Your Orlando Florida Business Broker

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Confidentiality and Your Business Sale? March 15, 2018  by  Michael Shea PA   (Edit) When to Communicate the Sale of Your Business The decision to sell your business is a big one; it is an important decision likely to affect the lives of many. As a result, it is crucial to keep the sale and all negotiations for the sale of your company as confidential as possible. Likely to affect your clients, employees, vendors, and competitors, it is best to ensure any positive, or potentially negative, reactions do not affect the final sale of your hard work. It is best to wait until the end of the negotiation process to tell all interested parties. Although communication is a critical element of operating a successful business, there will be times when you can’t share everything with your employees and clients. Once you have decided to sell your business, you need to be careful not to say too much. Be selective and strategic about who you share information with during the sale process. Y

Is it a Buyer or Seller Market for Selling Your Business? June 16, 2017  by  Michael Shea PA Is it a Buyer or Seller Market in Selling Your Business?  Not a simple question and reflects some specifics to your particular deal but there are some macro stats you should consider if you are considering selling your business At present the sales price to asking price gap is tight. This reflects low inventory and high demand making it, in essence, a seller’s market. So, if you were looking to sell an environment like this is ideal.  The following image accurately reflects the trends we have seen for the several quarters. The next data point is multiple of Cash Flow. Again the tight inventory has driven multiples up once more reflecting a seller’s market dynamic.  The term multiple is bandied about and sometimes confuses parties but in general buyers pay a multiple of the cash flow or profits of a business.  When it is observed that multiples are going up it reflects a number of

Does Your Business Broker Create Scarcity April 24, 2017  by  Michael Shea PA Often misunderstood at the mainstreet and middle market segments of business sales is the leveraging of the element of scarcity. When large companies with EBITDA over $1MM dollars go to market for sale they often are sold in an auction format. No price set and buyers who need to grow and fit strategically submit offers and terms. The leverage and control is the sellers. Now there are obviously some games and tactics used by buyers to give sellers haircuts prior to close but….leverage remains the sellers. The reason private bankers and M&A professionals do this is to create competition and drive the principle of Scarcity into the process. Conversely, when small business’s or middle market companies go to market they often have a price. And frankly, there are lots of good reasons as to why that is so which can be talked about later. However, Scarcity as a principle can and should still be lever

Negotiation in a Business Sale and a “Beautiful Mind” March 10, 2017  by  Michael Shea PA All too often in business sales when negotiating a deal a seller or buyer and or their representatives look to defeat the opponent and “win”. Statistically speaking when reviewing outcomes of deals the reality is that when this approach is taken one simply does not win in the long term. Several years ago, there was a wonderful film called “A Beautiful Mind” starring Russell Crowe. The film chronicled the life of American Mathematician John Nash. Nash suffered from severe paranoid schizophrenia but pioneered the game-changing thought in “game theory” and differential geometry. If the sale of a business is anything it is a game. I would challenge all of us as principals and as consultants and intermediaries to rethink our theory regarding negotiation.  The following video largely demonstrates both the traditional mental model regarding negotiation and Nash’s innovative approach to thinkin

The 3 Gets of Selling the Business February 22, 2017  by  Michael Shea PA When a business owner gets to a certain period of their business life they look for options and selling the business is one of them. Navigating the process is somewhat confusing as it is a rare event and one in which few have much experience. So if you are an owner of a business and you want to sell your business what are you to do. Here are some tips for you. 1. Get Educated / Get the Facts: The internet is rife with information on what are the ways to sell, the options available and even the various ways of valuing a business. It is critical that you learn that your specific situation and the nuances of your market will dictate the outcome. 2 Get Real: When Selling your business you need to recognize simple mathematics and be realistic with your price point and your terms. As in the rest of life perfect and ideal is not a likely outcome and if you must play the odds and recognize that in any deal th

Selling A Business In Florida February 3, 2017  by  Michael Shea PA Google selling a business and the number of articles and ads that pop up are legion. But realize that selling a business in Florida is slightly different. In Florida, as a business seller you have the benefit of a large network of professional and licensed business brokers who work in concert together. Although many states have associations of brokers Florida is the only one that has an MLS system and mandates co-brokerage on deals. What most sellers assume is that co-brokering is the norm. In fact, it is not. A seller should ensure that when choosing a broker they are: 1. Members of the Business Brokers of Florida 2. Actively Co- Broker…not just say they do but the can and should be able to show you the stats right out of the MLS. 3. Have been in the business and sold more than 10 transactions in the last 12 months. This shows they are active working members and are in the trade doing deals. To learn more ab

10 Step Business Selling Strategy from Orlando’s Leading Business Broker February 23, 2015  by  Michael Shea PA   (Edit) The 10 STEP BUSINESS SELLING STRATEGY Our Sellers come to us to help them achieve the highest and best possible price for your business while taking the least amount of time from you and your business. We know that your time is more valuable when invested in continuing to run your business. In order to achieve the best price, your business must continue to grow. After all, that will be what a buyer who wants to purchase it will be looking for. Our philosophy has created a multiple step strategy that culminates with the sale of your business. This proven method has been used to sell hundreds of businesses. STEP 1: COMPREHENSIVE BUSINESS ANALYSIS. As your business broker, we analyze your operation, finances, market potential and trends. We take that information and generate a business profile that represents your company in the most attractive way possibl

Scary Statistics in Business Sales January 26, 2016  by  Michael Shea PA It is the time of year when we get the results from the listings sites for national stats on business sales. It is also when we as a company at Transworld Business Advisors review internal statistics.  Now in most cases business brokers stats don’t mean alot but given that we are the largest and do over 300 plus transactions a year the level of volume and the data drawn from it warrants some attention.  The following chart shows the deal volume for 2015.  In essence we were flat as year over year but volume was up. The Stat that shook me the most was one we kept internally here at Transworld.  We track all contracts and success rate (i.e. getting to closing) .  The national average for success rate is about 20% for all brokers, internally we run about 35%.  Here in Orlando we were closer to 40%.  But that is not the important stat.  The number that shook me was that of the deals that died, 63% of th

Legal Due Diligence at the M&A January 22, 2016  by  Michael Shea PA Although Josh Logan at Achieve Legal in Orlando has oriented this to the M&A level of business sales there are some lessons to be learned from this youtube video. Good Legal counsel is critical in a deal.  Filed Under:  Buy a Business ,  Immigration and Business Buying for Foreign Nationals ,  Selling A Business, Selling Your Company Tagged With:  #business #businessbroker #sell your business ,  #buyabusiness #businessbuyer #Buyereducation ,  #buyabusiness #sellingabusiness #merger #aquisition ,  #sellingabusiness #sellerfinance #buyingabusiness ,  due diligence ,  Transworld

Why Use Transworld to Sell Your Business? March 12, 2015  by  Michael Shea PA   (Edit) When asked why someone should use Transworld Business Advisors to sell their business over other Brokerages a Picture is worth a thousand words.  Selling a business is a complicated matter with many moving parts and variables not the least of which is the legal, financial and procedural pitfalls that can occur when the transaction is not handled properly. When selling your business use a professional that has sold over 200 transacations successfully in over a decade. Filed Under:  Buy a Business ,  Immigration and Business Buying for Foreign Nationals ,  Selling A Business, Selling Your Company ,  Uncategorized Tagged With:  #business #businessbroker #sell your business ,  #business sale ,  #sellingabusiness #sellerfinance #buyingabusiness

Selling a Business March 25, 2015  by  Michael Shea PA   (Edit) Selling a Business When contemplating your exit from your business, you will require specialist advice from seasoned business brokers. Similar to most business owners, you will have a majority of your capital tied up in the business itself. If the sales process is handled poorly, there may be serious financial implications. Problems can arise from: Breaches in confidentiality The business being valued incorrectly Not pre-qualifying potential buyers and knowing they are genuine Recognizing the intentions of the buyer Incorrectly prepared sale & purchase agreement documents Poor management of the due diligence process Enticing the wrong buyers through poorly structured promo material The Transworld Business Advisors Process Selling a business is a complex process, requiring a high level of brokering skill. The Transworld team is made up of senior brokers, with a remarkable track record and over 36

Price vs Value in buying a business December 29, 2015  by  Michael Shea PA PRICE: The amount of dollars or consideration a buyer agrees to pay and a seller agrees to accept under specific circumstances surrounding a transaction. VALUE: The worth of something There is is….two simple definitions that drive the question of every #business sale in Orlando and anywhere else. Add to that mix conundrum the many #advisors and #opinions that get thrown into the mix and you get a scary statistic. Namely less than 20% of all businesses that go to market sell. I could go on for days about business value but the simple answer to this challenge is deals only get done when one does not fixate on value or price (buyer or seller) and each party recognizes the deal has to work for both. Some things to recognize in no particular order: 1. There is a vibrant and fluid marketplace here in Florida. Business sales are tracked far more closely than any other state in the union so there is da

Books and Records what do they mean July 28, 2015  by  Michael Shea PA Buying a business is a scary thing. And there is a direct correlation with the quality of the records and the sale “ability” of the deal. The simple fact is that buyers and their advisers relay upon those books to prove to them what the business is really doing. That being said there are some realities that buyers need to live with. 1. Being a business owner is hard and taxes on business owners makes it very difficult to operate. The simple fact is that banks generally do not lend or offer favorable lending terms to business owners. In almost every circumstance I have ever seen the operators of businesses use credit cards, lines of equity, and personal guarantees to finance operations. Regardless of your political position this is reality and business owners have to scrape and scratch to survive in a less than business friendly environment. So what does that mean to you? It means you need to understand how