Interview with Eric J. Gall, Managing Partner Edison Avenue | On Industry and Society for Injection Molding Companies Weekly

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Edison Avenue – Business Brokers and M&A Intermediaries for Main Street and Mid-Market Businesses

What do you see as the biggest opportunity in your industry?

The reputation of individuals in our industry is not optimal. This is due to the lack of customer care and concern for the welfare of clients. Most brokers and intermediaries care only about getting a transaction completed and getting paid. We try our best to be a valued advisor and partner throughout the entire process to help ensure sound decisions are made in the best interests of all parties involved.

What impact will changes in your industry have on consumers? the world?

The biggest change facing my industry today is the pending implementation of HR 2274, the “Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act. This bill creates a new class of “broker” exempt from most of the time-consuming requirements currently defined by the Securities and Exchange Commission (SEC). Owners of private businesses would have the option to hire non-FINRA licensed brokers such as Edison Avenue without having to pay the large up-front fees, often $40,000 or more, to hire an investment bank to sell their mid-market firm.

What is your biggest goal right now?

Our biggest goal is to continue our expansion in Florida and throughout the Southeastern United States. We are looking for brokers and intermediaries in major markets who want to better serve their clients via our proven process.

What kind of support or types of people do you need to accelerate your success?

We are looking for three types of people right now:

1. Owners of businesses generating $1M-$25M in annual revenue thinking about selling their business now or within the next five years.

2. Individuals, groups and companies looking to acquire businesses either as first time buyers or to expand their present portfolio of businesses.

3. Business Brokers and Intermediaries looking to improve their results while maintaining the highest level of integrity in the industry — under the Edison Avenue name.

What makes you or your work different from everybody else?

We take the time to actually prepare our clients’ businesses for sale. The dirty little secret in our business is that only about 25% of all listed business sell. By working with sellers to properly prepare the business for sale by removing the roadblocks and enhancing the positive aspects of a business, we have more than doubled the 25% industry benchmark.

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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.

7 Financial Stats Every CEO Should Know Before Making a Deal | Axial

By Shindy Chen | October 27, 2015

As a CEO, there’s nothing worse than going blank like a Bambi in the headlights when a potential investor or advisor asks a question for which you don’t know the answer.

For weeks and perhaps months, high-level deal representatives have been anticipating this meeting, to get a feel for you and the business, and to determine whether you deserve funding or the opportunity to join forces with a complementary company.

Not only should you know your stuff, but you should know it so well that they’re the ones running to schedule the next meeting.

Here are 7 key financial stats every CEO must know prior to deal negotiations:

1. Target Market

Know exactly who and how many your company is targeting. Are you a recognized leader in this space? What’s so unique about your USP? Why are you the best company for the deal in terms of associated costs and risks?

2. Growth Forecast

It’s important to know if your company and related markets are growing faster in relation to the economy. If business is tied to economic cycles, how will the company respond during unfavorable periods or to other growth barriers? A great example is a mortgage company, which is at the mercy of interest rates.

3. Customer Profile

“CEOs should know the number of customers they have, and what percent of sales are represented by each of the top five customers,” says Gary Ampulski of Midwest Genesis, an advisory company.

Pareto’s principle holds that the top 20 percent of your clients provide 80 percent of the revenue, however you should be sure. Is there such a high concentration of a certain client type that it could pose a risk?

4. Margins

Specifically, your company’s gross profit and operating margins. As the CEO, you need to be able to distinguish what drives cost of goods sold and overheads.

5. Revenues

A no-brainer. Not only know these stats, but dig deeper. How much revenue is generated by your company’s top three salespeople or teams? Consider client-sales relationships. Are they protected by non-compete clauses or other agreements? Could the company survive if a top salesperson or team defected?

6. Conversion Rate

How many leads and prospects become customers? A sales funnel description from source to close can help determine the future of the company.

7. Burn Rate

What is the company’s profit beyond breaking even? Managing costs and monthly burn rates help to focus the contribution of materials, labor and overhead to support sales.

In addition to these financial stats, non-financials matter, too.

Over half of M&A deals fail post-close. According to Robert Sher, founder of advisory firm CEO to CEO, what’s on paper can’t translate how well the deal will go afterwards, which is why it’s also important to bring attention to integration on a practical level. Be prepared to talk about things like:

Company Culture: Discuss any similarities among companies, and how they can complement, adapt to, or learn from each other.

Managerial Bandwidth: Ensure sufficient management capacity to take on the integration process, rather than stretching to run the business.

Strategy: How does your company fit in line with another’s growth or operating procedures? Point out the usage of similar technologies, processes, or software. Contribute at least a single key strategy that can benefit the alliance.

During deal talks, it’s okay to “park” certain questions for later fact-checking, but don’t defer too much, otherwise you risk appearing ill-informed. You represent your company, and you should know the numerical and and qualitative reasons why you’re even sitting at the table in the first place. Assuming you’ve worked hard to get there, now take time to learn and consider the answers.

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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.

6 common mistakes to avoid when planning your dental practice exit strategy - DentistryIQ

"When you get to the point that you want to sell your dental practice, you are most likely ready. When you look back on the time it took to build your practice, you might be amazed to see where you are in your life. You have met generations of clients and made an impact on their lives. You have been financially astute so that you can retire when the time is right. And once that time is right, it is important to make the transition as smooth as possible so you can get to the point where you enjoy life and are not worrying about your business, retirement finances, or the lifestyle you worked so hard to achieve.

Dentists today are fortunate in that they are able to plan and execute their transitions earlier than their predecessors. With proper financial planning, dentists can retire and enjoy a healthy and active life earlier than in previous decades.

In order to have an enjoyable retirement, dentists should carefully plan for the transition into retirement. "

Read more at:

6 common mistakes to avoid when planning your dental practice exit strategy - DentistryIQ:

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 (May 28, 2013)

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

Construction

Listing No.	Location	Category Detail	Price	Down	Adj Net	Sales
BBF-82682011	Sarasota	HVAC	350,000	350,000	138,298	827,692
BBF-74719191	Volusia	HVAC	1,050,000	1,050,000	237,067	1,675,249
BBF-51709611	Orange	Cabinets	300,000	75,000	121,205	512,679
BBF-89208554	Pinellas	Commercial	119,000	50,000	121,658	591,686
BBF-16418354	Broward	Electric	42,000	42,000	15,670	26,683
BBF-74720950	Clay	Plumber	399,000	399,000	186,093	1,772,224
BBF-95101028	Collier	Glass Company	59,900	59,900	78,599	155,720

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.