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Distribution business being sold

Distribution business being sold:

Distribution can be defined as the practice of availing a service or product to the consumer. It is among the elements of the marketing mix. The process can be carried out by the service producer or the one who produces the goods or services. It can also be done through other indirect channels or distributors. The distribution business is the one that handles this process and a distribution business for sale is when this kind of business is available for purchase.

In business terms the distribution business can be defined as the movement of services and goods from the producer or source through a channel of distribution until it reaches the final consumer or user. In addition to this, it can also be termed as the moving of payment from the consumer right up to the producer or original source.

What a distribution business which is being sold entails:

Therefore, when you purchase a distribution business you became part of the distribution channel. The distribution channel can be defined as an intermediary or a chain by which goods or services pass to reach the consumer. The distribution business is part of this channel. In addition to this, it also includes the retailers, wholesalers, and distributors. The distribution channel is broken into the indirect and direct channel. The direct channel ensures that the end user purchases the goods and services directly from the source or manufacturer. The indirect channel allows the consumer to purchase goods and services from the retailer or wholesaler. The channel also includes the path that the payments made to reach the original producer of the goods and services from the end user. In the distribution business, you will also get to take part in the indirect channel.

Qualities to look for in a distribution business which is being sold:

How to make the decision:

The distribution business is a lucrative entrepreneurship idea. However, you must decide whether you will start the business from scratch, buy a business opportunity or purchase an existing distribution business. Buying a distribution business has several advantages which include tapping into the original owner’s knowledge, get an existing client base and getting an existing channel distribution.

Successful Business:

Before purchasing the business always ensure that you are buying into an existing lucrative entrepreneurship venture. Buying a slow business can prove very tricky in terms of ensuring that it really peaks up in the way you would want it to. Consequently, your intended business turnover may fail miserably. A business which was originally successful will ensure that you get existing users who trust you regardless of the change of hands in management.

Asses your financial capability:

Before buying a distribution business, you must be very wary of your financial capability. Never make the mistake of buying into a business which you will not be able to sustain. Ensure that the amount being quoted for the business is what you can afford at the time. Keep in mind that even if the business is just exchanging hands, you should be able to have a sustainable channel of supporting your business. Find out if the business is worth the price which is being quoted and that you’re not being overcharged. This will bring complications when you’re striving to ensure that your profit margin is logical according to the cost you purchased it for.

Location of the business:

Where the business is located is very important in ensuring its success. It will determine a lot in terms of its success and the type of client base you want to attract. Therefore, ensure that it’s located in an area that is business friendly.

Distribution business

Eleven Things You Must Know Before Selling Your Business

Selling Your Business

Selling a business can be a challenging task. Why not streamline the process by boning up on the basics before you begin? Anyone who chooses to sell a business will at some point consider seeking professional assistance. In order to establish the business valuation and market the company in the best possible manner, the vast majority of sellers turn to professionals. This strategy makes perfect sense if you have never sold a business before or if you hope to leverage the marketing reach of a reliable business broker, take advantage of resources, such as buyer financing, and to maximize the value of your business.

In order to establish an accurate business valuation and eventually sell a business for the best possible price, consider the following tips for business sellers:

Be honest about your business’s strengths and weaknesses:

A professional can help you set a realistic price: A price that’s too high will make an otherwise easy sale a major challenge. Learn what comparable businesses in your area sell for and price yours to move, not languish on a listing board. Research is the key to setting the right price, so be prepared to have a business broker to dig in and study the local market before you settle on a specific price point.

Have proof of income ready to go:

Buyers want to know the health of your business, so be ready to show verifiable documentation to prospects. This can take the form of tax returns or financial forms, such as, profit & loss and balance sheets.

Never list before the time is right:

If your business is too young (less than a year old) or still going through growing pains, now might not be the best time to list. It’s a fact that the older and more established a business is, the faster it sells.

Be willing to negotiate on price:

Few home sellers set a fixed, non-negotiable price and expect things to go smoothly. The same thing applies to businesses. Have a range in mind rather than a specific number. Depending on how motivated the buyer is, you can move around within that range before closing day.

Have analytics ready to go:

These days, sales and traffic analytics mean a lot, especially if your business is mostly an “online” affair. Google Analytics is a free service, but most business owners use multiple services to keep track of their financial health. It makes sense to have at least 6 months of analytics on hand to show prospective buyers.

Keep working even after you decide to sell:

One of the most common pitfalls for sellers is apathy. Once they list their business for sale, either through a broker or on their own, they stop working. Smart sellers continue to operate their businesses “full blast” even after listing. This keeps financials looking healthy and maintains cash flow. No seller wants to buy a business that has been slacking off for the past few months.

Make a super-detailed transition checklist:

Write down every conceivable thing that a new owner might want to know. Think about things like website login information, passwords, analytics logs, customer lists, seasonal promotion details, local vendors, and other relevant data they will want to have on hand the first day of operation.

Know how to qualify a buyer:

You’ll need to come up with some methods to make sure buyers are truly interested and aren’t just kicking the tires. Maybe a good-faith deposit is the answer. An experienced broker can help with this part of the process even if you have no idea how to whittle down a list of prospects.

Talk with a professional broker:

Even if you don’t intend to list your business with a broker, it helps to consult with one and find out the lay of the land. In most cases, a broker will agree to work with you on a non-contract basis for a flat fee. In any case, it’s almost always a smart move to at least speak with an experienced broker before you decide to go it alone.

Understand what buyers are looking for:

Put yourself in a buyer’s shoes and brainstorm about what it might be like to be on the other side of the deal. Consider that many buyers are retirees who want a steady stream of income, while others are young entrepreneurs looking for something they can turn into a hands-on career or family business. Ask yourself what kinds of buyers will be interested in your particular entity.

Understand what a good broker can bring to the table:

Like a seasoned real estate agent, an experience business broker can take care of large chunks of a transaction. Whether that means qualifying prospective buyers, structuring a complex deal, negotiating with potential buyers, establishing a precise valuation of the business, or conducting a powerful marketing effort, an effective broker can do the lion’s share of the work once you decide to list.

A business broker, when used properly, can take care of the heavy lifting when it comes time to sell a business. One of the first steps is determining the business valuation and deciding on a realistic selling price. But there’s really much more to it than that. Most people would never dream of selling a large home without the assistance of an experienced real estate agent. So, why not do the same when selling a business? Brokers can deal with forms, filings, marketing, valuation, buyer qualification, setting a smart price, and all the minutiae of closing.

Avoid the common pitfalls by teaming up with a competent broker. There’s no reason to go it alone when an experienced professional can handle the details and close the deal at a fair price.

broker for selling a business

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.

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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