Author Archives: Scott

About Scott

Scott M. Messinger is a former and current business owner that has directly purchased multiple businesses to support organic growth. Former owner of successful production/manufacturing/distribution business of 20 years that was successfully sold and transitioned. Member of Gateway Business Advisors with offices in Jacksonville Fl, Anderson SC,and member of the Business Broker of Florida Assn. Business interest includes the fields of management,water, energy savings, marketing. For a FREE current listing of Businesses FOR sale see: www.sellabusinessflorida.com

Florida Businesses Sold in Florida 2013 Year End Summary

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Florida Businesses Sold in Florida 2013 Year End Summary

 

SellaBusinessFlorida.com

Florida Business Sales and Business Sold in 2013

 

I am a Florida Business broker based out of Ponte Vedra Beach (near Jacksonville)  working with business owners selling their Florida  businesses, and individuals and business owners looking for acquisitions.  Prospective business buyers I work with are located in Florida, US., and Business buyers in Europe and throughout the world.

As a  member of Business Brokers of Florida, which is the largest state Association of Business Brokers in the United States we have access to significant data regarding businesses being bought and sold .   Thousands of businesses for sale are represented by over 1000 Business Professionals involved with business acquisition and sales that are members of this Association.  Business brokers in this association  list their respective businesses for sale and prospective business buyers on a centralized listing site and buyers and sellers of businesses are brought together.

Several thousand businesses for sale are listed, modified, and advertised thru this Association.  They can also be viewed on my website here at Florida Businesses For Sale.  To further my knowledge,  I believe understanding the marketplace in which Florida  business may be sold is furthered by a review of the data surrounding businesses being bought and sold in Florida. The below are a few statistics, totals, and items of note surrounding the business acquisition and sales market in the State of Florida. Other businesses are bought and sold without the assistance of members Business Brokers of Florida, and that info is not included in this analysis.

Businesses Sold in Florida through Business Brokers of Florida  in  2013 – 909

  • Businesses Sold in 2012- 950
  • Businesses Sold in 2011- 859
  • Businesses Sold in 2010- 931

Averages of all businesses sold in 2013:

  • Average Sales – $572,000   Average Price Sold For- $286,000   Average Adjusted Net Cash Flow- $114,000  
  • Days on Market  225 (note all DOM (days on market) numbers DO NOT include those taken off the for sale market)
  •   Florida Business Sold in 2013 for $1M or more-30
  •   Florida Business Sold in Florida that included Real Estate- 47 (only about 5%)
  •   Category with most Businesses Sold- Restaurants- 199 sold in 2013  currently there are 3209 Florida Businesses For Sale and of those for sale  717 are Restaurants. (22% of all businesses for sale are Restaurants)
  •   Florida is a highly Service based economy, the other categories with highest number of Sold Businesses in 2013 in Florida  are in the service sector and include Hair Salon, Dry Cleaners, Lawn Service, Pools Service Businesses.
  •   Florida Businesses for sale requiring Down Payment of $50,000 or less – 480
  •   Florida Businesses For Sale with Net Income of $100,000 or more- 1264
  •   Florida Businesses For Sale with Net Income of $300,000 or more- 239

I am a Business Broker based in the Jacksonville Florida area ( main office is in Fort Myers Florida area).  Below is some 2013 information about Business Sold in the Jacksonville Florida area and Businesses For Sale in the Jacksonville Florida area.

  • Jacksonville Florida area Businesses Sold in 2013- 53
  • Averages for the 53 Jacksonville Florida Businesses Sold in 2013:
  • SALES- $558,000      Average Sold Price- $226,000   Average Adjusted Net Income- $142,000    Average Days on Market*- 218 Days  
  •   Total Businesses For Sale in Jacksonville Florida area as of Jan.1 2014. -227
  •   Jacksonville Florida area Businesses For Sale with Net Income of $100k or more- 99
  •   Jacksonville Florida area Businesses For Sale that require Down Payment of $50k or less- 33
  •   Jacksonville Florida area Businesses For Sale that have Net Income of $250k or more- 26
  •   Averages for the 53 Jacksonville Florida Businesses Sold in 2013:

I have been following  Florida Business Sales over the last 4-5 years and the above numbers have been somewhat consistent.  I believe there remains a pent up demand in both the Buyers and Sellers side.  The buyers still are slowed down by financing options and some potential Sellers are still delaying putting their business up for Sale due to uncertainty.  As a former long term business owner, I realize the thought and contemplation that goes into the decision to sell ones business.  The only real certainty is that another year will come and go, time marches on, at this time next year will your activities be included in the 2014 year end summary?

*All above info compiled from data available via the bbfmls website. And addresses information about businesses being bought and sold and reported thru this Professional organization of Business Brokers of Florida.

For more info or questions regarding the Florida Business Acquisition Market or Florida Businesses for sale please contact

Scott M Messinger

Scott@Sellabusinessflorida.com

239.770.2421

 

Selling Your Business and Dying

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When are you thinking about selling your business?  10 years before you die or 1 year after you die.

I don’t like thinking about death, I dont like talking about it, I dont like writing about it.   My Mom just passed away a few short weeks ago. I am a business broker based in Florida   helping people  buy and sell businesses.  I started and ran and owned a business of 20 years and successfully sold it.  I know my Mom was proud of me.  I know it.  Is that an even exchange?.  Mom you give all of yourself for me your whole life and in exchange, I will try to make your proud of me

I have so many discussions with people about significant life decision.  Business owners want to sell “so they can enjoy life”.  Prospective business buyers want to buy a business because the opportunity to do so wont be there forever.  Life is short.  I Currently have a client that the  owners (husband and  wife)  wanted me to help sell their business.  It took a long time.  We have it under contract,  But several months ago, the wife got sick, and then sicker and then a few months ago, she passed away, at a relatively young age.  They wanted to sell their business so they were not so tied to their business and they could enjoy “those other things in life” together.  As she got sick, they anticipated having x years to enjoy life together, without the business.  Those years became months and then became days and now the surviving husband is trying to piece together plans of how he can enjoy his days without the woman he had made those prior plans with.

“I am going to wait to sell my business next year”.  Sometimes there is no next year.

I sold my successful business of 20 years at a relatively young age because I wanted to do something else.  I had some health issues that afforded me a different perspective on life.  I am now a business broker and I truely  enjoy and embrace the magnitude of what I am part of.  Buying and selling a business is a life changing event. Yet being a business broker is also a very challenging and difficult business.

So many business article exist on the internet  about how to “Buy the Best Business” or “How to Sell your Florida Business”, or “5 Best ways to find the best Business Broker” .   I’ve even written some myself.  This is not one of them.  How much do you let life get in the way of your business?  How much do you let business get in the way of your life?

 I got back from doing my Moms eulogy to meet with a 71 year old business owner that wants to sell his business “so he can enjoy life fully with his wife”.  Isn’t that a good reason to sell your business?.  I not only think so- I know so.

What does a Business Buyer look like

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Florida Business Buyer

What does a Business Buyer look like

What does a Business Buyer Look Like?

Are you a Business Seller Looking to Sell Your Business and wondering what does a Business Buyer Looks Like?

Do you represent a Business Seller and are looking for a business buyer for your client- What should you look for in a business Buyer- What Does a Business Buyer Look like?

I am a Florida  Business Broker  working with both business buyers and business Seller.  I am also a Business Buyer.  Prior to being a business broker I started and owned my own business of 20 years and utilized business acquisitions along with organic growth to advance my business.  I had bought multiple businesses as a stategic business buyer.  I am also a business Seller as I actually did sell my own business.  The “Business Buyer”  I sold my business to was represented by a business broker and we experienced a successful business transition.

The person that bought my business is a business buyer -He is not a Business Buyer Prospect.  So much of the work and efforts involved with the process of buying and selling a business is the extensive involvement with Business Buyer Prospects.  Very often “business buyer prospects”  are referred to as Business Buyers. There is a significant difference between a business buyer and a prospective business buyer.  Each deal has 2 sides- a Buyer and Seller.  I like to use the term Business Buyer Prospect for someone contemplating an acquisition.  Most Prospective Business Buyers dont buy a business.  Various business brokers, M&A people, and related professionals have  their own personal experiences as to how many “Business Buyer Prospects” turn into actual “Business Buyers”.

Personally I think that anywhere between 75 %-95% of those that state an interest in buying a business do not buy a business.  So approximately 9 out of 10 (plus/minus)  of these “Business Buyer Prospects” never become “Business Buyers”.

SO What does a Business Buyer Look like?   How do they look different than the 75-95% of the “Business Buyer Prospects” that do not buy a business.

I contend that looks have nothing to do with what does a business buyer looks like.

A Business Buyer Acts a certain Way. A Business Buyer acts different than a Business Buyer Prospect.

What Does a Business Buyer Act Like?

1)     They have a plan-  “When you buy the business in Florida ,and you now live in Chicago-How will you run the Florida business?”

Business Buyer Prospect- “I dont know”

Business Buyer- ” I just sold my house and have a rental in Florida and plan to move there in December”

 

2)     They have funds or funding plans-  “How much money do you have available to buy a business?”

Business Buyer Prospect- ” If I find the right business- I can get the money” or ” Im not sure yet”,”I’m not worried about that yet”

Business Buyer- “I have x amount available for down payment on a business, so I know what the maximum I can spend and need to find a business that fit this budget”

3)     They understand  certain information will be required from them-

Business Buyer prospect- “why do I need to sign this NDA and give you some financial or background information on me? I just wanted to know what the Sellers Taxes look like”

Business Buyer- ” I have returned the requested NDA and personal financial statement. what is our next step”

 

4)     They ACT,they make necessary steps/moves to move the deal forward

Business Buyer Prospect- ” Yes that business looks to be exactly what I said I was looking for but think I will wait to see if Seller drops price or another opportunity becomes available.”

Business Buyer- “Yes that business looks to be exactly what I said I was looking for- what is the next step so I can get closer to ensuring I dont miss out on this opportunity.

 

What does a business buyer look like? – They are tall, short, fat, skinny, young,old, wearing shorts, wearing dress pants, wearing a dress, have tattoos all over their body.  They are from many different backgrounds,  they are many different religions and races. They look “normal” like you and I.

When I was growing my business though acquisition and I identified an acquisition opportunity I would worry about not securing that opportunity.  I made the decision that the opportunity was good for my company and would be disappointed if I missed out on that business opportunity.  I knew I needed to ACT like a business buyer.   You wont know what a business buyer looks like based on appearance, “business buyer prospects” and “business buyers”  look very much alike.  Are you looking to sell your business?  As a business Seller you will know what a business buyer looks like by the way a business buyer acts. Are you a prospective “business buyer prospect” and are you genuinely looking to buy a business?  I could suggest that you act like a business buyer and you will both stand out from all the others out there looking and also achieve your goal.

 

 

 

 

 

 

Is Selling Your Business The Right Choice For You?

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Is Selling Your Business The Right Choice For You?

Is Selling You Business the right choice for you ?

When a small business owner is considering the sale of his or hers business there can be an extensive search to find answers regarding the process.  Before one finds the answers or proper information as it relates to the sale of a business, you must know the questions to ask.  Most small business owners are not born with the knowledge on how to sell their business.  Furthermore most small business owners have not sold a business before ,therefore gaining knowledge and information on the best way to sell their business is essential.

Again each business is different and each business owner and business owner situation is different, but below please find a list of questions to consider that may be helpful in the process of selling a business.

        Are Your Ready To Sell Your Business?

Are you ready- Are you emotionally ready to sell your business?- Almost 20 years ago when approached about potential buyers looking to buy my business, I asked my CPA for his advise which I followed and still subscribe to today.  He told me “You will know when you are ready”.  I tell  those I advise today if you wake up one day and think its time to sell your business- take some time and reconsider.  If you wake up 30 days+ in a row feeling you want to sell your business- then maybe its time to sell your business.

Is Your Business Ready?

Is your business ready for you to sell your business?-  Are your financials in order.  In other words do you have accurate financial records that are both accurate and understandable.  Do you have systems and or policies and procedures in place and documented?

                What Is Your Business Worth?

What effect does the amount of money you would get from the sale of your business have on your decision. Is it your complete retirement money?  Is it enough to allow you to exit to pursue your next venture?  What is the difference between what you need the value to be and the actual value.

Getting Others To Help You Sell Your Business

DO you hire a business broker to sell your business?   Can your CPA or your attorney sell your business?  Can you sell your business yourself?  I am a business broker and sold my own business and also purchased multiple businesses as a business owner.  Yet after the sale of my business I chose to be a business broker as I recognized the value and confidentiality a business broker can provide. Furthermore most business owners are busy running their businesses before they add they task of trying to sell their business to their work day.

                Should You Improve Business Before You Sell It?

DO you buy that new truck?  Do I spruce up the inside of my stores?  Do I hire that new employee?

I always advise business sellers to run the business as you will own the business for the next five years.  There is a chance the business will not sell or take a long period of time.  Continue to make your business better and attempt to add value.  Certain Capital expenditure  should be carefully weighed, but continue to try to improve your business.

How Long Will It Take To Sell Your Business?

It seems that typically it will take longer for a business to sell than a business owner may originally think.  I suggest the 1 year time frame as a guideline but again all businesses are different and asking price for a business can strongly influence the time it takes to sell a business.

 

My Personal Advice When Selling Your Business

Every business is different and every business owner  and business owners situation is a little different.  But there also is some commonality shared.  My perspective on this matter is that of one that has started a business, personally purchased several businesses, sold my own business and have helped others buy and sell businesses.

I understand and respect the decision of selling a business is a very important and complex decision and process.  It is NOT all about the money.  The sale of a business  involves multiple facets including  price, emotions, financing,  lifestyle, families  and personalities.

When considering if it is time for you to sell your business spend some plenty of time seeking some answers, but begin with the questions most important to you.

 

Buying a Business Selling a Business Using the Internet

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SellaBusinessFlorida.com

I just sold a business last month and the buyer saw the business advertised on Craigslist and on one of the large “Businesses For Sale” websites.  I am a business broker that works with business owners with the process of buying and selling a businesses.  My profession of being a business broker is my own business. 

I have also owned another business of 20 years.  I am a business broker that has been trying to figure out this “Internet thing” for quite some time.  I think I am figuring out that I will never figure it out.

It seems that there are a lot of Internet marketing experts and this industry appears to still be somewhat at the early stages of a rapidly growing industry.  As a business broker and business owner, I recognize that utilizing the internet is integral in business success going forward. Maybe I know more about trying to maximize the Internet than some, but the question of asking a business owner (that is not in the Internet marketing business) if they understand Internet marketing is akin to asking someone if they are a golfer. The average golfer may have a handicap of 20-25, Some golfers shoot at professional levels- 0 handicap, some people have never golfed, some have golfed once or a few times, some golf a lot but are still a 30 handicap (the higher the handicap the worse the score).  In golf,  I am about a 12 handicap.  For Internet marketing maybe I am about a 12-20 handicap , I dont know.

What Does Selling A Business Online Involve?

I may know  more than some, but know there are a lot more that know a lot more than me.   My job involves many discussions with business owners regarding the state of their business as it relates to a potential sale of their business or a possibly buying another business. The  questions  I have about utilizing the internet as a business broker are also questions shared by the plumbing contractor, the print shop owner, the restaurant owner, the card shop owner and the small business owners scattered throughout the world.

10 Interent marketing observations from a Business Owner / Business Broker:

  1. The Internet today is so different than it was 10 years ago.  Ten years ago, so many businesses didn’t have websites.  Those that did had these fancy Home pages with lots of “neat stuff”. And the site just sat there.  Now-a-days it is known that a lot of that neat stuff gets in the way of search engines.    A few years ago it seemed if you didn’t show up on Google – you didn’t show up, and then came, Myspace (and went), Facebook, Craigslist, LinkedIn, Twitter,  Google+, Pinterest, etc. .  I am convinced the Internet 10 years from now will greatly different than it is now.  Trying to figure out where it is going is the challenge.
  2. To me , I see the value in Social Media marketing is that it decreases my reliance on Google.  With Social Media customer have another way to find you.  You don’t need to show up on page one of google to be found.  I may be wrong with this line of thinking but this is my perspective. 
  3. It feels like everything I learned yesterday, is almost outdated tomorrow
  4. I see the question asked so often online- Is anybody making any money on Twitter.  Twitter is growing at 1,000,000 new users per minute 🙂 doesn’t it just make business sense that some are making profit on Twitter- I am not yet,  are you? Does Twitter work for your product or service?  Does it help to sell/buy a business?
  5. Is Internet marketing another strong way to reach customers, market and advertise, or is it so much more?  As a business owner we know we need to advertise and market.  In the past and present we use the Yellow pages, direct mail, radio, maybe TV, trade shows, telemarket, direct sales, networking and other methods.  Is it proper to view internet marketing as a very strong means of marketing and advertising or view it as so much more.  I tend to think to view it as so much more.
  6. Is it true that if you can drive “mad traffic” to your website that is so effective that  you could sell ice cubes to an Eskimo?.
  7. Is blogging better than tweeting, is Facebook better than Twitter.  Do I need to post videos to Youtube?  How important is SEO, incoming links, adding more friends, social media buttons/widgets?
  8. Is email marketing dieing, improving, necessary, changing, or being somewhat replaced by social media?
  9. How do I do all that I should be doing on the Internet, without having to bear the cost of “sub contracting” that task out and still run my business.
  10. How will we be accessing the Internet down the road and how does that affect my approach today?  It seems a few short years ago accessing the Internet with ones cell phone was a novelty at best.

How Do You Find A Business Owner Who Is Selling A Business?

Selling A Business

Photo (c) mobivation.com

I am just a business owner who’s profession as a business broker requires significant marketing efforts.  How do you find a business owner that is looking to sell a business? This is a very confidential event. How do you find a business buyer that is looking to buy a   Jacksonville Towing company or a Florida HVAC Contractor,  Tampa Retail Business, or  Computer Repair shop?

My approach is  to try different things.  I Tweet the businesses I have for sale- I get some follow up questions, I blog about my business experiences- it has driven”some traffic” to my site, I am on Facebook- but pretty weak, I am on Linked-In and a few other social/business sites.  I personally feel value in writing a blog as it allows me control to provide SEO optimized current content to my site.  I do email marketing.  I certainly am not in a position to provide well grounded advise on this subject but my major point is- Are you a business owner confused about what you should be doing on the internet? – You are not alone.