Baby Boomers About to Spark the Turn in Businesses

Pending business sales are building as baby boomers, ages 49-67, enter the twilight of their careers.

First gradually, and then in a flood, mind-boggling assets from the sales will surge to heirs, savings accounts, luxury cars, vacation homes, pet philanthropic pursuits and anything else the generation fancies–reconfiguring the economy.

Business brokers and estate attorneys thought the sales would begin in earnest nearly a decade ago. But the baby boomers, lulled into complacency by the hot economy, lingered to eke out more profits and keep themselves employed a little while longer.

Then the recession, hardly anyone predicted, rudely swept away some of the businesses, and the surviving owners fought to keep their doors open as they watched the value of the businesses dive. Many borrowed heavily to stay afloat.

Today, conditions to spark the long-anticipated wave of sales are turning favorable because:

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Cutting Costs: 10 Ways to Minimize Business Costs

cutting costsCutting costs in the business really can happen, even though it’s very easy to become negative about cost-cutting. “Everything just costs more”, a business owner will say; the subtext being, “What’s the use?”. Don’t give up. There are ways to cut costs. The first step is to identify where the money goes…and why. Then look at creative ways to shave off the non-essentials while keeping the shape your business intact.

 

1. Take Advantage of that “Free Lunch”

It may be “food for thought” instead of a steak, but there are many free offers of benefit to business owners. Continuing education lectures, SBA seminars, informational evenings offered by local banks and corporations, are often free or inexpensive ways to hone business sharpness.

 

2. Offer Discounts; Take Discounts

By offering customers early-payment discounts, you can “borrow” their money instead of the bank’s. Compare the advantage of doing this against borrowing from a lending institution and see which works best for you. You can also be on the other end of discounting by checking out what may be available. It sometimes helps to join a professional organization, in order to get the best discounted rates on anything from advertising to shipping services.

 

3. Purchase from the Source

If you deal in a product, go to the source whenever you can. For example, the owner of a children’s clothing business specializing in in sweaters goes directly to the spinning mill for her yarns. Not only can she specify the exact colors she wants, but she can shop for bargains and negotiate the best prices without any costs added by the kitting factory.

 

4. Do Your Research, Shop Around

Don’t be a slave to recommendations. If your computer consultant has a “pet” equipment source, or your graphic designer has a favored printer, make a few calls or look on the Internet to see how the prices stack up to similar products or models. You could end up cutting costs with big savings for very little effort. The same holds for seeking financing. You should always talk to at least two banks, looking for the best loan terms and interest rates.

 

5. Look Beyond In-House

Outsourcing is the latest word in cutting costs, and it can mean more than one thing too. First–outsourcing labor. Temporary employees or contract workers are the answer for jobs that aren’t included in the daily running of a business. Temps make sense for holiday rush periods or for short-term assignments or campaigns. Outsourcing certain operations, such as photocopying  mailing, and telephone answering, is an increasingly popular way to cut down on carrying these costs in-house. Another, but less typical, kind of outsourcing is “hiring” temporary space. If your business needs a conference room only occasionally or only a small portion of a warehouse, consider subletting the space from another business and cut the square footage of your own operation.

 

6. Don’t Assume Outsourcing is Always Cheaper

It pays to keep some operations in-house. For instance, if your receptionist can do some online bookkeeping while waiting for the phone to ring, or if your warehouse worker can stuff envelopes for a mailing in between delivery deadlines, you should consider these as in-house candidates. In addition, there are some jobs that should stay in-house even if outsourcing may appear to be a bargain–those that involve issues of confidentiality or accounting operations that might help owners and managers to better understand the business.

 

7. Go Electronic…

If you haven’t already substituted a voicemail system for a receptionist, you are paying an unnecessary yearly salary. sing e-mail can replace the need for most correspondence–saving the cost of a secretarial salary, or at least full-time. Computer programs for bookkeeping and for riding herd on inventory and payroll can also reduce employee numbers or hours. Selling online is cheaper than traditional advertising, and the individual targeting may pay off in more”hits”, further reducing the cost of doing this particular type of business.

 

8. …But Don’t Get Shocked

The cost of sending faxes, using cellular phones, and certain online services can get lost in the glow of their convenience. For cutting costs purposes, monitor the use of all such devices. If charges seem unreasonable due to the service provider’s fees instead of employee usage, negotiate with the carrier or provider. When threatened with a loss of business, they will often lower fees or at least negotiate payment schedules. Another electronic cost-saver: run certain equipment during off-peak electricity hours and save up to 30% annually in electric bills.

 

9. Obtain Furry

Try to cultivate business favor by patronizing one operation per service. Be loyal to one printer, photographer, designer, or copy service, and they may repay you with reduced fees and/or discounts.

 

10. Understand the Deductibles Still “Cost”

A deductible expense is still a cost. The only “free” part is whatever your specific tax rate will allow you to deduct, which could be as low as 25%, perhaps even less. when tempted to splurge on a deductible expense, always looks at your profits and see how much you’d have to earn in order to justify it.

Selling Your Business: Why Won’t it Sell?

selling your businessOnce you have made the decision to sell, what are your odds on actually selling your business? Well, research shows that your annual sales dictate how well or not well that your business will sell. If your annual sales are $750,000 or less, your odds on selling your business are only 18%. If your annual sales are $750,000-$2 million, your odds increase to 25%. If your annual sales volume is above $2 million, the odds increase to 30%+. Another thing to keep in mind though is the approximately 75% of all businesses have annual sales of less than $750,000.

So what do all these stats mean? To put it sharply: if you are thinking of selling your business, you have about a one in five chance of it actually selling. The next obvious question raised is why are these odds so low? One would think that if you put your business on the market, it should sell in a reasonable length of time. Here are some reasons why businesses didn’t sell, as explained by various business brokers and intermediaries. They are excerpted from an article in INC magazine, April 2002.

  • The business is no longer listed for sale. The cash flow was strong, but a lot of buyers thought that the deal was overpriced.
  • There was serious interest, but the owner got distracted by an arrangement with a friend to solicit offers. None came through.
  • Buyers were intrigued, but the economics of the deal wouldn’t make sense, and the seller wouldn’t negotiate.
  • We had three offers, including an accepted bid for $4 million, but the buyer couldn’t get financing.
  • We almost had the deal, but financing was impossible to find.
  • The deal dragged on for months but fell apart for lack of financing. . .

They say that timing is everything. Many business owners wait until the economy is down  Their own business is also paying the price for the slowdown, so they elect to sell. Now they discover that the price they thought they could get for their business is is not realistic in today’s market. Sellers should keep in mind that the best time to sell is when their business is doing well.

One factor that emerges from the comments by intermediaries above is the lack of financing. This would seem to indicate that the sellers wanted all cash, or, at least, a good portion of the selling price was in cash. Three of the comments stated that the reason the deal didn’t go through was that “financing was impossible to find”,
the buyer couldn’t get financing”, and “…fell apart for lack of financing.” The reasons that obtaining financing is so difficult are (1) the business doesn’t qualify for financing, (2) the buyer doesn’t qualify for financing. and, most importantly  most small businesses are not financeable. Banks are generally not interested; the Small Business Administration (SBA), although certainly an option, only comes through in less than 10% of deals. If lenders are not interested in financing the sale of the business, there are only two choices: the buyer pays all cash or the seller finances the sale.

 

Tips for a Fast Sale!

  • Prepare a current list of fixtures and equipment
  • Have up-to-date financial information available
  • Gather all of the information a buyer might like to review
  • Maintain normal business hours
  • Spiff up the business
  • Set a realistic price
  • Be willing to negotiate

 

Want your business to be one in the five that sells? Here are two major ways to increase your odds of selling your business:

  • Make sure that you are serious before yo put your business up for sale (see our article: Are You Ready to Sell Your Business? for more on that). You should be willing to accept, within reason, what the marketplace is willing to pay. It’s not what you want for your business, or what your accountant says it’s worth–it’s what a buyer is willing to pay. Find out if the price you are asking is in the “ballpark’ before you go to the market. Your local business brokerage professional is a good place to start. He or she can tell you what similar businesses have sold for and what you might expect to receive if you sell now.
  • Be willing to finance the sale of your business. Counting on the businesses selling for all cash or assuming that the business can be financed will most likely make your business one of the four that don’t sell. By showing your willingness to assist in the financing, you reassure the buyer that you have confidence in the businesses’ ability to finance itself. Also, keep in mind that by financing the business you will be entitled to interest on the balance, thereby increasing the price you will receive by selling your business.

Following these guidelines and tips might not sell your business, but it will certainly increase the odds of selling your business. Almost any business will sell under the right circumstances. If you are serious about selling, the fist step would be to call a professional business broker. He or she can answer all of your questions about the selling process and what it takes to sell your business in today’s economic climate.

 

The Perfect Business

The perfect business, the one that would be sure to sell, has the following attributes:

  • A compelling reason to sell
  • A desired or popular industry type
  • An attractive and strategic location (if important for the business type)
  • A reasonable price
  • A reasonable down payment (hopefully 40% of the full price or less)
  • Seller financing
  • Reasonable sales (hopefully increasing each year)
  • Seller earnings of $60,000 or more

 

There is an old adage that goes something like this:

“The worst day of working for yourself is better than the best day of working for someone else.”

Finance a New Business

Finance a New BusinessThe epidemic of corporate downsizing in the US has made owning a business a more attractive proposition than ever before. As increasing numbers of prospective buyers embark on the process of becoming independent business owners, many of them voice a common concern: how do I finance a new business?

Prospective buyers are aware that the credit crunch prevents the traditional lending institution from being the likely solution to their needs. Where then can buyers turn for help to finance a new business, which is likely to be the largest single investment of their lives? There are a variety of financing sources, and buyers will find one that fills their particular requirements. (Small businesses–those priced under $100,000-$150,000–will usually depend on seller financing as the chief source.) For many businesses, here are the best routes to follow:

 

Buyer’s Personal Equity

In most business acquisition situations, this is the place to begin. Typically, anywhere from 20-50% of cash needed to purchase a business comes from the buyer and his or her family. Buyers should decide how much capital they are able to risk, and the actual amount will vary, of course, depending on the specific business and the terms of the sale. But, on average, a buyer should be prepared to come up with something between $50,000-$150,000 for the purchase of a small business.

The dream of buying a business by means of a highly-leveraged transaction (one requiring minimum cash) must remain a dream and not a reality from most buyers. The exceptions are those buyers who have special talents or skills sought after by investors, those whose business will directly benefit jobs that are of local public interest, or those whose businesses are expected to make unusually large profits.

One of the major reasons personal equity financing is a good starting point is that buyers who invest their own capital to start the ball rolling–they are positively influencing other possible investors or lenders to participate.

 

Seller Financing

One of the simplest–and best–ways to finance a new business is to work hand-in-hand with the seller. The seller’s willingness to participate will be influenced by his or her own requirements: tax considerations as well as cash needs.

In some instances, sellers are virtually forced to finance the sale of their own business in order to keep the deal from falling through. Many sellers, however, actively prefer to do the financing themselves. Doing so not only can increase the chances for a successful sale, but can also be helpful in obtaining the best possible price.

The terms offered by sellers are usually more flexible and more agreeable to the buyer than those offered from a third-party lender. Sellers will typically finance 50-60% or more of the selling price, with an interest rate below current bank rates and with a far longer amortization.  The terms will usually have scheduled payments similar to conventional loans.

As with buyer-equity financing, seller financing can make the business more attractive and viable to other lenders. In fact, sometimes outside lenders will usually have scheduled payments similar to conventional loans. Furthermore, sometimes outside lenders will refuse to participate unless a large chunk of seller financing is already in place.

 

Venture Capital

Venture capitalists have become more eager players in the financing of large independent businesses. Previously known for going after the high-risk, high-profile band-new business, they are becoming increasingly interested in established, existing entities.

This is not to say that outside equity investors are lining up outside the buyer’s door, especially if the buyer in counting on a single investor to take on this kind of risk. Professional venture capitalists will be less daunted by risk; however, they will likely want majority control and will expect to make at least 30% annual rate of return on their investment to finance a new business.

 

Small Business Administration

Thanks to the US Small Business Administration Loan Guarantee Program, favorable financing terms are available to business buyers. Similar to the terms of typical seller financing, SBA loans have long amortization periods (ten years), and up to 70% financing (more than usually available with the seller-financed sale).

SBA loans are not, however, a given. The buyer seeking the loan to finance a new business must prove stability of the business and must also be prepared to offer collateral–machinery, equipment, or real-estate. In addition, there must be evidence of a healthy cash flow in order to unsure that loan payments can be made. In cases where there is adequate cash flow but insufficient collateral, the buyer may have to offer personal collateral, such as his or her house or other property.

Over the years, the SBA has become more in tune with small business financing. It now has a program for loans under $150,000 that requires only a minimum or paperwork and information. Another optimistic financing sign: more banks and lending institutions are now being approves as SBA lenders to finance a new business.

 

Lending Institutions

Banks and other lending agencies provide “unsecured” loans to commensurate with the cash available for servicing the debt. (“Unsecured” is a misnomer, because banks and other lenders of this type will aim to secure their loans of the collateral exists.) Those seeking bank loans to finance a new business will have more success if they have a large net worth liquid assets, or a reliable source of income. Unsecured loans are also easier to come by if the buyer is already a favored customer or one qualifying for the SBA loan program.

When a bank participates in financing a business sale, it will typically finance 50-75% of the real estate value, 75-90% of the new equipment value, or 50% of inventory. The only intangible assets attractive to banks are accounts receivable  which they will finance from 80-90%.

Although he terms may sounds attractive, most business buyers are unwise to look toward conventional lending institutions to finance their new business. By some estimates, the rate of rejection by banks for business acquisition loans can go higher than 80%.

 

With any of the acquisition financing options, buyers must be open to creative solutions, and they must be willing to take some risks. Whether the route finally chosen is personal, through the seller, or third-party financing, the well informed buyer can feel confident that there is a solution to that big acquisition question. Financing, in some form, does exist out there.

Buying or Selling a Business: Why Do Deals Fall Apart?

arguing businessmen selling a businessBuying or Selling a Business: Why Do Deals Fall Apart?

 

In many cases, the buyer and seller reach a tentative agreement when selling a business, only to have it all fall apart. There are some reasons this happens, and once they are understood, many of the worst deal-breakers can be avoided. Understanding is the key word. Both the buyer and seller must develop an awareness of what the sale involves–and such an awareness should include facing potential problems before they swell into the flood-waters and “sink” the sale.

Now, what keeps a sale from closing successfully? Surveyed business brokers across the United States found similar reasons that were cited so often that a pattern of causality began to emerge. A compilation of situations and factors of which affect the sale of a business are explained below.

 

The Seller Fails to Reveal Problems

If and when a seller is not up-front about any of the problems with the business, that does not mean these problems will go away when the buyer takes over. The problems are bound to show up later, usually sometimes after a tentative agreement has been reached. The buyer then gets cold feet–hardly anyone in this situation likes surprises–and the deal promptly falls apart. Event though this may seem a tall order, sellers must be as open about the negatives of their business as they are about positives. Again and again, business brokers surveyed said: “We can handle most problems…if we know about them at the start of the selling”.

 

The Buyer Has Second Thoughts About the Price

In some cases, the buyer agrees on a price, only to discover that the business will not support that price, in his or her opinion. Whether this “discovery” is based on gut reaction or a second look at the figures, it impacts seriously on the transaction at hand. The deal is in serious jeopardy when the seller wants more than the buyer feels the business is worth. It is of paramount importance that the business be fairly priced when selling a business. Once that price has been established, the documentation must support the seller’s claims so that buyers can see the “real” facts form themselves.

 

 Both the Buyer and the Seller Grow Impatient

During the process of buying or selling a business, it’s easy for either party to let impatience settle in. Buyers continue to want increasing varieties and volumes of information, and sellers grow weary of it all. Both sides need to understand that the closing process of selling a business takes time. However, it shouldn’t take so long that the deal becomes endangered. It is important that both parties should use only those knowledgeable in the business closing process if they are using outside professionals. A business broker is one of the most competent outside professionals in a given business area, and these should be given strong consideration in putting together the “team”. Seller and buyer may be inclined to use an attorney or accountant with whom they are familiar with, but these people may not have the experience to bring the sale to a successful conclusion.

 

The Buyer and the Seller are Not (Never Were) in Agreement

How does this situation arise? Unfortunately, there are business sale transactions wherein the buyer and the seller realize too late that they have not been in agreement all along–they just thought they were. Cases of miscommunication are often fatal to a successful closing. A professional business broker is skilled in making sure that both sides know exactly what the deal entails, and can reduce the chance that such misunderstandings will occur.

 

The Seller Doesn’t Really Want to Sell

In all too many instances, the seller does not really want to be selling the business. The idea had sounded so good at the start, but now that things have come down to the wire, the fire to sell has all but diminished. Therefore, it is key that prospective sellers make a firm decision to sell a business prior to going into the market with the business. If there are doubts, these ought to be quelled or resolved. Some sellers enter the marketplace just to test the waters; they want to see if they could get their “price” if they ever get really serious. This type of seller is the bane of business brokers and buyers alike. However, business brokers generally can tell when they encounter the casual (as opposed to the serious) seller. But an inexperienced buyer may not recognize the difference until it’s too late. Most business brokers will agree that a willing seller, is a good seller.

 

Or the Reverse: The Buyer Doesn’t Really Want to Buy

What’s true for the mixed-emotion seller can be flipped around and applied to the buyer as well. Full of excitement and optimism, buyers can enter the sale process but then begin to drag their feet as they draw nearer to the “altar”. This is especially true today with so many displaced corporate executives entering the market. Buying and owning a business is still the American dream–and for many it becomes a profitable reality. However, the entrepreneurial reality also includes risk, a lot of hard work, and long intense hours. Sometimes this is too much reality for a prospective buyer to handle.

 

None of the Above

The situations detailed above are the just the main reasons why deals fall apart. However, there can be problems beyond anyone’s control, such as Acts of God, unforeseen environmental problems, etc. But the good news is that many potential deal-crushers can be handled or dealt with prior to the marketing of the business, to help ensure that the sale will close successfully.

 

A Final Note

Remember these four components in working toward the success of the business sale:

  • Good chemistry between the parties involved
  • A mutual understanding of the agreement
  • A mutual understanding of the emotions of both buyer and seller
  • The belief, on the part of both buyer and seller, that they are involved in a good deal

Are You Ready to Sell Your Business?

Thinking to Sell Your Business?

If you’ve come this far, then the option to sell your business has aroused enough curiosity in you that you are taking the first step. You don’t have to make a commitment at this point; this is just you searching to be informed about the necessities of successfully selling your business. This article should answer a lot of your questions to help you through the maze of the process itself.

 

First Question

The first question that most readily comes to a seller’s mind is: “What is my business worth?”. Honestly, if we were sellin gour business that is the first thing we would want to know. However, there are things that need to be solved first to even get to this very important issue. Before asking this question, you have to be willing to sell your business for what the market is willing to pay. If you’re just only looking to make money, then you are not ready to sell.

 

*Insider Tip:

It does not matter what you think your business is worth, or what you want for it. It also does not matter what your accountant, banker, attorney, or best friend  thinks your business is worth. Just like home real-estate, only the marketplace can decide what your business’ value is.

 

Second Question

“Do I really want to sell this business?” is the second question to be considered.If you’re actually serious and have a real, solid reason(s) of why you want to sel, then it will most likely happen. You really increase your chances of selling if your answer is ‘yes’ to this followup question: Do you have reasonable expectations? If you answered ‘yes’ to these two questions, then you are serious about selling.

 

Taking the First Steps

Alright, let’s assume that you already decided to at least take the first few step in actually selling your business. Before you even think about placing your business up for sale in the market, some steps are required before jumping in. The first and very important step you have to complete is gathering information about your business.

The following is a checklist of the items you should get together:

  • Three years’ profit and loss statements
  • Federal Income tax returns for the business
  • List of fixtures and equipment
  • The lease and lease-related documents
  • A lost of the loans against the business (amounts and payment schedule)
  • Copies of any equipment leases
  • A copy of the franchise agreement, if applicable
  • An approximate amount of the inventory on hand, if applicable
  • The names of any outside advisors

 

Notes:

Now if you’re like most other small business owners, you will have to search for most, if not all, of the items on this checklist. Once you gather ALL of the above items (all that are applicable, that is), you should spend some time updating the information and filling in the blanks. It’s pivotal that you take a long, hard look at all of this because you have most likely forgotten much of this information. You want to have all of your information in a neat and orderly format, just as if you were going to present it to a prospective purchaser. Everything starts with this information.

You need to make sure the financial statements of the business are current and as accurate as you can get them. If you’re half way through the current year, make sure you have last year’s figures, tax returns, and also year-to-date figures. Make all of your financial statements presentable. In the long run it will pay to get outside professional help, if necessary, to put the statements in order. You want to present the business well “on paper”. Later you will see pricing a small business is usually based on cash flow. This includes the profit of the business, but also, the owner’s salary and benefits, the depreciation, and other non-cash items. If the bottom line isn’t what you think it should be, don’t panic. By the time all of the appropriate figures are added to the bottom line, the cash flow may look pretty good.

Prospective buyers eventually wan tot review your financial figures. A Balance Sheet is not normally necessary unless the sale price of your business would be well over the $1 million figure. Buyers want to see your income and expenses. They want to know if they can make the payments of the business (more on this later), and still make a living. Let’s face it, if you business is not making a living wage for someone, it probably can’t be sold, and won’t be sold. You may be able to find a buyer who is willing to take the risk, or an experienced industry professionals who only looks for location, etc., and feels that he or she can increase business.

 

*Another Insider Tip:

How much you’re willing to sell your business for is not really the big question, but rather, how much of it can you keep? The Federal Tax Laws do determine how much money you will actually be able to put in the bank. How your business is legally formed can be important in determining your tax status when selling your business. For example: Is your business a corporation, partnership, or proprietorship? If you are incorporated, is the business a C corporation or a sub-chapter S corporation? There are some new tax rules, effective January 1, 2000, that impact certain businesses on seller financing. The point: before you consider price or even selling your business, it is important you discuss the tax implications of a sale of your business with a tax advisor. You do not want to be in the middle of a transaction with a solid buyer and discover that tax implications of the sale are going to net you much less than you had figured.

Business Broker helps Seller Concerns

Selling a business is often a first time event filled with unidentified obstacles for many business owners.  Selling a company usually involves both economical and psychological factors.  Many owners invest lots of hard work branding, nurturing and growing their business.  Once they have decided to sell, business owners will face many concerns.  An experienced business broker will help the owner address these items with proper planning.

A major concern of a business owner is obtaining maximum price when selling his or her business.  The asking price is what the owner desires, selling price is what the owner gets and fair market value is the highest price that a buyer will pay and lowest price an owner will accept.  A professional business broker will help the parties reach that fair market value.

Today’s potential buyers are more intelligent and demanding than those buyers of yesteryear.  Many buyers are in search of the fail proof business – the majority of which are unwilling to make the leap-of-faith necessary to pull the trigger and purchase a company.  Buyers of today are far more concerned about the financials than previously.  They are more educated and expect to buy a company and continue to operate as is with minor tweaks along the way.

A business owner should realize that often the buyer looks for growth opportunity in the business but is only willing to pay a price based on historical operating results.  The buyer’s rationale is that only he or she should benefit from their future efforts, not the seller.  The price to be paid in a buyer’s mind is based on the business owner’s past results.

Still, there are things that an owner should do before deciding on selling a business.  All hidden issues should be resolved beforehand as they will often kill a deal more times than not.  All potential legal, financial and operational items need identified and handled up front.  The financial statements should provide a proper reflection of the true earnings of the company.  An experienced business broker is invaluable in this process.  This professional can also assist with identifying the team members necessary to handle potential problems before they become a problem.

Finally, the Seller should be realistic with his or her asking price.  Starting too high will often simply scare buyers away and often sends an unintended message to the buyer that the owner is simply unrealistic and not serious about selling his or her business.  Sellers think that they can always come down on price.  The fallacy with this thinking is that the buyer merely moves on to other realistically priced companies.  The professional business broker can advise owners on what is reasonable or not.

Raleigh Business Brokers – Sell a Business Yourself?

Raleigh Business Brokers – Sell a Business Yourself?

Many business owners are hesitant to hire a professional business broker to sell their business because the owner does not want to pay a commission.  The problem with this thought process is that the owner will often unknowingly leave a substantial amount of money at the closing table by accepting a Sale Price that is substantially less than the price a professional business broker would have obtained, net of the business broker’s commission.

When a business owner makes the decision to sell a business, he or she is taking a giant step that involves the emotions as well as the marketplace, each with its own set of complexities.  Those sellers who are tempted to undertake the transaction on their own should understand both the process and the emotional environment that this process is set against.  The steps outlined below are just some of the items for a successful sale.  

While these might seem daunting to the do-it-yourself owner, by engaging the help of a professional business broker, the seller can feel confident about what is often one of the major decisions of a lifetime.

1. Set the stage
What kind of impression will the business make on prospective buyers?  The seller may be happy with a weathered sign (the rustic look) or weeds poking up through the pavement (the natural look), but the buyer might only think, “What a mess!”  Equally problematic can be improvements planned by the seller that appeal to his or her sense of aesthetics but that will, in fact, do nothing to benefit the sale of a business.  Instead of guessing what might make a difference and what might not, sellers would be wise to seek the advice of a business broker–a professional with experience in dealing regularly with buyers and with an eye experienced in properly setting the business scene.

2. Get the record(s) straight
Although outward appearance does count, what’s inside the books is even more important.  Ultimately, a business will sell according to the numbers. The business broker can offer the seller invaluable assistance in the presentation of the financials.

3. Weigh price against value
All sellers naturally want to get the best possible price for their business.  However, they also need to be realistic.  To determine the best price, a business broker will use industry-tested pricing techniques that include ratios based on sales of similar businesses, as well as historical data on the type of business for sale.

4. Market professionally
Engaging the services of a professional business broker is the key to the successful marketing of a business.  The business broker will prepare a marketing strategy and offer advice about essential marketing tools–everything from a business description to media advertising.  Through their professional networks and access to data on prospective buyers, business brokers can get the word out about the business far more effectively than any owner could manage on an individual basis.

We have a strong backlog of buyers seeking all types of companies.  Contact your Raleigh Business Brokers, TM Business Brokers to learn whether or not you have a sellable business.  Do not make the mistake of relying on an adviser who does not sell companies for a living.  You may be delaying the sale of your business for the wrong reasons.

Now may be your time.  Contact the experienced professionals at TM Business Brokers Raleigh to confidentially discuss “your” situation today!

Will Your Business Sell?

Will Your Business Sell? – Pittsburgh Business Brokers

At TM Business Brokers, your Pittsburgh Business Brokers, we are often asked:  what are the odds my business will actually sell?  Well, for businesses with annual sales of $750,000 or less, research indicates that the odds of your business selling are only 18 percent.  If annual sales are $750,000 to $2 million, the odds increase to 25 percent.  If the annual sales is above $2 million, the odds increase to 30 + percent.  Note that approximately 75 percent of all businesses have annual sales of less than $750,000.

What does this all mean?  To put it bluntly: if you are thinking of selling your business, you have about a one in five chance of it actually selling.  This obviously begs the question: why are the odds so poor?  One would think that if you put your business on the market, it should sell in a reasonable length of time.  Here are some reasons why some businesses don’t sell – as explained by various business brokers and intermediaries.  They are excerpted from an article in INC magazine, April 2002.

  • The cash flow was strong, but a lot of buyers thought that the deal was overpriced.
  • Buyers were intrigued, but the economics of the deal didn’t make sense, and the seller wouldn’t negotiate.
  • There was serious interest, but the owner got distracted by an arrangement with a friend to solicit offers.  None came through.
  • We almost had a deal, but financing was impossible to find.
  • We had three offers, including an accepted bid for $4 million, but the buyer couldn’t get financing.
  • The deal dragged on for months but fell apart for lack of financing.

They say that timing is everything.  Many business owners wait until the economy is down.  Their own business is also paying the price for the slowdown, so they elect to sell.  Now they discover that the price they thought they could get for their business is not realistic in today’s market.   Sellers should keep in mind that the best time to sell is when their business is doing well.

One factor that emerges from the comments by intermediaries above is the lack of financing.  This would seem to indicate that the sellers wanted all cash, or, at least, a good portion of the selling price in cash.  Three of the above comments stated that the reason the deal didn’t go through was that “financing was impossible to find,” “the buyer couldn’t get financing,” and “…fell apart for lack of financing.” The reasons that obtaining financing is so difficult are (1) the business doesn’t qualify for financing, (2) the buyer doesn’t qualify for financing, and, most importantly, most small businesses are not financeable.  Banks are generally not interested; the Small Business Administration (SBA), although certainly an option, only comes through in less than 10 percent of deals.  If lenders are not interested in financing the sale of the business, there are only two choices: the buyer pays all cash or the seller finances the sale.

Tips for a fast sale

  • Have up-to-date financial information available
  • Prepare a current list of fixtures & equipment
  • Maintain normal business hours
  • Spiff up the business
  • Set a realistic price
  • Be willing to negotiate
  • Gather all of the information a buyer might like to review

Here are two major ways to increase the odds that your business will be the one in five that sells:

  • Make sure that you are serious before you put your business up for sale.  You should be willing to accept, within reason, what the marketplace is willing to pay.  It’s not what you want for your business, or what your accountant says it’s worth – it’s what a buyer is willing to pay.  Find out if the price you are asking is in the “ballpark” before you go to market.  Your local business brokerage professional is a good place to start.  He or she can tell you what similar businesses have sold for and what you might expect to receive if you sell now.
  • Be willing to finance the sale of your business.  Counting on the businesses selling for all cash or assuming that the business can be financed will most likely make your business one of the four that don’t sell.  By showing your willingness to assist in the financing, you reassure the buyer that you have confidence in the businesses’ ability to finance itself.  Also, keep in mind that by financing the business you will be entitled to interest on the balance, thereby increasing the price you will receive.

Following these guidelines and tips might not sell your business, but it will certainly increase the odds.  Almost any business will sell under the right circumstances.  If you are serious about selling, the first step would be to call a professional business broker.  He or she can answer all of your questions about the selling process and what it takes to sell your business in today’s economic climate.

The Perfect Business

The perfect business, the one that would be sure to sell, has the following attributes:

  • a reasonable price
  • a reasonable down payment (hopefully 40 percent of the full price or less)
  • seller financing
  • reasonable sales (hopefully increasing each year)
  • seller earnings of $60,000 or more
  • a compelling reason for sale
  • a desired or popular industry type
  • attractive and strategic location (if important for business type)

There is an old saying that goes something like this: “The worst day of working for yourself is better than the best day of working for someone else.”

Work on Your Books

Raleigh Business Brokers – Work on Your Books

Business owners often ask us what things they should be doing to get ready for the sale of a business.  While there are many items an owner can do with proper planning, one of the major items that we at TM Business Brokers suggest is to get your financial affairs in order and “work on your books”.

Clean up the balance sheet and keep non-business related expenses off the profit and loss.  Increase your bottom line as much as possible and in turn increase the amount of bank financing that a potential buyer will qualify for.  In turn, the owner will then need a lower level of seller financing to successfully sell a business.

Don’t over borrow.  Keep an continuous eye on your books.  The following article addresses one business owners struggles by not keeping an eye on his books.

http://www.nytimes.com/2012/10/25/business/smallbusiness/at-pizzerias-an-owner-learned-the-importance-of-accounting.html?ref=smallbusiness&_r=0

We have a strong backlog of buyers seeking all types of companies.  Contact TM Business Brokers –  your Raleigh Business Brokers to learn whether or not you have a sellable business.  Do not make the mistake of relying on an adviser who does not sell companies for a living.  You may be delaying the sale of your business for the wrong reasons.

Now may be your time.  Contact the experienced professionals at TM Business Brokers to confidentially discuss “your” situation today!

Sell Your Business or Buy a Business?

Sell Your Business – Pittsburgh | Raleigh Business Brokers

Selling your business or buying a business?  Either way, both culminate with a closing which is the formal transfer of a business.   This represents the successful culmination of many months of hard work, extensive negotiations, lots of give and take, and ultimately a satisfactory meeting of the minds.  The document  which governs the closing is the Purchase and Sale Agreement.  TM Business Brokers, your Pittsburgh | Raleigh Business Brokers, recommends that the Purchase and Sale Agreement  contain the following items:

• A description of the transaction – Is it a stock or asset sale?

• Terms of the agreement – This covers the price and terms and how it is to be paid.  It should also include the status of any management that will remain with the business.

• Representations and Warranties – These are usually negotiated after the Letter of Intent is agreed upon.  Both buyer and seller want protection from any misrepresentations.  The warranties provide assurances that everything is as represented.

•  Conditions and Covenants – These include non-competes and agreements to do or not to do certain things.

There are four key steps that must be undertaken before the sale of a business can close:

1.  The seller must show satisfactory evidence that he or she has the legal right to act on behalf of the selling company and the legal authority to sell the business.

2.  The buyer’s representatives must have completed the due diligence process, and claims and representations made by the seller must have been substantiated.

3.  The necessary financing must have been secured, and the proper paperwork and appropriate liens must be in place so funds can be released.

4.  All representations and warranties must be in place, with remedies made available to the buyer in case of seller’s breech.

There are two major elements of the closing that take place simultaneously:

• Corporate Closing: The actual transfer of the corporate stock or assets based on the provisions of the Purchase and Sale Agreement.  Stockholder approvals are in, litigation and environmental issues satisfied, representations and warranties signed, leases transferred, employee and board member resignations, etc. completed, and necessary covenants and conditions performed.  In other words, all of the paperwork outlined in the Purchase and Sale Agreement has been completed.

• Financial Closing: The paperwork and legal documentation necessary to provide funding has been executed.  Once all of the conditions of funding have been met, titles and assets are transferred to the purchaser, and the funds delivered to the seller.

It is best if a pre-closing is held a week or so prior to the actual closing.  Documents can be reviewed and agreed upon, loose ends tied up, and any open matters closed.  By doing a pre-closing, the actual closing becomes a mere formality, rather than requiring more negotiation and discussion.

The closing is not a time to cut costs – or corners.  Since mistakes can be very expensive, both sides require expert advice.  Hopefully, both sides are in complete agreement and any disagreements were resolved at the pre-closing meeting.  A closing should be a time for celebration!

We have a strong backlog of buyers seeking all types of companies.  Contact TM Business Brokers –  your Pittsburgh | Raleigh Business Brokers to learn whether or not you have a sellable business.  Do not make the mistake of relying on an adviser who does not sell companies for a living.  You may be delaying the sale of your business for the wrong reasons.

Now may be your time.  Contact the experienced professionals at TM Business Brokers to confidentially discuss “your” situation today!

Looming Tax Hike Motivates Owners

TM Business Brokers Raleigh say a looming increase in the capital-gains tax rate next year is fueling sales of some privately-held businesses.

Many business owners—mostly founders who could gain a lot from a sale—are looking to close deals before next year, when the maximum tax on investment income is scheduled to rise from 15% currently to at least 23.8% on most capital gains, at least for higher-income households.  Many sellers intend to convert their equity into retirement funds or just start anew.

“It just made more sense for me to take my chips off the table and go do something else,” said Bert Wolf, 60 years old, who has an agreement to sell his compressed-gas business, Acetylene Oxygen Co. of Harlingen, Tex., before year-end.

Mr. Wolf added that if he waited until after the tax increase to sell, he would have to expand the business at the current rate “for at least 3 or 4 more years to achieve the same after-tax sales dollar.”  He is profiting on the sale of his business to Praxair, Inc, a public company.

“There’s a kind of a panic on to get things done,” said Beatrice Mitchell, co-founder of Sperry, Mitchell & Co. Inc., a New York investment bank that is advising Mr. Wolf on the sale.

To be sure, the weak economy has been difficult for many small-business owners across the board.  The median selling price for U.S. small businesses in the quarter ended Sept. 30 was $174,000 down 8.2% from four years earlier, according to BizBuySell.com, an online small-business marketplace.  The firm’s findings are based on sales, reported voluntarily by business brokers and mostly of less than $1 million, in 70 major markets.

Read more:

http://online.wsj.com/article/SB10001424052970204789304578088931525397120.html?mod=WSJ_SmallBusiness_LEFTTopStories

We have a strong backlog of buyers seeking all types of companies.  Contact TM Business Brokers Raleigh to learn whether or not you have a sellable business.  Do not make the mistake of relying on an adviser who does not sell companies for a living.  You may be delaying the sale of your business for the wrong reasons.

Now may be your time.  Contact the experienced professionals at TM Business Brokers Raleigh to confidentially discuss “your” situation today!

 

 

Best Time to Sell Your Business?

TM Business Brokers Raleigh – Best Time to Sell Your Business?

The best time to sell your business is when the business is better than it’s ever been.  This may be good advice, but few follow it.  Why sell when business is good?  You just suffered through a few not-so-great years and now the experts are telling you to sell?  Right or wrong – good or bad – the decision to sell is generally event-driven.  For example: declining health, a partnership break-up, personal issues, too much competition, family member elects not to purchase the business, etc.  Retirement sounds like a good reason, but it has no time pressure, unless a seller has made the decision to retire at a certain age.  Even then, when the seller realizes that he or she will have nothing to do after a sale…the idea loses its appeal.

However, one thing that a seller can do, without creating any pressure about selling or not selling, is to take a bit of time every year and prepare – just in case.  This means tying up loose ends.  Make sure financial records are current and complete, leases reviewed and renewed if necessary, any litigation resolved if possible, licenses and permits updated, agreements and contracts renewed and updated if necessary.  You could call this eliminating the surprises, and you could also call it good business.

By doing this, if a potential sale comes out of nowhere – you’ll be ready.

We have a strong backlog of buyers seeking all types of companies.  Contact TM Business Brokers Raleigh to learn whether or not you have a sellable business.  Do not make the mistake of relying on an adviser who does not sell companies for a living.  You may be delaying the sale of your business for the wrong reasons.

Now may be your time.  Contact the experienced professionals at TM Business Brokers Raleigh to confidentially discuss “your” situation today!

Pittsburgh | Raleigh Business Brokers – Preserving the American Dream…

Pittsburgh | Raleigh Business Brokers – Preserving the American Dream…

The tenets of this dream – owning a home, getting an education, having a job or owning a small business, and achieving financial self-sufficiency – are being crushed by regulations that are killing small businesses and the community-based financial institutions that support them.  The American Dream depends on jobs and opportunities and it’s well known that small businesses create the majority of new jobs, while community-based institutions disproportionately finance small business growth.

The importance of Main Street financial institutions, which drive the national economy one community at a time, cannot be underestimated.  By financing the small businesses that create 65% of new jobs, they drive consumer spending, which represents about 70% of the U.S. economy.  Today, however, “Big Bank” policies are limiting the ways that Main Street banks and credit unions can generate income and lend to small businesses, while subjecting them to onerous compliance burdens.  These and other policies are also harming small businesses by limiting their access to capital and burying them under regulations that consume valuable resources and increase operational costs.

Read more:

http://smallbusiness.foxbusiness.com/entrepreneurs/2012/09/18/preserving-american-dream-through-small-businesses/#ixzz28tbhWL67

We have a strong backlog of buyers seeking all types of companies.  Contact your Pittsburgh | Raleigh Business Brokers – TM Business Brokers to learn whether or not you have a sellable business.  Do not make the mistake of relying on an adviser who does not sell companies for a living.  You may be delaying the sale of your business for the wrong reasons.

Now may be your time.  Contact the experienced professionals at TM Business Brokers to confidentially discuss “your” situation today!

 

Pittsburgh | Raleigh Business Brokers – Small Businesses Fear Fiscal Cliff

Pittsburgh | Raleigh Business Brokers – Small Businesses Fear Fiscal Cliff

A recent survey indicates many business owners do not believe the country will avoid the tax increases and deep spending cuts that are set to take effect at year-end unless Congress and President Barack Obama agree on a new deficit-reduction plan.  A survey of the 833 business owners found that 47% of small-business owners and chief executives share this opinion.  In comparison, 38% of respondents said they thought lawmakers would be able to reach an agreement.  Another 14% weren’t sure.

In the survey, 62% said they favor repeal of Mr. Obama’s Affordable Care Act and 94% said they offer health insurance to their employees.

More than two-thirds of the respondents said they plan to vote for Mr. Romney, versus 19% for Mr. Obama.

Read more:

http://online.wsj.com/article/SB10000872396390443493304578034342001402834.html?mod=WSJ_SmallBusiness_LEFTTopStories

We have a strong backlog of buyers seeking all types of companies.  Contact your Pittsburgh | Raleigh Business Brokers – TM Business Brokers to learn whether or not you have a sellable business.  Do not make the mistake of relying on an adviser who does not sell companies for a living.  You may be delaying the sale of your business for the wrong reasons.

Now may be your time.  Contact the experienced professionals at TM Business Brokers to confidentially discuss “your” situation today!

Pittsburgh | Raleigh Business Brokers – Selling Your Business?

Pittsburgh | Raleigh Business Brokers – Selling Your Business?

Millions of companies are sold or transferred annually.  To most business owners, the sale of a business is a first time experience and for most a once in a lifetime event.  Accordingly, sellers should have your Pittsburgh | Raleigh Business Brokers – TM Business Brokers on your side.  Here’s some additional items to consider.

A corporate buyer, however, may have been involved in quite a few transactions – some that worked and some that did not..  What does this mean for the seller?  The acquirer may have an experienced team or have been through the business transaction process more than once resulting in a lopsided contest — the amateur (the seller) versus the professional (the acquirer).

Selling a business is not like selling real estate.  Confidentiality is, in most cases, critical.  A seller does not want employees, suppliers, and customers/clients to be aware of a possible sale.  The sales process also cannot distract the owner(s) from managing the day-to-day operation of the business.  Real estate is also much easier to finance than a business purchase, unless the acquirer is a first-rate company.

It is important that sellers do their own due diligence on a prospective acquirer to make sure that the acquirer can complete the transaction if both sides are in complete agreement on terms and conditions.  The seller has most likely retained a professional intermediary, paid that firm a retainer, retained legal and accounting professionals, etc.  Since the potential acquirer will want to do his or her own due diligence, it is important that the seller do so also.

Where is the Money?

All acquirers, whether big or little, should be able to show the seller that they have the financial resources to make the deal.  Unless the acquirer is a large and successful company, where acquisition funds are not an issue, an acquirer’s financial statements and/or the company’s financial statements should be made available.  A credit report would also be important.  An acquirer who can complete the sale, subject to due diligence, should not have difficulty supplying this information.

What do References Reveal?

A seller should check for information about any prior deals that the acquirer has made.  This would include any financing contacts or other lenders.  This list would include any previous acquisitions.  Talking to a previous seller can reveal how their deal went; how the acquirer was to work with; whether they did everything they said they would; etc.  Talking to managers of previous acquisitions by the buyer can tell a seller how employees were treated, etc.

Does the Chemistry Work?

It is important that the chemistry clicks between the seller and the acquirer.  Due diligence on both sides can help build the trust necessary for the deal to work both ways.  If the seller is staying with the company for an extended period of time, it is also critical that he or she is comfortable not only with the acquirer, but also with the new management team if it’s not the people who are doing the deal.

Several million businesses change hands every year.  The vast majority of sellers are selling a business for the first time.  It’s very important that they use professional help. Without it, they may likely receive less than fair value, be involved in a difficult selling experience, and may not receive all of the monies due them.  Professional advisers such as intermediaries, lawyers (only those with deal experience) and accountants are necessary.

We have a strong backlog of buyers seeking all types of companies.  Contact your Pittsburgh | Raleigh Business Brokers – TM Business Brokers to learn whether or not you have a sellable business.  Do not make the mistake of relying on an adviser who does not sell companies for a living.  You may be delaying the sale of your business for the wrong reasons.

Now may be your time.  Contact the experienced professionals at TM Business Brokers to confidentially discuss “your” situation today!

Steps Sellers Can Take to “Sell My Business”

Steps Sellers Can Take to “Sell My Business” – Pittsburgh | Raleigh Business Brokers

A potential Seller inquired yesterday “what steps can I take to increase my chances of selling my business?”  We are often asked this question.  As our first reply, we always recommend using your professionals at Pittsburgh | Raleigh Business Brokers

In addition to using an experienced, professional business broker, there are specific steps you can take to increase the chance of a successful closing.

Know why you want to sell your business.  
Before placing your business for sale, it is important that you both know why you want to sell your business and that you are certain about this decision.

Have a plan for what you will do following the closing.

Make sure important parties are on board.  The time to discuss the sale of your business, as well as future plans, with partners, spouses, children and other involved parties is before you list.

Communicate to your outside advisors that you want the deal to work.  Protect your interests, but don’t kill the deal!

Finally, Choose your battles.  Both buyers and sellers need to be willing to compromise.  It is helpful to consider in advance the areas that are most important to you so you can come to the table with a willingness to compromise in other areas.  There must be a win-win for both seller and buyer.

We have a strong backlog of buyers seeking all types of companies.  Contact your Pittsburgh | Raleigh Business Brokers – TM Business Brokers to learn whether or not you have a sellable business.  Do not make the mistake of relying on an adviser who does not sell companies for a living.  You may be delaying the sale of your business for the wrong reasons.

Now may be your time.  Contact the experienced professionals at TM Business Brokers to confidentially discuss “your” situation today!

Pittsburgh | Raleigh Business Brokers – Cashing Out?

Pittsburgh | Raleigh Business Brokers – Cashing Out?

Business owners have more options than they realize when it comes time to sell or “cash out”.  The following article summarizes several.  Taking the wrong approach could have serious financial consequences for both the entrepreneur and the company.  So it pays to know the pros and cons of the several ways to cash out and to think carefully about which is the right fit for your business and you.

An outright sale is probably the simplest way to exit a business.  This approach makes sense when an owner’s family members have no interest in taking it over or when the owner can’t figure out how to take the company to the next level or meet challenges that may have arisen.

There are two ways to cash out:  An owner can sell the company’s assets outright, or he can sell his stock in the company (or units if it is a limited-liability company).  Stock sales tend to benefit the seller, while asset sales are more beneficial to the buyer.

Asset buyers are getting the company’s physical equipment, facilities and customers, as well as intangibles such as trademarks and goodwill, and as a result are generally protected against prior claims against the business.  For example, the previous owners would most likely be responsible if an environmental claim were made against their former property or if an employee hired on their watch filed some sort of lawsuit.

Read more:

http://guides.wsj.com/small-business/buying-and-selling-a-business/how-to-choose-the-right-way-to-cash-out-of-your-business/

We have a strong backlog of buyers seeking all types of companies.  Contact your Pittsburgh | Raleigh Business Brokers – TM Business Brokers to learn whether or not you have a sellable business.  Do not make the mistake of relying on an adviser who does not sell companies for a living.  You may be delaying the sale of your business for the wrong reasons.

Now may be your time.  Contact the experienced professionals at TM Business Brokers to confidentially discuss “your” situation today!

Financing Availability / Applying for SBA Loans

Financing Availability / Applying for SBA Loans

A recent survey of 260 business brokers across the nation revealed the following:

68.8 percent said that financing availability has not improved since 2011.  That percentage is virtually unchanged from August 2011, when 67.8 percent of surveyed brokers said financing had not improved from 2010.

Respondents were not optimistic for the remainder of 2012 either as 72.9 percent of brokers expect no change in funding availability through the rest of the year.  Another 19 percent believed financing availability will tighten even further.

Buyers are ready to buy and sellers are ready to sell, but without third-party financing help, they are being forced to find new ways to piece together deals.  Of course, sometimes they can’t find a solution and, as a result, some good deals aren’t getting done.

Lending Restrictions Most To Blame

Banks took the most heat from business brokers for the lack of available financing, with 55.0 percent of respondents explaining that conditions aren’t improving because “banks continue to have more stringent lending policies.”  Government actions made little to no difference, cited 40.8 percent of surveyors, and 36.2 percent noted that the loan process has become more difficult since 2011.  In short, most brokers see a very tough financing environment that is discouraging potential buyers and causing them to give up looking for funding.

Seller Financing the Solution

With third-party financing so hard to secure, most business owners have turned to seller financing as a way of enticing prospective buyers.  Nearly 50 percent of brokers surveyed listed seller financing as “essential” in speeding up the business sale process and another 40 percent cited it as “important”.  Only two percent found it unnecessary in today’s market.

In addition, one-third of brokers surveyed indicated that nearly all small business sales included seller financing while a further 35.5 percent of brokers indicated that most (i.e., 60 to 89 percent) of the deals they see include seller financing.

Survey data supported the fact that seller financing has become the norm.  Over 53 percent of brokers noted that more sellers are willing to offer seller financing in 2012 compared to 2011.

MSNBC’s – Applying for SBA Loans

The U.S. Small Business Administration doesn’t actually loan money directly to small companies, but it does back loans given by banks.  This allows the lender to take a little more risk than it might normally do.  To learn more, click here.

http://www.openforum.com/videos/wheres-the-money-applying-for-sba-loans?goback=%2Egde_1806481_member_161351166

TM Business Brokers, however, continue to get deals done!

We have a strong backlog of buyers seeking all types of companies.  Contact your Pittsburgh | Raleigh Business Brokers – TM Business Brokers to learn whether or not you have a sellable business.  Do not make the mistake of relying on an adviser who does not sell companies for a living.  You may be delaying the sale of your business for the wrong reasons.

Now may be your time.  Contact the experienced professionals at TM Business Brokers to confidentially discuss “your” situation today!

Pittsburgh | Raleigh Business Brokers – Americans Love Small Business

Pittsburgh | Raleigh Business Brokers – Americans Love Small Business

The following statistics support why we have so many buyers looking to purchase small and medium-size businesses.

Almost nine in 10 adults (88 percent) have a favorable view of small business, compared with the two-thirds (67 percent) who have a positive view of major companies, according to a telephone survey of 1,750 adults sponsored by the Public Affairs Council, a nonprofit group for public affairs officials.  More than half (53 percent) have a “very favorable” view of small business, in contrast to only 16 percent who hold the same view about major corporations.

Read more:

http://smallbusiness.foxbusiness.com/entrepreneurs/2012/08/20/why-americans-still-love-small-businesses/#ixzz25swlmvEK

http://www.businessnewsdaily.com/715-credit-access-small-business-growth-obama.html

We have a strong backlog of buyers seeking all types of companies.  Contact your Pittsburgh | Raleigh Business Brokers – TM Business Brokers to learn whether or not you have a sellable business.  Do not make the mistake of relying on an adviser who does not sell companies for a living.  You may be delaying the sale of your business for the wrong reasons.

Now may be your time.  Contact the experienced professionals at TM Business Brokers to confidentially discuss “your” situation today!

Pittsburgh | Raleigh Business Brokers – “Why Waiting to Sell Your Business Might Backfire”

Pittsburgh | Raleigh Business Brokers – “Why Waiting to Sell Your Business Might Backfire”

The following Wall Street Journal article is a good supplement to our prior post today regarding “The Economy Stole My Retirement”.  This second article summarizes some reasons why a business owner may not want to wait sell a business.  Your decision to do so may very well backfire on you.

http://online.wsj.com/article/SB10000872396390444506004577618054291802614.html?mod=WSJ_SmallBusiness_LEADNewsCollection

This article also does not address the fact that many small businesses simply are not sellable in any market.  The sluggish economy may not be why a company will not sell.  You may have a business that will not sell in a good economy.

We have a strong backlog of buyers seeking all types of companies.  Contact your Pittsburgh | Raleigh Business Brokers – TM Business Brokers to learn whether or not you have a sellable business.  Do not make the mistake of relying on an adviser who does not sell companies for a living.  You may be delaying your retirement for the wrong reasons.

Now may be your time.  Contact the experienced professionals at TM Business Brokers to confidentially discuss “your” situation today!

Pittsburgh | Raleigh Business Brokers – The Economy Stole My Retirement

Pittsburgh | Raleigh Business Brokers – “The Economy Stole My Retirement”

The following Wall Street Journal article summarizes some situations faced by many retirement aged business owners.  A large portion of their net worth is tied to the retirement nest egg in their business.  And, that net worth has declined over the past several years for many owners.

http://online.wsj.com/article_email/SB10000872396390444230504577615861593287688-lMyQjAxMTAyMDMwMDAzODA3Wj.html?mod=wsj_valetleft_email&goback=%2Egde_2907875_member_157100085

What the article does not address is the fact that many small businesses simply are not sellable in any market.  The sluggish economy may not be why a company will not sell.

We have a strong backlog of buyers seeking all types of companies.  Contact your Pittsburgh | Raleigh Business Brokers – TM Business Brokers to learn whether or not you have a sellable business.  Do not make the mistake of relying on an advisor who does not sell companies for a living.  You may be delaying your retirement for the wrong reasons.

Now may be your time.  Contact the experienced professionals at TM Business Brokers to confidentially discuss “your” situation today!

 

Wireless Business for Sale – $630,000 Cash Flow

Wireless Business for Sale – $630,000 Cash Flow

Presented by:  Pittsburgh | Raleigh Business Brokers – TM Business Brokers

Location : Pennsylvania

Seller Financing Available

Asking Price:  $1,900,000 
Gross Revenue:  $1,800,000

Business Description

Multi-location and well-established niche wireless related operation.  Solid management in place in all locations.  The business is experiencing very positive growth trends with continued growth potential of 100-200%.   Turn-key operation.  The seller will provide all necessary transitional support and training – flexible seller.  Reasonable proposals will be considered.  Contact Pittsburgh | Raleigh Business Brokers – TM Business Brokers today!

Health Insurance for Small Business

Pittsburgh | Raleigh Business Brokers – TM Business Brokers, via Tony McDaniel,  recently requested LinkedIn recommendations for health insurance for the raleigh small business owner.

Following are the recommendations:

11 comments to TM Business Brokers post

William BlackmonWilliam Blackmon • Now this is a great questions. I am all ears as I wish to learn more about what services are out there for NC based small business.
Nancy Williams

Nancy Williams • There is no blanket answer on what is the best health insurance for the small business owner – each situation is going to be different. Depending on how many employees, what health conditions may already exist, how many dependants, etc will go into the equation when we make recommendations on a carrier and/or a plan. I always meet with my clients individually to go over what their budget and needs are and we find the right carrier and plan based upon that information.

There’s a lot of small business owners out there that are paying more for their health insurance than they need to. Always a good idea to talk to a health insurance specialist and have an insurance review. You don’t know what you don’t know.

Many of the plans will include vision and dental is generally sold separately. I have found a carrier that has an excellent plan and is about half the price of BCBS’s dental.

Naturally, I’d be happy to assist! Another thing the small business owner should look at is disability insurance. Its important to protect the income!

 

Shelli Dallacqua

Shelli Dallacqua • I highly recommend Forrester and Associates in Durham. They specialize in providing health benefits as well as vision and dental for small businesses. They’ll give you a free quote. You can find more information on their website athttp://forresterinsurance.com/. I use Rachel Lyons as my consultant and you can contact her at RLyons@forresterinsurance.com

Dan Daniel, CLU, MBA

Dan Daniel, CLU, MBA • Strategic Employee Benefit Services (SEBS) is a Member of the Northwestern Mutual Financial Network. We provide value added services in addition to brokering health plans from Blue Cross, United Healthcare and others. I’d be happy to assist you with your needs. I can be reached at (919) 755-3242.

Mike Komives

Mike Komives • I recommend you contact Phil Wolf of the Insurance Center of Durham. Phil is very knowledgeable about health insurance issues, helpful and realistic. I have personally watch Phil as a regular guest speaker at numerous workshops.

Gayle Hart

Gayle Hart • I was recently laid off and went into business for myself. I have no other employees, so this may not apply to your situation, but I registered with the Freelancers Union (http://www.freelancersunion.org/), at no cost to me, and am planning to enroll in one of the Golden Rule plans United Health offers to union members–it is about half the cost of COBRA. I haven’t looked into it yet, but the Freelancers Union also offers some help with 401K and FSA.

Tamra Demello

Tamra Demello • Our company specializes in insurance for the self employed and small business owner. You have a lot of available options. I would welcome the opportunity to analyze your individual situation and custom design a solution that would meet your needs in the most cost effective way. I welcome the opportunity to help you in any way I can.

Jamie Glass

Jamie Glass • I also highly recommend Forrester Insurance in Durham. You will receive personalized, professional assistance.

Lauren Campbell

Lauren Campbell • Sit down with Brian Trebenski with ABEO Insurance Agency. He has helped several of small business owners we deal with and we have heard nothing but rave reviews! He will help evaluate your needs and really goes the extra mile for his clients. Please let me know if you need more contact information. He can be found at:http://www.abeoins.com/

Tony McDaniel

Tony McDaniel • I appreciate the recommendations. Thank you for taking the time to provide them!

 

Landon Watts

Landon Watts • David Charland – Pierce Group Benefits dcharland@piercegroupbenefits.com (888) 662-7500 www.piercegroupbenefits.com

Featured Business for Sale – $2,200,000 Cash Flow

Featured Business for Sale – $2,200,000 Cash Flow

Presented by:  Pittsburgh | Raleigh Business Brokers – TM Business Brokers

Growing Lead Generation Company : Mid-Atlantic, North East (Relocatable)

Seller Financing Available

Asking Price:  $5,900,000 
Gross Revenue:  $3,500,000

Business Description

Growing Mid-Atlantic based Lead Generation Company for Sale.  Full-service one-stop shop for all lead generation services.  Dynamic business model and extremely profitable.  Tremendous growth potential exists.  The business can be relocated to anywhere nationwide.  The seller will provide all necessary transitional support and training – flexible seller.  Reasonable proposals will be considered.  Contact Pittsburgh | Raleigh Business Brokers – TM Business Brokers today!

Pittsburgh | Raleigh Business Brokers – Buyer Profiles

Pittsburgh | Raleigh Business Brokers – Buyer Profiles

TM Business Brokers report a variety of business buyers are seeking small to medium sized companies.  Just as small business itself has become more sophisticated, the people interested in buying businesses have also become more divergent and complex.  The following are some of today’s most active categories of business buyers:

Family Members

Members of the seller’s own family form a traditional category of business buyer – a category of buyers that is “tried” but not always “true.”  There is something appealing about a family member taking over the business.  There is a sense of keeping the business in the family and an assumption that such an arrangement will translate into the prime advantage of continuity.  Continuity may in fact be the result as long as the family member buying the business treats the role as something akin to a hierarchical responsibility.  This can mean years of planning and diligent preparation, involving all or many members of the family in deciding who will be the “heir to the throne.”  If this has been done, the family member may be the best type of buyer.

Too often, however, the difficulty with the family member as buyer lies in the conflicts that may develop.  For example, does the family member have sufficient cash to purchase the business?  Can the selling family member really leave the business?  In too many cases, these and other conflicts result in serious disruption to the business itself and/or to the sales transaction, not to mention the impact on family relationships.  An outside buyer eliminates these often insoluble problems.

When considering a family member as a buyer, a business owner should carefully evaluate three factors: ability, family agreement, and financial worthiness.

Business Competitors

This is a category often overlooked as a source of prospective purchasers.  The obvious concern is that competitors will take advantage of the knowledge that the business is for sale by attempting to lure away customers or clients.  However, if the business is compatible, a competitor may be willing to “pay the price” to acquire a ready-made means to expand.  A business brokerage professional can be of tremendous assistance in dealing with the competitor.  They will use confidentiality agreements and will reveal the name of the business only after contacting the seller and qualifying the competitor.

The Foreign Buyer

Many foreigners arrive in the United States with ample funds and a great desire to share in the American Dream.  Many also have difficulty obtaining jobs in their previous professions, because of language barriers, licensing, and specific experience.  As owners of their own businesses, at least some of these problems can be short-circuited.

These buyers work hard and long and usually are very successful small business owners.  However, their business acumen does not necessarily coincide with that of the seller (as would be the case with any inexperienced owner).  Again, a business broker professional knows best how to approach these potential problems.

Synergistic Buyers

These are buyers who feel that a particular business would compliment their business and that combining the two would result in lower costs, new customers, and other advantages.  Synergistic buyers are more likely to pay more than other types of buyers, because they can see the results of the purchase.  Synergistic buyers seldom look at the small business, but they may find many mid-sized companies that meet their requirements.

Financial Buyers

This category of buyer comes with perhaps the longest list of criteria and demands.  These buyers want maximum leverage, but they also are the right category for the seller who wants to continue to manage his company after it is sold.  Most financial buyers offer a lower purchase price than other types, but they do often make provision for what may be important to the seller other than the money—such as selection of key employees, location, and other issues.

For a business to be of interest to a financial buyer, the profits must be sufficient not only to support existing management, but also to provide a return to the owner.

Individual Buyer

When it comes time to sell, most owners of the small to mid-sized business gravitate toward this category of buyer.  Many of these buyers are mature (aged 40 to 60) and have been well-seasoned in the corporate marketplace.  Owning a business is a dream of theirs, and one many of them can well afford.  The key to approaching this kind of buyer is to find out what it is they are really looking for.

The buyer who needs to replace a job can be an excellent prospect.  Although owning a business is more than just a job, and the risks involved can frighten this kind of buyer, the buyer without a current job will have the “hunger” necessary to take the leap.  A further advantage is that this category of buyer comes with fewer complications than many of the other types.

A Final Note

Your Pittsburgh | Raleigh Business Brokers – TM Business Brokers has the experience needed to sort out the “right” type of buyer.

Building a Sellable Service Business – Pittsburgh | Raleigh Brokers

Building a Sellable Service Business – Pittsburgh | Raleigh Brokers

To build a sellable service business – you need to set up your company so that it is no longer reliant on you according to Pittsburgh | Raleigh Brokers – TM Business Brokers.

This can be easier said than done, especially when, like a PR consultant or plumber, what you are selling is your expertise.

To scale up a knowledge-based service business, you first have to figure out how to impart your knowledge to your employees, so that they can deliver the goods.  However it can be difficult to condense years of school and on-the-job learning into a few weeks of employee training.  The more specialized your knowledge, the harder it is to hand off work to juniors.

The key to scaling up a service business can often be found by offering the service that prevents customers from having to call you in the first place.  You have to shift from selling the cure to selling the prevention.

Fixing what is broken is typically a hard task to teach; however, preventing things from breaking in the first place can be easier to train others to do.

For example, it takes years for a dentist to acquire the education and experience to successfully complete a root canal, but it’s relatively easy to train a hygienist to perform a regularly scheduled cleaning.

It’s almost effortless for a real estate manager to hire someone to clean the eaves trough once a month, but repairing the flooded basement caused by the clogged gutters can be quite complex.

For a master car mechanic, overhauling an engine that has seized up takes years of training, but preventing the problem by regularly changing a customer’s oil is something a high school student can be taught to do.

For an IT services company, restoring a customer’s network after a virus has invaded often takes the know-how of the boss, but preventing the virus by installing and monitoring the latest software patches is something a junior can easily be trained to do.

When you’re selling your expertise, it can be tough to hire a team to do the work for you.  As ironic as it sounds, sometimes the key to getting out of doing the work is to offer a preventive service, which not only maintains your business income, but also eliminates the need for someone to call you in the first place.

Pittsburgh | Raleigh Business Brokers – Why Sell?

Pittsburgh | Raleigh Business Brokers – Why Sell?

Selling a business is an emotional process for many reasons.  The owner’s family may have owned the business for several generations.  The business owner may have started the company and spent a lot of years, sweat and tears building it into a successful, profitable business.  Accordingly, “seller’s remorse” is often a major reason for transactions to terminate.  None-the-less, there are reasons why selling makes sense or is the best avenue for the business owner.  Your Pittsburgh | Raleigh Business Brokers cites some examples:

Burnout

According to industry experts, burnout is a major reason owners consider selling their businesses.  Over time, the long hours and 7-day work weeks can take their toll.  On the opposite end, business owners who thrive on challenge may get to the point that the business has just become boring – the challenge of creating it or growing it has been replaced with the mundane daily activities of running it.  Losing interest in one’s business usually indicates that it is time to sell.

No succession option

Sons and daughters may be disenchanted with the family business by the time it’s their turn to take over.  They may have their own dreams to fulfill that do not include the family business.

Unexpected circumstances

This is the number one reason a business owner should make plans about selling even if he or she is not planning to sell for many years.  A good question for a business owner to ask is, “If an unexpected circumstance should occur tomorrow that would require me to sell my business, what would I wish I had already done?”  Unexpected events include such things as accidents, illness of owner or family members, divorce, and partnership issues.  Unfortunately, these events are seldom predicted, and too many times, a forced sale does not bring maximum value.

Need to cash out

The need to cash out may be caused by an unexpected circumstance, such as a costly accident or illness.  Many company owners have much of their personal net worth invested in their business.  This can present a lack of liquidity.  In such situations, an owner in need of additional cash has two options: borrowing against the assets of the business or selling the business.

Outside pressure

Successful businesses create competition.  There are times when a business owner discovers that the competition has built to the point where it is easier to join it than to fight it.

An “out of the blue” offer

There are times when a business may not even be on the market, but someone or some other company sees an opportunity and makes an unexpected offer.  This may be a great time to sell as the owner is likely entering the negotiations from a position of strength.

There are obviously many other reasons why businesses are sold.  The most important factor is that the owner is convinced that it is time to sell and has a clear understanding of his or her reasons.  And, whether that time is now or many years in the future, the wise owner will consider the following: “The time to prepare to sell is the day you start or take over the business.”

Call your Pittsburgh | Raleigh Business Brokers – TM Business Brokers to confidentially discuss your unique situation today!

Exclusive Webinar – Building a Sellable Business

Building a Sellable Business – TM Business Brokers – Raleigh | Pittsburgh

Do you want to sell your business?  Thinking about selling your business at some point over the next couple of years?  Or, do you know someone that may be interested?

We will be hosting an exclusive webinar about Building a Sellable Business for Business Owners on Tuesday, June 19, 2012 from 11:00AM – 12:00PM EDT.

This session is not a public event and will not be recorded for future reference.

To register:  https://www3.gotomeeting.com/register/849773038

Thank you.

PS……

Take the “Sellability Score” quiz now and find out:

•       The Sellability Score of your business, including where it ranks on the scale of being easy or hard to sell.

•       Your best options for selling your business depending on your score.

•       The most important (and often overlooked) questions you should ask yourself to determine if your business is ready to sell.

Get started by clicking the link below:

THE SELLABILITY SCORE

Protect your Business Value – Raleigh | Pittsburgh

Protect your Business Value – Raleigh | Pittsburgh Business Brokers

Warren Buffett famously invests in businesses that have what he calls a protective “moat” around them – one that inoculates them from competition and allows them to control their pricing.

Big companies lock out their competitors by out-slugging them in capital infrastructure investments, but smaller businesses have to be smarter about how they defend their turf. Here are four ways to deepen and widen the protective moat around your business:

Get certified

Is there a certification program that you could take to differentiate your business? A Canadian company that disposes of radioactive waste decided to get licensed by the Canadian Nuclear Safety Commission.  It was a lot of paperwork and training, but the certification process acts as a barrier against other people jumping into the market and competing.

Is there a certification you could get that would make it more difficult for others to compete with you?

Create an army of defenders

Ecstatic customers act as defenders against other competitors entering your market, a factor that has enabled companies like Trader Joe’s to defend their market share in the bourgeois bohemian (bobo) market, despite a crowded market of stores hawking groceries.

Get your customers to integrate

Is there a way you can get your customers to integrate your product or service into their operations?

The basic switching costs of Customer Relationship Management (CRM) software are virtually nil.  Everyone from 37signals to Salesforce.com will give you a free trial to test their wares.

The real expenses associated with changing CRM software only come when a business starts to customize the software and integrate it into the way they work. Once a sales manager has trained his salespeople in creating a weekly sales funnel in a CRM platform, try to convince him to switch.

Can you offer your customers training in how to use what you sell to make your company stickier?

Become a verb

Think back to the last time you looked for a recipe. You probably “googled” it.  Part of Google’s competitive shield is that the company name has become a verb. Now every time someone refers to searching for something online, it reinforces the competitive position of a single company.

Is there a way you could control the vocabulary people use to refer to your category or specialty?

Widening your protective moat triggers a virtuous cycle: differentiation leads to having control over your pricing, which allows for healthier margins, which in turn lead to greater profitability and the cash to further differentiate your offering.

If you’re wondering how differentiated your businesses is, take the 13-minute Sellability Score questionnaire and find out….

THE SELLABILITY SCORE

Please contact your Raleigh | Pittsburgh Business Brokers – TM Business Brokers if you have any questions regarding The Sellability Score.

Pittsburgh Business Brokers – Ten Steps for Sellers

Pittsburgh Business Brokers – Ten Steps for Sellers
 

1. Place a reasonable price on your business.  Since an inflated figure either turns off or slows down potential buyers, rely on your Pittsburgh business brokers – TM Business Brokers to help you arrive at the best “win-win” price.

2. Carry on “business as usual.”  Don’t become so obsessed with the transaction that your attention wavers from day-to-day demands, affecting sales, costs, and profits.  Since the selling process could take as long as a year, the buyer needs to keep seeing a healthy business.

3. Engage experts to insure confidentiality.  A breach of confidentiality surrounding the sale of a business can change the course of the transaction.  Pittsburgh Business Brokers – TMBB can channel the process and the parties involved to keep the sale within safely silent bounds.

4. Prepare for the sale well in advance.  Be sure your records are complete for at least several years back and do all pertinent legal or accounting “housecleaning”–as well as a literal sprucing-up of the plant or store.

5. Anticipating information the buyer may request.  In order to obtain financing, the buyer will need appraisals on all assets as well as information to satisfy environmental regulations.

6. Achieve leverage through buyer competition.  This can be tricky; you are wise to let the professional business broker, as a third party, create a competitive situation with buyers to position you better in the deal.

7. Be flexible.  Don’t be the kind of seller who wants all-cash at the closing, or who won’t accept any contingent payments or an asset transaction.  Depend on the advice of your professional business broker to keep the deal sweet instead of sour.

8. Negotiate; don’t “dominate.”  You’re used to being your own boss, but be prepared to learn that the buyer may be used to having his way, too.  With your broker’s help, decide ahead of time when “to hold” and when “to fold.”

9. Keep time from dragging down the deal.  To keep the momentum up, work with TMBB to be sure that potential buyers stay on a time schedule and that offers move in a timely fashion.

10. Be willing to stay involved.  Even if you are feeling burnt-out, realize that the buyer may want you to stay within arm’s reach for a while.  Consult with TM Business Brokers to determine how you can best effect a smooth transition.

Pittsburgh Business Brokers – Mistakes Sellers Make

Pittsburgh Business Brokers – Mistakes Sellers Make
 

• Business owners neglect to run their business during the sales process. – The owner of a business with sales under the $20 million range can get so involved in the selling process that they neglect the day-to-day operation of the business.

• Business owners don’t understand the “real” value of their business. – A business may actually command a higher price than the value determined by an appraiser.  The business may be worth more than the sum of its parts.  Pittsburgh Business Brokers – TM Business Brokers can answer the question of real value and help determine a “go-to-market” price.

• Business owners aren’t flexible in structuring the transaction. – In many cases, how the deal is structured is more important than the price or terms.

• Business owners are not looking at the business from a buyer’s perspective. – Buyers may look for different aspects of a business than those the seller looks for.  For example: growth potential, management depth, customer base, etc.

• Business owners start with too high a price. – Sellers obviously want to maximize the price they receive for their business, but today’s marketplace is difficult to fool.  A good buyer may just elect to pass because of an overly aggressive starting point.

• Business owners are impatient. – Sellers have to understand that it can take 6 to 18 months to find a buyer and proceed through the sales process, which includes due diligence, the legal and accounting issues that must be handled, and ultimately the closing.  However, on the flip side, the longer the deal drags, the more likely it is to fall apart.  As the saying goes: Time is of the essence!

• Business owners have insufficient or inadequate documentation. – Sellers should have current real estate and equipment appraisals at the ready along with any documentation a buyer might want, such as projections, business forecasts and plans, and environmental studies.  Having all the documentation and financial records readily available will not only speed things along, but might also provide for a higher price or, even more important, save the deal.

Business Brokers in Raleigh Expansion

Business Brokers in Raleigh Expansion

TM Business Brokers announces its’ latest new office facilities in Raleigh, NC.  The new location expands the company’s geographical service area, and is designed to accommodate our fast-growing business brokerage operations by helping business owners sell a business and buyers purchase a business not only in the Raleigh, Durham and Chapel Hill areas but also in Greensboro, NC.  As business brokers in Raleigh, our primary goal is to help the business owner sell your business for more money confidentially.

Our growth over the past couple of years has been right on plan and we’ve been able to recruit top talent.  This new office will allow us to maintain our steady growth and serve our customers even better.  The new office will serve as our anchor location in North Carolina and support our continued growth expansion plans in the North Carolina market.

TM Business Brokers new Raleigh address is 11028 Fair Chase Court, Suite 2A, Raleigh, NC  27617.  The telephone number is 919-999-2400 and fax number is 919-999-2401.

Pittsburgh Business Brokers – New Hire

Pittsburgh Business Brokers – New Hire

TM Business Brokers, LLC announces the recent hiring of Jim Livingstone.  With Jim joining our team of Pittsburgh Business Brokers, he brings over 25 years of business experience working with small to mid-sized companies, both as an advisor and as an owner.

He has extensive experience in accounting, tax, business valuation and due diligence.  Jim has worked in a variety of industries, including retail, distribution, manufacturing, consumer products and service-oriented businesses.

Jim is a graduate of Syracuse University.  He is a CPA and has also attained the Accredited in Business Valuation designation issued by the AICPA.

We are excited to have Jim on our Pittsburgh Business Brokers team!

Sell a Business – Tasks to Do

Sell a Business – Tasks to Do

Before you sell a business or decide to go to market, owners should consider completing the following items:

  • Remove any items not included in the sale of the business.  That family heirloom portrait behind the counter of Grandfather Smith, founder of the business, should be removed.
  • Remove or repair any non-functioning equipment.
  • Prepare an operations manual to show a new owner all the functions of the business, how things are done, the major customers and suppliers, samples of advertising, and any other information that would help a new owner manage and operate the business.
  • Take care of any outstanding bills and resolve any legal, tax, or governmental issues.
  • Bring your financial statements up to date, and have your accounting professional prepare them for a buyer’s inspection.
  • Clean up the business inside and out.  Fill the shelves, clean up the inventory, and paint the interior if necessary.

No one likes surprises, most of all, prospective buyers.  Review every facet of your business and remedy any problems, whether legal, financial, governmental, etc., prior to placing your business up for sale.

Your professional Pittsburgh Business Brokers – TM Business Brokers can assist in all facets of preparation.  We know what buyers are looking for and are also familiar with current market conditions.

DISCLAIMER: TM Business Brokers, LLC does not offer securities for sale, real estate brokerage services, accounting, tax or legal advice, or financing negotiations. TM Business Brokers, LLC does not audit / verify any information provided by business owners and their third party advisers, and we make no representations or warranties thereto.