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Showing posts with the label worth

When and How Do You Communicate a Business Sale?

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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 s...

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 ...

Breakfast Lunch Restaurant for Sale

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Breakfast & Lunch Restaurant 2301-90969 ← Back Request More Information Description Successful breakfast and lunch restaurant established for 13 years. This restaurant is the place for locals and seasonal travelers. Great location 2700 sq ft corner unit in a nice plaza. Simple menu serving up breakfast and lunch favorites. Open until 2:00 means you can be home in the evenings with this solid breakfast lunch operation. E2 and L1 doable. Listing Details Price:  $220,000 USD Down Payment:  $220,000 USD Gross Revenue:  $600,000 USD Sellers Discretionary Earnings: $120,000 USD Category:  Restaurants, Breakfast Lunch, Diner, American Restaurant Location:  Polk, Florida Employees:  6 Years Owned:  13 FF&E:  $60,000 USD Reason for Selling:  Retirement Transworld Business Advisors is the world leader in the marketing and sales of businesses, franchises and commercial real estate. Wheth...

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...

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...

Grading the Business your Buying

Let's get one thing straight right now.   If you are  looking for the perfect business, stop looking, it doesn't exist.   And if you really want to buy a business you need to settle!  That's right buying a business is a lot like being in a bar at 2am...ponder on that for a moment.   Seriously all businesses have their drawbacks, risks, pain points, skeletons in the closet and warts.     Your job is to find them all, understand them completely, decide if you can manage them and if they will stop you from buying. Let look at some of the business attributes you will want to rate: Income - This is my number 1 concern.   You are not buying a hobby, you want to buy a future  income stream.    So you want to know if it is provable, sustainable, and can you grow it. Length in business  - I love businesses that have been around for more than 5-10 years.   You should too.   Customer...
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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...
What is my Business Worth? November 15, 2016  by  Michael Shea PA How Much Is A Business Worth? Valuation is the number one question of all of our sellers when contemplating a sale, and of course, the concern of most buyers when purchasing a company. Unfortunately, there is not an easy answer, and, more confusing, there are probably several answers. Why? Because business valuation is an art not a science. Valuations are subject to the appraiser’s judgment, skill and quality of methodology. There are several standards of value for businesses, i.e., different values. Fair market value – The price at which the property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of the relevant facts. Intrinsic value – Stock values that investors would consider. Fair value – Legal standards to value. Often used in div...