Friday, July 28, 2017

FOR SALE: Award-Winning, Eco-Friendly Day Spa in Sarasota County, FL

DESCRIPTION
Award-winning, esthetician operated, eco-friendly day spa. Wonderful staff and tranquil facility offering facials, waxing, massage and nails. High-end clientele. Location offers 2 nail stations and 3 treatment rooms. Top of the line equipment perfectly maintained. Comfortable area for guests to relax and browse product before and after treatment. Excellent books.

OPPORTUNITY
Revenue $592,941; owner benefit $139,808
Add additional products and services
Add more treatment rooms and expand relaxation area
Extend hours

PRICE
$335K
SBA lender pre-approved @ $67K down.

CONTACT
Eric J. Gall, CBI, CM&AP, MBA
Managing Partner/Broker
Edison Avenue-Merger Acquisition Growth Experts
8891 Brighton Lane, Suite 105
Bonita Springs, FL 34135
Ph: 239.738.6227
Fx: 239.344.9515
TF: 866.205.2310
2016 & 2014 BBF #1 Total Sales Volume Southwest Florida
Certified Business Intermediary
Certified M&A ProfessionalMBA University of Michigan-Ross School of Business

To search for Florida Businesses for Sale: CLICK HERE

Article Summary: How CEOs Can Avoid Seller’s Remorse | Axial

By Jane Johnson, Business Transition Academy | August 9, 2016

I've pared this article back to the key points. If you would like to read the entire article, click on the link at the end of the summary - Eric Gall.

Euphoria, exhilaration, and relief are the emotions business owners expect to feel after selling a business. One emotion they don’t expect to feel is remorse.

Sellers may say:

“I thought I would get a better price after all my years of hard work.”
“I had no idea I would pay so much in taxes and fees and net so little.”
“I never thought they would radically change the company…but they did.”

After investing so much, it’s very easy to feel disappointment once you've given up control, especially if things don’t turn out the way you’d hoped.

A business sale is not a dress rehearsal; you get one opportunity.

Here are steps you can take to avoid regret:

Know what you want to do after you sell.
Gradually spend more time away from the business.
Identify your goals and objectives, e.g., how much money you need from the sale to achieve your financial goals.
Envision yourself without your business.
Determine the impact on employees, family, customers, community, and your legacy.
Understand the pros and cons of each transition option.
Start planning 3 to 5 years beforehand.

Disappointment can be avoided by developing a comprehensive transition plan with assistance of seasoned advisors. Preparation is the best protection against seller’s remorse.

Article LINK

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com.

Thursday, July 27, 2017

Article Summary: 4 tips for compiling a list of buyers for your business | The Business Journals

Rachel Flaskey Jul 7, 2016, 7:05am EDT

This article has been thrifted to just it's key points. Very simplistic article, but two very important considerations when selling your business. If you would like to read the entire article, click on link at bottom of the summary - Eric J. Gall

Whether you are ready sell your business or not, it’s important to think about the overall timing of your exit.

A business sale will take up to a few months to more than a year. Planning should start well before. Two key steps in your plan are:

Compile a list of potential buyers

A key step in planning is listing the potential buyers. Consider the following:

Family members?
Current management or employees?
Competitors?
Private Equity Groups?
Individual Investors?

What outcomes do employees face for each type of buyer? Ensuring you are at peace with how they will be treated once the transaction is over is may be very important to you. Remaining with the business for a period of time following the sale to transition new owners is one way to help manage post-sale employee relations.

Consider the tax implications

There most common deal structures are asset sales and stock sales:

Asset sales are usually most tax advantageous for the buyer
Stock sales are usually most tax advantageous for the seller.

Both can command different prices for the exact same business simply due to certain tax benefits received by the buyer or seller. How the sale is structured will generate tax benefits or liabilities. Work with your CPA or Tax Attorney to create a fair deal structure for your transaction.

Article LINK

Wednesday, July 26, 2017

Article Summary: One-in-three M&A professionals believe online deal sourcing will revolutionize the industry | Intralinks

Mon, 06/06/2016 - 09:00

More than a third (36 per cent) of M&A dealmakers believe that online deal sourcing will eventually revolutionise the M&A industry, according to a new survey carried out by Intralinks. In 2013, that number was only 23 per cent.

(I am definitely among that 1/3. Exposure on the deal-making sites connecting lower mid-market businesses with PEGs and companies looking for add-ons gets attention and sometimes a deal -- a deal with a PEG or company that on the surface you may not realize is a fit. - Eric Gall)

Key points summarized below. If you would like to read the entire article, click on the link at the bottom of the summary.

31% of survey respondents currently use online deal networks.
Nearly 50% have marketed one or more deals online in the past year.
28% have marketed more than five deals online in the past year.
45% of buy-side and 39% of sell-side professionals have closed a deal sourced on an online network.
62% of deal-makers agreed online deal sourcing allows them to identify counterparties they otherwise would not have found.
Dealmakers favor “specialised” deal networks with more customised functionalities.
Buy-side, nearly 85% using deal sourcing networks reported they source deal opportunities online. 44% reported their firms source 11-50% of total deal flow online.
Deal flow is generated by maximizing the exposure to the greatest number of potential suitors.
Digital tools, such as Intralinks Dealnexus, expose a transaction to multiple parties virtually instantaneously.
Conventional methods would take an enormous amount of time and resources to accomplish the same.
Intralinks Dealnexus generated exposure to almost 400 possible buyers for a single transaction.

Article LINK

Tuesday, July 25, 2017

Article Summary: 3 Tweaks to Improve Your Corporate Development Strategy | Axial

By Axial | June 2, 2016

I've pared down this article to it's key points. If you would like to read the entire article click on the link at the bottom of this summary -- Eric Gall

The acquisition market is very competitive.
Corporate development teams must continually connect with both CEOs and intermediaries to cover the market and get access to quality deals.
Here are 3 strategies to supercharge your corporate development strategy:

1. Play the long game.

Demonstrate an interest in partnering with potential targets, rather than simply buying them.
It is a buyers market; therefore, sellers’ expectations are inflated.
Sellers look to start a relationship with corporate development teams 3 to 18 months before an acquisition.
CEOs aim to show acquiring companies their progress, give them time to recognize value, and to confirm that they are selling to the right buyer.
Diligence identifying and connecting with companies before they go to market will prove advantages.

2. Flip the script.

If investment banker calls your company to see if you’re interested in selling, flip the script.
Inform the banker your aren’t looking to be acquired, but looking for acquisitions.
The banker may have a deal fitting what you’re looking for.
Get to know the gatekeepers -- investment bankers are key to unlocking proprietary deal flow.

3. Think scalability.

Wherever there is marketplace dispersion, increased interconnectedness will accelerate efficiency and reduce costs, e.g., AirBnB for sublet market, or LinkedIn for job market.
Deal platforms deliver access to a large number of deals across a wide quality spectrum,
Online deal platforms make sure you never miss a deal in your networkand offer tools to canvass micro-industries and niches previously too expensive to cover. Teams gain access to a wide range of opportunities and improve their corporate development strategy.

Article LINK

Monday, July 24, 2017

The Ultimate Guide to Selecting a Business Broker | Edison Avenue

If you are thinking about selling or buying a business, here are nine questions you need to ask and the answers you should expect to hear before selecting a business broker:

Click HERE for Slideshare download.

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall, CBI, CM&AP at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com. To search for Florida Businesses for Sale: CLICK HERE

Friday, July 21, 2017

Article Summary: 6 Things You Probably Don't Know About Your Company Value | PR Newswire

I've summarized this article capturing only the key points. If you would like to read the article in its entirety, click on the link at the bottom of my summary. Edison Avenue offers complimentary opinions of value and more formal valuation opinions at reasonable prices -- Eric Gall.

BELLEVUE, Wash., June 2, 2016 /PRNewswire

Most small business owners have unrealistic ideas of how much their business is worth.

The sale of big companies and their reported valuations have very little to do with the value of small, privately held businesses. Here are 6 business valuation facts surprising to most small business owners:

1. Small businesses usually don't sell for a multiple of their revenues. Buyers are most often individuals who need to make sure the business generates profit to pay their bills. Profits matter more to the business valuation than revenues.

2. Growth potential doesn't increase the value much. Buyers primarily value the business on its past profitability.

3. Value doesn't go up because the business was established a long time. Having too short of a history can harm the value, but a company in business 50 years is not automatically more valuable than one in business 10 years.

4. Most recent year's performance trumps historical performance. A profitable business for many years experiencing a bad year last year will be dramatically discounted. A business performing poorly for many years experiencing a great year last year will see a dramatic increase in value.

5. The buyers don't pay extra for equipment. The company equipment is stuff one needs to run the business. A lot of expensive equipment does not necessarily increase the business valuation.

6. It takes time to translate a business valuation from paper to cash. The average time to sell a business is 9 to 12 months. The larger the business, the longer it takes to sell,

Article LINK

Thursday, July 20, 2017

Article Summary: 5 Reasons CEOs Want to Sell Their Businesses | Axial

By Lola Kolade, Axial | May 26, 2016

I've thrifted this article down to the key takeaways. If you would like to read the entire article, click the link at the bottom of the article. Eric Gall.

Here are five reasons CEOs decide to sell their businesses.

1. Health Issues

Health issues ultimately lead to CEOs wanting to sell to preserve their well-being and sell the business.

2. Retirement

Baby boomers own 66 percent of businesses with employees in the United States.
The oldest baby boomers turned 65 in 2011. The rest will do so until 2030 at rate of 10,000 people per day. Retirements will cause sales for quite some time.

3. High Interest

Buyers make offers to CEOs not yet planning to sell. High interest for their companies’ industry may encourage a CEO to capitalize on demand and achieve a higher price.

4. Staying on Track

Many CEOs launch businesses with a goal selling them at a predetermined time. Sticking to the plan will generate business sales.

5. A New Start

The challenge of building a successful business is addictive. Selling to free up time and resources for the next project is quite common.

Article LINK

Wednesday, July 19, 2017

Article Summary: Ready to sell your business and retire? | CNBC

Sharon Epperson | Katie Young

NBC Television

Note: I've thrifted the wording of this article to capture only the key points. If you would like to read the entire article, click on the link at the bottom of my summary. Eric Gall.

When it is nearing time to retire and sell your business, will you be prepared?

Force yourself to define your objectives:

Will you have enough money to retire?
What will be your legacy in the business?
How will the transition impact your employees?

Value your company:

Who are my prospective buyers?
What are typical multiples in my industry?
Is there an accomplished business broker I can speak with?

Prepare for succession:

Can the business run without you?
Have you developed an internal successor, or second-in-command?
Which prospective buyers are the best fit?

Knowing the company you've created will continue to be successful will help you let go and retire well.

Article LINK

Friday, July 14, 2017

Article Summary: What to consider when selling your business | Business in Savannah

English: Digital photo taken by Marc Averette....

Photo by Marc Averette. Alligator (Photo credit: Wikipedia)

Mon, 01/18/2016 - 8:56pmBy John Lientz

Note: I've thrifted this article to key points and reformatted into bullets to ease reading - Eric Gall

Business owners become motivated to sell for many reasons.

No matter why, there are several actions to be taken to help make a transaction smooth.

Step one is to assemble a team to develop and execute a plan. Trusted advisors will include people who understand the history of your business including your:

Accountant
Legal counsel
Financial planner
Business broker
Banker
Others

Selling a business can be like selling a home. If you’ve sold a house, it’s usually in the best shape it’s ever been while you try to sell it. Likewise, you should get your business “house” in order. Make sure the following documents are available and cleaned up for review:

Financial records and reports
Invoices, deposit records and bank statements
Customer, supplier and employment contracts
Business, software and other licenses
Processes and procedures
Business legal structure and ownership agreements

Buyers like to see three to four successful years to demonstrate viability and sustainability of a business.

In addition to pre-sale considerations, bplan ahead for your post-sale life:

How you will invest the proceeds for your long-term personal financial goals?
Are your estate planning documents in order?
Will you provide compensation from the sale of the business to employees?
Do you want a role in the company after the transaction as an employee?
Are you willing to sign non-compete and non-solicitation agreements and step away from a business you have known intimately for years?

Beware of seller’s remorse. You will need to understand a buyer:

Will not run your business as you did.
Keep all of your employees.

You’ve invested a lot of time and energy into building a successful business. Selling your business is a tremendous task. Early and careful planning will be worth the time, effort and expense.

Article LINK

Wednesday, July 12, 2017

Article Summary: How Setting Clear Goals Minimizes Value Gaps in a Sale | Axial

By Gary Ampulski, Midwest Genesis | May 24, 2016

Original article has been thrifted to only cover the key points. Full article can be read by clicking the link at the bottom of the article.

Determining business value can be a complex undertaking.

For a buyer, value is mostly driven by the likely future return, discounted by the risk, associated with the investment.
For a seller, value is more complex and reflects the past. Value can be defined as the sum total of all the elements that create satisfaction for the seller. This is deeply personal and based on beliefs and not necessarily financials.
Knowing all the elements that influence value for a buyer and a seller can dramatically reduce gaps between the buyer's and seller’s perception of value.

The very first question any owner should answer when considering a sale of the business is “What are my goals?”

The goals must be actionable, precise, concrete, real, and in writing.

The steps along the path necessary to achieve a seller’s goals can take considerable time and energy to achieve.

The transfer of a business is driven by the motives of the seller: fatigue, health, competition, additional investment, technology, government regulations, economy, family issues, funding retirement, employees, etc.. These motives are influenced by one or more of the following situations:

the conditions of the capital markets,
the state of the business, and
the personal situation of the owner.

Understanding their influence on the readiness of the owner to pursue a transfer process is key to setting appropriate goals. Rob Slee illustrates the relationship of these factors with seller goals in the chart below:

Influences on the Business Transfer Spectrum

As shown, selling a business can get quite complex. There are multiple motives, transfer channels, and transfer methods. Each are governed by different rules and authorities. Owners need to understand how these influence their path to satisfaction in a business sale.

This task is daunting for a business owner. Using skilled advisors can contribute considerable insight and experience. Finding the right advisor early in the process can avoid value gaps and answer the question: “If you could have seen the road from the beginning, would you have chosen a different path?”

Full article LINK

Tuesday, July 11, 2017

Article Summary: 3 Tips for Maximizing the Sale of Your Businesss | Clark, Schaefer Hackett

Kent D. Pummel, CPA, ABV, CVA

Shareholder

Posted on May 24, 2016 at 10:38 am

Note: I have removed a majority of the wording to focus on the key points of the article. If you would like to read the full article, click the link below.

When preparing a business for sale, here are three tips to help maximize the sales price:

1. Eliminate, reduce (or clarify) discretionary expenses

Remove personal items paid by your business, e.g., expenses for meals, entertainment, vehicles and other luxury items (at a minimum clearly separate them out into their own sub-accounts or annotate them).

2. Improve your financial statements

Have your CPA or business broker walk through your P&L and balance sheets to help you identify areas of weakness, e.g., excess inventory or idle assets on the balance sheet, or discretionary items on the P&L. Then, as much as possible, take actions that will remove the areas of weakness from future statements, e.g., right-size your inventory, sell-off idle assets, etc..

3. Report cash receipts

Do not hide cash receipts. Most often a potential buyer is going to base the value of your business on your tax returns, i.e., provable revenue and income.

Article LINK

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com or my personal website at www.BuySellFLbiz.com.

Monday, July 10, 2017

RSVP for July 18th: Join the LEAD team and Eric Gall for a discussion on Preparing an Exit Strategy for Your Business

and

Growing Our Success Together

LEAD SWFL was created to help business professionals

Lead, Engage and Develop by networking with like minded individuals right here in SWFL!

Join the LEAD team and Eric Gall for a discussion on:

Preparing an Exit Strategy for Your Business

Eric J. Gall is a Managing Partner for Edison Avenue. He has participated in many forms of business transactions for 20 years totaling $140M in transaction volume. His has a CBI and CM & AP certification. He has owned several businesses and holds a BSE & MBA from the University of Michigan. He is a member of BBF, IBBA and is the ABBA’s National Best Practices Forum Leader.

Reserve my Free Pass to this Event

Tuesday, July 18th, 2017

5:30 pm-7:00 pm

Endeavor Innovative Workspaces

8831 Business Park Drive, Unit 301, Fort Myers FL 33912

Note: Endeavor is off Lee Road (off of Alico Rd). You should pass Alico Golf Course on the left and Race Track Gas Station on the right as you drive down Lee Road. Endeavor will be on the right behind Algenol.

Beverages and light snacks will be served

For additional information contact basaxton200@outlook.com

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall, CBI, CM&AP at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com. To search for Florida Businesses for Sale: CLICK HERE