Category Archives: Florida business broker

When Business is not Just Business

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When Business is not “Just Business”

 I think most that have been operating in the business world have heard the expression  “Its just Business”, like “sorry I have to use another vendor- you know Its just business”.  Or I hate to let you go… “Its just business”.  It falls into a similar category of the discussion small business owners have about their employees and are constantly advised to not worry so much about employees and the difficult policies, pay cuts, benefit cuts are “just business”.  I recognize the truth to that matter, but when you talk to most business owners with long term employees you see that is easier said than done.

Emotions are a part of business.  Sometimes the business relationship can turn into something much stronger , friendships are developed and suddenly it becomes more than “just business”.

I am a Business Broker Based in Jacksonville Florida.  I lost a dear person last week to cancer.  It was more sudden,  unfair, and painful to me than I expected.  This person was a client- which is such an inappropriate word in this case.  This husband and wife had hired me to sell their business.   It took a long time.  We are under contract  (and have had other potential buyers) her, her husband and I  did expect this transaction to happen but the Cancer happened faster.

I’m not a dinosaur but I’ve been in the business world long enough to gain a perspective where I look for more out of my business activities that wins/losses.  We all know there is a lot of “the same old same old” in our business activities and sprinkled among the day to day are special people and special situations that stand out.  I am involved with business brokerage as I recognize Buying or selling a business as a life changing event – it was for me.  Marriage, children, Buying a business, Selling a business are life events that can shape a life- but death trumps them all.  She incentifyed me by being so nice to me throughout this process.  We all have favorite clients or customers- and she fit the bill. They both are wonderful people.   I recognize that it is easy as a business broker to “get in the way” of a small business owner.  They are trying to run their business while you are trying to sell their business and its easy for some overlap or conflict to occur.   She made me welcome every time I walked into their business. She would encourage my efforts with a hug or offering some take out lunch as we strategized the sale of their business.    She is watching from above to make sure I help her husband complete her request to have their business sold so that he can enjoy life after the sale of the business. Even though its painfully obvious it won’t be the same.  And yes we still have a way to go in the process, but I do say to myself, what if I could have sold it a few months earlier…

I don’t know if I ever want to get good at selling a business for a dying client.   I don’t know if I am doing everything right this time.  Her husband and I had discussed and had a Power of Attorney to be signed by his attorney representing him in the sale… just in case.  He called just hours after she passed away.  I didn’t know how soon was too soon to go see him.  I went over to his business just days after her passing- unannounced with the hope of catching him at the office.  Over the years I had always made an appointment- but fortunately he was there. , I brought flowers, gave him a hug, and offered any support I could.   Behind closed doors we balanced our talk between life, and what we need to do going forward to accomplish what she wanted done- selling of the family business.   First he had to take care of the services and family.   Sometimes it is very much more than Just Business.

(April 2014-this article was written just days after a dear client passed away.  The business sale closed approx. 2 months after.   We experienced further difficulties in the closing process which made matters even more difficult for the Seller (husband of the deceased wife).  After numerous delays, we closed on the sale of the business.  This post touches on some personal matters, and it was only until recently that I asked Seller to read and give his approval for me to post and share these events )                     

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.

 

 

 

 

 

 

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.

 

A Word on Buying or Selling a Business

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Considering Buying or Selling a Business?

 Taxes Transition Risk Future Asset List Owner Benefit  Working Capital License transfer CHANGE Liabilities  Seller Financing SBA,  Trucks, Intellectual Property EBITDA Cash Flow Inventory Debt Depreciation Goodwill  Money  Customer Base When to Tell Employees    Balance Sheet             Business Broker  Attorney  How?    Accountant    Marketing  Adjusted Net  Non Compete     Negotiation  Training  Management  Offer to Purchase  Confidentiality Lease  Accounts Receivable    Franchise Valuation Multiples   NDA      Revenues             Net Income  Depreciation   Earnout  Closing Agreement  Job  Deposits  Employees Trademarks       Fear       Trade Name Retire  Security     Promissory Note  CPA     Personal Guarantee Timing Work UCC  Family Business  Exit Plan   Website   When?  Partner      S-Corp  Clients    Relationships  Price    Payment     real estate  Assignment  Plan    Help!

WWW.SellaBusinessFlorida.com

Is EVERY Business For Sale at “Right Price”

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As a Business Broker based in Florida I spend ample amount of time prospecting/marketing for prospective business sellers and prospective business buyers.  I use various marketing methods to market to both buyers and sellers.  While in the process of  prospecting for business owners considering the exit or sale of their business it is not uncommon to hear “I would be interested in selling my business  if I can get the right price”.

Business For Sale – The Right Price

Recently I engaged in such a discussion- the owner told me he would very much like to sell his business and start a new somewhat unrelated business if the could get the right price for his business.  I then asked what he felt may be the right price and he followed up with “I don’t know”.

The “right price”  may not equal to the business value, or the price a qualified interested buyer is willing to pay.

For an actual transaction to be consummated,  the right price needs to resemble actual business value.  If the “right price”  is actually 2-3 times what estimated value of the business is, it is probably best for all parties involved to spend their time elsewhere.

But is every business for sale?  What if a “sweetheart deal” is presented to  a small business owner in Florida?  If you had a business that is not “For Sale” , and you know it to have an approximate value of $500k  and someone walked in and made you a cash offer of $800k cash is your business now for sale to that party?

Is now the time to Sell My Business?

From my personal experience of business ownership, I think yes most businesses are for sale if the “price is right”.  But not all businesses.  While owning my previous business in the 10th year  I had gotten a significant offer for the business, but I had long terms plans and  aspirations for the business.  At that point in time I had made several acquisitions and made several other offers on other related businesses and was comfortable with valuations, synergy calculations,  and felt I knew what the value of  my business was.

There was a lot of merger and acquisition activity that was occurring in my industry at that point in time and I was presented with a cash offer from a  very strong company, and was at about a 25% premium to what I and my CPA viewed as current value.  So I had a very strong cash offer from a well qualified business- do you take the money and move on.?

Business For Sale – The Value

In my opinion business values are affected by both  macro and micro economics.  What is the state of the economy, what is the state of the merger acqusition economy and what is the state of your industry/your business?  These elements effect what sort of multiple of cash flow your business may be worth.  If the economy is such that valuations were/are  running high do you look to exit your business because valuations, and or those high multiples may not come around again?

In my situation I consulted with my “trusted advisers” around me my CPA, my attorney, my wife.  Yet ultimately the decision was mine.    My CPA did tell me something that strongly influenced that decision.  He had told me “You,ll know when you are ready”.  It was a great price great offer, but I wasn’t ready and ultimately sold my business 10 years later and got fair value for the business. So is every business for sale if the “right price” comes along.  I think that most businesses are for sale if the right price comes along, but not all businesses.