Showing posts with label Jacksonville. Show all posts

Thursday, October 25, 2012

Sell Your Business - Confidentially Is A Must!

Selling Your Business - Confidentially Is A Must! :

When selling your business or company, the entire process must be performed confidentially to maximize your value. Vendors, customers, employees, your competition, and others should be unaware of your intentions.

If your customers learn that the business is for sale, they might go elsewhere on their own. If your vendors find out, they may change your credit terms, or level of service to you. If employees learn of a sale they may leave to work in a more stable environment or begin to spread rumors about the "demise" of your company. If your competitors learn that the business is for sale they may raid your customer base, start rumors that you are going out of business, slash prices temporarily to attract your customers or start an aggressive advertising or marketing plan aimed at your customer base. Every seller wishes to complete the transaction privately and confidentially and announce the sale at the appropriate time.

So, you as business owner are probably very concerned that the word will get out that your company is for sale. It is pretty tricky to sell an asset that you can't really let anyone know is for sale.

Well it is comforting to know that experienced professional business brokers/intermediaries sell many businesses in this type of confidential environment. They are trained and educated to accomplish this feat routinely. Business brokers/intermediaries actually thrive in this type of confidential environment.

Their services also include developing an appropriate value for your company and preparing a comprehensive profile of your business to put it in position to be confidentially reviewed by serious qualified buyers. Through their marketing efforts they carefully secure buyers and handle the entire process, working with your professional team to successfully complete the transaction.

The sale of your company will probably be the biggest financial transaction of your life. Seek out a professional business broker/intermediary to successfully achieve your goals. ... CONFIDENTIALLY!

For a complimentary consultation:
Contact Cecil Williams (cecil@bizbrokerflorida.com) or call at 888-925-5055 ext.206. Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com

Tuesday, October 2, 2012

Buying a Franchise - Mistakes to Avoid

Many mistakes that people make are predictable. To help you to avoid making them, FranNet has compiled a list of ten of the dumbest mistakes you can make when going into business. Remember these are mistakes others have made, so take advantage of our experience and save yourself from some potential problems!

• Don’t overextend financially when buying a franchise.

• Don’t start to look until you have an idea of what you’re looking for.

• Don’t assume that starting a business is easy!

• Don’t try to go it alone. Use Experts.

• Don’t forget about a business plan.

• Don’t pick a business because “there are so many of them, they must be good.”

• Don’t skip talking with the other franchisees.

• Don’t put it on your credit card.

• Don’t pick the business your dad (or spouse) likes best.

• Don’t fall in love with the product.

For a complimentary consultation:
Contact Cecil Williams (cecil@bizbrokerflorida.com) or call at 888-925-5055 ext.206. Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com

Monday, September 24, 2012

Advantages and Disadvantages of Buying An Existing Business

Advantages of Buying An Existing Business

It may continue to be successful
It may already have the best location
Employees and suppliers are established
Equipment is already installed
Inventory is in place and trade credit is established
You can “hit the ground running”
You can use the previous owner’s experience
Easier financing
It’s a bargain

Disadvantages of Buying An Existing Business

It’s a loser”
Previous owner may have created ill will
“Inherited” employees may be unsuitable
Location may have become unsatisfactory
Equipment may be obsolete or inefficient
Change and innovation can be difficult to implement
Inventory may be stale
Accounts receivable may be worth less than face value

For a complimentary consultation:

Contact Cecil Williams (cecil@bizbrokerflorida.com) or call at 888-925-5055 ext.206. Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com Also, visit our Florida Business Exchange website at www.fbxbrokers.com

Key Questions to Consider Before Buying a Business

Key Questions to Consider Before Buying a Business

Is the right type of business for sale in the market in which you want to operate?

What experience do you have in this particular business and the industry in which it operates?

How critical is experience in the business to your ultimate success?

What is the company’s potential for success?

What changes will you have to make – and how extensive will they have to be – to realize the business’s full potential?

What price and payment method are reasonable for you and acceptable to the seller?

Will the company generate sufficient cash to pay for itself and leave you with a suitable rate of return on your investment?

Should you be starting a business and building it from the ground up rather than buying an existing one?

For a complimentary consultation:

Friday, September 21, 2012

Ask James Caan: I want to sell my business — but what is the best way to go about it? - Business News - Business - Evening Standard

You Want to Sell Your Business — But What is the Best Way to Go About it?:

Selling a business is the most valuable transaction any owner will ever make. If you compare it to selling a property, naturally we always want the best price. We spend time presenting it in a way that is more attractive to potential buyers. So it always surprises me that when business owners sell their most valuable asset, they often miss the opportunity to maximize the value and increase their chances of success. What many business owners don't realize is that there is a right time to sell. The biggest hurdle is that often, businesses are just not ready for sale.

Luck favors the prepared. To ensure that you get maximum value, preparation is essential. Speak to experts and select an advisor who will walk you through the sale process, much like an estate agent for your home. They will draw you to some key areas for example if you are looking to leave the business, you must ensure that the people who will run it are credible and can ensure that the business continues to be successful. As part of the due diligence process your prospective buyer will want to access a number of your documents, start by pulling these documents together in one place.

Don’t forget, buyers want something with value. Sell the unique points of your business. Put yourself in the shoes of a buyer and ask yourself some key questions. How easy is it to copy? How many competitors are there?

Your intellectual property is another key area that is so important. You definitely don't want IP issues to arise at the due diligence stage of a sale process. Such issues will inevitably result in delays, price chipping, or worse scenarios such as the buyer withdrawing.

Business owners often assume that their buyer will be a competitor of theirs. It could be of course. However, spending time identifying buyers where there is some clear synergy between your businesses can be an invaluable exercise. Try to think out of the box and consider buyers who may be in a different market. This may help sell your service or product through different channels. The right purchaser, and typically one that is not your closest competitor, can be the one that pays the highest price. Once you know who will be interested, you can tailor your preparation to suit their needs.

Selling a company isn’t easy. It takes time and commitment; issues will inevitably need addressing before you start the process of selling the company. Buyers need the confidence that you have built something that is sustainable, that has a good reputation, and most importantly they know has a strong future under their ownership. The only way to achieve this is to plan your exit by preparing to your business for sale. So seek the advice of experts - you will reap the rewards both emotionally and financially.

Source: You Want to Sell Your Business — But What is the Best Way to Go About it?

Wednesday, September 19, 2012

Seven Tips on Selling Your Small Business

Seven Tips on Selling Your Small Business

This article is well written and elaborates on the seven items below in a manner that prepares a business owner to begin the process of selling a business:

1. PLAN, PLAN, PLAN.
2. UNDERSTAND WHY YOU ARE SELLING
3. PERSONALIZE THE DECISION TO SELL
4. UNDERSTAND THE BASICS
5. ASSEMBLE A TEAM OF EXPERIENCED ADVISERS
6. DETERMINE WHETHER TO USE AN INTERMEDIARY
7. COMMIT TO THE PROCESS

Read: Seven Tips on Selling Your Small Business

Tuesday, September 18, 2012

Tips To Sell Your Business In This New Economy

6 Tips To Sell A Small Business Successfully In The New Economy

By : Peter Siegel, MBA

Current news reports about ups and down affecting the stock market, employment numbers and consumer confidence in the economy have an impact on those who want to buy a small business as well as those who have a business opportunity for sale. The mood of uncertainty causes entrepreneurs to hesitate before moving forward with plans. And those seeking business purchase financing, must learn to navigate through a lending environment still reacting to the banking crisis of 2008 and the resulting recession.

Fortunately, the owner of a retail shop, service company, restaurant or other small business who wants to sell, can rely on some smart strategies to help overcome obstacles and succeed with a satisfactory sale. Here are six of those ideas.

1. Be certain you're ready to sell. This is not a good time to offer the company on the market just to "test the waters," or because a persuasive business intermediary wants a listing and claims he can get a great price. The moment of truth may come to a seller who is merely exploring the market but is not fully committed to turning over the company to someone else. If the intermediary brings an offer from a qualified buyer who matches price and terms of the listing, the seller probably will owe a commission whether or not he signs the deal.

2. Organizing materials about the company, including up-to-date financial information, into a presentation is more important now than ever. There are more serious buyers now than at any time in the past generation or two, thanks to the insecurity in the job market. Many people have stopped looking for work and started looking for a way to secure the future with business ownership. But there is intense competition from a number of baby boomer owners ready to retire. And most buyers in today’s economic climate are not going to send time investigating any opportunity for which there is not a lot of solid and positive information.

3. Develop a business plan and a marketing plan to go along with the basic background profile covering the business for sale. A document that gives buyers ideas about expanding markets, adding to the company’s capabilities to generate additional revenue, is an important sales tool. A skilled business intermediary can help with this project.

4. Choosing the right intermediary - the licensed business sales professional - to offer the small business for sale, devise and implement a strong marketing campaign, and give valuable market feedback to the owner, is critical to the process of selling a small business. This is no market for amateurs. The seller who’s serious about getting results when the company is offered to the public, needs to interview at least three potential intermediaries about listing the business and make sure to get references from each. And then, spend the time and effort to actually contact those references. Key attributes to look for in a listing broker are experience marketing your kind of business, and knowledge of how the industry has changed, along with the ability to adapt to those changes.

5. Get the business prequalified for financing. Of course, it ultimately is the buyer who’ll need to qualify for a loan to buy your business, but it still is an excellent strategy to have a business purchase money lender to evaluate the company. The seller and buyer with a deal containing a loan contingency will be able to move quickly if there is a lender who knows the company and is willing to help fund its purchase. It’s a powerful selling point when offering a small business for sale that has been preapproved for a purchase loan.

6. The owner who is prepared to help finance part of the purchase for the right buyer will have a better chance of selling the business at an acceptable price. And if the business value has declined with the slowed economy, but you think things will improve, you may be able to achieve a higher price with a creative deal structure. Perhaps some form of earn out agreement can be reached with the buyer. It will establish a selling price that may be more favorable for the buyer than the seller, but the price can be subject to change for the better, and the payments to the seller increased, if the company becomes more profitable in an improving economy.

Challenges presented by circumstances of the New Economy require that an owner wanting to sell a small business learn to adapt to current realities. That will increase the chances of achieving a sale and at a price that will match or come close to the dollar amount the seller wants to receive.

Key Things To Do Before Selling Your Business

Five Key Things to Do Before Selling a Business

Selling a business for a price deemed fair and equitable to both parties — the seller and the buyer — can be a complicated negotiation. But following these five tips will put you on the right path toward a fair deal:

Define your priorities. It's vital for you to sit down at the outset and do some serious thinking about exactly what you want from the sale. Do you want an all-cash deal or are you willing to finance part of the sale price? Are you looking for a buyer who'll continue your business traditions? Can you identify a minimum price you must get in order to be happy? Odds are you'll have to make some compromises. If you insist on a lump sum at closing, you'll almost surely have to compromise on price. On the other hand, if you're willing to finance part of the deal, you may get a higher offer. When you begin to think in these terms you'll start to realize that the more flexible you can be, the closer you'll come to realizing your business's top-dollar value.
Time your decision to sell. You're most likely to receive the highest dollar value for your business when the national economy is strong and when your particular business is having its best year ever (with the next looking even better). However, history has shown that even the brightest economists can be wrong about where the economy is headed, and your industry's moment in the sun may have passed years ago. To get the best price for your business it pays to keep an eye on what Wall Street is doing and to be flexible about when you're willing to sell. Getting out earlier than you like is often preferable to getting out too late.
Start planning early. Businesses on average require about a year to sell once they've been placed on the market. So start planning at least a of couple years in advance of when you anticipate wanting to sell. Much like selling real estate requires good curb appeal, selling a business requires attractive nuances for potential buyers, who may present themselves unsolicited. Make sure your business is attractive at all times so you don't feel pressured to dress it up at the last minute, when you'll be more likely to take the first offer you get, or to accept terms that are less than favorable to you. Worse yet, you may not find a qualified buyer at all.
Renew leases and key contracts. When prospective buyers investigate the possibility of purchasing a business, they try to predict what they'll need to spend on rent, labor, supplies, etc. They don't want to immediately renegotiate key contracts or run the risk that a lease may not be renewable at all. Therefore, do your best to renegotiate all leases and key contracts early. Also, have your lawyer ensure that the contract is assumable by a new owner.
Assemble your expert team. No matter how independent you are, selling your business isn't a job you should attempt alone. Even for a small business there are numerous federal, state, and local regulations to consider, not to mention tax issues. You need to spend your time running your business at the precise time you need it to run most successfully, so strongly consider filling these positions: accountant; lawyer; business broker; business appraiser/valuation expert; and tax expert.

Source: Five Key Things to Do Before Selling a Business

Monday, September 17, 2012

Should You Use a Business Broker to Sell Your Business?

Why Use a Business Broker to Sell Your Business?

In our "do it yourself" society, if there is a perceived way to save money by doing things ourselves few of us can resist. That explains why I built a deck on my house, fixed my own plumbing and unsuccessfully tried to build my own website. Something's are best left to the professionals like cutting your hair, dental work, tax returns and selling a business.

People invest mind, body and soul for 10 to 20 years to build a successful business, and then when it comes time to harvest their profits some choose to "save" the commission fee by selling it themselves. Often people don't realize that a qualified business intermediary, on average, sells a business for 20% more than a "by owner" sale. (International Business Broker Association Journal, Volume VIII, Number 1, 1998) Another real risk of improperly preparing and marketing a company is that the business will never sell and have to be liquidated.

Recently there was an excellent survey done by T. Leverette ranking the various reasons business owners hire business brokers.

1. Brokers know how to sell businesses; most sellers don't	20%
2. Confidentiality preservation and knowledge of what/when to show buyers	16%
3. Seller doesn't want to be distracted from running business	16%
4. Access broker's database of potential buyers and investors	9%
5. Maximize price buyers will pay for the business	9%
6. Broker understands and can depersonalize negotiations	7%
7. Owner does not know how to find buyers	7%
8. Prepare owner to sell and prepare business for sale	7%

In golf there is a special word used to describe getting a second chance. It's called a "mulligan" out on the fairways. Many things in life allow for mulligans, like painting a room the wrong color or burning dinner. But something's only allow one bite at the apple like surgery, lawsuits and selling your business. Ask yourself if the decision you're making permits a mulligan or if the decision is final? It's your life.

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