by example how to build up the valuation of the assets and goodwill of the business layer by layer in a way that makes sense and is easily understood and takes into account the unique circumstances of each business. In other words it gives the buyer the confidence to overcome their fear.
Fitzgibbon says he has tested and refined his method over many years and on hundreds of small businesses and has now finally decided he is ready to share it with the world. "One of my motivations in not keeping this method to myself is that I have witnessed the frustration of so many business buyers who get their accountants to do the valuations for them. Apart from the truly exorbitant fees they are charged they have little to no idea how the valuation figure was arrived at and the accountants have difficulty in explaining it. The buyers would love to be able to do it themselves so at least they'd know everything has been checked out properly"
Fitzgibbon is frankly outspoken about the role of accountants in small business valuations. He controversially says that the reasons why accountants charge so much for valuing small family businesses is that they really don't want to do it because (unless they specialise in it) they themselves don't have the confidence they will get it right and they are afraid they will be sued if things go wrong. This usually means they advise against the business purchase as a safe way out.
Despite (or because) of this, he maintains that accountants will welcome his book and even recommend it to their clients as this will let them off the hook. Brian actually advises that buyers do all the legwork themselves and when they have found a business that suits them and have checked it out and valued it properly, they then take it to their accountant to look over what they have done and give their opinion. This allows the accountant to be objective because they are taking no responsibility for the valuation and therefore need only charge a much lower fee.
Fitzgibbon also believes that business brokers will look forward to buyers using this method as it will save them having to answer valuation questions already covered in the book
Brian is a Fellow of the Australian Society of CPA's, the author of "How to Value a Business and Buy it Without Fear" and a speaker on small business topics. He gained his initial experience in commerce and industry and in 1977 founded his own small business consultancy. He is now recognised as an authority in that field and has contributed many articles on various small business topics to internet, industry and professional magazines.
For a free chapter of "How to Value a Business and Buy it Without Fear" go to http://www.HowToValueBusiness.com . For other articles by Brian on buying a business go to his blog "The How to Buy a Business Information Center" at http://www.HowToBuyBusiness.com