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Showing posts with the label value

Confidentiality in the Business Sale and Why is it so Important

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A close up of the tab from a confidential file folder. When you are buying or selling a business confidentiality is one of the most important factors.  Now to the novice negotiator, buyer or seller with a lack of experience or understanding of all the things that can go wrong you may find that odd but let me explain. First….the sale of a business is a private matter and the only people who should be involved are those necessary: Buyer, Seller,  Broker  if there is one,  CPA’s , and  Legal Counsel .  That’s it.  No one else has a need to know.  As a seller who spends a lot of time with employees, there is often some emotion and misguided feelings of emotion/loyalty borne out of concern for your staff. But I would charge that to be misguided.  Here is how sellers should look at the deal:  Employees should be focused on their job and job alone.  The sale is to be handled by the players hired to manage the transaction.  Any tim...

Impact of the new tax law on business sales

Impact of the New Tax Law When Selling Your Business February 8, 2018  by  Michael Shea PA Starting in 2018, the New Tax Law will have a enormous impact on middle market businesses. This is true whether you are at the point in life where it’s time to sell or if you want to grow your business by acquiring other companies. Sell-Side Let’s talk first about those who want to sell their company. If this is you and you want to stop reading, all you need to know is that selling now will cost you substantially less in income taxes. You get to take more home after tax. Deductions (depreciation) that have sheltered income for you in the past at 35% to 39.5% tax rates will now be taxable (recaptured) at rates as low as 21% to 29%. Most transactions are structured as a sale of assets which places the seller and buyer in the frustrating process of making an allocation of purchase price among the depreciable assets, working capital and intangible assets such as goodwill. This ...

Five Star Travel Agency for Sale

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Five Star Travel Agency 2301-91042 ← Back Request More Information Description Dominant, full service, online travel and transportation agency. Services include travel, vacation packages, transportation and entertainment. Online business = low overhead. Business has a strong history of performance with 5 star reviews and many loyal clients. Family issues force sale. Solid E2 business for visa buyers. Listing Details Price: $120,000USD Down Payment: $120,000USD Gross Revenue: $133,119USD Sellers Discretionary Earnings: $70,166USD Category: Travel, Travel Agency Location: Orange, Florida Employees: 1 Years Owned: 7 Reason for Selling: Discuss with seller

Absetee Breakfast Lunch for Sale

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ABOUT BUYING A BUSINESS SELL A BUSINESS FRANCHISE CONTACT Breakfast & Lunch Restaurant 2301-86892 ← Back Request More Information Send Via Email Description Profitable Breakfast and Lunch restaurant established 17 years. Absentee owned. Great records in quickbooks, tight processes and staff. Loyal customers and a simple menu make this a solid deal for the established operator or first timer. Ideal E2 or sole proprietor business for owner looking to work and further drive the profits. E2 visa doable Listing Details Price:  $185,000 USD Down Payment:  $145,000 USD Gross Revenue:  $286,414 USD Sellers Discretionary Earnings: $63,701 USD Category:  Restaurants, Breakfast Lunch Location:  Volusia, Florida Employees:  10 Years Owned:  17 Inventory:  $3,500 USD FF&E:  $10,000 USD Reason for Selling:  Discuss with Seller Transworld Business Advisors is t...

Coin Laundry for Sale / #businessforsale

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Coin Laundry 2301-71403 ← Back Request More Information Send Via Email Description Long standing coin laundry in fantastic area with commuters, hotel and airport traffic. Long standing lease and long term clients. Wash & Dry and Fold Service along with Dry cleaning services offered. Equipment is in solid condition. Good Records that are provable. Contact agent and fax NDA. SDE reflects working owner. Listing Details Price:  $250,000 USD Down Payment:  $250,000 USD Gross Revenue:  $188,012 USD Sellers Discretionary Earnings: $69,290 USD Category:  Services, Laundry Services Location:  Pinellas, Florida Employees:  2 Years Owned:  7 Inventory:  $200 USD FF&E:  $50,000 USD Reason for Selling:  Retirement Transworld Business Advisors is the world leader in the marketing and sales of businesses, franchises and commercial real estate. Whether you represent an acquisition-minde...
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Popular Food Truck Business 2301-84663 ← Back Request More Information Send Via Email Description Successful Food Truck Business that attends special events and evening events. Business comes with all recipes. Established six years generating a large following on social media where customers get updates on the trucks location. Easy to run and will qualify for E2 visa. Seller will finance. Listing Details Price:  $99,000 USD Down Payment:  $89,000 USD Gross Revenue:  $149,081 USD Sellers Discretionary Earnings: $48,198 USD Category:  Restaurants, Concession Stand, Fast Casual, Take Out Only Location:  Orange, Florida Employees:  5 Years Owned:  6 Inventory:  $500 USD FF&E:  $50,000 USD Reason for Selling:  Discuss with Seller https://www.tworld.com/orlando/listings/food-truck-business-for-sale-orange-county/

Is it A Buyer or Seller Market for Selling Your Business?

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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 multiple...

Negotiation in a Business Sale and Beautiful Mind

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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 appro...

Selling Your Business / Selling Value

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Selling Your Business is Your Broker Selling the Value? December 1, 2016  by  Michael Shea PA   (Edit) When selling your business you will get lots of opinions regarding how to value it. There are several accepted valuation methodologies accepted by valuation experts. However, as a seller of a business you should know what “soft” items create value in the mind of a buyer. In addition your business broker should emphasize and sell those elements. Lets list just a few of the elements that increase value of a business. 1. Clean Books and Records: Having clean books and records in a software and up to date is critical and in this day and age inexcusable for not having. Why is it important? Because buyers generally in most cases have not bought the type of business you are offering and can’t understand the the business without a road map to reference. In addition given that most buyers are first timers and are scared to death of making a bad decision they will invariab...
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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 th...