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Written by bizbuyorsellfl | February 14, 2011 12:33 PM in Real Estate Agents & Realtors
189 views
As the economy slowly recovers, buyers’ confidence level increases and with that comes a greater demand for businesses available for sale. Buyers, who were waiting for the bottom of the recession to hit prior to making a decision on buying, now find themselves competing for quality businesses in this market. However, as can be expected, businesses which survived the recession now have less competition and with less competition come increase market share and...
Written by bizbuyorsellfl | August 11, 2010 12:01 PM in Real Estate Agents & Realtors
211 views
Unfortunately, sellers often ignore one very simple truth: The value of their business increases in direct proportion to the buyers’ decrease in risk. I think this is a very important element of valuation and, as such, should be very well understood by those looking to sell or currently selling their businesses. So, the less risk the more value you may be able to get for your business buyers will compete with price to get at your business. So, let us discuss...
Written by bizbuyorsellfl | April 15, 2010 3:34 PM in Real Estate Agents & Realtors
212 views
Recently, I was having a meeting with one of my network colleagues. During our conversation, she pointed out how leery she was of businesses for sale. When I asked why, she indicated that if the seller wants to sell the business is because it is not doing well. I found her response interesting and immediately indicated to her that sellers sell for a variety of reasons, most of which are not related to poor performance, cash flow or profitability issues. Here are ten (10)...
Written by bizbuyorsellfl | March 5, 2010 8:33 PM in Real Estate Agents & Realtors
220 views
How would you like to buy a business using 401K funds--without any tax penalties? The purchase would leverage the government's taxable share of your 401K--therefore lowering your risk--and be effectively tax free on its operating profits. Should you want to know more, please contact me at 407-361-8886 or email me at fsimo@tworld.com. Also, please click here for more information on buying and selling a business in Orlando or Central Florida.
Written by bizbuyorsellfl | February 9, 2010 12:33 PM in Real Estate Agents & Realtors
1 comments
| 220 views
There is no doubt that a major topic of discussion (and concern) today for most of us is the economy. One of the main issues regarding a market where unemployment nears ten (10) percent (or 20% for those who include workers who no longer submit claims or are simply working on a part-time basis, or simply gave up), is whether the recession and/or the recovery is underway. Based on two continuous GDP growth quarters, most economists would indicate that the recession is...
Written by bizbuyorsellfl | January 4, 2010 2:39 PM in Real Estate Agents & Realtors
186 views
Ok, so you are lucky enough to have sold your business. Now what? One of the things sellers normally forget is the closing process. In one of my previous articles I mentioned that among the many things Business Brokers do for sellers and Buyers is to manage the closing process once a Purchase Agreement (sale) has been made. As brokers, we normally manage three (3) key areas after a Purchase Agreement has been signed: The Due Diligence, Lease Assignment and Closing...
Written by bizbuyorsellfl | December 2, 2009 5:29 PM in Real Estate Agents & Realtors
124 views
As I mentioned in one of my previous blogs, the Small Business Administration (SBA) has relaxed some of their policies in regards to lending. I said before that they “became a lot more flexible by making changes to the acquisition policies impacting purchases which included Intangible Assets. These changes give “Preferred Lender Providers” (PLP) more flexibility to provide business loans WITHOUT going through the SBA for final approval. In addition to...
Written by bizbuyorsellfl | November 10, 2009 3:58 PM in Real Estate Agents & Realtors
368 views
Many foreign nationals come to Central Florida to purchase a business in order to get visas into the US on a somewhat permanent basis—so long as the business is viable the visa holder may stay, if not, they may have to get back to their country of origin. The two most common types of visas are the L1 and E2 visas. The L1 visa is normally available to foreign business owners who wish to acquire a business in the U.S. and assign a person-- on an inter-company...
Written by bizbuyorsellfl | November 4, 2009 4:34 PM in Real Estate Agents & Realtors
104 views
In one of my recent articles, I discussed profitability (Owners Benefit) as one of the key elements in determining a business valuation. I mentioned that if a business generate limited or no cash flow, it normally can only sell its tangible assets—receivables, inventories, furniture and fixtures and equipment.—for a nominal amount. Yes, you may get more than the book value, but I find it rare. Unfortunately, over and over again, sellers come to me wanting to sell...
Written by bizbuyorsellfl | October 8, 2009 4:57 PM in Real Estate Agents & Realtors
238 views
What is it about most of us who decide that “cheap” is better? We do it when buying clothes, shoes, furniture, car, etc, only to find out, in most instances, that our decision was not a good one. Why?? Because in the very short term, clothes look like hell and soon deteriorate, shoes fall apart and last only a few months, and our furniture rips apart easily, forcing us to go buy the same things within months-- doubling our expense!! We do the same when buying...
Written by bizbuyorsellfl | September 2, 2009 4:39 PM in Real Estate Agents & Realtors
382 views
As a Business Broker, I often discuss the intrinsic value of good financials. You would be surprised how many businesses do not maintain good records; understate the reported income in tax returns; overstate expenses and hide (do not report) most of the cash generated by the business. As a result, many sellers, when it comes time for Due Dilligence, cannot effectively sale their businesses because they cannot prove what the business REALLY generates in bottom line profitability. Using taxes...
Written by bizbuyorsellfl | September 2, 2009 4:31 PM in Real Estate Agents & Realtors
745 views
Like the majority of businesses, the recession has negatively impacted the Business Brokerage world. As the recession took hold on the economy and business revenues began to recede, so did business profits. With a reduction of over 30% in sales (turnover) for most businesses and fixed costs remaining in place (i.e., Insurance, Rent, Utilities), profits, value and cash flow suffered significantly from only a couple of years ago—most low cash flow businesses either closed doors...
Written by bizbuyorsellfl | September 2, 2009 4:19 PM in Real Estate Agents & Realtors
398 views
During the week, I had a discussion with a very talented individual whose job is to help businesses “get well” financially through leadership development. He asked for my opinion regarding valuation and exit strategies. The essence of his question dealt with a topic in the mind of many-a-business: when can I sell my business in order to get the most value? Now, I know that many of my colleagues may have their own answer to this question. ...
Written by bizbuyorsellfl | September 2, 2009 4:17 PM in Real Estate Agents & Realtors
275 views
Last week I talked about the Selling Criteria or areas that can make your listing a lot more competitive, such as good financials, proper documentation (such as lease and franchise agreements), equipment lists and others. These are areas that brokers look into to determine how viable and competitive your listing is—the probability of success. During my discussion last week, I purposely omitted two additional elements (c’mon, I don’t want to tell you all in one...
Written by bizbuyorsellfl | September 2, 2009 4:15 PM in Real Estate Agents & Realtors
295 views
More often than not, as I go on a listing appointment, the seller looks at me with concerned eyes and makes the following/or similar statement: “My business does not generate enough profit for me to sell it; I really cannot afford to sell for the price that I may get.” This may be a wrong assumption solely based on the profitability of the business. First of all, the value of your assets, such furniture, fixtures and equipment (ff&e) may be enough to...
Written by bizbuyorsellfl | September 2, 2009 4:12 PM in Real Estate Agents & Realtors
459 views
More than ever before, the selling of your business has become extremely competitive. As a seller, in this market, you are competing with a greater volume of similar businesses for sale, buyers’ investment choices in this very tight and limited financing environment and, most importantly, the brokers’ time and involvement in your listing. Here, I would like to focus on the latter—the brokers’ time and involvement in your listing. By the way, by...
Written by bizbuyorsellfl | September 2, 2009 4:08 PM in Real Estate Agents & Realtors
426 views
Ok, so what in heck do Business Brokers do to EARN a living?? I really think that very few people really understand how they add value to the process of selling or buying a business. Although they help sellers value their business; structure it for sale; market it (confidentially) for sale; coach buyers; show their business; qualify buyers for financial capability to buy the business and; conduct most of the negotiations, our job really begins when the buyer makes an offer....
Written by bizbuyorsellfl | September 2, 2009 4:06 PM in Real Estate Agents & Realtors
322 views
Let’s face it, many buyers today are hindered by their ability to buy because banks are unwilling to provide business loans to the extent of a few years ago, if any at all. It is, to say the least, difficult to get financing. As a result, sellers have now replaced banks by providing Seller Financing. In this market, if sellers failed to do, they may not be able to sell their business or it may take years in which to do it. Here are some reasons why sellers should...
Written by bizbuyorsellfl | September 2, 2009 4:02 PM in Real Estate Agents & Realtors
244 views
It’s the same old story. A buyer enters into a Purchase Agreement to buy a business, normally with a provision to conduct a due diligence within a 10-15 day period and, (guess what?) fails to do so. As a result, the buyer goes to closing, signs all of the documents required to transfer ownership only to find out later on that what he bought is not what he expected. As a result, the new business owner losses, in most cases, all of their liquid assets. It is a...
Written by bizbuyorsellfl | September 2, 2009 4:00 PM in Real Estate Agents & Realtors
302 views
As we move into the golden years, something happens to many of us (yes, it happened to me)—we want to become entrepreneurs! I think that the need to protect the financial viability of the rest of our life, force us into thinking that the only way we can effectively do so is by investing in a business of our own. Please, think it over. More often than not, we lose a significant amount of our life savings, if not all. We foolishly use our 401K, the equity in...
Written by bizbuyorsellfl | September 2, 2009 3:58 PM in Real Estate Agents & Realtors
488 views
So you made the decision to buy a business. Now what?? Well, to begin with, I would recommend you get the services of a business broker to help you find the right business—it is FREE. Just like in the real estate market, brokers get paid a commission from the seller not the buyer AND, in most cases, the broker represents the transaction—where he is not an agent of either the seller or the buyer. Secondly, I would really give a lot of thought as to...
