Ready To Quit Your Job?
Is now the right time for you to buy a business?
Use your 401k tax deferred plan to buy a business, learn more.
When does it make good sense to quit your job and use your retirement plan fund to buy a business?
This is a question that many employees ask themselves on a regular basis.
Here are some of the signs that it is time!
- You are bored with what you are doing as there is no challenge in your work.
- Your income is not at the amount you think that it should be.
- Your employer is family owned so you can’t go too high up the ladder.
- You are tired of relocating and want to stabilize you and your family.
- You dread Monday mornings.
These are just some of the reasons to consider “retiring” and taking your 401K (tax free and penalty free) and using the money to buy an existing business.
First Choice Business Brokers receives many calls from people possibly in your position, however what does not surprise us is that the business they are considering purchasing is not related to their current work position.
Many times a person wants a business doing something that they feel they will enjoy and give them the lifestyle they desire.
Are you ready for the challenge?
Recent articles for you
Discover why business value is still being built in today’s changing world—and how owners can create a stronger, more transferable business.
Searching for merger and acquisition services in Los Angeles usually means you're on one side of a deal, but which side changes everything about the service you actually need. Direct answer: sell-side M&A advisory represents the business owner going to market, managing valuation, marketing, and buyer outreach on the seller's behalf; buy-side services, also called buyer representation, represent the person or company trying to acquire a business, running the search, vetting targets, and negotiating on the buyer's behalf. The two roles work toward opposite outcomes in the same transaction, which is exactly why they're structured as separate services. Quick Answer: Sell-side M&A advisory works for the seller and is paid by the seller at closing. Buy-side (buyer representation) works for the buyer, requires proof of funds upfront, and is typically compensated with a success fee upon closing a deal. Sell-side M&A services represent the business owner selling, handling valuation, marketing, and buyer identification. Buy-side services (buyer representation) refer to the person or company doing the acquiring, running the search, vetting targets, and negotiating on the buyer's behalf. Whichever seat you're in determines which service you need. What Sell-Side M&A Advisory Covers Sell-side representation is built around one goal: getting the business owner the best achievable outcome when selling. That typically runs through a structured process: Initial consultation to define the seller's goals and compile financial documentation Market Price Analysis, a valuation grounded in the business's actual financials and comparable transactions Marketing, confidential business profiles and outbound outreach to strategic buyers, not just a public listing Buyer pool development, vetting interested buyers, requiring signed NDAs, and confirming proof of funds before releasing sensitive information Negotiation and offer management, fielding LOIs and purchase agreements, sometimes across several rounds Due diligence and closing, coordinating with the buyer's CPA and attorney through to a neutral closing entity Throughout, the sell-side advisor's job is to protect the seller's price and terms, not to make the deal easiest for the buyer. What Buy-Side Services (Buyer Representation) Cover Buyer representation flips the relationship. Instead of marketing a business, the broker runs a custom search on behalf of someone trying to acquire one, often described as finding the needle in the haystack across a market flooded with generic listings. The process starts with the buyer clearly defining what they're looking for: industry, target income level, location, and deal size. From there: Proof of funds is required upfront. A broker won't commit real search time without confirmation the buyer can actually close. The search isn't limited to active listings. If the right business isn't currently for sale, the broker will reach out directly to "plant the seeds" with an owner who may consider selling down the road, a meaningfully different job than marketing a public listing. Negotiation runs in the buyer's favor. The broker negotiates price and terms on behalf of the buyer, not the seller. Compensation is typically a success fee. Buyer-side brokers are usually paid only once a deal actually closes, which is why proof of funds and a clear mandate matter so much upfront. The Practical Differences, Side by Side
If you're researching business valuation services in Los Angeles because you're weighing a sale, here's the direct answer: the biggest value-killers aren't the obvious ones. Sellers lose money by pricing off revenue instead of cash flow, failing to properly document add-backs, ignoring how much of the business rides on one or two customers, and walking into due diligence with financials that don't hold up to scrutiny. Every one of these is fixable before you go to market, which is exactly when fixing them actually helps your price. Quick Answer: The mistakes that most often cost LA sellers money are pricing off top-line revenue instead of cash flow, unsubstantiated add-backs, unaddressed customer concentration, and outdated market comparisons, all things a proper valuation catches before a buyer does. The valuation mistakes that cost Los Angeles sellers the most money aren't dramatic, they're things like pricing off revenue instead of cash flow, skipping add-backs, ignoring customer concentration, and going to market with messy books. Fixing these before you list, not after a buyer's due diligence team finds them, is what protects your price. #1: Pricing Off Revenue Instead of Cash Flow A business doing $3 million in revenue and a business doing $1.5 million can be worth the same amount, or the second one can be worth more, it depends entirely on what's left after expenses. Buyers value a business on its cash flow (Seller's Discretionary Earnings or EBITDA, depending on size), not its top line. Sellers who anchor their price expectations to revenue, or to what a competitor "sold for" without knowing the underlying multiple, routinely price themselves either out of the market or leave money on the table. #2: Add-Backs Without Documentation Add-backs, owner's salary above market rate, personal expenses run through the business, one-time legal costs, and similar items, are a legitimate part of showing a business's true earning power. The mistake is claiming them without paper trails. A buyer's CPA will challenge every add-back during due diligence, and unsupported ones don't just get rejected, they can undermine the seller's credibility on everything else in the financials. Document each one as you go, not retroactively when a buyer asks. #3: Ignoring Customer Concentration A business where one or two customers represent a large share of revenue looks strong on paper and gets discounted hard in practice. Buyers see customer concentration as risk: what happens to the business if that one relationship walks after the sale? Sellers who don't proactively address this (through diversification before selling, or at minimum a clear narrative and contracts that make the relationship transferable) are often surprised when it shows up as a lower offer or a request for an earnout tied to customer retention. #4: Relying on Outdated or Generic Comparisons "I heard a similar business sold for X" is not a valuation methodology, comparisons need to account for industry, deal size, growth trajectory, and how recently the comparable transaction closed. Buyer competition itself varies sharply by deal size: in the first quarter of 2026, 83% of deals over $5 million attracted at least three offers, and 18% drew ten or more bids, while smaller deals under $500,000 often received just one or two offers. That means the valuation dynamics for a Silicon Beach tech company and a San Fernando Valley service business aren't just different in multiple, they're different in how many buyers are actually competing for the deal, which itself affects where the final price lands relative to the initial number. #5: Emotional Pricing It's natural to price a business you built over 20 years based on how much of yourself is in it. Buyers don't price it that way. A Market Price Analysis grounded in your actual financials, industry standards, and comparable transactions, not sentiment, is what holds up once real offers start coming in. Sellers who skip this step and set their own number based on what they feel it's worth tend to sit on the market longer and eventually negotiate down further than they would have with a defensible number from the start. #6: Going to Market With Messy Books Even a genuinely strong business loses leverage if its financials don't reconcile cleanly. Buyers and their advisors read messy bookkeeping as risk, and risk gets priced in as a discount, or as a due diligence process that drags on long enough to kill momentum. Three years of clean, consistent financials, ideally reviewed by an accountant before you list, is one of the highest-leverage things a seller can do before a valuation even happens. What a Proper Valuation Actually Catches A comprehensive Market Price Analysis exists specifically to surface these issues before a buyer does, reviewing your assets, inventory, income statements, and intangible value against real market data and comparable transactions, rather than a single revenue multiple pulled from a general search. That's the difference between a number that survives due diligence and one that doesn't. Frequently Asked Questions
