Buying a business instead of starting from scratch

"With retail banks still reticent to back all but the most sure-fire of business plans, aspiring entrepreneurs are increasingly exploring alternative routes into business.

The limited availability of start-up capital has meant that some often-overlooked approaches to business are worthy of consideration. Buying in to an existing enterprise, so long as it has a stable trading history, is looked on much more favourably by banks as it has a track record, whereas a start-up has only potential, a disconcertingly nebulous concept for risk-averse banks."

Read more at:

Buying a business instead of starting from scratch:

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.

This Week's New BBF Florida Construction Related Businesses for Sale (Apr 30, 2013)

Eric J. Gall
239-738-6227
info@buysellflbiz.com

Construction

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF113313399	Seminole	Contractor Other	499,999	499,999	126,652	498,688
BBF-74719191	Volusia	A/C & Heating	1,050,000	1,050,000	260,162	1,702,920
BBF412820150	Orange	Electric	1,350,000	1,350,000	289,208	1,094,465
BBF-74717443	Saint Johns	Flooring	67,500	67,500	92,400	227,304
BBF-44500904	Orange	Installer	549,000	549,000	127,793	594,190
BBF-95102044	Lee	Plumber	125,000	125,000	40,515	318,660
BBF-29001526	Broward	Plumber	225,000	225,000	93,958	430,165
BBF-95313008	Lee	Screening	75,000	75,000	90,562	249,019
BBF-16420287	Miami-Dade	Fire Sprinklers	875,000	875,000	272,125	664,345

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.

What to Tell Customers When Selling Your Business | Inc. 5000

"A business sale is one of the most difficult transitions in the life of a company. As the seller, it is critical to help guide your customers through the transition, and to provide reasons for them to remain with the business. This is obviously true if you have a financial stake in the company after the deal closes (if you're financing part of the sale, for instance), however, it's also true if you don't have any direct financial motivation. Why? Simple: it's the right thing to do for the customers, it's the right thing to do for the new owner, and it's the right thing to do for your reputation.

As with your employees, professional and clear communication is the key to successfully guiding your customers through the business-ownership transition process. By carefully and strategically informing clients (especially the more valuable ones) about the sale and building their confidence in what lies ahead, you will help them make good choices, help the new owner succeed and, in so doing, continue to build your reputation."

Read more at:

What to Tell Customers When Selling Your Business | Inc. 5000:

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.

This Week's New BBF Southwest Florida Businesses for Sale (Apr 29, 2013)

Eric J. Gall
239-738-6227

Accounting

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-90406242	Lee	Tax Practice	150,000	37,500	133,034	365,058

Animals/Pets

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-95313017	Lee	Pet Grooming	40,000	40,000	42,267	147,929
BBF-92401209	Lee	Pet Grooming	225,000	125,000	68,917	264,726
BBF-90406414	Lee	Pet Supplies	90,000	50,000	67,712	371,562

Automotive

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-91702141	Lee	Air Condition	159,900	25,000	69,916	412,978
BBF-84300274	Sarasota	Auto Body Shop	225,000	225,000	87,568	769,604
BBF-88210022	Sarasota	General Repair	400,000	300,000	150,690	1,585,830
BBF-95830426	Lee	General Repair	440,000	440,000	193,001	814,976
BBF-95102079	Charlotte	Auto Quick Lube	175,000	175,000	43,703	315,501

Beauty/Personal Care

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-92403425	Collier	Hair Salon	21,000	21,000	0	0
BBF-96012511	Lee	Hair Salon	49,000	20,000	6,125	31,502
BBF-92403426	Collier	Hair Salon/Spa	115,000	115,000	62,715	256,121
BBF-95102042	Lee	Nail Salon	49,000	49,000	32,647	161,834
BBF-95313015	Lee	Skin/Massage	100,000	100,000	64,593	163,278

Child Care

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-43917100	Lee	Day Care	750,000	250,000	87,652	805,202

Cleaning

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-95108015	Sarasota	Pressure Cleaning	49,000	49,000	72,700	114,000

Construction

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-84310053	Sarasota	Home Improve	185,000	92,500	82,471	200,297
BBF-95313008	Lee	Screening	75,000	75,000	90,562	249,019

Educational/School

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-43917098	Lee, Florida USA	Pre-School	750,000	250,000	87,652	805,202

Environmental Rltd

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-82682035	Manatee	Recycling	1,100,000	1,100,000	350,983	1,470,000

Equipment S & S

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-95105004	Lee	Equipment Rental	325,000	87,500	123,112	191,154

Food Business Retail

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-95400054	Lee	Food Retail Bakery	95,000	95,000	45,268	206,614

Lawn/Landscaping

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-90406352	Collier	Lawn Biz Residl	275,000	60,000	186,279	418,038

Liquor Related Biz

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF892701810	Sarasota	Bar/Restaurant	310,000	310,000	155,688	378,756
BBF-88210026	Sarasota	Beer/Wine Bar	300,000	300,000	60,000	280,000
BBF-95312059	Lee	Sports Bar	150,000	75,000	124,380	1,225,000

Manufacturing

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-93700883	Lee	Canvas Products	1,200,000	1,200,000	42,541	539,610

Marine Related

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-92403412	Collier	Boat Transport	200,000	200,000	60,309	183,857

Medical Related Biz

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-92409174	Lee	Chiropractic	630,000	135,000	260,892	787,342

Pool & Spa Business

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-45808851	Sarasota	Pool Service	84,900	84,900	48,976	59,160

Recreation

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-81108143	Manatee	Minature Golf	420,000	420,000	132,152	345,612

Restaurants

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-95313009	Lee	American	150,000	75,000	124,380	1,225,000
BBF892731814	Sarasota	Banquet Hall	310,000	310,000	38,922	94,689
BBF-94911712	Collier	Brew/Pub	395,000	395,000	170,737	765,000
BBF-95108500	Manatee	Buffett	76,000	76,000	84,948	550,000
BBF892731028	Sarasota	Cafe Type Eatery	65,000	65,000	0	0
BBF893200152	Manatee	Cafe Type Eatery	99,000	75,000	40,000	190,000
BBF-95108008	Manatee	Family Style	345,000	345,000	379,420	1,162,660
BBF-95400052	Lee	Fast Casual	35,000	35,000	0	0
BBF-84310054	Manatee	Mexican	195,000	195,000	121,936	429,657
BBF-88210019	Sarasota	Seafood	4,600,000	1,300,000	731,948	4,083,422

Retail Miscellaneous

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-95400045	Lee	Consignment Shop	29,700	29,700	9,246	30,990
BBF-82682041	Sarasota	Retail Cosmetic	75,000	75,000	32,351	152,495

Routes

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-95400051	Lee	Routes Fed Ex	100,000	100,000	70,000	110,000
BBF-41509408	Lee	Routes Sundries	19,000	19,000	23,000	50,000

Sports Related Biz

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-92403420	Lee	Golf Cart Sales	575,000	120,000	234,018	1,782,160

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.

How to sell a business by ignoring market timing

"While snowboarding over the weekend, I found myself dangling in midair from a “paused” lift.  Looking to pass the time, I decided to chat with my seat neighbor.  To my good fortune, I was sitting next to a very interesting business owner.  He was a successful CEO in his fifties who ran a manufacturing company that  generated 10 million dollars in revenue and over 1  million dollars in EBITDA.

He told me he was tired and getting very close to burnout.  But, his plan was to wait another four to six years before attempting to sell his business.  His thought was that he wanted to sell at the peak of the next cycle.

On the face of it, his approach seems to make a lot of sense.  Most mergers and acquisition pros will tell you that an economic cycle can affect business valuations by up to “two turns” meaning that a business selling for five times EBITDA at the top of an economic cycle may go for as low as three times EBITDA at the lowest point.

So here is the problem. "

Read more at:

How to sell a business by ignoring market timing |:

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.

Is My Business Considered Small or Large When it Comes to Healthcare Reform?

Another interesting bit of information shared by Ron Martin of Martin Accounting and CFO Services.

Federal law (Title 13, Part 121 of the Code of Federal Regulations) sets forth in detail the criteria to be used by the Small Business Administration (SBA) in determining the definition of a “Small Business.” This criterion includes items such as sales volume and number of employees. For instance, in most general and heavy construction industries, up to $27.5 million per year in sales receipts qualifies a business as “small,” and in manufacturing, up to 500 employees qualifies a business as “small.”

It’s important to note that this SBA designation doesn’t apply to the Patient Protection and Affordable Care Act (PPACA) – also known as Healthcare Reform. Healthcare Reform mandates that “large” employers will have to offer health insurance to their employees or face fines. To determine if this mandate applies to your business, you are required to look past your SBA designation and understand the rules that are specific to the PPACA.

The PPACA identifies a “large” employer as having 50 full-time employees. Furthermore, while the Fair Labor Standards Act (FLSA) sets 40 hours per week as a standard work week, PPACA sets “full time” at an average of 30 hours per week, per month.

Starting in 2014, employers with more than 50 full-time equivalent (FTE) employees will be fined $2,000 per full-time employee (excluding the first 30 employees), if they do not offer health insurance to employees who average 30-or-more hours per week.

All of this is certainly a lot to consider for that “small business” but “large employer.”

Full Time vs. Full-Time Equivalent
The number of full-time employees at your business determines your health insurance coverage requirements. First, you have to determine the number of employees who work at least 30 hours per week and add them together. Then, for employees who work less than 30 hours per week, take the number of hours they work during the month and divide that by 130 (number of hours worked per month to determine a FTE). Example: If you have 30 employees who each work 30-or-more hours per week, and 26 employees who each work 25 hours per week, the calculation would look like this:



In this example, you have a total of 50 full-time equivalent employees, and you’re expected to provide health insurance even though you don’t have 50 employees working 30 or more hours per week.

Additionally, your number of full-time equivalent employees determines your tax credit qualification. For purposes of figuring out your FTEs, you would use a similar calculation as above, but you would use a 40-hour week as your base. An employee who works 40 hours per week for 52 weeks, works 2,080 hours per year. For employees working less than 40 hours per week, add the estimated number of hours worked and divide that number by 2,080. In the example below, this business has 15 full-time employees working a traditional 40-hour week, 15 full-time employees working a 30-hour week and 25 part-time employees working a 25-hour week.

You will note how the calculations change from “month” to “year” (120 hours/month * 12 months), is not the same calculation as (30 hours/week * 52 weeks), further complicating the math.


Other Reform Considerations
Under the law, healthcare also has to be affordable, which is defined as not more than 9.5% of your employee’s household income. If insurance costs more than that, employees will be able to purchase insurance through an Exchange, which has penalty ramifications for your business. However, large employers typically do not maintain (and would find it difficult to obtain) the “household incomes” of their full-time employees. As a result, the proposed regulations permit employers to use a safe harbor, including an employee’s W-2 wages in lieu of “household” wages to determine affordability.

Implications for Your Managers
Outside of the additional financial considerations placed on businesses as a result of Healthcare Reform, there are some real administrative concerns to face. Managers have always been responsible for managing the number of hours their employees work, but now, failing to control the number of hours has ramifications beyond exceeding operational budgets.

Because of the ramifications of increasing FTE counts, businesses likely will employ a greater number of contingent and seasonal employees who do not need to be included in these counts. The manager’s job, in these situations, becomes more complicated, because shifts have to be planned more efficiently to avoid any unnecessary hours. Specific attention has to be focused on those employees who regularly work close to 30 hours, to avoid unintentionally exceeding the 30-hour mark and therefore, increasing expenses. The U.S. Department of Labor has not yet issued guidance on how long an employee has to work an average of 30 hours per week before it would consider that employee full-time, although it does appear it is making two considerations—one concerning newly hired employees and one concerning established employees.

Additionally, there is a heightened emphasis on employee performance management to get the most efficient use of employee time. This new reality also will force managers to pay more attention to their own schedules, and to accept the likelihood that they’ll be working more hours.

The role of the manager is about to get a lot more complicated. Scheduling has to be well-managed and documented, performance management has to become more rigorous and effective and managers will have to be comfortable communicating these concepts to their employees.

While accurate time-keeping records have always been a requirement under the FLSA, the accuracy of those records now takes on greater importance given the fact that the number of hours employees work drives so much of the eligibility and potential liability under Healthcare Reform.

Author: Patrick Carey

Professional Employer Consultant

Oasis Outsourcing

604 Courtland Street Suite 180

Orlando, Florida 32804

Tel: 407-599-4077 x 126

Cell: 407-883-9659

Fax: 855-750-1942

www.OasisAdvantage.com

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.

It Takes 3 to 5 Years to Prepare to Sell a Small Business

"Are you considering selling your small business?  Perhaps you think it’s a good time to sell, considering that more businesses have been bought and sold this year than at this time last year, according to a BizBuySell survey.

However, valuations of those businesses could be lower in 2013, thanks to some tax changes. So if you want to get the best sales price possible, there are likely some steps you should already be taking. And allow yourself enough time to sell a small business.

Most owners don’t realize that selling a business can be so time consuming, according to Bob Pullar of Owners University, who recently suggested that owners spend three to five years preparing to sell in order to get the best price possible. Pullar said that preparing your business for sale over time will allow you to demonstrate how well your company trends over time, both financially and operationally."

Read more at:

It Takes 3 to 5 Years to Prepare to Sell a Small Business:

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.

7 Paths to a Small Business Sale | Inc. 5000

"Deciding to sell your business is a big decision, but once you've realized you're ready to move on the next step is to choose the sales path that best meets your needs. Some owners want to sell as quickly as possible, others want to receive the highest sales price regardless of timeframe, and still others may wish to remain involved with the business post-sale. Factors such as these combine to form your sales objectives and, before going any further, it is critical that you define these clearly. A broker who has been around the block with a number of other entrepreneurs can help you do this.

With your sales objectives clearly defined, the next step is to evaluate and choose your sales path. Your ability to achieve your sales objectives will be greatly impacted by the sales approach you choose. Some of these impacts are obvious while others are more nuanced and the advice of an experienced business broker may be helpful. To get you started, however, here are the most common sale options and some of the advantages they offer to business sellers. Consider each in light of your sales objectives to select the right path for you:"

Read more at:

7 Paths to a Small Business Sale | Inc. 5000:

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.

This Week's New BBF Florida Salons and Day Spas for Sale (Apr 26, 2013)

Eric J. Gall
239-738-6227
info@buysellflbiz.com

Beauty/Personal Care

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-47812063	Seminole	Hair Salon	18,000	10,000	24,900	49,500
BBF-92403425	Collier	Hair Salon	21,000	21,000	0	0
BBF411030031	Seminole	Hair Salon	29,000	29,000	48,110	106,912
BBF-87100835	Pinellas	Hair Salon	35,000	35,000	0	0
BBF-35018220	Broward	Hair Salon	39,000	39,000	30,000	200,000
BBF411001006	Orange	Hair Salon	47,000	47,000	29,552	59,119
BBF-96012511	Lee	Hair Salon	49,000	20,000	6,125	31,502
BBF-24900996	Miami-Dade	Hair Salon	50,000	30,000	48,087	169,261
BBF-16418962	Broward	Hair Salon	68,000	34,000	47,240	324,928
BBF114511461	Miami-Dade	Hair Salon	85,000	85,000	68,317	528,337
BBF116240005	Miami-Dade	Hair Salon	95,000	95,000	24,687	292,635
BBF-35018219	Palm Beach	Hair Salon	100,000	100,000	32,002	280,344
BBF-24920010	Miami-Dade	Hair Salon	150,000	150,000	88,600	240,000
BBF-35019477	Miami-Dade	Hair Salon/Spa	50,000	25,000	0	0
BBF411010103	Orange	Hair Salon/Spa	55,000	38,000	27,978	190,788
BBF115307307	Palm Beach	Hair Salon/Spa	90,000	90,000	44,338	194,906
BBF894017647	Pasco	Hair Salon/Spa	92,000	92,000	70,848	193,744
BBF-17002224	Martin	Hair Salon/Spa	99,000	99,000	53,156	315,227
BBF-30300183	Palm Beach	Hair Salon/Spa	110,000	70,000	62,515	414,965
BBF-92403426	Collier	Hair Salon/Spa	115,000	115,000	62,715	256,121
BBF-35018222	Palm Beach	Hair Salon/Spa	139,000	139,000	69,600	460,000
BBF-16418578	Broward	Hair Salon/Spa	235,000	235,000	149,802	840,383
BBF-95102042	Lee	Nail Salon	49,000	49,000	32,647	161,834
BBF-58177577	Orange	Skin/Massage	69,900	50,000	49,000	165,000
BBF-95313015	Lee	Skin/Massage	100,000	100,000	64,593	163,278
BBF412300051	Orange	Skin/Massage	150,000	150,000	122,000	215,000
BBF-29142912	Palm Beach	Tanning Salon	80,000	80,000	54,561	167,116
BBF-43918680	Orange	Tanning Salon	84,500	84,500	20,000	80,000
BBF-95312054	Collier	Tanning Salon	85,000	65,000	49,875	134,413
BBF-95312055	Lee	Tanning Salon	215,000	165,000	93,394	207,413
BBF-95312019	Lee	Tanning Salon	260,000	230,000	104,314	422,023

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.

Negotiating With Courage: 6 Ways to Protect Your Leverage | Inc.com

"Between 2008 and 2012, the market for sales of businesses has been slow, and the value of companies has dropped accordingly. But if the latest numbers herald a trend, we could be heading back into a seller’s market.

When the power is in your hands, you get to dictate the terms. Here are six ways to protect your leverage in a negotiation to sell your company:"

Read more at:

Negotiating With Courage: 6 Ways to Protect Your Leverage | Inc.com:

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.

This Week's New BBF Florida Manufacturing and Distribution Businesses for Sale (Apr 25, 2013)

Eric J. Gall
239-738-6227
info@buysellflbiz.com

Distribution

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-16418166	Broward	Auto Products	500,000	250,000	176,337	526,652
BBF-17018264	Saint Lucie	Clothing Access	6,995	6,995	0	0
BBF-17018266	Martin	Clothing Access	6,995	6,995	0	0
BBF-17018267	Palm Beach	Clothing Access	6,995	6,995	0	0
BBF-17018268	Brevard	Clothing Access	6,995	6,995	0	0
BBF-16412356	Broward	Clothing Access	499,000	100,000	136,882	1,194,654
BBF-10504130	Orange	Consumer Prod	750,000	187,500	378,780	1,080,442
BBF-17018265	Saint Lucie	Home Accessory	6,995	6,995	0	0
BBF411002101	Hillsborough	Plants	197,000	100,000	98,400	271,000
BBF411002102	Hillsborough	Printing Equip	139,000	80,000	45,870	218,973
BBF-39800065	Palm Beach	Propane	60,000	42,000	30,331	175,000

Manufacturing

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF893319111	Pinellas	Art Supplies	260,000	120,000	100,920	358,709
BBF-35317529	Martin	Beverages	50,000	50,000	0	0
BBF-43915466	Orange	Canvas Products	145,000	129,500	56,319	209,892
BBF-93700883	Lee	Canvas Products	1,200,000	1,200,000	42,541	539,610
BBF-35019647	Miami-Dade	Foods Frozen	575,000	475,000	165,909	674,583
BBF-16419269	Broward	Furniture Home	599,000	599,000	360,783	1,364,529
BBF-75609119	Duval	Metal Products	1,150,000	975,000	322,450	1,878,781
BBF-75609120	Duval	Metal Products	2,000,000	1,825,000	322,450	1,878,781
BBF-75700087	Marion	Silk Screen Prod	299,900	100,000	181,938	1,494,823
BBF-48404430	Volusia	Truck Products	425,000	225,000	80,000	280,000

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.