Tuesday, April 30, 2013

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 LeeScreening 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.

Monday, April 29, 2013

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.

Sunday, April 28, 2013

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.

Saturday, April 27, 2013

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.

Friday, April 26, 2013

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.

Thursday, April 25, 2013

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 Access6,995 6,995 0 0
BBF-17018266 Martin Clothing Access 6,995 6,995 0 0
BBF-17018267 Palm BeachClothing 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 PinellasArt 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-75700087Marion 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.