Sell your business | Business Brokers 1-800-Biz-Brokers

Sell your Business Confidentially

Sell your Business Confidentially

Admin No Comments
  sell your business

 

Keeping the sale of your business confidential is paramount to not disrupting your day-to-day business operations.  However, how do you find a buyer for your business, without alienating your key employees or losing important customers?

When you use a business broker from 1-800-Biz-Broker, you can be assured that they are experts at confidentially marketing your business for sale.

Some of the practices we employ are using “blind listings”, and non-disclosure agreements.  For example, if “Mike’s Downtown Cleaners” in downtown LA is for sale, we might promote it as an “Established Dry Cleaner in a Major Southern  California  City.”  Then when a potential buyer contacts us, we promptly request that they complete and Buyer Profile and Confidentiality or Non-disclosure Agreement.

Completing a non-disclosure agreement is also a critical part of pre-screening potential buyers, which is another important step in finding the right buyer for your business.

If you are thinking about selling your business, give us a call.  Our Business Brokers are experts at confidentially marketing your business for sale.  You can reach out to us in complete confidence, just use the contact form or call 1-800-Biz-Broker today.

 

8 Reasons Businesses Don’t Sell

Admin No Comments
  business for sale

Not every business listed for sale will ultimately sell. In fact, some trade groups in our industry have stated that less than 10% of businesses that are listed “for sale by owner” will actually sell!  They go further and say that businesses that are listed by Business Brokers actually have a 40-50% probability of selling.  That’s a 4 to 5 times improved rate of success, when a business uses a business broker!  As a business broker, this is great, but I know why this is the case.  I, myself, as well as other Business Brokers (as least the good ones), screen the businesses we want to work with.  We have limited time and resources, so we want to take on clients who’s businesses we KNOW have a greater chance of selling.

There are a number of reasons why business don’t sell.  Here are a few…

From the Buyer Side:

  • They long to be a business owner, but they really don’t have the risk profile to actually pull the trigger
  • They are influenced by a partner or spouse to not buy a business
  • They have no concept or are unrealistic about the commitment, resources, process, or risk that is inherent in buying/operating a business

From the Seller Side:

  • Unrealistic price
  • Poor documentation
  • They are not honest about the business and/or its success
  • They have a partner with different goals
  • The Sellers are unaware about the tax implications of selling the business

If you are considering buying or selling a business, give us a call, we are business brokers!   1-800-Biz-Broker

Here are is a snapshot of our current Businesses for Sale

Thinking about selling your business?  Give us a call at 1-800-Biz-Broker or Click Here to receive 4 Free Reports for Business Sellers

 

Top 20 Businesses that Sell

Admin No Comments
  sell your business

As a Business Broker, I have found that a business will sell when the following three items are true:

  1. The business has good books (well organized and verifiable)
  2. The business is profitable
  3. The business can be improved and grown

Without regard to the industry, if I represent a business that satisfies the above 3 conditions, experience has taught me that I will find a buyer.  However, I have also found that certain industries do sell better, sometimes faster, and more often than others.  Restaurants come to mind.

BizBuySell.com is one of the leading websites that lists businesses for sale, has just published their annual “BizBuySell Insight Reports”.  BizBuySell analyzes sales and listing prices of small businesses across the United States based on approximately 45,000 businesses for sale and those recently sold..  You can find the whole report here.

I used Excel to arrange the data from one of the tables that presented the number of businesses sold in 2016; as reported by sellers and business brokers.  These are the top 20 business types that sold in 2016 (by number of closed transactions).

 

 

Do you have one of the Top 20 Businesses listed above?  Have you been thinking about selling your business?  Contact me today and I can help you get your business ready to market confidentially and for top dollar.  Call 1-800-Biz-Broker or visit www.1800bizbroker.com

About the Insight Report

The BizBuySell Insight Report is a nationally-recognized economic indicator that tracks the health of the U.S. small business economy. Each quarter, BizBuySell analyzes sales and listing prices of small businesses across the United States based on approximately 45,000 businesses for sale and those recently sold. The BizBuySell Insight Reports focus on over 70 major U.S. markets and publish local, regional, state and national data for trending and analysis

Custom Neon Sign Business for Sale

Admin No Comments
  business for sale sell your business

 

Asking Price: $299,990

Cash Flow: $113,071

What a great business for sale … profitable, no employees, get paid upfront, web business, work from home or anywhere, custom signs are drop-shipped, no inventory, & established over 10 years!

This is a website that sells custom neon signs. The site gets all of its traffic organically! Literally ZERO has been spent on Ad words in years.

Neon signs are sold to businesses and the general public. Huge list of repeat corporate customers including: Urban Outfitters & Forever 21.

Seller gets deluged with inquires daily. He responds with a custom quote and proof. If the customer approves, payment is up-front. Seller then sends order to one of his manufacturing partners. Signs are made and sent directly to the customer by the manufacture!

Sometimes the seller arranges for installation through other installation partners for an additional fee.

A nondisclosure agreement and buyer profile is required for additional information.

Thinking about buying or selling a business?  We are Business Brokers, we can help!  Contact us today.

 

Detailed Information

Employees:
ZERO !
Facilities:
None. This a home based business. (Home Based)
Competition:
This website ranks highly on Google searches for several relevant key words. ALL traffic to the website is organic.
Growth & Expansion:
1. You can add sales via Google Adwords 2. You can sell to the existing customer list (1800+ customers) 3. Add products… other types of signs, LED Signs etc..
Financing:
TBD
Support & Training:
Yes. 4 weeks.
Reason for Selling:
Slowing down/ Semi-retiring
Home-Based:
This business is Home-Based

 

A Good Exit Strategy Is Worth A Fortune: Selling your business for maximum profit

Admin No Comments
  business broker sell your business

You pay for insurance to protect your assets, why not implement an
Exit Strategy now for the same protection of your greatest asset?

Selling your business can be an organized process where each step maximizes profit and your advance preparation expedites the sale, or it can be a dismal failure full of gut wrenching interactions and tremendous amounts of your money left on the table at the close.  Fortunately the choice is yours.  A good Exit Strategy starts with simple awareness of the process of selling and can be implemented in advance in your day to day activities with little additional effort.  Thinking of the sale of your business in health terms, consider the sale with no preparation as last minute surgery with no anesthesia, and a properly done Exit Strategy as preventative medicine that will keep you out of the pain and cost of surgery.

Your Exit Strategy begins with awareness that one day you will sell your business. Reasons vary with each business owner and can be as simple as boredom with your own company that you have built, to complex issues such as health or divorce.   Only you know when it is time for you to sell. However having implemented a written Exit Strategy will assure maximum profit at the sale and great peace of mind should you be selling under less favorable circumstances such as the mental duress of a downturn in business or poor health.  You pay for insurance to protect your assets, why not implement an Exit Strategy now for the same protection of your greatest asset?

Once the decision to sell is made, the contacting of a business broker to discuss the market conditions and the various options you have to sell your business is imperative.  Most businesses are sold to other individuals through a broker who facilitates the transaction, working in your best interest.  Buyers can be entrepreneurs that have the same zeal you had when you started your business or industry players that will purchase your business to expand or enhance theirs.  A qualified business broker can be instrumental in helping you write a good Exit Strategy that encompasses the sale scenario viewed from every angle.

You will want to discuss a Buy/Sell Agreement with your business broker and other professionals like your attorney and CPA.  Existing agreements with partners, stockholders, landlords, and others will be examined to ensure your goals, expectations, and terms and conditions of sale are not remedied void and as few as possible conflicts arise during the due diligence process.  Due Diligence is the process of verifying the accuracy of the assertions made regarding your business.

View your Exit Strategy from the viewpoint of a buyer.  What would you be looking at and for if you were to buy your business?  Do your P&L’s match your Balance Sheets and Tax Returns?  Imagine the lack of confidence you would have to move forward as a buyer of your business if discrepancies arose in your financial documents at the due diligence stage of the sale.  What about the physical state of your facility ? If you were the buyer would you want to walk in to a facility that needed immediate attention or a facility that was clearly neat, clean, and organized, allowing you to transition easily into the pertinent matters at hand and not worry about disorganization and safety issues?  How is the attitude of employees and what would clients of yours say about you if they were randomly called?   Are your sales and profits on the increase and expenses on the decrease?  The purpose of the Exit Strategy is to apply a tiny amount of effort in the right direction each day to achieve maximum profit for minimum effort when you do sell.  Working on these issues a little bit each day brings huge profit and joy tomorrow.

Tax consequences and what you will do with both money and time after the sale is finalized need to be considered.  Many times to close a deal you will be asked to help in some capacity with the transition.  You want to decide in advance with the help of your tax attorney or CPA how the proceeds of the sale will be best distributed and conserved.  The financing arrangements and or cash at closing will greatly affect your tax position and all options should be considered.  Can you get more for your business by offering terms on a carry-back note and still protect your interests and save on taxes?  Being proactive at this stage will greatly enhance profits at the sale.

With your plan laid out and preliminary players like a CPA and a business broker identified, you can now break it down into bite-sized pieces that can be a part of your everyday business routine.  This process of implementing little daily routines produces maximum profits at the sale of your business.   If your business sells for 10% more due to this organization and planning, you may have just put $10,000, $100,000, $1,000,000 or more in your pocket by simply being prepared.

It is my job to orchestrate this process and help you achieve your goal.  When the time is right for you to start, I’ll be there to help.  Please feel free to call me with questions and or assistance.

Pablo Fonseca, MBA

Spectrum Business Advisors

1-800-Biz-Broker

Business Sold! Auto Repair Business has new owner!

Admin No Comments
  Uncategorized

Done Deal!  We are happy to announce that we have found a great buyer for this business!  Congratulations to the Sellers.  It was our pleasure to work with them.
 
Thinking about selling your business?  Please contact us.  We are Business Brokers!  Call 1-800-Biz-Broker or complete this form:


Auto Repair Business – Established over 40 Years!

Business Description

This is a dream situation for a mechanic looking to get their own place. It would cost you $500K to build this operation from scratch.
This is a well established garage with state of the art equipment on the shop floor with 6 lifts. They specialize in servicing imports, but are well regarded to work on just about every vehicle.
This business has given the owner a great living and sent his kids through college, now he is ready to retire!
Rent is low. Reviews online are stellar, priced for a super fast sale!

Business for Sale: Wine Bar and Micro Winery

Admin No Comments
  business for sale
wine-bar-business-for-sale

 If you love wine and want to get into the wine business…this may be for you! Your very own Micro Winery, Wine bar, and retail boutique Wine Shop!

Except for growing and harvesting grapes, this winery has the facilities and equipment to ferment, oak, age, bottle, and label high quality small batches of wine from around the world!

In addition, as a custom wine making winery, the Winery offers unique services including:

“Personal Vintages”, your favorite wine you can bottle!
Custom labels for your personal wine or for an extra-special gift
Wide selection of unique and extraordinary wine gifts and wine accessories
Special events and wine tastings
Wines for promotional/marketing gifts

Get More Info HERE

Thinking about buying or selling a business?  Reach a Business Broker today!

See our Current Business Opportunities Here



Business Valuation – Asset Based Approach

Admin No Comments
  business broker business valuation

asset-based-business-valuationAsset Based Business Valuation:  How to Identify Business Assets.

There are several types of business assets you need to consider when you determine your business valuation before a sale. Assets are grouped by usage, convertibility or physical existence, although some accountants may use other classifications.

Current and Fixed Assets (Convertibility)

Current assets can be converted into cash within one year. They include cash, accounts receivable, cash equivalents, marketable securities (treasury bills, bonds, preferred shares, etc.), inventory and prepaid expenses. Current assets are liquid and can be used to pay debt in a timely manner and cover daily business operations.

Fixed assets are tangible assets used to produce goods. They include machinery, computer equipment, furniture and real estate. They aren’t expected to be sold or converted to cash within a year, so they also fall into the non-current/long-term asset category. Machinery and other fixed assets lose value as they age, and the amount of depreciation is indicated on a company’s balance sheet.

Tangible and Intangible Assets (Physical Existence)

Tangible assets are physical assets, including furniture, computers, stock, cash, accounts receivable and buildings. All fixed and current assets are tangible. When tangible assets have a projected life of more than a year, a business can appoint some of the asset’s expense to every useful year instead of expensing the entire asset during the purchase year. This process is called depreciation, and it accounts for wear and tear to an asset as it gets older. The value of furniture, real estate and similar tangible assets is easy to determine by using an appraiser or most recent value from another trusted source.

Intangible assets can’t be seen, touched or felt. Goodwill, patents, trade secrets, copyrights and trademarks are examples of intangible (non-physical) assets. These assets create profit for a company on a continuing basis. Royalties from original music, books, trademarks and patents create a revenue stream for their owners. Copyrights, patents and trademarks exist independently of the company and you can sell or exchange them. Goodwill is part of any business and contributes to its value, but it doesn’t exist separately from the business; therefore, it can’t be sold separately.

It’s difficult to pinpoint an exact value of an intangible asset. A few intangible assets considered of value by the IRS include trademarks, goodwill and human capital (the value of an employee’s skills and knowledge). Certain intangible assets may be amortized as expenses for during their useful lifetimes.

Operating and Non-Operating Assets (Usage)

 Operating assets are necessary to conduct business on a daily basis. They aren’t sold to customers and may be fixed or intangible. Property, equipment, land, a manufacturing plant, driveways, furniture and vehicles are examples of fixed operating assets. Intangible operating assets include trademarks, trade secrets, patents and copyrights.

Non-operating (or redundant) assets aren’t necessary to operate a business, but they may provide income. They are listed on a company’s balance sheet along with operating assets. Redundant assets are sometimes used as a backup in case a business needs to diversify or add new income sources.

 

The Asset-Based Approach to Business Valuation

An asset-based approach to business valuation is the total value of tangible and intangible assets, and considers the assets’ resale value during calculation.  Total liabilities are subtracted from the total asset value to arrive at the end result. When using this method, the business owner has some discretion as to what assets to add to the total and what to ignore. The asset-based approach may be problematic for some companies due to difficulty determining the worth of patents, intellectual property and other intangible assets.

Correct evaluation of assets is essential to calculate your business’s selling price. Once your accountant has compiled all financial reports, hire an experienced  business broker can help you set an accurate business valuation.  Contact on today calling 1-800-Biz-Broker.  They can help get your business sold fast!

Selling your business, Closing Considerations

Admin No Comments
  sell your business

The Importance of a Quick Closing When Selling Your Business

Closing your sale means officially signing over your business to the buyer. The buyer gives you check and you hand over the keys. That sounds simple enough, right? Yes, if you spend time to prepare documents for closing and ensure nothing is overlooked.

The process of selling a business is complex. There are federal, state and local laws you need to follow, tax concerns and confidentially issues to deal with involving prospective buyers and employees.

Once you’ve maneuvered through this maze and agree on terms with a qualified buyer, don’t let a typo, minor slip-up or omission interfere with a quick closing. Prepare a generic template for the end of the sale before you’ve even placed an ad to sell the business. This reduces the likelihood a buyer will balk at a mistake or omission and delay the sale – or worse yet, walk away from it.

Prepare for a Final Run-Through

The buyer may want to do a final run-through before closing to check equipment, inventory and other physical assets. You may need to modify the purchase price if any inventory has been sold or fixtures need replacement since the initial sale price was set.

Scheduling the Closing

Choose a closing day that works for all parties involved, and sign documents with lawyers present in an escrow office or your lawyer’s office. An escrow agent may be used for a “step-by-step” approach instead of a formal closing.  Parties sign closing documents and forward them to the escrow agent over days or weeks. Once all signed documents are received, the agent releases funds to the seller to close the deal. The end results are the same regardless of the method you choose. You get the money and the buyer gets the keys.

Write a Pre-Closing Checklist

Before you sit down to close the sale (or begin the closing process with an escrow agent), make sure you have completed these documents. Ask your business broker about additional paperwork you may need for your closing :

Sales Agreement

A legal form with attachments noting the terms of the sale

Closing Sheet

A closing or settlement sheet contains all financial transactions agreed upon before closing.

Loan Documents

These documents include a promissory note, UCC financing statement and security agreements.

Building Lease

Gather copies of lease and amendments to lease. Most commercial building leases have a transfer or lease assignment clause. If a new lease has been negotiated instead, make sure documents indicate this and that all parties agree to the terms.

Employment/Consultation Agreement

If you are staying on as a consultant during the transition period, this document indicates the terms.

Bill of Sale

The bill of sale is proof of sale and shows the business has been transferred to a new owner.

Furniture and Equipment Sale List

Identify leased items and assets to be retained by the seller.

Motor Vehicle Titles

If you’re transferring work vehicles to the buyer, include the corresponding paperwork.

Intellectual Property

Include forms to transfer ownership of copyrights, trade secrets, patents and trademarks if thee intangible assets are part of the sale.

Asset Acquisition Statement

IRS Form 8594, which shows an identical allocation, must be filed with buer and seller’s income tax forms.

Close the sale of your business faster by contacting a business broker through www.1800bizbroker.com. Search our database to find a business broker, lease negotiation expert or mergers and acquisitions specialist in your area. Would you rather use the phone to find a broker? Call 1-800-BIZ-BROKER to find a professional skilled in all aspects of selling a business. You can also check out http://sellyourbusinessfast.info/ for more information about the ways business brokers can help you sell your business.

SOLD!! Business Sold! Snack Food Distributor

Admin No Comments
  business sold
1-800-biz-broker-sold-business

Done Deal!  We are happy to announce that we have found a great buyer for this business!  Congratulations to the Sellers.  It was our pleasure to work with them.
 
Thinking about selling your business?  Please contact us.  We are Business Brokers!  Call 1-800-Biz-Broker or complete this form:

 


Snack Food Distributor –  Premium Beef Jerky Products

Asking Price:$194,500

Cash Flow:$98,472

Gross Revenue:$268,812

EBITDA:N/A

FF&E:$4,000

Inventory:$22,000*

Established:2003

*not included in asking price.

Business Description

This company has been selling Beef Jerky since 2003. Their products are of the highest quality and regularly inspected by the USDA. From the California grown meat to premium spices and ingredients, and their state of the art processing—every step of production is focused at maintaining the highest quality, exceptional taste and tenderness.

At this time they offer 10 flavors of beef, 2 bacon varieties, and 4 flavors each of venison, elk, and buffalo jerky.

For sale is a developed route of over 30 accounts throughout Southern California and Las Vegas.

DETAILS
• Long established accounts and sales (markets, high end retailers, gas stations)
• Seller works 3 or 4 days per week
• Healthy, high protein snacks
• Long shelf –life, low spoilage
• Niche meats and recipes


Detailed Information

Inventory:
Not included in asking price
Employees:
0
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
34 accounts in retail stores and convenience stores (Home Based)
Competition:
The market for jerky has ballooned into a nearly $1.5 billion industry in the United States. Sales are up by 13 percent since 2013, and by 46 percent since 2009, according to data from market research firm IRI. Jack Link’s, the largest jerky maker in America, now sells more than $1 billion in meat snacks each year. — From the Washington Post see full article in the Seller’s Memorandum

Featured Businesses for Sale

4 Free Reports for Potential Sellers

These 4 free reports will save you both TIME and MONEY! Get them free now ...

4 Free Business Reports

What is your business worth?

logo 800 biz broker

Call 1-800-BIZ-BROKER today!

If you are thinking about buying or selling a business, you should contact us for a free confidential consultation.