561-BROKERS

Successfully Selling Your Business in 12 Steps

Selling a Buѕіnеѕѕ – 12 Stерѕ to Success

Simply рut, ѕеllіng a buѕіnеѕѕ is соmрlеx. Business оwnеrѕ whо dесіdе tо ѕеll thеіr business ѕhоuld bе рrераrеd, patient, rеѕроnѕіblе, and rеаlіѕtіс аbоut thе рrосеѕѕ. When оwnеrѕ ѕtrаtеgісаllу plan thе ѕаlе of thеіr buѕіnеѕѕ, from ѕtаrt tо fіnіѕh, thеу рut themselves іn a much bеttеr роѕіtіоn tо succeed. Bеlоw аrе some essential ѕtерѕ rеԛuіrеd for successfully selling a buѕіnеѕѕ.

Cоmmіtmеnt to ѕеllіng

Dесіdіng tо sell a buѕіnеѕѕ is оnе of thе grеаtеѕt сhаllеngеѕ thаt a business оwnеr wіll fасе. Whеn dеbаtіng your соmраnу’ѕ future ownership, іt іѕ іmреrаtіvе thаt whеn the business оwnеr mаkеѕ a rational dесіѕіоn to ѕеll, thеу ѕее thе plan thrоugh. It іѕ only humаn nаturе tо ԛuеѕtіоn іf іt’ѕ thе right time tо sell, but thоѕе owners who ѕее thеіr саlсulаtеd decision through, wіll be ѕuссеѕѕful іn thе еnd.

Brіng іn professionals

Thе ѕаlе of уоur business wіll rеԛuіrе thе еxреrtіѕе of mаnу рrоfеѕѕіоnаlѕ. In order tо maximize deal value, tеrmѕ and сlоѕurе ѕееk оut truѕtеd аdvіѕоrѕ tо protect уоur bеѕt іntеrеѕtѕ. In most buѕіnеѕѕ trаnѕасtіоnѕ, thіѕ tеаm wоuld соnѕіѕt оf an аttоrnеу, buѕіnеѕѕ brоkеr, аnd CPA. Mіxеd іntо thеѕе roles аnd rеѕроnѕіbіlіtіеѕ is that оf a business vаluаtоr. More tіmеѕ thаn nоt, CPA firms dо not ѕресіаlіzе іn buѕіnеѕѕ valuations аnd gеttіng thе price right frоm thе start is a muѕt to maximize ѕеllеr’ѕ value.

Sеllіng a buѕіnеѕѕ іѕ a long, аrduоuѕ process full оf hurdles and bumрѕ in thе road. It іѕ at thе buѕіnеѕѕ оwnеr’ѕ реrіl іf they trу to go at іt аlоnе. Not only wіll thеу most lіkеlу encounter unforeseen challenges аnd mіѕhарѕ, but thеіr buѕіnеѕѕ wіll mоѕt lіkеlу dеtеrіоrаtе whіlе they’re trying tо jugglе аll of thе rеѕроnѕіbіlіtіеѕ іnvоlvеd іn ѕuссеѕѕfullу selling a buѕіnеѕѕ.

Conduct a business valuation

An іndереndеnt, thіrd раrtу buѕіnеѕѕ vаluаtіоn іѕ expected in today’s business ѕеllіng mаrkеtрlасе. Thе оbjесtіvе and vаluе оf a business appraisal іѕ tо set a fаіr asking рrісе ѕо thаt your business assets (bоth tаngіblе and intangible) аrе fаіrlу vаluеd аnd аttrасtіvе tо ѕаvvу buуеrѕ. Thе business valuation will validate уоur аѕkіng рrісе, еnаblіng a ѕеllеr to significantly rеduсе buyer nеgоtіаtіоnѕ аnd соnfіdеntlу stand bу their аѕkіng price. In ѕоmе cases, the рrоfеѕѕіоnаl broker wіll hаvе access to a rерutаblе buѕіnеѕѕ vаluаtіоn firm and may bе аblе tо fасіlіtаtе the рrосеѕѕ оf рrераrіng уоur соmраnу fоr a buѕіnеѕѕ vаluаtіоn. Many brоkеrѕ do оffеr an оріnіоn оf vаluе, but using the expertise оf a сrеdіblе, buѕіnеѕѕ vаluаtіоn firm саn be оnе of thе best decisions a buѕіnеѕѕ оwnеr wіll make; іnассurаtеlу vаluіng a business (hіgh оr lоw) саn bе very dаmаgіng tо a buѕіnеѕѕ ѕеllеr.

Cоnfіdеntіаlіtу is a MUST

It іѕ obvious that thе mаjоrіtу of business оwnеrѕ dо not want tо hang a fоr ѕаlе ѕіgn оn thеіr buѕіnеѕѕ, аlеrtіng еmрlоуееѕ, customers, аnd vendors оf thеіr іntеntіоnѕ. Mаіntаіnіng discreetness durіng thе sale оf уоur buѕіnеѕѕ іѕ a muѕt. All раrtіеѕ аdvіѕіng уоu оn thе ѕаlе of your buѕіnеѕѕ ѕhоuld fіrѕt ѕіgn a соnfіdеntіаlіtу аgrееmеnt. You can рrераrе a simple mutuаl NDA оr аѕk thеѕе professionals fоr thеіr bоіlеrрlаtе аgrееmеntѕ. In аddіtіоn, all роtеntіаl buуеrѕ wіll need tо sign a nоn-dіѕсlоѕurе аgrееmеnt bеfоrе any mаtеrіаl іnfоrmаtіоn аbоut thе buѕіnеѕѕ іѕ ѕhаrеd. Onсе thе buѕіnеѕѕ іѕ bеіng lіѕtеd, уоur brоkеr should operate carefully аѕ a blіnd business lіѕtіng is mеаnt tо реаk buуеr іntеrеѕt, not to gіvе thеm enough details tо fіgurе which specific buѕіnеѕѕ іѕ fоr sale. It іѕ аt thе оwnеr’ѕ peril if thеу do not еnѕurе соnfіdеntіаlіtу іѕ mаіntаіnеd thrоughоut the рrосеѕѕ; if a рrоѕресtіvе dеаl gоеѕ south оr if thе ѕеllеr changes thеіr mіnd аbоut selling, the business wіll bе рrоtесtеd gоіng forward whеn соnfіdеntіаlіtу hаѕ bееn preserved.

Gеt уоur аffаіrѕ іn оrdеr

Whеn entertaining рrоѕресtіvе buyers, thеу wіll want to closely аnаlуzе your fіnаnсіаl ѕtаtеmеntѕ, bоth раѕt аnd current. It is іmроrtаnt thаt all аdjuѕtmеntѕ аnd reporting be mаdе рrіоr to рrеѕеntіng bаlаnсе ѕhееtѕ аѕ аnу mаtеrіаl сhаngе рrіоr tо closing wіll hаvе an іmрасt оn the fіnаl purchase рrісе. In аddіtіоn, lаrgеr ореrаtіоnѕ with $5MM+ in аnnuаl ѕаlеѕ ѕhоuld hаvе thеіr fіnаnсіаl ѕtаtеmеntѕ audited. While thіѕ іѕ nоt сhеар, іt rеаѕѕurеѕ buyers that уоur аѕkіng price is fair bаѕеd оn lеgіtіmаtе fіnаnсіаl rероrtѕ and ѕtudіеѕ have indicated this ѕеrvеѕ аѕ a vаluе drіvеr in purchase price. Othеr аrеаѕ уоu should fосuѕ on include lеаѕе аgrееmеntѕ (іf you dо nоt own rеаl еѕtаtе), key еmрlоуее соntrасtѕ, kеу сlіеnt соntrасtѕ, еtс. Finally, get your рhуѕісаl business location(s) іn рrеѕеntаblе оrdеr bу cleaning, organizing аnd рrераrіng for VIP vіѕіtоrѕ.

Pасkаgе the buѕіnеѕѕ

Presenting уоur соmраnу’ѕ іnfоrmаtіоn to buуеrѕ is gоіng tо bе іmроrtаnt to еnѕurе thеу аrе іnfоrmеd, educated аnd more іmроrtаntlу dіѕсlоѕеd аbоut thе ѕtаtе оf your buѕіnеѕѕ. Thеу’ll wаnt tо learn about уоur ореrаtіоn, іnduѕtrу, fіnаnсіаl performance and future рrоѕресtѕ. A соnfіdеntіаl, рrеѕеntаtіоn расkаgе іѕ nееdеd wіth most buуеrѕ. Florida Buѕіnеѕѕ Brоkеrѕ, LLC will bе аblе tо extend these tуреѕ of vаluе added services іn оrdеr to рrореrlу расkаgе your business fоr a рrоfеѕѕіоnаl рrеѕеntаtіоn.

Market the buѕіnеѕѕ

Fіndіng ԛuаlіfіеd buyers that meet your criteria is аbѕоlutеlу сrіtісаl. Thіѕ step requires an added lауеr оf discretion. Tаkе tіmе tо uѕе the right mаrkеtіng сhаnnеlѕ fоr your tуре of buѕіnеѕѕ, dіѕсrееtlу рrоmоtе thе business to buуеrѕ, аnd rіgоrоuѕlу ԛuаlіfу interested раrtіеѕ. Thе mоrе рорulаr outlets fоr buѕіnеѕѕ listings іnсludе local/national newspapers, іntеrnеt dіrесtоrіеѕ, direct mаіl аnd nеtwоrkіng. Your іntеrmеdіаrу ѕhоuld facilitate аnd еxесutе thіѕ ѕtер ѕо that you саn dо the nеxt ѕtер. Yоur rерrеѕеntаtіvе’ѕ rоlе іn thіѕ рhаѕе іѕ tо аttrасt, identify, ԛuаlіfу аnd іntrоduсе аррrорrіаtе buyers fоr your buѕіnеѕѕ.

Kеер Running Yоur Business

Whіlе ѕеllіng your business mау рrоvе dіѕtrасtіng, it іѕ іmреrаtіvе thаt thе оwnеr continue tо run his оr hеr operation; аlmоѕt аѕ if іt wasn’t fоr ѕаlе. While уоu will bе mаkіng ѕurе уоur duсkѕ аrе іn rоw аnd rеаdу tо рut оn its best face fоr роtеntіаl buуеrѕ, tаkіng саrе оf your еmрlоуееѕ аnd уоur сuѕtоmеrѕ іѕ іmроrtаnt. It іѕ tо thе оwnеr’ѕ detriment іf buѕіnеѕѕ sales dесlіnе, ѕtаff bеgіnѕ аѕkіng questions, and if the ѕаlе tаkеѕ longer thаn аntісіраtеd. Mаіntаіn business as uѕuаl аnd lеt уоur buѕіnеѕѕ ѕеllіng team run thе bаll to the gоаl line.

Entеrtаіn multірlе buуеrѕ

A buѕіnеѕѕ ѕеllеr who іѕ еntеrtаіnіng several ԛuаlіfіеd buуеrѕ іѕ іn a роѕіtіоn оf ѕtrеngth lеаdіng uр to the ѕаlе of a buѕіnеѕѕ. Nоt оnlу will thіѕ іnhеrеntlу ѕоlіdіfу thе vаluе of a buѕіnеѕѕ wіth the рrоѕресtѕ оf a bіddіng wаr, іt wіll ensure thе most аррrорrіаtе buуеr іѕ found fоr thе futurе health оf the соmраnу. Selling a business is not just аbоut money, іt іѕ аlѕо аbоut a ѕіmраtісо with a buуеr and their іntеntіоnѕ with thе business ореrаtіоn. Lооkіng out fоr thе overall bеѕt іntеrеѕtѕ of your еmрlоуееѕ, сuѕtоmеrѕ, and brаnd ѕhоuld bе аn еmрhаѕіѕ for a responsible buѕіnеѕѕ оwnеr.

Due Dіlіgеnсе is a two-way ѕtrееt

Following аn Offеr tо Purсhаѕе оr Lеttеr оf Intеnt, your ԛuаlіfіеd buуеr іѕ mоѕt сеrtаіnlу gоіng to соnduсt duе dіlіgеnсе оn уоur buѕіnеѕѕ, іtѕ financials, сuѕtоmеr lіѕtѕ, еmрlоуее соntrасtѕ, vеndоr relationships аnd оthеr elements уоu сlаіm tо bе іn рlасе wіth the ѕаlе оf thе buѕіnеѕѕ. While thіѕ іѕ a nоrmаl рrосеѕѕ, tурісаllу lаѕtіng a соuрlе of wееkѕ (sometimes longer bаѕеd on dеаl ѕіzе), duе dіlіgеnсе ѕhоuld nоt juѕt bе frоm the buуеr.

You, thе business оwnеr, should be соnduсtіng duе diligence оn thе роtеntіаl buуеr. Bеуоnd fіnаnсіаl buуіng роwеr аnd рurсhаѕе рrісе, уоu ѕhоuld be іntеrеѕtеd in their bасkgrоund, іntеntіоnѕ wіth thе buѕіnеѕѕ and іtѕ kеу employees, mаnаgеmеnt рhіlоѕорhіеѕ, maintaining сulturе, еtс. Inѕtruсt уоur buѕіnеѕѕ broker tо find оut why inquiring buуеrѕ are іntеrеѕtеd in your business, аѕk for a rеѕumе, and dig for аnѕwеrѕ.

Clоѕе the Deal

The рrоfеѕѕіоnаl tеаm you аѕѕеmblе tо hеlр еxесutе thе sale оf your business, ѕhоuld serve as a buffer bеtwееn уоu аnd роtеntіаl buуеrѕ when it comes tо nеgоtіаtіоnѕ. Cоmmоn areas that are nеgоtіаtеd аrе рurсhаѕе рrісе, tеrmѕ аnd dеаl structure, nоn-соmреtеѕ, оwnеr trаіnіng/ѕuрроrt, etc. Yоur buѕіnеѕѕ brоkеr is a conduit аnd ѕhоuld bе аblе tо еffесtіvеlу rерrеѕеnt you whеn іt соmеѕ tо terms, іnсluѕіоnѕ, and exclusions. Above аll еlѕе, іt іѕ critical thаt уоu nоt оnlу rely оn уоur brоkеr, but аlѕо уоur аttоrnеу, whеn nеgоtіаtіng, drаftіng аnd ассерtіng tеrmѕ іn thе Purсhаѕе Agrееmеnt. The seller’s attorney and buуеr’ѕ аttоrnеу wіll need tо actively соmmunісаtе wіth оnе аnоthеr tо get еvеrуоnе to thе сlоѕіng table and ѕеаl thе deal.

Dоn’t fumblе the hаndоff

Most buyers will ѕееk assistance frоm thе seller in thе trаnѕіtіоn оf thе buѕіnеѕѕ. The іnvоlvеmеnt and seller participation іѕ gоіng tо ѕіgnіfісаntlу vаrу bу іnduѕtrу and type of acquisition, but уоu should рrераrе tо ѕtау оn bоаrd fоr a reasonable period оf tіmе. Thіѕ is an еѕѕеntіаl step in thе successful transfer оf a buѕіnеѕѕ ѕо thаt thе соmраnу’ѕ operations, еmрlоуееѕ, сuѕtоmеrѕ and overall ѕtаbіlіtу аrе рrоtесtеd. Just аѕ a ԛuаrtеrbасk hаѕ to mесhаnісаllу hаnd thе bаll to a runnіng back, ѕо dоеѕ a seller hаnd the business оff tо a buуеr. If this is rushed оr dоnе іn a nоnсhаlаnt manner, thе business соuld ѕtumblе, take a dip and experience rоugh rоаd ahead. A responsible buѕіnеѕѕ ѕеllеr wіll dedicate tіmе tо wоrk wіth thе new owner, аt nо соѕt, tурісаllу lasting ѕеvеrаl weeks tо a соuрlе of mоnthѕ. Anу реrіоd lоngеr ѕhоuld соmе аt thе buѕіnеѕѕ buуеr’ѕ еxреnѕе аnd a рrеvіоuѕlу аgrееd upon rаtе оf compensation.

Thеrе are аll types оf соmрlеxіtіеѕ іn рlаnnіng and еxесutіng thе ѕеll оf a buѕіnеѕѕ. Thе ѕmаrt buѕіnеѕѕ оwnеr will еnlіѕt thе ѕеrvісеѕ оf professionals who can hеlр them саrrу out a full еxіt ѕtrаtеgу which wіll mоѕt оftеn lеаd tо: ѕесurіng a hіghеr рurсhаѕе price, ѕеllіng tо thе mоѕt qualified buуеr(ѕ), еnѕurіng thе business is рrераrеd for a hаndоff, аnd рrоtесtіng thе futurеѕ оf еxіѕtіng mаnаgеmеnt, еmрlоуееѕ аnd сlіеntѕ.

Contact Florida Business Brokers, LLC. at 561-234-5678 today tо lеаrn more аbоut оur buѕіnеѕѕ vаluаtіоn ѕеrvісеѕ аnd tо ѕсhеdulе an іn-реrѕоn, no оblіgаtіоn mееtіng wіth оnе оf оur рrоfеѕѕіоnаl Agents.

Source

Working with a Business Broker for Sellers

Working with a Business Broker from A Sellers Point Of View

Florida Business Brokers always recommend working with a business broker when buying or selling a business. As a seller, there are many advantages to working with a business broker. A broker can assist with preparing the business for the sale, establishing a value, marketing your business, and screening and connecting you with potential buyers. Many sellers do not want to pay a broker’s fee. However, true professionals must charge for their services. Working with a business broker helps you to get the best sale price for the business and get it sold quickly.

Benefits of Working with a Business Broker to Sell Your Florida Business

Assistance with Preparation

The most important part of selling your business is preparing it for the sale. A good business broker will assist in prepping the business for sale when it comes to both the paperwork and physical aspects.

A broker will help you gather all the necessary documents to show to potential buyers. As far as the physical aspects go, a broker can provide insight on how to improve the physical appearance of the business to appeal to buyers. A good broker has managed the sales process in the past and they know what is going on in the current market.

Also, Florida Business Brokers provides you with knowledge regarding the sales process that you may not otherwise have known or have access to. For instance, did you know you should get your business pre-qualified with a lender prior to entertaining buyers? A good business broker knows what options are out there and how they benefit the sales process.

Establishing a Value for Your Business

You must establish a value for your business. Valuing your business too high can turn away potential buyers and valuing it too low will cause you to lose money. A business broker knows all of the different valuation methods and can help you figure out which one best fits your company when it comes to determining a sale price. They also know what similar businesses in the area are being bought and sold for which is useful when deciding on a final value. Contact FloridaBizMLS.com for a free business valuation.

Marketing Your Florida Business

Brokers are extremely useful when it comes to marketing your business. They know where to market your business to prospective buyers. They will do more than just put a for sale sign on the door. They will get the business listed online and everywhere else they can. They are also able to tap in to their network when seeking out potential buyers.

Screening and connecting you with potential buyers

Marketing efforts will get you potential buyers but you really want qualified buyers. A Florida Business Broker will save you time and handle the screening process for you. As a business owner you don’t have the time to respond and follow up on every sales lead. Most of the time half of the potential buyers interested will not actually have the funds to purchase your business. A good broker will connect you with only qualified buyers that are a good fit for your company.

In summary working with a business broker is beneficial when buying and selling a business. From the seller’s point of view a Florida business broker is worth their fee as they will get your business sold quickly and for the right price. Contact Florida Business Brokers to sell your Florida Business.

Cashing Out Your Business

Cash Out Options

Selling a company isn’t simple, but a lot of entrepreneurs have more choices than they realize. Taking the incorrect approach could possibly have severe monetary repercussions for both the business owner as well as the firm. So it pays to understand the advantages and disadvantages of various ways of cashing out and which is the best fit for your company as well as you.

An outright sale is possibly the easiest way to exit a business. This approach makes sense when an owner’s family members have no interest in taking it over or when the proprietor cannot identify how you can take the business to the next level or meet challenges that may have come up.

There are 3 means of cashing out:

1. A proprietor could sell the firm’s assets outright, or he could sell his stock in the company (or units if it is a limited-liability business). Stock sales tend to benefit the seller, while possession sales are much more useful to the buyer.

Possession buyers are acquiring the company’s bodily devices, facilities as well as clients, along with intangibles such as trademarks and also goodwill, and therefore are generally shielded from previous claims against the business. For example, the previous proprietors would probably be liable if an ecological claim were made against their former property or if a staff member employed on their watch submitted some sort of lawsuit.

2. Stock purchasers, on the other hand, are buying the business itself and hence are exposed to all its possible problems. This is why most sales of small, closely-held businesses are structured as asset sales.

Offering the business to its managers is additionally a prominent alternative. An owner may go this path when the company has a trusted, entrepreneurial administration group that wants to continue the business.

The most significant benefit of this strategy is that the proprietor does not need to spend time trying to find a buyer. The compromise for an easier sale is that the cost could be below what an outsider would actually pay.

3. Another choice is to market the business to its staff members through a worker stock-ownership plan (ESOP). Setting up these plans could be a complicated endeavor, yet they have their benefits. As an example, they’re a means a proprietor could continue to be with the firm while taking cash out of it. And it’s a method to reward workers and provide a long-term motivation for commitment and effort.

Here’s exactly how it functions:

The business sets up an independent trust on (the ESOP) that buys the owner’s stock at a rate established by an independent evaluator. The trust holds on to the stock for the workers for as long as they work for the company. When a worker leaves or retires, he can sell the stock back to the firm at fair market value.

Some entrepreneurs do not like having a 3rd party figure out the value of the shares, believing that it may imply accepting a lower rate than they would get on the open market. Additionally, the firm needs to have money handy to buy back worker shares when workers leave. This can divert cash money from various other company usages and can be a real drain if many staff members leave in close sequence.

Owners that want to sell their stock slowly, or who want to take some cash out of the business without giving up control, could recapitalize the business, or alter its economic framework making use of instruments such as stock, preferred stock or debt.

For instance, suppose there is an outside purchaser that wants the business however doesn’t like the idea of buying it outright at this time. The firm might provide preferred stock as well as offer it to the prospective purchaser. This provides the owner a cash infusion while the customer has an opportunity to become acquainted with the firm’s operations before taking it over outright.

Or if there’s no such purchaser and the business has healthy cash flow, the business might incur debt to buy all or a part of the owner’s stake.

While there are lots of choices for business owners who want to cash out, the most effective means depends on the nature as well as health of the business as well as the proprietor’s intentions for staying on in the business in some capacity. Understanding all of the alternatives, and obtaining great recommendations from skilled business specialists, could make it much easier to seek the path that’s best for all involved.

How to Find the Right Buyer for Your Business

Finding the right “fit,” is quite possibly the single most important factor in successfully selling a business in Florida. While finding the right fit between buyer and seller, there are other factors that can contribute to a successful merger or acquisition.

DUE DILIGENCE

Don’t rush into a deal with the first potential buyer that comes your way. You need several things in place first: a mutual non-disclosure agreement, business valuation, letter of intent and a financial and demographic review.

There are lots of potential deals out there. “The current buyer/seller ratio is something like 50:1, so remember that there are other possible buyers. Those who feel it’s important to buy or sell immediately are probably wrong.

After determining the right fit, it’s best to work on other details in a potential deal. A negotiation that leaves both sides happy is crucial. Transition for the buyer and seller goes smoothly when both parties leave the closing table and friends and working partners.

Florida Business Brokers can provide a business valuation that is fair to both sides. A proper business valuation should consider: cash flow, risk, demographics, expenses and the sustainability of the business’s compensation structure.

OTHER CONSIDERATIONS

Seller and buyer should both consider transition risk.

As the buyer, you should consider how many of the clients will transfer to the new entity. That number could be as low as 65 to 70 percent, which could wreck the economics of the purchase. In a well-matched purchase, the numbers should be around 97 to 98 percent.

Market place demand should be examined. A business built in a wealthy area and filled with financially well-off clients is worth more than one in a less-wealthy area that serves clients with moderate incomes.

If a business occupies a market niche, is it a market niche that contains many other planners, some of whom might be interested in purchasing the firm. Or is the list of potential buyers limited, because so few other planners understand and can work in that market niche?

Once both sides of a deal are satisfied, bank financing, including loans backed by the Small Business Administration, are often a financing option when businesses change hands.

As a business seller, you should maintain a client database, typically via a customer relationship management (CRM) system. The database should contain your clients contact details and record of sales. Transferring this database to the new owner will give your business a higher valuation and the buyer an assurance of profitability.

Allow potential buyers to visit the business to do research on market value, the premises and business trend. Make sure all equipment used in the business are maintained and you have a current valuation on machinery.

Business brokers can offer a great deal of help to buyers and sellers and often cater to popularly neglected issues. Brokers also make sure that all legal aspects are addressed. Florida Business Brokers understand that the value of a business is reflective of the owner’s value in the market. Working with Florida Business Brokers gives you insights into increasing the value of your business before you list it for sale. This increases your profit potential and less risk for the buyer.

Selling Florida Music Store

You own a small music store in Florida with a recording studio attached.

The store is completely stocked and operational with internet sales to augment your good walk in traffic.

Your personnel are high caliber, better than the mega stores. Knowledgeable, low key, many experienced players themselves wait on your customers. Well made inventory that presents good value for the dollar spent in all price points. Quality, up to date recording equipment and pros that know how to run it operate the recording studio. They have a list of local musicians and singers that can be called upon to come in and record tracks if necessary.

In spite of a tough 2011 economy, the store had an increase in sales and profits.

It has a lot to offer a buyer, and you are now ready to sell your music store to someone else. Maybe, you have a combination of medical issues and a desire to retire from the day and night rat race that has finally won you over.

Now what?

Prepare a worksheet that details your profit and loss statements over the last three years. This should include tax returns, interest expense, lease arrangements, everything of a financial matter that will help a potential buyer make a decision in your favor. These should also include arrangements with manufacturers detailing inventory financing be it consigned or purchased.

Time to Find Qualified Buyers

Once that is done, it is time to find qualified buyers, folks that can afford your price and have the finances to weather the storm of new ownership.

Your vendors may have prospects in your area that have inquired about selling their product direct. Most large distributors protect their dealers, to a greater or lesser degree by pricing structure and other means. They may already have some information on these folks that will save you some time.

Potential buyers will contact you should they hear of your impending sale by word of mouth, print media, or on the ever more popular internet. You will need to rate the financial viability of these prospects and try to find out as much as possible about their true ability to buy and run your business.

If you offer owner financing, you do not want a  “wannabe” running it into the ground, going belly up, and signing it back to you in terrible shape. You built it. You do not want to see it fail.

Of course, you will provide training and support for 60 days or so after closing.

Getting Help from Florida Business Brokers

Another option is to contract a Florida Business Brokers to help you sell your business at the best price. They will process all the paperwork and do all the preparation to present your business in the best possible light to make it sell fast, and at the highest possible price.

They will pre-qualify potential buyers and guide them through the process of buying your business including building lease, vendor agreements, tax responsibilities, licenses and permits, and all the other steps necessary for a successful transfer of ownership.

Business brokers will charge fees for their services. This can be a good investment as they can deliver peace of mind and a complete legal closure in the sale of your Florida music store.

Sell Your Small Trucking Company in Florida

It is time to sell your small trucking company in Florida

It is well documented that the last people to get paid in the transportation of goods is the small trucking company.

Before that happens, the business has to pay for the equipment, insurances, permits, wages, fuel, tires, and employee benefits. Then hope that when and if the checks come in a timely manner, there is a little left for the owner’s pocket.

The transportation industry is among the highest regulated and taxed forms of business operating today. There are layers upon layers of economic burden passed on in fuel pricing and government, state and local permit requirements to just be able to run a few states.

You have several tractors with refrigerated trailers that go to the Midwest steadily from Hillsborough County, Florida. This is an independent business with no expensive ties to national carriers or long term freight agreements of questionable profits.

Your business has been operating continuously and profitably for many years and is well known. Lots of good aspects here and in the transportation business, that is very valuable.

However, after so many years of being on call constantly, solving problems on the road ranging from truck breakdowns to drivers quitting in the middle of the night 2 states away, you have had enough. It is time to cash it in and leave the cell phone at home when you take your wife to dinner. Take a vacation. Not have that pit in your stomach that burns when you think of what might happen next…

What to do next?

You own, manage and maintain a small trucking company in Florida. You are not up to date in what is required in the arena of business sales- or even how to start.

Firstly, you need to prepare an honest profit and loss statement that covers the last three years. This includes income (tax return verifiable) liabilities such as equipment leased or financed, real property and shop space costs and arrangements, tools and equipment used to maintain your fleet and every other item causing you to write a check. And there are plenty of them.

In this economy, there are large carriers that are constantly purchasing smaller trucking companies and absorbing them into their system. The advantage of this is that you need not worry about getting your negotiated purchase price in full. The bad part is that they may not be willing to pay what you think it is worth.

Dealing with prospects on your own can be daunting. There is no 100% sure thing in selling a business. If you finance it yourself, you can sometimes end up with it back in your lap in a short period of time with angry customers, c.o.d. arrangements with suppliers, and run down equipment.

Another option is to contact Florida Business Brokers. These sales pros know the territory and can pre-qualify your prospects to keep financial headaches to a minimum. They will prepare all the documentation necessary including the insurances, permits, and titles necessary for the clean transfer of your business. Also, you have a say in who your small trucking company in Florida is sold to. After all these years you may feel an obligation to your employees and want to leave their futures in good hands as well as get paid.

Do your due diligence all the way around- spend the time and get the best information from the best sources. Then, carry on with your sale.

What Business Sellers & Buyers Look For

As successful business brokers in Florida, we list and sell many profitable Florida businesses for Cash.

Cash sales is often the case for bigger businesses, like those in the Merger and Acquisition market, those in a popular niche, those that qualify for favorable term financing and businesses sold to  Strategic Buyers.

You will find that there are 2 types of business buyers.

1) Financially motivated Buyers are typical buyers who buy a Florida business based on the amount of income it will generate. These buyers focus on the numbers.

2) Strategic Buyers are usually in the same type of business and may be looking to expand. Strategic buyers will usually pay more and without seller financing. We have the largest database of strategic buyers in Florida.

What Business Sellers & Buyers Look For

The Seller is looking for:

  • The best price possible
  • Getting mostly cash at closing
  • Proof that the company will prosper
  • The Buyer is looking for:
  • Value
  • Income
  • Debt Payoff
  • ROI
  • Company growth potential without adding more debt
  • Retirement Potential

What A Buyer Looks At to determine value:

  • Past Earnings Reports
  • Quality of Management
  • Diversification
  • Type of Business
  • Prospective Growth for the Industry
  • Sale Agreement Terms
  • Employees
  • Competition
  • Location & Equipment

How Business buyers value a business is different for every buyer. Our job as Business Brokers in Florida is to qualified buyers for your business, potential buyers who have the funds and like your business. We often interview over 50 buyers before we bring a great prospect to the table.

Potential Buyers expect businesses to have sufficient cash flow for:

  • Paying off debt
  • Pay the Owner a Salary
  • Return of their Down Payment
  • Safety Cushion for the unexpected
  • Buyers expect a business seller to have:
  • Current & complete Financials, Inventory and Tax Records
  • A neat and efficient Work Place
  • Reliable employees

If your business meets these criteria, prospective buyers will consider your business a viable opportunity.

Where Do Business Buyers Come From?

  • 70% are First-Time Buyers
  • 2% are Professional Buyers
  • 28% are Investment Groups & Corporate Acquirers

There are hundreds of active business buyers with ample funds looking to buy a Florida business like yours, ready to act when the right opportunity presents itself. Our vast database may already have the perfect buyer for your business for sale.

How Much Money Do Business Buyer’s Have to Invest?

Mergers & Acquisitions category represents businesses with 5 to 50 million dollars in annual sales: We, at Florida Business Brokers, work with many types of business buyers, such as individual, institutional, capital companies, holding companies, venture capital groups and corporations. Most of these types of business buyers have up to 100 million dollars to invest in the right business.

If you are thinking of selling your Florida Business, we can help. We have a huge database of buyers looking to buy a business in Florida. There is a very good chance that at least one of those buyers is looking for your business to buy.

Selling Your Home Healthcare Business

Selling Your Home Healthcare BusinessAre you looking for the best business brokers in Florida to sell your Home Healthcare business?

Selling home healthcare businesses is one of our specialties. In fact, it’s unlikely that any other business brokerage firm has a stronger focus on the healthcare industry in Florida than we do.

We don’t waste your time. Selling your healthcare business is difficult. Florida Business Brokers, LLC agents know what it takes and know exactly what prospective buyers are looking for. And, let’s not forget, we also know how to present your healthcare business so that both strategic and financial buyers will want to buy it!

Since we have relationships with the right people, we know what buyers are looking for and what they are willing to pay for a home healthcare business. We provide our home healthcare business owners with a free but thorough business valuation; providing you with a great starting point and an accurate picture of what your Florida Home Healthcare business is really worth.

Selling your home healthcare business should provide you with options, not just the standard listing. We have several unique approaches that have helped us to become the go-to advisors to not only home healthcare business sellers, but buyers as well.

Why use Florida Business Brokers to sell your Home Healthcare Business?

That’s easy;

WE actually WORK for you.

We get you the absolute best price for your business through competitive offers and through our network of registered buyers.

FloridaBizMLS.com presents your home healthcare business DIRECTLY to our national buyers database. If for some reason we don’t find a buyer there, we’ll get on the phone and find someone that will!

We have an extensive database of national buyers and contact them until we find the buyer that’s right for your Home Healthcare business.

The real question is – Why choose a business brokerage that just lists your Home Health business on the open market?…

ANYONE can provide that.

Call 561-234-5678 now for a personalized action plan and a confidential free Valuation of your home healthcare business.

Florida Business Brokers, LLC also specializes in the following types of healthcare related businesses:

Adult Day Care

Ambulatory Surgery Centers

Assisted Living Facilities

Dialysis Centers

DME

Medical Supply Distribution

Hospice

Home Medical Equipment and Supplies

Healthcare Information Technology

Healthcare Staffing

Infusion Therapy

Medical Billing

Medical Staffing

Non-Medical Home Care

Nurse Registries

Nursing Homes

Physician Groups

Private Duty Nursing

Rehab Facilities

Specialty Pharmacy

Urgent Care/Walk-in Centers

Call today! (561) 234-5678 

Easy Steps to Selling Your Small Business

Easy Steps to Selling Your Small Business

Selling your small business can be complicated if you have never done it before. You should consider enlisting a few professionals to help you, like a business broker, CPA and a business attorney. Profits from the sale mainly depend on why you are selling, timing and the strength and structure of your daily operation. Your small business sale will also require a great deal time and effort. Once the business is sold, you may need to learn some ways of handling the profit. The following steps can help you build a solid exit plan while making negotiations as stress free as possible.

1. Why You are Selling
One of the first questions you will get from potential buyers is, “Why are you selling your small business?” Small business owners usually consider selling for one of these reasons:

  • Want to Retire
  • Death of business partner
  • Illness
  • Burnout
  • Boredom
  • Family Issues
  • Low Revenue

Some small business owners contemplate selling when revenues are low, but this can deter buyers. Timing and making sure your small business is ready to sell are very important. If you are thinking of selling due to low profits, consider improving your business before you place your small business on the market. Making some small improvements can mean a much bigger profit for you when you do sell, including:

  • Increasing customer base
  • Adding income sources
  • Improving curb appeal
  • Updating equipment

2. Timing
Small business owners should prepare for selling from the start of their business but at the very least, two or three years ahead of time. Preparing in advance will help ensure that financial records are accurate and that your customer base is well established. Making improvements before you sell will also ease the transition process for the new owner and the business to run smoothly during the transition.

3. Asking Price
A business broker can help you determine the business’s true value so you price it reasonably. Locate a business broker to get a business valuation and sellabilty report. The broker will give you a detailed report on your business’s value. The report helps you determine a credible asking price.

4. Broker vs Independent Selling
Selling a small business on your own can save you by avoiding a broker’s commission. It may be the best option if you are selling your small business to a family member or trusted employee. In most circumstances, a business broker can help with time-consuming tasks, keep the sale confidential and get the highest price possible from the sale.

5. Document Preparation
Put together financial statements and tax returns dating back three to four years and have an accountant review them with you. Make a list of equipment that goes with the sale of the business. Also, update your lists of business contacts, vendors and maintenance companies. Make a copy of your current lease. You will need copies of all these records made into an information packet to give to pre-qualified prospective buyers.

Include in your information packet, a description of how the business is run or a copy of your operating manual. Be sure to have all equipment serviced and running in top condition.

6. Locating a Buyer
Selling a small business typically takes up to 2 years according to complete according to the SBA. Locating a buyer can be a challenge. Business brokers have extensive lists of people looking to buy businesses. Enlisting a broker can greatly speed up the selling process and save you a bundle in advertising. Paying a broker a commission is usually much less expensive that advertising costs over a couple of years.

Here are some tips to help move the selling process along:

  • Have 2-3 prospective buyers just in case the first deal falls through.
  • Keep in contact with all prospective buyers.
  • Find out if your prospective buyers are financially prequalified before giving them your information packet. If you will be financing the sale, work out the details in advance with your CPA or attorney so you and the buyer can agree on terms more quickly.
  • When negotiating, be firm on your reasonable asking price and remind the buyer of the company’s future worth.
  • Put all negotiated agreements in writing. Have potential buyers sign a confidentiality agreement to protect your business information.

    Documents to deal with following the sale:

  • Bill of the sale: transfers assets and the business to the buyer
  • Lease assignment
  • Security agreement: if you are holding a lien on the business

The buyer could request that you sign a non-compete agreement, in which you agree to not start a new business that competes with the one you just sold.

7. After Sale Profits
Before deciding what to do with your profit from the business sale, outline your financial goals, and learn about any taxes associated with the sale of your business. Then, consult a financial professional to determine the best ways to invest the money for long-term benefits, such as becoming debt-free or investing for retirement.

Selling a business is an emotional time for many small business owners. One of the best reasons to consider selling your small business is when the market is “hot”. Timing your sale and enlisting a business broker can ease your burden. In the end, profit from the sale and your new found freedom will make the selling process worthwhile.

Business Exit Strategies Overview

Business Exit StrategiesWhen you first begin a new business, you develop strategies and plan ways to grow your business, but did you realize how important having an exit strategy is? Almost every business owner will want or need to sell their business at some point, for any number of reasons. You’ve started your business or want to start a business because you want to plan for your future right? Don’t forget there may be a business sale in that future and having a business exit strategy is never a waste of time or effort. Depending on your goals, the type of business you choose and the way you grow it should be aligned with your end-game objectives.

Every step along the way, you should plan for a time when you may need or want to exit your business and liquidate your equity through a sale, merger or IPO. You’ll want to build value and equity in your business by selling innovative products and services, developing relationships and distribution channels and expanding your customer base. To assist you, below are of some types of business exit strategies for you to consider and potentially utilize.

Private Sale

Selling your business is the most common exit strategy for any business owner. Business owners often know they will sell their business when it is time to retire but they forget to think about having to sell quickly. An illness or death is just two of the reasons an owner might have to sell quickly and soon than expected. Keeping accurate and complete business records along the way helps to ensure a smooth and quick sell no matter when the time comes to sell your business. When it is time to sell your business, the trickiest part of any sale is valuing the company. Since many small businesses are privately owned, determining the final sale price in a sale is typically more of an art form than science. Make sure you get a few appraisals of the business so that you can average them to find the right asking price.

Mergers

A merger is two companies getting together, establishing the value of each company and merging the two to form one larger company. In most mergers, the company shareholders receive stock in the bigger company which is usually worth more than the stock in each independent company. If you decide to merge your company with another upon retirement, you will no longer have to work the business and receive a share of profits by retaining stock in the new company. Just be aware that in mergers, you may not actually receive money from your stocks until a later date.

IPO

Selling your business in the stock market through an initial public offering is called an IPO. With an IPO, business sellers often get the biggest payout of any other exit strategy. Adversely, it is very expensive to obtain an IPO, business owners easily spend a half million dollars on attorney and accountant fees alone. In addition, there are a lot of restrictions to liquidity via an IPO, so if your business is not in the technology sector or has less than $50 million in revenues, you should strongly consider a different exit strategy. It is also important to remember that the strength and weakness in IPO markets are difficult to predict, therefore much harder to plan ahead for.

Buyout

Similar to a private sale is a buyout where a team or individual, in the same line of work, buys you out and takes over your business. This is typical with small to medium sized businesses that provide professional services in industries like insurance, accounting firms, law firm distribution and manufacturing companies.

A buyout is often tied to performance of the business at the time of the buyout as well as after you exit. Generally, you’ll get a far better deal if the buyout person or company can pay you upfront rather than agreeing to a “leverage buyout” where they use the future revenues of the business over time to pay off their debt to you.

Asset Liquidation

If your business is debt-free, you can liquidate your assets by closing your business and selling off the assets. The challenge in this is finding buyers who feel that your assets have value, and you’ll have to negotiate to get a fair price. With this type of business exit strategy, you will likely receive the least amount of money for your exit. Asset liquidation is often used by business owners who need to sell quickly for personal reasons.

If you are thinking of buying a business or currently own a business, part of having an exit strategy is working with a professional business broker. You never know when life will throw you a curve ball and having a broker at your fingertips, who already knows you and your business, will make it all much easier to deal with.