akron

5 Mistakes to Avoid When Purchasing a Small Business in Akron

Tue, 19 Aug 2025 03:11:29 GMT

1. Due Diligence

When you're looking at a small business for sale in Akron, the first thing you absolutely must do is thorough due diligence. It sounds obvious, right? But so many people skip over this, thinking they can just trust what the seller tells them. That's a huge mistake. You need to verify everything. Think of it like checking the ingredients before you bake a cake – you don't want any nasty surprises later.

Here's what you should be looking into:

Business Operations: How does the business actually run day-to-day? What are the key processes? Who are the main suppliers and customers? Get a clear picture of the workflow.
Assets and Liabilities: What does the business own, and what does it owe? This includes physical assets like equipment and inventory, but also intangible ones like customer lists or intellectual property. Don't forget to check for any outstanding debts or legal claims.
Customer Base: Who are the customers? Are they loyal? Is the business reliant on just a few big clients, or is it spread out? Understanding the customer demographic and retention is key.
Employees and Management: If there are employees, what's their morale like? Are there key managers who might leave if the business is sold? Their knowledge is often a big part of the business's value.

It's easy to get excited about a business, especially when you see potential. But getting caught up in the 'what ifs' can make you overlook the 'what is.' Take a step back and look at the facts. This is where experienced akron business brokers can really help guide you, pointing out things you might miss.

First Choice Business Brokers Akron OH can help you structure your due diligence process. They know what to look for and can assist in gathering the necessary information to make an informed decision about any small business for sale in Akron.

2. Financial Records

When you're looking at a small business for sale in Akron, the financial records are your roadmap. Don't just glance at the profit and loss statements; you need to dig into the details. First Choice Business Brokers Akron OH often sees buyers skip this step, and it's a big mistake. You want to see at least three to five years of solid financial history. This helps you spot trends, understand seasonality, and verify the seller's claims about profitability.

Reviewing Profit and Loss Statements

Look for consistency. Are revenues growing, shrinking, or staying flat? Are expenses increasing disproportionately? Pay attention to any one-time charges or unusual expenses that might skew the picture. It’s also good to see if the owner has been taking a reasonable salary or if profits are artificially inflated by minimal owner compensation.

Examining Balance Sheets

The balance sheet shows what the business owns and owes. Check out the assets – are they in good condition? What about liabilities? You need to know if there's significant debt that will transfer with the business. Understanding the company's net worth is key.

Analyzing Cash Flow Statements

This is where you see the actual money moving in and out. A profitable business on paper can still have cash flow problems. Make sure the business generates enough cash to cover its operating expenses and debt obligations. This is a really important part of the puzzle.

It's easy to get caught up in the excitement of buying a business, but getting bogged down in the numbers is what separates successful acquisitions from costly regrets. Think of it like checking the ingredients before you bake a cake – you need to know what you're working with.

If you're unsure about how to interpret these documents, working with experienced akron business brokers can make a huge difference. They can help you understand what you're looking at and ask the right questions.

3. Legal Agreements

When you're looking at a small business for sale in Akron , the legal side of things can feel like a maze. It's easy to get lost in the paperwork, but getting the agreements right is super important. Missing even one detail here could cause big problems down the road.

Think about the purchase agreement itself. This isn't just a handshake deal; it needs to clearly spell out everything you're buying – assets, liabilities, inventory, and any intellectual property. You also need to be clear on the payment terms and any conditions that need to be met before the sale is final. If you're working with akron business brokers, they can help guide you, but you still need to understand what you're signing.

Here are some key legal agreements you'll likely encounter:

Asset Purchase Agreement: This is common and details exactly which assets you're acquiring from the seller.
Bill of Sale: This document officially transfers ownership of the assets.
Non-Compete Agreement: This prevents the seller from opening a similar business nearby and competing with you after the sale.
Lease Assignment: If the business operates out of a rented space, you'll need to transfer the lease to your name.
Employment Agreements: If you plan to keep existing employees, you'll need new agreements with them.

It's really worth getting a good lawyer involved early. They can spot potential issues in the contracts that you might overlook. For instance, they can check if the seller actually owns everything they're selling and if there are any hidden legal claims against the business. This kind of protection is what you pay for.

Don't forget about any existing contracts the business has with suppliers or customers. You'll need to figure out if those can be transferred to you or if new ones need to be negotiated. First Choice Business Brokers Akron OH often emphasizes the importance of reviewing all these documents thoroughly. It might seem like a lot, but sorting out the legal agreements properly is a major step in making sure your new Akron business venture is set up for success.

4. Market Analysis

Before you hand over any cash for a small business for sale in Akron, you absolutely need to get a handle on the local market. It’s not enough to just like the idea of the business; you’ve got to see if it actually makes sense in Akron right now. Think about who your customers are going to be. Are there enough of them? What are they looking for? And who else is trying to sell them the same stuff?

Here’s what you should be looking at:

Customer Base: Who are the people that buy from this type of business? Are they local residents, tourists, or maybe businesses themselves? How many of them are there in the Akron area, and are there more coming or going?
Competition: Who are your rivals? What are they doing well, and where are they falling short? You need to know if you can really compete or if the market is already packed.
Market Trends: Is this industry growing, shrinking, or staying the same in Akron? Are there new technologies or customer preferences that could change things quickly?
Economic Factors: How’s the overall economy in Akron affecting businesses like this one? Are people spending more or less money?

Understanding the market isn't just about looking at numbers; it's about getting a feel for the place. Talk to people, walk around the neighborhood, and see what’s really going on. This kind of groundwork is what separates businesses that do okay from those that really thrive.

If you’re feeling overwhelmed by this part, remember that experienced Akron business brokers, like First Choice Business Brokers Akron OH, can be a huge help. They often have a good read on the local market and can point you toward businesses that have a solid place in the Akron economy.

5. Valuation

Getting the valuation right for a small business for sale in Akron is a big deal. It's not just about the numbers on paper; it's about what the business is truly worth in the current market. Overpaying can sink you before you even start, and undervaluing it means you might miss out on a great opportunity.

Understand the Valuation Methods

There are a few ways to figure out what a business is worth. You've got asset-based valuations, which look at what the company owns minus what it owes. Then there's market-based valuation, where you compare the business to similar ones that have sold recently. Income-based valuation looks at the profits the business is expected to make. Most often, a combination of these is used, and that's where experienced akron business brokers really earn their keep.

Don't Rely Solely on Seller's Numbers

The seller will have their own idea of what their business is worth, and that's fine. But you can't just take their word for it. You need to do your own homework. This is where reviewing those financial records we talked about earlier comes in handy. Look for consistency, and try to spot any red flags that might inflate the perceived value.

Consider Future Potential

What's the business likely to do in the next few years? Is there room to grow? Are there new trends in Akron that could help or hurt it? A good valuation takes into account not just past performance but also future prospects. A business that's poised for growth might be worth more than one that's just coasting.

Get Professional Help

Trying to figure out the valuation on your own can be tough. That's why working with professionals like First Choice Business Brokers Akron OH is a smart move. They deal with buying and selling businesses all the time and know the Akron market well. They can help you understand the different valuation approaches and make sure you're not making a costly mistake.

The price tag is just one piece of the puzzle. You need to feel confident that the price reflects the real value and potential of the business you're buying.

Wrapping It Up: Your Akron Business Purchase Journey

So, buying a business in Akron can be a big step. You've got to watch out for common slip-ups, like not checking the books closely enough or getting too excited about the first place you see. Remember to do your homework on the local market here, and don't be afraid to ask for help from people who know the Akron business scene. Taking your time and being smart about it will make a huge difference. Good luck out there!

Disclaimer: The information in this article is for general educational purposes only and should not be considered legal, financial, or professional advice. Purchasing a business involves risks and complexities that vary by situation. Always consult with qualified professionals, such as business brokers, attorneys, and financial advisors, before making any business purchase decisions.

Looking to Buy a Small Business in Your Area? Here’s How to Get Started

Thu, 10 Jul 2025 21:53:36 GMT

Defining Your Acquisition Criteria

Before you jump into the world of buying a small business for sale Akron, it's super important to figure out exactly what you're looking for. It's like going grocery shopping without a list – you'll probably end up with a bunch of random stuff you don't really need. Defining your criteria helps you stay focused and makes the whole process way more efficient. First Choice Business Brokers Akron OH can help you with this process.

Identifying Your Industry Preferences

What kind of business are you actually interested in? Do you have a passion for food, a knack for technology, or a love for retail? Think about the industries that genuinely excite you. This isn't just about making money; it's about finding something you'll enjoy working on day in and day out.

Here are some things to consider:

What industries align with your interests and values?
Are there any industries you absolutely want to avoid?
What are the growth trends in different industries?

Determining Your Investment Range

Knowing how much you can realistically spend is a game-changer. It's easy to get caught up in the excitement and start looking at businesses that are way out of your price range. Setting a clear investment range helps you narrow down your options and avoid wasting time on deals that aren't feasible.

Think about all the costs involved, not just the purchase price. You'll need to factor in things like legal fees, due diligence expenses, working capital, and potential renovations or upgrades. It's better to be conservative and have some wiggle room than to stretch yourself too thin.

Assessing Your Skill Set and Experience

What skills and experience do you bring to the table? Are you a marketing whiz, a financial guru, or a sales expert? Think about the types of businesses where your skills would be most valuable. It's also important to be honest about your weaknesses. If you're not good at accounting, for example, you might want to look for a business that already has a strong financial team in place. Business brokers Akron can help you find the right fit.

Consider these questions:

What are your core competencies?
What areas do you need help with?
Are you willing to learn new skills?

Navigating the Local Market for a Small Business for Sale Akron

Finding the right small business for sale Akron can feel like searching for a needle in a haystack. But don't worry, there are several ways to get started and narrow down your options. It's all about knowing where to look and who to connect with. Let's explore some key strategies to help you navigate the local market effectively.

Exploring Online Business Marketplaces

Online business marketplaces are a great starting point for your search. These platforms list businesses for sale across various industries and locations.

You can filter your search based on your criteria, such as industry, revenue, and location. Some popular marketplaces include BizBuySell, and others.

These sites let you see a wide range of opportunities quickly. However, remember to do your own research and verify the information provided on these platforms.

Set up alerts to get notified when new businesses matching your criteria are listed.
Use the filters to narrow down your search and save time.
Always verify the information provided on the marketplace with independent sources.

Connecting with Business Brokers in Akron

Working with business brokers Akron can significantly streamline your search. First Choice Business Brokers Akron OH, for example, specializes in helping buyers find the right business for their needs. These professionals have extensive knowledge of the local market and can provide access to listings that may not be available elsewhere. They can also assist with negotiations and due diligence, making the acquisition process smoother.

Business brokers have access to a wider network of sellers.
They can help you assess the value of a business.
Brokers can guide you through the negotiation process.

Networking Within the Akron Business Community

Networking is a powerful tool when looking for a small business for sale Akron. Attend local business events, join industry associations, and connect with other entrepreneurs in the area. These connections can provide valuable insights and leads on potential acquisition opportunities. Don't underestimate the power of word-of-mouth – often, the best deals are found through personal connections.

Networking can open doors to opportunities you might not find through traditional channels. It's about building relationships and getting the inside scoop on businesses that may be coming up for sale soon. Plus, you can learn a lot from other business owners in the community.

Attend local business events and conferences.
Join industry-specific associations.
Connect with other entrepreneurs on LinkedIn and other professional platforms.

Conducting Thorough Due Diligence

Okay, so you've found a small business for sale Akron that seems promising. Awesome! But before you sign anything, you absolutely have to do your homework. This is where due diligence comes in. It's basically a deep dive into the business to make sure everything is as it seems. Think of it as your chance to kick the tires and look under the hood before you buy the car. It's a critical step, and skipping it could lead to some serious headaches down the road. First Choice Business Brokers Akron OH can help guide you through this process, but ultimately, the responsibility rests with you.

Analyzing Financial Records and Performance

This is where you really get into the numbers. You need to see if the business is actually making money and if those profits are sustainable. Don't just take the seller's word for it; verify everything.

Here's what you should be looking at:

Profit and loss statements for the past 3-5 years.
Balance sheets to understand assets and liabilities.
Tax returns to confirm reported income.
Cash flow statements to see how money is moving.

Make sure you understand the key financial ratios and trends. If you're not comfortable with this, consider hiring an accountant to help you out. They can spot potential red flags that you might miss. Remember, a healthy business has consistent revenue, manageable expenses, and positive cash flow.

Reviewing Legal and Operational Documents

Beyond the financials, you need to examine the legal and operational aspects of the business. This includes everything from contracts to permits to employee agreements. You want to make sure the business is operating legally and that there aren't any hidden liabilities lurking.

Here's a checklist of documents to review:

Lease agreements for the property.
Contracts with suppliers and customers.
Employee contracts and handbooks.
Permits and licenses required to operate.
Any pending lawsuits or legal claims.

It's a good idea to have a lawyer review these documents to ensure everything is in order. They can identify potential legal risks and advise you on how to mitigate them. Don't skimp on legal advice; it could save you a lot of money and trouble in the long run.

Understanding Customer Base and Market Position

Finally, you need to understand who the customers are and how the business fits into the local market. Is the customer base loyal? Is the market growing or shrinking? What are the competitive threats? These are all important questions to answer.

Consider these steps:

Analyze customer demographics and buying habits.
Research the competitive landscape in Akron.
Assess the business's brand reputation and online presence.
Talk to customers to get their feedback.

Understanding the customer base and market position will help you assess the long-term viability of the business. If the business relies on a few key customers or operates in a declining market, it might not be a good investment. And remember, even if you're working with business brokers akron to find a small business for sale akron, you still need to do your own research.

Securing Business Acquisition Financing

Finding the right financing is a big deal when you're trying to buy a small business. It can be tricky, but understanding your options is key. Let's break down some common ways to get the money you need.

Exploring SBA Loan Options

SBA loans are often a go-to for small business acquisitions. They're backed by the government, which makes them less risky for lenders. Here's what you should know:

SBA 7(a) Loans : These are pretty flexible and can be used for a variety of purposes, including buying a business.
SBA 504 Loans : These are more for buying fixed assets, like real estate or equipment, but could still be part of your financing plan.
SBA Express Loans : These offer faster processing, but usually come with lower loan amounts.

Getting an SBA loan involves a lot of paperwork and can take some time. Make sure you're organized and have all your documents ready. It's also a good idea to talk to a lender who specializes in SBA loans to get a better understanding of the process.

Considering Seller Financing Arrangements

Sometimes, the seller of the business is willing to finance part of the purchase. This can be a great option because it shows the seller has confidence in the business's future. Plus, it can be easier to get than a traditional loan.

Negotiate the terms : Interest rate, repayment schedule, and the amount financed are all up for discussion.
Get it in writing : Make sure the agreement is clearly documented in the purchase agreement.
Assess the risk : Understand what happens if the business doesn't perform as expected.

Investigating Traditional Bank Loans

Traditional bank loans are another option, but they can be harder to get, especially for first-time business buyers. Banks will want to see a solid business plan and good credit history.

Prepare a strong business plan : This should include financial projections, market analysis, and management plans.
Shop around for the best rates : Different banks will offer different terms, so it pays to compare.
Be ready to provide collateral : Banks will likely want some kind of security for the loan.

When looking for a small business for sale Akron, remember that First Choice Business Brokers Akron OH can help you navigate these financing options. They can connect you with business brokers Akron and provide guidance throughout the acquisition process.

Structuring the Purchase Agreement

Once you've found a small business for sale Akron that fits your criteria and completed your due diligence, the next step is structuring the purchase agreement. This is where the rubber meets the road, and it's important to get it right. Consider working with First Choice Business Brokers Akron OH to help you navigate this process. It's a critical document that outlines the terms and conditions of the sale, protecting both the buyer and the seller. Let's break down some key aspects:

Negotiating Key Terms and Conditions

Negotiating the terms and conditions is a back-and-forth process. It's not just about the price; it's about everything else that comes with the deal. Here are some things to keep in mind:

Purchase Price Allocation : How the purchase price is allocated to different assets (e.g., inventory, equipment, goodwill) can have tax implications for both parties.
Payment Terms : Will the seller finance a portion of the purchase price? What's the interest rate and repayment schedule?
Closing Date : Agree on a realistic closing date that allows enough time to complete all necessary steps.

It's important to approach negotiations with a clear understanding of your priorities and be prepared to compromise on certain points to reach an agreement that works for everyone. Don't be afraid to walk away if the terms aren't favorable.

Addressing Asset vs. Stock Purchase Implications

Deciding whether to purchase the assets or the stock of the company is a big deal. Each has different implications for liability, taxes, and future operations.

Asset Purchase : You're buying specific assets of the business (equipment, inventory, customer lists, etc.). The buyer typically avoids assuming the seller's liabilities.
Stock Purchase : You're buying the ownership shares of the company. The buyer assumes all assets and liabilities of the business, including any existing debts or lawsuits.
Tax Implications : Asset purchases often allow for a step-up in basis, which can result in higher depreciation deductions. Stock purchases may have different tax consequences.

Including Contingencies and Representations

Contingencies and representations are safeguards that protect the buyer in case something goes wrong. They allow you to back out of the deal or seek compensation if certain conditions aren't met.

Financial Contingency : The purchase is contingent on securing financing.
Due Diligence Contingency : The purchase is contingent on satisfactory completion of due diligence.
Representation and Warranties : The seller makes certain promises about the business (e.g., accuracy of financial statements, compliance with laws). If these representations turn out to be false, the buyer may have recourse.

Finding a small business for sale Akron can be a great opportunity, but it's important to protect yourself. Working with experienced business brokers Akron can help you navigate the complexities of structuring the purchase agreement and ensure a smooth transaction.

Transitioning Ownership and Operations

Developing a Post-Acquisition Plan

Okay, so you've bought a small business for sale Akron. Now what? Don't just wing it! You need a solid plan for what happens after the deal closes. This isn't something you can just figure out on the fly. Think about it: you're stepping into someone else's shoes, and things are bound to be different.

A well-thought-out post-acquisition plan is key to a smooth transition.

Here's what should be in your plan:

A detailed timeline of key milestones (e.g., system integration, employee training).
Clear roles and responsibilities for everyone involved.
Communication strategies for keeping employees, customers, and suppliers informed.

It's easy to get caught up in the excitement of the purchase, but neglecting the post-acquisition phase can lead to serious problems down the road. Take the time to create a detailed plan, and you'll be much more likely to succeed.

Retaining Key Employees and Customers

People are what make a business tick. Especially when you're buying a small business for sale Akron, you're often buying the relationships the previous owner had. You don't want to lose the good ones! Key employees know the ins and outs of the business, and loyal customers are the lifeblood of any successful company.

Here's how to keep them happy:

Communicate openly and honestly about the transition.
Offer incentives to stay (e.g., bonuses, raises, new responsibilities).
Actively solicit feedback and address concerns.

It's also a good idea to meet with key employees individually to understand their concerns and expectations. Show them that you value their contributions and that you're committed to their success. First Choice Business Brokers Akron OH can help you navigate these sensitive conversations.

Integrating New Systems and Processes

Every business has its own way of doing things. When you take over, you'll likely need to integrate your own systems and processes with those already in place. This can be a challenge, but it's essential for streamlining operations and improving efficiency.

Consider these steps:

Assess the existing systems and processes.
Identify areas for improvement.
Develop a plan for integrating new systems.
Provide training to employees on the new systems.

Integrating new systems can be a complex process, so it's important to have a clear plan and to communicate effectively with employees. Don't be afraid to ask for help from experts if you need it. Sometimes, the old way is the best way, but sometimes, it's time for an upgrade. Finding the right balance is key.

And remember, if you're looking at a small business for sale Akron, consider how easy (or hard) it will be to integrate your own systems.

Leveraging Local Resources for Success

Akron has a bunch of resources that can really help you out after you buy a small business. It's not just about signing the papers; it's about making the business thrive. Let's look at some places you can turn to for support.

Utilizing Akron's Small Business Development Center

The Small Business Development Center (SBDC) in Akron is a great place to start. They offer free consulting and low-cost training to help small businesses succeed.

Here's what they can do for you:

Help you create a solid business plan.
Provide advice on financial management.
Offer guidance on marketing strategies.
Assist with navigating regulations and compliance.

The SBDC is really focused on helping local businesses grow. They have a lot of experience and can give you personalized advice that you won't find anywhere else. It's worth checking out, especially if you're new to running a business in Akron.

Engaging with Local Chambers of Commerce

The Akron Chamber of Commerce is another resource you should definitely tap into. It's all about networking and getting connected with other businesses in the area. First Choice Business Brokers Akron OH knows the importance of local connections.

Here's why joining the Chamber is a good idea:

Networking events to meet other business owners.
Opportunities to promote your business locally.
Access to business resources and information.
Advocacy for small business interests.

Connecting with Mentors and Advisors in the Region

Finding a good mentor or advisor can make a huge difference. Someone who's been there, done that, and can offer guidance based on their own experiences. Especially when looking at a small business for sale Akron, having someone to bounce ideas off of is invaluable.

Here's how to find mentors and advisors:

Attend industry events and conferences.
Join local business groups and associations.
Reach out to retired business owners in the area.
Use online platforms to connect with mentors.

It's important to find someone who understands the local market and can provide relevant advice. Don't be afraid to ask for help; most people are happy to share their knowledge and experience. Plus, business brokers Akron can often point you in the right direction for finding experienced mentors.

Wrapping Things Up

So, there you have it. Buying a small business can feel like a big deal, and honestly, it is. But it's also a chance to do something really cool and be your own boss. It won't always be easy, and you'll probably hit a few bumps along the way. That's just how it goes. The main thing is to do your homework, ask lots of questions, and don't be afraid to get help from people who know what they're doing. With a bit of effort and the right mindset, you could be running your very own business sooner than you think. Good luck out there!

Disclaimer:The information provided in this article is for general educational and informational purposes only and should not be considered legal, financial, or business advice. Please consult with qualified professionals—such as attorneys, accountants, or business advisors—before making any decisions related to buying or selling a business. First Choice Business Brokers Akron OH does not guarantee business outcomes or financial success.

Business for Sale? Use This Little-Known Trick to Close the Deal Quickly

Wed, 18 Jun 2025 04:54:45 GMT

Understanding the Akron Market Landscape

Local Economic Indicators Affecting Business Sales

Akron's economy plays a big role when you're thinking about selling a business Akron. It's not just about finding a buyer; it's about understanding the environment they're stepping into. Things like unemployment rates, local income levels, and overall economic growth can really impact how attractive your business looks to potential buyers. If the economy is doing well, people are more likely to invest. If it's struggling, you might need to adjust your expectations.

Unemployment Rates: Keep an eye on these. Lower is better.
Income Levels: Higher disposable income means more spending.
Economic Growth: Is Akron expanding or contracting?

It's important to look at these indicators not just as numbers, but as stories. They tell you about the confidence of the community and the potential for future growth. This information is super useful when you're talking to potential buyers.

Identifying Key Industries for Selling a Business Akron

Knowing which industries are hot in Akron can seriously speed up the process of selling a business Akron. Some sectors might be booming, while others are on the decline. Focusing on the industries that are attracting investment and showing growth can make your business a much more appealing prospect. First Choice Business Brokers Akron OH can help you identify these trends.

Healthcare: Akron has a strong healthcare presence.
Manufacturing: Still a key player in the local economy.
Technology: Growing, but still relatively small.

Understanding these key industries is crucial for targeting the right buyers.

Navigating Buyer Demographics in Akron

Who's buying businesses in Akron? It's not always who you think. Are you seeing more local investors, or are people moving in from out of state? Understanding the demographics of potential buyers can help you tailor your approach and make your business more attractive. Knowing their motivations, financial capabilities, and investment preferences is key.

Local Investors: They know the area well.
Out-of-State Buyers: They might bring fresh perspectives.
First-Time Owners: They need extra support.

Consider what these different groups are looking for. A local investor might value community ties, while an out-of-state buyer might be more focused on pure profit. Tailor your pitch accordingly.

The Power of Pre-Sale Preparation

Selling a business Akron? Before you even think about listing your business for sale Akron, you need to get your ducks in a row. First Choice Business Brokers Akron OH knows that preparation is key to a quick and successful sale. It's like getting your house ready to sell – you wouldn't just throw it on the market without cleaning and fixing things up, right? Same goes for your business.

Optimizing Financial Records for Due Diligence

Getting your financial records in tip-top shape is super important. Buyers will want to see everything, and if your records are a mess, it'll scare them off. Think of it as showing them you've got nothing to hide.

Make sure your profit and loss statements are accurate.
Reconcile your balance sheets.
Organize your tax returns.

Clean and well-organized financials build trust and speed up the due diligence process. It shows potential buyers that you're serious and that your business is well-managed.

Enhancing Business Value Through Operational Efficiency

Look for ways to make your business run smoother and more efficiently. This isn't just about making it look good for buyers; it's about actually improving the business. A more efficient business is a more attractive business.

Streamline your processes.
Reduce unnecessary expenses.
Improve employee productivity.

Addressing Potential Red Flags Before Listing

Every business has its issues. The trick is to identify and address them before you list your business for sale Akron. This shows buyers you're proactive and transparent.

Identify any legal issues.
Resolve outstanding debts.
Address any customer complaints.

Crafting an Irresistible Offering

Highlighting Unique Selling Propositions

Okay, so you're thinking about selling a business Akron. What makes your business stand out? Really think about it. It's not enough to just say you're "good." You need to pinpoint what makes your business different and better than the competition. This is key to attracting the right buyers. First Choice Business Brokers Akron OH can help you identify these unique selling points.

What problem does your business solve particularly well?
What's something your business does that others don't?
What do customers rave about?

Think about the story of your business. What's the narrative that will capture a buyer's attention? It's not just about the numbers; it's about the potential and the unique value you've created.

Developing a Comprehensive Information Memorandum

An Information Memorandum (IM) is basically a detailed brochure about your business. It's way more than just a sales pitch; it's a complete overview that gives potential buyers all the info they need to make a decision. A well-crafted IM can significantly speed up the selling a business Akron process.

Detailed financial statements (profit and loss, balance sheets, cash flow statements)
Operational overview (how the business runs day-to-day)
Market analysis (your industry, competitors, and opportunities)
Management team bios (who's running the show)

Strategic Pricing for a Quick Sale

Pricing is tricky. You want to get what your business is worth, but you also want to sell it quickly. Overprice it, and it'll sit on the market forever. Underprice it, and you're leaving money on the table. Finding that sweet spot is crucial when listing your business for sale Akron.

Get a professional valuation. This is the best way to get an objective assessment of your business's worth.
Consider market conditions. What are similar businesses selling for in Akron?
Be realistic. Don't let emotional attachment cloud your judgment.

Leveraging Local Networks and Expertise

When you're thinking about selling a business Akron , it's not just about the numbers. It's also about who you know and who knows you. Tapping into the local network can make a huge difference in how quickly and smoothly the deal goes. First Choice Business Brokers Akron OH understands this, and we've seen firsthand how connections can speed things up.

Connecting with Akron Business Brokers

Finding the right business broker in Akron is super important. They're not just salespeople; they're your guides through the whole process of selling a business Akron. Here's why it matters:

Local Knowledge: They know the Akron market inside and out.
Buyer Connections: They often have a list of potential buyers ready to go.
Negotiation Skills: They can help you get the best possible price.

Utilizing Professional Advisors for a Smooth Transaction

Don't go it alone! Having a team of advisors can save you a lot of headaches. Think about it like this:

Accountants: They make sure your financials are in order.
Lawyers: They handle the legal stuff, so you don't get into trouble.
Financial Planners: They help you plan what to do with the money after the sale.

Getting advice from different professionals can really help you avoid problems and make sure everything goes smoothly. It's like having a safety net.

Tapping into Local Investor Pools

Akron has its own group of investors who are always looking for good opportunities. These investors might be individuals, private equity firms, or even other local businesses. Here's how to find them:

Networking Events: Go to local business events and meet people.
Business Associations: Join groups like the Chamber of Commerce.
Online Platforms: Use sites like LinkedIn to connect with investors.

Negotiation Tactics for a Swift Close

Anticipating Buyer Objections

Okay, so you're trying to get that business for sale Akron deal done, right? A big part of that is knowing what the buyer is going to worry about. Think about it from their side. What are the common things that make people hesitate? Is it the financials? Maybe they're worried about the market changing. Or perhaps they're concerned about keeping the customers you already have. Whatever it is, you need to be ready to address it head-on.

Know your numbers inside and out.
Have a plan for keeping customers happy after the sale.
Be honest about any potential problems.

Being prepared to answer tough questions shows you're serious and builds trust. It can really speed things up when selling a business Akron.

Structuring Win-Win Deals

No one wants to feel like they're getting a bad deal. The best way to close quickly is to make sure both sides feel like they're winning. This might mean getting creative with the terms. Maybe you offer some seller financing, or you agree to stay on for a short time to help with the transition. The goal is to find solutions that work for everyone. First Choice Business Brokers Akron OH can help you find creative solutions.

Consider seller financing to make the deal more attractive.
Be flexible on the closing date.
Offer a training period to help the buyer get up to speed.

A win-win deal is the fastest path to a closed deal.

Expediting the Closing Process

So, you've agreed on the basics. Great! Now, let's get this thing closed. The closing process can drag on if you're not careful. Make sure you have all your documents ready to go. Work closely with your lawyer and accountant to keep things moving. Respond quickly to any requests from the buyer. The faster you can get everything done, the sooner you can move on.

Have all your financial records organized and ready for review.
Respond promptly to all requests from the buyer and their team.
Work with experienced professionals who can guide you through the process.

Speed is key. The longer the closing takes, the more likely something is to go wrong. Keep the momentum going to get that business for sale Akron deal finalized.

Post-Sale Transition and Support

Ensuring a Seamless Handover

Okay, so you've successfully navigated selling a business Akron. Congrats! But don't think you can just walk away. The post-sale transition is super important. It's about making sure the new owner can actually run the business without it falling apart the second you leave. A smooth handover protects your reputation and can even affect the final payout, depending on the deal.

Here's what you should focus on:

Document everything. Seriously, every process, every vendor contact, every weird quirk of the business. The more info you provide, the better.
Train the new owner (or their team). Don't just dump a bunch of manuals on them. Show them the ropes, answer their questions, and be available for support (at least for a little while).
Introduce them to key employees, customers, and suppliers. This helps build trust and continuity.

Think of it like this: you're not just selling a business for sale Akron; you're selling a working system. The handover is about transferring that system effectively.

Maintaining Client and Employee Relationships

Your clients and employees are the lifeblood of the business. How you handle these relationships during the transition can make or break the new owner's success. It's a delicate balance, but it's worth the effort. First Choice Business Brokers Akron OH can help you navigate this.

Consider these points:

Communicate clearly and honestly with both clients and employees about the sale. Transparency is key.
Reassure them that the transition will be smooth and that their needs will be met.
Offer to stay on in an advisory role (if appropriate) to help maintain relationships and provide continuity.

Protecting Your Legacy in the Akron Community

Selling a business Akron isn't just a financial transaction; it's also about your legacy. You've poured your heart and soul into this business, and you want to see it continue to thrive. It's about more than just the money.

Here's how to protect your legacy:

Choose a buyer who shares your values and vision for the business.
Negotiate terms that ensure the business will continue to operate in a way that aligns with your principles.
Stay involved in the community and support the business's continued success.

Wrapping Things Up

So, there you have it. Selling a business can be a real headache, right? But with this one simple trick, you might just find things move a lot faster. It's not about magic, just a smart way to get buyers interested and keep them that way. Give it a shot. You might be surprised how well it works to get that deal done and move on to whatever's next for you.

Disclaimer: This content is for informational purposes only and does not constitute legal, financial, or business advice. Always consult with licensed professionals before making decisions related to buying or selling a business.

10 Essential Steps to Analyze a Business for Sale Before You Buy

Mon, 19 May 2025 23:47:23 GMT

1. Financial Statements

Okay, so you're thinking about buying a business for sale akron. First things first: you absolutely HAVE to dig into the financial statements. This isn't just a quick glance; it's about really understanding where the money is coming from and where it's going. Think of it like this: you wouldn't buy a house without an inspection, right? Same deal here.

Financial statements are the backbone of any business, and they tell a story. You need to become a detective and figure out if that story is one you want to be a part of. First Choice Business Brokers Akron OH can help you understand these documents, but it's good to have a basic understanding yourself.

Here's what you should be looking at:

Profit and Loss (P&L) Statement : This shows the company's revenue, expenses, and profit (or loss) over a specific period. Look for trends. Are revenues increasing or decreasing? Are expenses under control?
Balance Sheet : This is a snapshot of the company's assets, liabilities, and equity at a specific point in time. It gives you an idea of the company's financial health and stability.
Cash Flow Statement : This shows the movement of cash both into and out of the company. It's super important because a company can be profitable on paper but still have cash flow problems.

Don't just look at the numbers; understand the story behind them. Are there any one-time events that skewed the results? Are there any accounting practices that seem questionable? It's better to ask questions now than to be surprised later.

If you're not comfortable analyzing these statements yourself, consider hiring an accountant or financial advisor. It's money well spent. And remember, working with reputable business brokers akron can also provide access to resources and expertise to help you through this process.

2. Market Analysis

Okay, so you're looking at a business for sale akron. Great! But before you jump in, you absolutely HAVE to understand the market. It's not enough to just like the business; you need to know if it's in a healthy market. First Choice Business Brokers Akron OH can help you with this, but here's what you should be thinking about:

Who are the customers?
What are the current trends?
How much competition is there?

Understanding these things will help you make a smart decision. You don't want to buy a business that's about to go under because the market is changing.

A thorough market analysis is non-negotiable when considering a business for sale. It's the foundation upon which you'll build your understanding of the business's potential.

Market analysis is not just about looking at numbers; it's about understanding people, trends, and the overall environment in which the business operates. It's about seeing the big picture and understanding how all the pieces fit together.

If you're not comfortable doing this yourself, consider reaching out to business brokers akron. They can provide insights and data that you might not be able to find on your own.

3. Business Valuation

Okay, so you're looking at a business for sale akron. Now comes the part where you figure out what it's actually worth. This isn't just about what the seller thinks it's worth; it's about digging into the numbers and seeing if the price makes sense. First Choice Business Brokers Akron OH can help with this, but it's good to have some understanding yourself.

There are a few different ways to approach business valuation, and each has its pros and cons. It's not an exact science, more like an educated guess based on available data. Let's look at some common methods:

Asset-Based Valuation : This looks at the total value of the business's assets (what it owns) minus its liabilities (what it owes). It's pretty straightforward but might not capture the full picture, especially for businesses with strong brand recognition or intellectual property.
Earnings-Based Valuation : This method focuses on the business's profitability. A common approach is to multiply the business's earnings by a certain factor (the "multiple"). The multiple depends on things like the industry, the business's growth potential, and the overall economic climate.
Market-Based Valuation : This involves comparing the business to similar businesses that have recently been sold. It's helpful if you can find good comparable sales, but it can be tough to find truly identical businesses.

It's important to remember that no single valuation method is perfect. The best approach is often to use a combination of methods and then reconcile the results. Also, don't be afraid to get a professional valuation done. It's an investment that could save you a lot of money in the long run.

When you're looking at a business for sale akron, remember that the asking price is just a starting point. Do your homework, understand the valuation methods, and be prepared to negotiate. Working with experienced business brokers akron can be a huge help in this process.

4. Legal Compliance

Okay, so you're thinking about buying a business for sale akron. Awesome! But before you hand over any cash, you gotta make sure everything's on the up-and-up legally. This isn't the fun part, but trust me, it's super important. You don't want to buy a headache.

First Choice Business Brokers Akron OH can help you navigate this process, but here's a rundown of what to look for:

Check for outstanding lawsuits or legal issues. This is a big one. Are there any current or past legal battles the business is dealing with? You don't want to inherit someone else's mess.
Verify all licenses and permits are current and transferable. Does the business have all the necessary paperwork to operate legally? And can those permits be transferred to you when you take over? This is key.
Review contracts with customers, suppliers, and landlords. What are the terms of these agreements? Are there any clauses that could cause problems down the road? You need to know what you're getting into.

Legal compliance is one of those things you absolutely cannot skip. It might seem boring, but it can save you a ton of money and stress later on. Think of it as an insurance policy against future problems.

It's also a good idea to consult with business brokers akron and a lawyer who specializes in business acquisitions. They can help you identify potential legal risks and make sure you're making a sound investment. Don't be afraid to ask questions and get everything in writing. It's better to be safe than sorry!

5. Customer Base Evaluation

When you're looking at a business for sale akron, understanding its customers is super important. It's not just about how many customers there are, but also about who they are, how loyal they are, and how much they spend. First Choice Business Brokers Akron OH can help you with this process, but here's what you should be thinking about:

Customer Demographics : Who are the main customers? Age, location, income—all that stuff matters. If the customer base is too narrow, it could be a risk.
Customer Retention : How often do customers come back? A high retention rate is a good sign. If customers only buy once, that's a problem.
Customer Concentration : Does the business rely on just a few big customers? If so, losing one could be a disaster. It's better to have lots of smaller customers.

It's a good idea to talk to some of the customers yourself. See what they like and don't like about the business. This can give you a much better sense of what you're getting into than just looking at the numbers.

A stable and diverse customer base is a major asset for any business. If you're working with business brokers akron, make sure they help you dig into this area. It can make or break the deal.

6. Operational Processes

Okay, so you're thinking about buying a business for sale akron. You've looked at the financials, checked out the market, and maybe even talked to some customers. But have you really dug into how the business actually runs day-to-day? This is where operational processes come in. It's not just about the numbers; it's about understanding the nuts and bolts of how things get done. First Choice Business Brokers Akron OH can help you with this.

Think of it like this: you can have a great product and a solid customer base, but if the operations are a mess, you're going to have a hard time making a profit, or even keeping the business afloat. So, let's break down what you need to look at.

Process Efficiency

How smoothly does the business operate? Are there bottlenecks? Are there redundant steps? These are the questions you need to be asking. It's not enough to just know what they do; you need to know how they do it, and how efficiently.

Map out key processes : Start by identifying the core processes that drive the business. This could be anything from order fulfillment to customer service to product development.
Identify bottlenecks : Once you've mapped out the processes, look for areas where things get stuck. Are there any steps that take longer than they should? Are there any points where information gets lost or delayed?
Look for redundancies : Are there any steps that are unnecessary or that duplicate other steps? Eliminating redundancies can save time and money.

Understanding the efficiency of the business's processes is key to identifying areas for improvement and potential cost savings. It's about seeing how things flow (or don't flow) and figuring out how to make them better.

Technology Utilization

Is the business using technology effectively? Or are they stuck in the Stone Age with outdated systems and manual processes? Technology can be a huge driver of efficiency and productivity, but only if it's used correctly. If you are looking at a business for sale akron, this is a must.

Assess current systems : What software and hardware are they using? Are these systems up-to-date? Are they integrated with each other?
Identify opportunities for improvement : Are there any areas where technology could be used to automate tasks, improve communication, or streamline processes?
Consider the cost of upgrades : If the business needs to upgrade its technology, how much will that cost? And what will be the return on investment?

Quality Control

How does the business ensure that its products or services meet a certain standard of quality? Quality control is essential for maintaining customer satisfaction and protecting the business's reputation. If the quality is bad, you might need to call business brokers akron.

Review quality control procedures : What steps does the business take to ensure quality? Are these procedures documented? Are they followed consistently?
Analyze customer feedback : What are customers saying about the quality of the business's products or services? Are there any recurring complaints?
Evaluate the cost of quality : How much does the business spend on quality control? Is this money well-spent? Could they improve quality while reducing costs?

Understanding the operational processes is a critical step in analyzing a business for sale. It's about looking beyond the numbers and understanding how the business actually works. By digging into the details, you can identify potential problems and opportunities, and make a more informed decision about whether or not to buy the business.

7. Employee Contracts

When you're looking at a business for sale akron, don't forget the people! Understanding the employee situation is super important. First Choice Business Brokers Akron OH can help you navigate this. Here's what to look at:

Reviewing existing contracts is a must.
Understanding any potential liabilities is key.
Assessing employee satisfaction can save you headaches later.

It's easy to overlook the human element when you're crunching numbers, but happy employees are often the backbone of a successful business. Ignoring their contracts or morale can lead to unexpected problems down the road.

Make sure you understand the terms of employment for everyone involved. This includes things like salary, benefits, and any special agreements. It's also a good idea to talk to some of the employees to get a sense of the company culture and their overall job satisfaction. This is especially important if you're planning any major changes after taking over the business. If you're looking at a business for sale akron, consider working with business brokers akron to help with this process.

8. Asset Inventory

Okay, so you're looking at a business for sale akron . Don't skip this step! You need to know exactly what you're buying. This isn't just about the building (if there is one). It's about everything the business owns. Think of it like taking stock of your own house before you move – you want to know what's staying and what's going.

A thorough asset inventory is key to understanding the true value of the business and identifying any potential discrepancies.

Here's what you should be looking at:

Tangible Assets : This includes things like equipment, machinery, vehicles, furniture, and fixtures. Get serial numbers and model numbers where possible. Check their condition. Are they old? Do they need repairs? This can impact the business valuation.
Intangible Assets : These are the less obvious things, but they can be super important. Think about things like patents, trademarks, copyrights, and even the business's reputation. How strong is the brand? Does it have a good online presence? These things have value.
Inventory : What's on the shelves? How much raw material is on hand? Is it sellable? Is it obsolete? This is a big one, especially for retail businesses. You don't want to buy a business with a warehouse full of stuff nobody wants.

First Choice Business Brokers Akron OH can help you understand the value of these assets.

It's a good idea to get a professional appraisal of the assets, especially if there's a lot of equipment involved. This can give you an independent assessment of their value and help you negotiate a fair price. Plus, it's useful for securing financing.

When you're looking at a business for sale akron, remember that the asset inventory is more than just a list. It's a snapshot of the business's physical and intellectual property. It's a critical piece of the puzzle when you're deciding whether or not to buy. And remember, working with experienced business brokers akron can make this process much smoother.

9. Supplier Agreements

When you're looking at a business for sale akron, don't skip over the supplier agreements. These contracts are super important because they dictate how the business gets its goods or services. Understanding these agreements can save you from nasty surprises later on. First Choice Business Brokers Akron OH can help you navigate these details, but here's what to look for:

Review the terms : Check the length of the agreement, pricing, and any exclusivity clauses. You want to know if you're locked into a long-term deal with unfavorable terms.
Assess supplier reliability : Has the business had issues with suppliers in the past? Late deliveries or quality problems can seriously impact operations.
Consider alternatives : Are there other suppliers you could use if needed? Having options gives you leverage and protects you if a supplier relationship sours.

It's easy to overlook supplier agreements when you're caught up in the excitement of buying a business. However, these agreements can significantly impact your bottom line and operational efficiency. Take the time to understand them thoroughly.

It's also a good idea to check if the agreements are transferable. Some suppliers might need to approve the transfer of the agreement to you as the new owner. If you're working with business brokers akron, they can help you with this process. Here's a simple table to help you keep track of the key details:

Understanding these agreements is crucial for a smooth transition and the continued success of the business.

10. Industry Trends

Understanding where an industry is headed is super important when you're thinking about buying a business. It's not just about what's happening now, but what's likely to happen in the future. If you're looking at a business for sale akron, you'll want to know if that industry is growing, shrinking, or staying the same. First Choice Business Brokers Akron OH can help you with this.

Think about it: buying a business in a dying industry is probably not the best move. But a business in a growing industry? That could be a goldmine. It's all about doing your homework and figuring out what the future holds. Business brokers akron can provide insights, but you should also do your own research.

Industry trends can be tricky to predict, but looking at things like technological advancements, changing consumer preferences, and new regulations can give you a pretty good idea. It's like trying to predict the weather – you can't be 100% sure, but you can make an educated guess based on the available information.

Here are some things to consider:

Technological Advancements: How is technology changing the industry? Are there new technologies that could disrupt the business or create new opportunities?
Consumer Preferences: What do customers want? Are their preferences changing? Is the business adapting to these changes?
Regulatory Changes: Are there any new laws or regulations that could affect the business? How will the business comply with these changes?

It's also a good idea to look at industry reports and talk to people who are already in the industry. They can give you valuable insights that you might not find anywhere else. Remember, the more you know, the better equipped you'll be to make a smart decision.

Wrapping It Up

So, there you have it. Buying a business isn’t just about the price tag. You really need to look at the whole picture. Check the numbers, understand the market, and don’t skip the legal stuff. Talk to the current owner, ask questions, and trust your gut. It’s a big decision, and you want to make sure you’re not jumping in blind. Take your time, do your homework, and when you feel ready, go for it. Just remember, it’s better to be safe than sorry.

Disclaimer: This content is for informational purposes only and should not be considered financial, legal, or professional advice. Always consult a qualified advisor before making business purchase decisions. We are not responsible for any financial or legal outcomes.

How to Buy a Small Business Successfully

Tue, 08 Apr 2025 02:34:01 GMT

Understanding The Small Business Market

Current Trends In Small Business Sales

Okay, so let's talk about what's happening right now with small business sales. It's not always easy to keep up, but here's the gist. The market can be a bit of a rollercoaster. Sometimes it's a seller's market, sometimes it's a buyer's market. Right now, we're seeing a lot of movement, especially with people looking to retire or change careers after, well, you know, the last few years.

More people are looking online for businesses.
Financing is still a hurdle for some buyers.
Certain industries, like tech and healthcare, are hot.

It's important to stay informed about the latest trends because what worked last year might not work this year. Things change fast, so keep your ear to the ground.

Factors Influencing Business Valuation

So, how much is that small business for sale akron really worth? It's not just about the revenue. A bunch of things come into play. Obviously, profits are a big deal. But also, think about things like assets, liabilities, and even the location. A business in a prime spot is going to be worth more than one tucked away in the middle of nowhere. And don't forget about intangible assets like brand reputation and customer loyalty. Those can really add value.

Ultimately, a business is worth what someone is willing to pay for it.

Identifying Profitable Industries

Alright, let's talk about where the money's at. Some industries are just doing better than others right now. Tech is always a good bet, especially anything related to software or cybersecurity. Healthcare is another solid choice, given the aging population. And don't underestimate the power of niche markets. Sometimes, a small, specialized business can be incredibly profitable. Think about things like sustainable products or specialized services. First Choice Business Brokers Akron OH can help you find opportunities. Also, consider reaching out to business brokers akron to get a better understanding of the local market.

Here are some industries to consider:

Technology (Software, Cybersecurity)
Healthcare (Home Healthcare, Medical Devices)
E-commerce (Niche Products, Subscription Services)

Researching Small Businesses For Sale

Finding the right small business to buy is like searching for a needle in a haystack, but with the right approach, you can definitely increase your chances of success. It's not just about finding any business; it's about finding one that fits your skills, interests, and financial goals. Let's explore some ways to get started.

Utilizing Online Marketplaces

Online marketplaces are a great starting point. They offer a wide range of businesses for sale, often with detailed listings. You can filter by industry, location, and price, making it easier to narrow down your search. However, remember that not all listings are created equal, so do your homework before getting too excited about any particular opportunity.

BizBuySell
BusinessesForSale.com
DealStream

It's important to verify the information you find online. Don't rely solely on the listing details. Always conduct your own due diligence to confirm the accuracy of the information provided.

Networking With Local Business Brokers

Working with local business brokers, especially in a place like Akron, can be a game-changer. These professionals have their finger on the pulse of the local market and can provide insights you won't find online. They often have access to listings that aren't publicly advertised and can help you navigate the complexities of buying a business. First Choice Business Brokers Akron OH is one such example of a local brokerage that can assist you in your search for a small business for sale Akron.

Access to unlisted businesses
Expert negotiation skills
Guidance through the buying process

Exploring Local Listings In Akron

Don't underestimate the power of local listings. Check community bulletin boards, local newspapers, and business journals. Drive around different neighborhoods in Akron and look for businesses that might be for sale but aren't actively advertised. Sometimes, the best opportunities are the ones you discover yourself. Also, consider networking within the Akron business community; you never know who might have inside information about a small business for sale Akron.

Local newspapers
Community bulletin boards
Business journals

Evaluating A Business Opportunity

Conducting Financial Due Diligence

Okay, so you've found a small business for sale akron that looks promising. Now comes the not-so-fun part: digging into the numbers. Financial due diligence is basically making sure the business is actually worth what they're asking. Don't skip this step!

Reviewing Profit and Loss (P&L) statements for the last 3-5 years.
Analyzing the balance sheets to understand assets, liabilities, and equity.
Checking cash flow statements to see how the business generates and uses cash.

A thorough review of financial records is non-negotiable.

It's easy to get caught up in the excitement of buying a business, but you need to be realistic. Look for red flags like declining revenue, increasing debt, or inconsistent profits. If something doesn't add up, ask questions. And if you're not comfortable with the numbers, get a professional to help.

Assessing Business Operations

Beyond the financials, you need to see how the business actually runs day-to-day. Is it a well-oiled machine, or a chaotic mess? This is where you put on your detective hat and observe. Consider First Choice Business Brokers Akron OH to help you with this process.

Evaluate the efficiency of the business's processes.
Assess the condition of equipment and facilities.
Understand the supply chain and vendor relationships.

Understanding Customer Base

Who are the customers, and why do they buy from this business? Understanding the customer base is super important. You need to know if they're loyal, if they're happy, and if they're likely to stick around after the sale. This is especially important when looking at a small business for sale akron.

Analyze customer demographics and buying habits.
Review customer feedback and online reviews.
Assess customer retention rates.

Don't underestimate the value of a loyal customer base. It's much easier to keep existing customers than to find new ones. A business with a strong customer base is a valuable asset. If you are looking for business brokers akron, make sure they understand the importance of customer base.

Financing Your Small Business Purchase

So, you've found a small business for sale akron that you're interested in. Great! Now comes the part that makes most people sweat: figuring out how to pay for it. Don't worry, it's manageable. Let's break down some options.

Exploring Loan Options

Okay, loans. There are a bunch of different kinds, and it can feel like alphabet soup. The Small Business Administration (SBA) loans are popular because they often have better terms than regular bank loans. But, they also have more requirements. Banks and credit unions are another route, and they might be more willing to work with you if you already have a relationship with them. Online lenders are also an option, and they can be faster, but watch out for higher interest rates.

SBA Loans : Often have lower interest rates and longer repayment terms.
Bank Loans : Can be more flexible if you have an existing relationship with the bank.
Online Lenders : Faster approval, but potentially higher interest rates.

Understanding Seller Financing

Seller financing is when the person selling the business basically becomes your bank. They agree to let you pay them over time, instead of needing all the money upfront. This can be a good option if you're having trouble getting a loan from a traditional lender. It also shows that the seller has confidence in the business's future success. It's pretty common, especially with smaller deals. First Choice Business Brokers Akron OH can help you understand the ins and outs of this.

Seller financing can be a win-win. The seller gets a steady income stream, and you get more time to pay off the business. Just make sure the terms are clearly defined in the purchase agreement.

Utilizing Personal Savings

Using your own savings is another way to finance your small business for sale akron. This shows lenders and sellers that you're serious and have skin in the game. It also reduces the amount you need to borrow, which can save you money on interest in the long run. Of course, you don't want to drain all your savings, but putting some of your own money into the deal can make a big difference. It's a good idea to talk to a financial advisor to figure out how much you can comfortably invest.

Reduces the amount you need to borrow.
Shows commitment to the business.
Can save on interest payments.

Negotiating The Purchase Agreement

Key Terms To Include

Okay, so you've found a small business for sale Akron that seems like a good fit. Now comes the fun part: hammering out the details. The purchase agreement is where everything gets set in stone, so you want to make sure you get it right. It's not just about the price; it's about all the little things that can make or break the deal later on.

Purchase Price Allocation : How much is going to assets, goodwill, etc.? This impacts taxes.
Payment Terms : How will the payments be structured? All upfront, or installments?
Closing Date : When will the ownership officially transfer?

Don't rush this part. Take your time to really understand what you're agreeing to. It's better to spend a little extra time now than to regret it later.

Navigating Contingencies

Contingencies are basically escape clauses. They allow you to back out of the deal if certain conditions aren't met. Common ones include financing, due diligence, and lease approval. If you can't get a loan, or if the business's financials don't check out, you want to be able to walk away without losing your shirt. It's like having a safety net.

1. Review the financials of the business for sale Akron. First Choice Business Brokers Akron OH can help with this.
2. Check the business's legal standing.
3. Understand the market conditions.

Working With Legal Professionals

Having a lawyer look over the purchase agreement is a must. They can spot potential problems that you might miss. It's like having a second set of eyes, but these eyes know the law. They can explain the fine print and make sure you're not getting a raw deal. Plus, they can help you negotiate better terms. It's money well spent.

Review the contract thoroughly.
Explain the implications of each clause.
Negotiate on your behalf.

Transitioning Ownership Smoothly

So, you've signed the papers, dotted the i's, and crossed the t's. Now comes the tricky part: actually taking over the business. It's not just about getting the keys; it's about making sure the business doesn't skip a beat during the change. This is where a solid transition plan becomes super important. You want to keep things running smoothly for both your employees and your customers. I know a lot of people who have used First Choice Business Brokers Akron OH to find a small business for sale Akron, and they always stress how important the transition is.

Creating A Transition Plan

Okay, so a transition plan is basically your roadmap for taking over. It outlines everything that needs to happen, who's responsible, and when it needs to be done. Think of it like this:

Documenting all the key processes. What happens daily, weekly, monthly? Write it all down.
Identifying key employees. Who are the go-to people you need to rely on?
Setting up training schedules. How will you learn the ropes, and how will you train your staff on any new procedures?

A good transition plan should also include a timeline. Break down the transition into phases, with specific goals for each phase. This helps you stay on track and avoid feeling overwhelmed. It's also a good idea to have some flexibility built in, because things rarely go exactly as planned.

Communicating With Employees

This is huge. Your employees are probably nervous about the change, so keeping them in the loop is vital. Be open, honest, and transparent. Let them know what's happening, what your plans are, and how it will affect them. A few things to keep in mind:

Hold a meeting to introduce yourself and your vision.
Listen to their concerns and address them honestly.
Reassure them that you value their contributions.

It's also a good idea to meet with individual employees, especially key staff, to build relationships and understand their roles better. Remember, they have valuable knowledge about the business, so listen to what they have to say. I've heard stories from business brokers Akron about how a bad transition can really hurt employee morale, so don't underestimate this part.

Maintaining Customer Relationships

Your customers are the lifeblood of the business, so you want to make sure they stick around. Let them know about the change in ownership, but reassure them that the quality of service or product they're used to will remain the same, or even improve. Consider these steps:

Send out a letter or email introducing yourself.
Offer a special promotion to show your appreciation.
Actively seek feedback and address any concerns.

It's also a good idea to keep the previous owner involved, at least initially, to help with the transition. They can introduce you to key customers and provide valuable insights into their needs and preferences. This is especially important if you're buying a small business for sale Akron that relies on long-term relationships.

Post-Purchase Strategies For Success

So, you've finally bought that small business for sale akron you've been eyeing. Congrats! But the real work starts now. It's not enough to just take over; you need a plan to make sure the business thrives under your leadership. First Choice Business Brokers Akron OH can help you even after the sale, but here's a few things to keep in mind.

Implementing Operational Changes

Okay, so you've got the keys. Now what? Don't just jump in and change everything at once. Start by observing. What's working? What's not? Talk to employees, understand the processes, and then start making changes gradually. Maybe there's a clunky software system that needs updating, or perhaps the workflow in the back is inefficient. Focus on improvements that will have a real impact on productivity and profitability.

Streamline processes to reduce waste.
Invest in technology to improve efficiency.
Train employees on new procedures.

Marketing The Business Effectively

Just because the business had customers before doesn't mean they'll stick around automatically. You need to let people know you're the new owner and that you're committed to providing great service. Update the website, get active on social media, and consider running some local ads. Think about what makes your business unique and highlight that in your marketing efforts. If you are looking for business brokers akron, consider First Choice Business Brokers Akron OH.

Setting Long-Term Goals

Where do you see the business in five years? Ten years? It's important to have a vision for the future. Set some specific, measurable, achievable, relevant, and time-bound (SMART) goals. This will give you something to work towards and help you make strategic decisions along the way. Maybe you want to increase revenue by 20% in the next three years, or perhaps you want to expand into a new market. Whatever your goals, write them down and create a plan to achieve them.

Remember, buying a small business is a marathon, not a sprint. There will be challenges along the way, but with careful planning and a commitment to success, you can build a thriving business that you're proud of.

Wrapping It Up

Buying a small business can feel like a big mountain to climb, but it doesn’t have to be overwhelming. Just take it step by step. Do your homework, ask questions, and trust your gut. Talk to the current owner, check out the numbers, and don’t skip the inspections. If something feels off, it probably is. Remember, this is a big investment, so take your time. Once you find the right fit, it can be super rewarding. You’re not just buying a business; you’re stepping into a new adventure. So, go out there, keep your eyes open, and good luck!

Disclaimer: This content is for informational purposes only and should not be considered financial or legal advice. Consult with professional advisors, such as business brokers, accountants, and lawyers, before making any decisions regarding the purchase of a business.

Where to Find a Small Business for Sale in Akron OH

Wed, 12 Mar 2025 23:21:59 GMT

Exploring Online Marketplaces for Businesses for Sale in Akron OH

Finding a business for sale in Akron OH can be an exciting journey. Online marketplaces are a great place to start your search. Here are some key points to consider:

Top Websites to Find Listings

BusinessBroker.net - A popular site with many listings.
BizBuySell - Offers a wide range of businesses for sale.
LoopNet - Great for commercial real estate and businesses.

How to Evaluate Online Listings

Look for detailed descriptions and photos.
Check the asking price against similar businesses.
Read reviews or ratings if available.

Tips for Contacting Sellers

Be polite and professional in your communication.
Prepare questions about the business's history and performance.
Express your interest clearly to make a good impression.

Online marketplaces can open doors to many opportunities. First Choice Business Brokers Akron OH can help you navigate these platforms effectively.

Working with Local Business Brokers in Akron OH

When looking to buy a small business in Akron, working with a local business broker can be a smart choice. These professionals can help you navigate the buying process and find the right opportunity for you.

Benefits of Using a Business Broker

Expert Guidance : Brokers have experience and knowledge about the local market.
Access to Listings : They can provide you with listings that may not be available to the public.
Negotiation Skills : Brokers can help you negotiate better terms and prices.

How to Choose the Right Broker

Research : Look for brokers with good reviews and a solid track record.
Experience : Choose someone who has experience in your industry of interest.
Communication : Make sure they communicate clearly and understand your needs.

Questions to Ask a Potential Broker

What is your experience in this market?
How do you find businesses for sale?
What are your fees and how are they structured?

Working with a broker like First Choice Business Brokers Akron OH can make the process smoother and more efficient, helping you find the right business to invest in.

Networking Within the Akron OH Business Community

Building connections in the Akron OH business community can open many doors for small business buyers. Networking is essential for finding opportunities and gaining insights. Here are some effective ways to network:

Attending Local Business Events

Look for local trade shows and fairs.
Participate in workshops and seminars.
Join community gatherings to meet other business owners.

Joining Business Associations

Become a member of local chambers of commerce.
Engage with industry-specific groups.
Attend meetings to share ideas and learn from others.

Leveraging Social Media for Networking

Use platforms like LinkedIn to connect with local entrepreneurs.
Follow local business pages to stay updated on events.
Share your own business journey to attract like-minded individuals.

Networking is not just about making contacts; it's about building relationships that can help you succeed in your business journey. First Choice Business Brokers Akron OH can assist you in navigating these connections effectively.

Understanding the Akron OH Market Dynamics

In order to successfully find a small business for sale in Akron OH, it’s essential to understand the local market dynamics. This knowledge can help you make informed decisions and find the right opportunity.

Key Industries in Akron OH

Manufacturing
Healthcare
Retail
Technology

Economic Trends Affecting Small Businesses

Growth in local employment rates
Increase in consumer spending
Changes in regulations that impact business operations

Demographic Insights for Business Buyers

A diverse population with varying needs
An increasing number of young professionals
A strong community focus on supporting local businesses

Understanding these dynamics can give you a competitive edge when looking for a business. First Choice Business Brokers Akron OH can provide valuable insights into the local market.

Evaluating Business Opportunities in Akron OH

Financial Metrics to Consider

When looking at a business for sale, it’s important to check its financial health. Here are some key numbers to look at:

Revenue : How much money does the business make?
Profit Margins : What percentage of revenue is profit?
Expenses : What are the regular costs of running the business?

Legal Aspects of Buying a Business

Understanding the legal side is crucial. Here are some things to keep in mind:

Contracts : Review any contracts the business has.
Licenses : Ensure the business has all necessary licenses.
Liabilities : Check for any debts or legal issues.

Assessing the Business's Market Position

Knowing where the business stands in the market can help you make a smart choice. Consider these factors:

Competition : Who are the main competitors?
Customer Base : Who are the customers, and how loyal are they?
Market Trends : What are the current trends in the industry?

Evaluating a business opportunity is not just about numbers; it’s about understanding the whole picture. First Choice Business Brokers Akron OH can help you navigate this process effectively.

Financing Options for Purchasing a Business in Akron OH

When you decide to buy a business in Akron, understanding your financing options is crucial. Here are some common ways to fund your purchase:

Traditional Bank Loans

These loans are offered by banks and usually require a solid credit score.
You may need to provide a detailed business plan.
Interest rates can vary, so shop around for the best deal.

SBA Loans and Grants

The Small Business Administration (SBA) provides loans that are easier to qualify for than traditional loans.
They often have lower interest rates and longer repayment terms.
Grants may also be available for specific types of businesses or projects.

Alternative Financing Solutions

Consider options like crowdfunding or peer-to-peer lending.
Seller financing, where the seller allows you to pay over time, can also be a good option.
Look into personal savings or investments from family and friends.

Finding the right financing is key to successfully buying a business. First Choice Business Brokers Akron OH can help guide you through this process.

Conclusion

In conclusion, finding a small business for sale in Akron OH can be an exciting journey. This guide has shared useful tips and resources to help both business brokers and buyers. By exploring the local market and using the right platforms, you can discover great opportunities. Remember to carefully check the listings and understand what makes Akron OH special for businesses. Whether you're helping someone else or looking to invest yourself, you now have the knowledge to confidently search for the perfect business in this vibrant area.

Disclaimer : This blog provides general information only and is not intended as professional advice. Information is believed accurate but not guaranteed. We do not endorse any businesses, products, or services mentioned. Readers are advised to conduct their own research and consult with professional advisors before making business decisions. We accept no liability for any inaccuracies or for any loss or damage arising from the use of this blog or links to external sites.

¿Por qué una vendedora vendería un negocio rentable?

duda@fcbb.com — Thu, 20 Jul 2023 05:15:09 GMT

Estrategias de planificación de salida de vendedor inteligente

Descubra las razones por las que un vendedor vendería lo que parece ser un gran negocio rentable.

Muchos empresarios exitosos también hacen algo más que la mayoría de los dueños de negocios no hacen: planean una estrategia de salida.

Entonces, la pregunta es por qué la persona que está operando un negocio que funciona con éxito y gana dinero buscaría una estrategia de salida.

Las razones típicas para planificar una estrategia de salida o considerar la venta son (y no en ningún orden de importancia): 1. El propietario ha alcanzado la meta que quería lograr; 2. El propietario ha encontrado otra idea que quería seguir; 3. Aburrimiento o agotamiento; 4. No gratificante financieramente; o 5. No te satisface emocionalmente. 6. Necesidad de un nuevo desafío.

Por lo tanto, es bueno saber que muchos empresarios que están ocupados construyendo su negocio también están considerando su estrategia de salida.

Como dueño de un negocio, ¿conoce su estrategia de salida y estará preparado?

Los compradores buscan empresas que puedan proporcionar dos componentes principales, uno son los ingresos sostenibles y el segundo es el potencial de crecimiento. Después de veinticuatro años de reunir a compradores y vendedores, descubrimos que si estos dos ingredientes están en el negocio que un comprador está investigando, las posibilidades de que el comprador haga una oferta son muy altas.

Si está considerando vender su negocio en el futuro, asegúrese de que un comprador pueda verificar sus ingresos. La mayoría de los compradores abandonarán una transacción si no se puede verificar el ingreso. Su corredor de First Choice Business puede asesorarlo con más detalle sobre lo que un comprador necesitará de usted cuando esté listo para vender.

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Why Would A Seller Sell A Profitable Business?

duda@fcbb.com — Thu, 20 Jul 2023 05:13:12 GMT

Smart Seller Exit Planning Strategies

Discover the reasons that a seller would sell what appears to be a great profitable business.

Many successful entrepreneurs also do something else that most business owners don’t do, they plan an exit strategy.

So the question is why would the person who is operating a business that is running successfully and making money look for an exit strategy.

The typical reasons are for either planning an exit strategy or considering selling are (and not in any order of importance): 1. The owner has reached the goal that they wanted to achieve; 2. The owner has found another idea that they wanted to pursue; 3. Boredom or burn out; 4. Not financially rewarding; or 5. Not emotionally fulfilling. 6. Need of a new challenge.

So it is good to know that many entrepreneurs who are busy building their business are also considering their exit strategy.

As a business owner, do you know your exit strategy and will you be prepared?

Buyers look for businesses that can provide two major components, one is sustainable income and the second is growth potential. After twenty four years of bringing buyers and sellers together we found that if these two ingredients are in the business that a buyer is investigating, the chances that the buyer will make an offer are very high.

If you are considering selling your business in the future make certain that a buyer can verify your income. Most buyers will walk away from a transaction if the income cannot be verified. Your First Choice Business broker can advise you in more detail as to what a buyer will need from you when you are ready to sell.

¿Cuánto vale su negocio?

duda@fcbb.com — Thu, 20 Jul 2023 04:49:06 GMT

Descubra cómo un Business Broker valorará su negocio.

Trabajar con un corredor de negocios profesional puede ayudarlo a establecer un precio realista para la venta de su negocio.

Muchos vendedores, antes de reunirse con un corredor comercial, tienen una idea en mente de cuánto deben pedir por su negocio.

Su CPA o su amigo o su agente de bienes raíces pueden haber ofrecido sugerencias. Entonces, en el momento en que se encuentran con su corredor comercial y el corredor ofrece un precio de venta sugerido, los vendedores a veces responden con la cifra en dólares por la que su CPA, amigo o agente inmobiliario pensó que deberían vender.

El dilema de los corredores de negocios es cómo y le dirán al vendedor que el precio será demasiado alto para su negocio.

La mayoría de los corredores comerciales profesionales explicarán la realidad de un negocio sobrevaluado, incluido el hecho de que los negocios sobrevaluados ayudan a los negocios con precios razonables del mismo tipo a vender.

El propietario de un negocio debe comprender que un corredor de negocios está valorando el negocio de manera lógica y realista en función de las ventas y la experiencia pasadas, mientras que un vendedor mira el negocio emocionalmente.

El arte de valuar un negocio es solo eso, es un arte y no una ciencia. Un negocio vende por lo que pagará un comprador dispuesto y lo que aceptará un vendedor dispuesto.

Otra opción es obtener un avalúo externo por un costo aproximado de $3,000.00. A veces, estas valoraciones externas son teóricas y no un análisis de precios de mercado y pueden no valer la pena.

Para obtener más información sobre cómo se valora un negocio, comuníquese con su profesional First Choice Business Broker, cuyo único puesto es cotizar y vender negocios a tiempo completo.

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What Is Your Business Worth?

duda@fcbb.com — Thu, 20 Jul 2023 04:44:49 GMT

Discover how a Business Broker will value your business.

Working with a professional Business Broker can help to realistically price your business for sale.

Many Sellers, before meeting with a Business broker have an idea in their mind as to how much they should ask for their business.

Their CPA or their friend or their realtor may have offered suggestions. So at the time when they do meet their Business Broker and the Broker offer a suggested selling price, sellers will sometimes respond with the dollar figure that their CPA, friend or realtor thought that they should sell for.

The predicament of the business Brokers is how to and will they tell the seller that the price will be too high for their business.

Most professional business brokers will explain the reality of an overpriced business including the fact that overpriced businesses help reasonably priced businesses of the same to type to actually sell.

A business owner needs to understand that a Business Broker is valuing the business logically and realistically based upon past sales and experience whereas a seller looks at the business emotionally.

The art of valuing a business is just that, it is an art and not a science. A business sells for what a willing buyer will pay and what a willing seller will accept.

Another option is to obtain an outside valuation for a cost of about $3,000.00. Sometimes these outside valuations are theoretical and not a Market Price Analysis and may not be worth the cost.

For more information on how a business is valued, contact your First Choice Business Broker professional whose only position is listing and selling businesses full time.

¿Qué es la parálisis por análisis?

duda@fcbb.com — Thu, 20 Jul 2023 02:36:44 GMT

Cómo puede perderse una oferta "excelente" al analizar en exceso.

Aprende por qué deberías arriesgarte y tomar una decisión.

En el corretaje de negocios, vemos muchos compradores potenciales que han decidido que quieren seguir su sueño de ser dueños de su propio negocio. Estos compradores potenciales le pedirán a su agente que los contacte rápidamente cuando surja una "oferta especial" cuando estén listos para comprar.

Sorprendentemente, vemos que pasan seis o incluso nueve meses con docenas de presentaciones de oportunidades comerciales realizadas y avisos de "ofertas especiales" enviadas al comprador para descubrir que este comprador ansioso está afectado por una "parálisis de análisis". Este comprador ha perdido las "ofertas interesantes" potenciales frente a otros compradores que han aprovechado estas oportunidades.

¿Qué es la “parálisis por análisis”? En pocas palabras, la incapacidad de tomar una decisión. Los compradores quedan tan absortos en la revisión y el análisis de tantos negocios que el proceso en sí mismo se convierte en su negocio, siempre preguntándose si la próxima oportunidad será una mejor opción o un negocio más sólido, etc. Algunos compradores ejercen una presión extraordinariamente grande sobre sí mismos para comprar el negocio "correcto" que pierden la oportunidad correcta debido a la parálisis del análisis. De hecho, hemos escuchado a los compradores decir: "¿Puedo hacer este negocio todos los días por el resto de mi vida"? Por supuesto, es una pregunta razonable, sin embargo, esta pregunta también puede hacer que todos los negocios parezcan abrumadores y genera una gran tensión indebida en el comprador. Sí, por supuesto que desea que la compra del negocio sea lo más adecuada posible; sin embargo, también recuerde que si no es la opción adecuada, tiene la oportunidad de vender ese negocio y mudarse a otras empresas.

Nuestro consejo de muchos años de experiencia es que los compradores mantengan una mente abierta a diferentes oportunidades, es posible que se sorprenda de cuál es el negocio adecuado para usted. También es importante que los compradores obviamente hagan su diligencia debida; sin embargo, esos mismos compradores también deben darse cuenta de que otros compradores comerciales también están buscando las oportunidades que surgen y es posible que esos compradores no se vean afectados por la "parálisis de análisis". ¡Prepárese para participar cuando surja el negocio adecuado!

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What Is Analysis Paralysis?

duda@fcbb.com — Thu, 20 Jul 2023 02:03:11 GMT

How you can miss out on a “great” offering by over analyzing.

Learn why you should take a chance and make a decision.

In business brokerage, we see many potential buyers who have decided that they want to follow their dream of owning their own business. These potential buyers will ask their agent to quickly contact them when a “hot deal” comes up as they are ready to buy.

Amazingly we see six or even nine months pass with dozens of business opportunity introductions made and “hot deal” notices sent to the buyer to find this anxious buyer is stricken with “analysis paralysis”. This buyer has lost out on the potential “hot deals” to other buyers who have taken advantage of these opportunities.

What is “analysis paralysis?” Simply put, the inability to make a decision. Buyers get so caught up in the review and analysis of so many businesses that the process itself becomes their business, always wondering if the next opportunity will be a better fit or stronger business etc. Some buyers put an extraordinarily large amount of pressure on themselves to buy the “right” business that they miss out on the right opportunity due to analysis paralysis. We’ve actually heard buyers say, “Can I do this business every day for the rest of my life”? It is of course a reasonable question however this question can also make every business seem overwhelming and puts a lot of undue stress on the buyer. Yes of course you want the business buy to be as a good fit as possible however also remember if it is not the right fit you have the opportunity to sell that business and move into other ventures.

Our advice from many years of experience is for buyers to keep an open mind to different opportunities, you might be surprised about what the right business fit for you actually ends up being. Also it is important for buyers to obviously do their due diligence however those same buyers must also realize that other business buyers are also looking at the opportunities that come up and those buyers may not be stricken with “analysis paralysis”. Be ready to jump in when the right business comes along!

Vender o no vender, ¿esa es la cuestión?

duda@fcbb.com — Thu, 20 Jul 2023 01:55:33 GMT

¡No esperes a que sea demasiado tarde!

Los dueños de negocios se enfrentan al dilema de si deben vender y, de ser así, ¿cuándo es un buen momento?

¿Deberían los dueños de negocios vender cuando su negocio está en auge, cuando el negocio está en declive o cuando están cansados y agotados?

Después de 24 años vendiendo negocios, definitivamente podemos afirmar que el mejor momento para vender es cuando el negocio está en una tendencia alcista. Este es el momento en que los compradores están dispuestos a pagar el precio más alto. Desafortunadamente, muchos dueños de negocios esperan hasta que su negocio esté en declive cuando deciden que ya es suficiente y quieren poner su negocio en venta. Los compradores generalmente no pagarán mucho dinero si ven que el negocio está decayendo durante un período de tiempo. Los vendedores quieren vender el potencial, sin embargo, los compradores solo pagarán por lo que puedan ver como ingresos y la tendencia de los ingresos en el momento en que el negocio esté disponible.

Su First Choice Business Broker puede ofrecerle las experiencias de nuestros 24 años de venta de negocios. Cuando llegue el momento de considerar la venta, estaremos aquí para usted. Mientras tanto, mantenga su negocio funcionando con fuerza para que la "tendencia" de su negocio a los ojos de un comprador sea estable o tenga una tendencia al alza. Durante el proceso de venta, nos ocuparemos de los compradores entrantes y usted se encargará de su negocio para que pueda capturar el precio más alto por sus esfuerzos ganados con tanto esfuerzo.

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To Sell Or Not To Sell, That Is The Question?

duda@fcbb.com — Thu, 20 Jul 2023 01:54:16 GMT

Don’t wait until it’s too late!

Business owners are faced with a dilemma of whether they should sell and if so when is a good time?

Should business owners sell when their business is booming, when the business is declining or when they are tired and burned out?

After 24 years of selling businesses we can definitely state that the best time to sell is when the business is on an upward trend. This is the time that buyers are willing to pay the highest price. Unfortunately many business owners wait until their business is declining when they decide enough is enough and want to put their business up for sale. Buyers will not usually pay top dollar if they see the business is declining over a period of time. Sellers want to sell on potential however buyers will only pay for what they can see for income and the income trend at the time the business is available.

Your First Choice Business Broker can offer you the experiences of our 24 years of selling businesses. When the time comes to consider selling we’ll be here for you. In the meantime, keep your business running strong so the “trend” of your business in the eyes of a buyer is stable or on an upward trend. During the sale process we’ll take care of the incoming buyers and you take care of your business so you can capture the highest price for your hard earned efforts.

¿Lista para dejar tu trabajo?

duda@fcbb.com — Thu, 20 Jul 2023 01:49:59 GMT

¿Es ahora el momento adecuado para comprar un negocio?

Use su plan 401k de impuestos diferidos para comprar un negocio, obtenga más información.

¿Cuándo tiene sentido renunciar a su trabajo y utilizar los fondos de su plan de jubilación para comprar un negocio?

Esta es una pregunta que muchos empleados se hacen a menudo.

¡Estas son algunas de las señales de que es hora!

Estás aburrido con lo que estás haciendo porque no hay desafío en tu trabajo.
Tus ingresos no están en la cantidad que crees que deberían estar.
Su empleador es propiedad de una familia, por lo que no puede ascender demasiado en la escalera.
Está cansado de mudarse y quiere estabilizarse a usted y a su familia.
Temes los lunes por la mañana.

Estas son solo algunas de las razones para considerar "retirarse" y tomar su 401K (libre de impuestos y multas) y usar el dinero para comprar un negocio existente.

First Choice Business Brokers recibe muchas llamadas de personas que posiblemente estén en su puesto, sin embargo, lo que no nos sorprende es que el negocio que están considerando comprar no está relacionado con su puesto de trabajo actual.

Muchas veces una persona quiere un negocio que haga algo que sienta que disfrutará y le dará el estilo de vida que desea.

¿Estás listo para el desafío?

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Ready To Quit Your Job?

duda@fcbb.com — Thu, 20 Jul 2023 01:46:08 GMT

Is now the right time for you to buy a business?

Use your 401k tax deferred plan to buy a business, learn more.

When does it make good sense to quit your job and use your retirement plan fund to buy a business?

This is a question that many employees ask themselves on a regular basis.

Here are some of the signs that it is time!

You are bored with what you are doing as there is no challenge in your work.
Your income is not at the amount you think that it should be.
Your employer is family owned so you can’t go too high up the ladder.
You are tired of relocating and want to stabilize you and your family.
You dread Monday mornings.

These are just some of the reasons to consider “retiring” and taking your 401K (tax free and penalty free) and using the money to buy an existing business.

First Choice Business Brokers receives many calls from people possibly in your position, however what does not surprise us is that the business they are considering purchasing is not related to their current work position.

Many times a person wants a business doing something that they feel they will enjoy and give them the lifestyle they desire.

Are you ready for the challenge?

Preparación para la condonación de préstamos PPP

duda@fcbb.com — Thu, 20 Jul 2023 01:17:18 GMT

Ahora que tiene su préstamo PPP, es hora de prepararse para su "perdón de préstamo".

Algunos pueden pensar en su préstamo PPP como "dinero gratis", sin embargo, hay pautas que deben seguirse para recibir la condonación total del préstamo.

El 15 de mayo, la SBA publicó la solicitud de condonación de préstamos, lo que dejó confundidos a los bancos y a los propietarios de pequeñas empresas. Una semana después, la SBA preparó comentarios adicionales para su publicación en un intento de brindar orientación adicional; sin embargo, aún quedaban muchas preguntas sin respuesta para algunos prestatarios. Con más de $ 511 mil millones en préstamos PPP y el 79% de los cuales son préstamos de menos de $ 100,000, seguramente habrá muchas preguntas para los trabajadores estadounidenses que intentan mantener abiertas sus pequeñas empresas.

Realmente apreciamos el resumen de Kyle Westaway de la guía más reciente sobre la condonación de préstamos PPP y creemos que usted también lo hará. Este artículo proporciona información sobre lo que el banco revisará en una solicitud de condonación y el plazo para la decisión del prestamista sobre su condonación.

Una pregunta que ha surgido una y otra vez es ¿qué costos son elegibles para la condonación? A continuación se encuentran las pautas de elegibilidad directamente de la solicitud de perdón de la SBA.

Resumen de los costos elegibles para la condonación: los prestatarios son elegibles para la condonación de préstamos por los siguientes costos:

1. Costos de nómina elegibles. Los prestatarios generalmente son elegibles para la condonación de los costos de nómina pagados y los costos de nómina incurridos durante el Período Cubierto de ocho semanas (56 días) (o Período Cubierto de Nómina Alternativo) ("costos de nómina"). Los costos de nómina se consideran pagados el día en que se distribuyen los cheques de pago o el Prestatario origina una transacción de crédito ACH. Los costos de nómina se consideran incurridos el día en que se gana el salario del empleado. Los costos de nómina incurridos pero no pagados durante el último período de pago del Prestatario del Período cubierto (o Período cubierto de nómina alternativo) son elegibles para la condonación si se pagan en o antes de la próxima fecha de nómina regular. De lo contrario, los costos de nómina deben pagarse durante el Período cubierto (o Período cubierto de nómina alternativo). Para cada empleado individual, la cantidad total de compensación en efectivo elegible para la condonación no puede exceder un salario anual de $100,000, prorrateado para el período cubierto. Cuente los costos de nómina que se pagaron y se incurrieron solo una vez. Para obtener información sobre lo que califica como costos de nómina, consulte la Norma final provisional sobre el Programa de protección de cheques de pago publicada el 2 de abril de 2020 (85 FR 20811).

2. Costos elegibles no relacionados con la nómina. Los costos que no son de nómina elegibles para la condonación consisten en: (a) obligaciones hipotecarias cubiertas: pagos de intereses (sin incluir ningún pago anticipado o pago de capital) sobre cualquier obligación hipotecaria comercial sobre bienes muebles o inmuebles incurridos antes del 15 de febrero de 2020 ("pagos de intereses hipotecarios comerciales ”); (b) obligaciones de alquiler cubiertas: pagos de alquiler o arrendamiento comercial de conformidad con contratos de arrendamiento de bienes muebles o inmuebles vigentes antes del 15 de febrero de 2020 ("pagos de alquiler o arrendamiento comercial"); y (c) pagos de servicios públicos cubiertos: pagos comerciales por un servicio de distribución de electricidad, gas, agua, transporte, teléfono o acceso a Internet cuyo servicio comenzó antes del 15 de febrero de 2020 ("pagos comerciales de servicios públicos"). Un costo elegible no relacionado con la nómina debe pagarse durante el Período cubierto o incurrirse durante el Período cubierto y pagarse en la siguiente fecha de facturación regular o antes, incluso si la fecha de facturación es posterior al Período cubierto. Los costos elegibles no relacionados con la nómina no pueden exceder el 25 % del monto total de la condonación. Cuente los costos no relacionados con la nómina que se pagaron y se incurrieron solo una vez. El monto de la condonación del préstamo que solicita el Prestatario puede estar sujeto a reducciones, como se explica en el Anexo A del PPP.

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Preparing For PPP Loan Forgiveness

duda@fcbb.com — Thu, 20 Jul 2023 01:07:06 GMT

Now that you have your PPP loan it's time to look at preparing for your "loan forgiveness".

Some may think of their PPP loan as "free money" however there are guidelines that must be followed in order to receive full loan forgiveness.

On May 15, the SBA released the loan forgiveness application , which left banks and small business owners confused. A week later the SBA prepared additional comments for release in an attempt to provide additional guidance however there were still many unanswered questions for some borrowers. With over $511 billion out in PPP loans and 79% of those being loans under $100,000 there are bound to be a lot of questions for hard working American's trying to keep their small businesses open.

We really appreciated Kyle Westaway's summary of the latest guidance on PPP loan forgiveness and think you will as well. This article provides information on what the bank will review in a forgiveness application and the timeline for the lender's decision on your forgiveness.

One question that has come up time and time again, is what costs are eligible for forgiveness? Below are eligibility guidelines directly from the SBA forgiveness application .

Summary of Costs Eligible for Forgiveness: Borrowers are eligible for loan forgiveness for the following costs:

1. Eligible payroll costs. Borrowers are generally eligible for forgiveness for the payroll costs paid and payroll costs incurred during the eight-week (56-day) Covered Period (or Alternative Payroll Covered Period) (“payroll costs”). Payroll costs are considered paid on the day that paychecks are distributed or the Borrower originates an ACH credit transaction. Payroll costs are considered incurred on the day that the employee’s pay is earned. Payroll costs incurred but not paid during the Borrower’s last pay period of the Covered Period (or Alternative Payroll Covered Period) are eligible for forgiveness if paid on or before the next regular payroll date. Otherwise, payroll costs must be paid during the Covered Period (or Alternative Payroll Covered Period). For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the covered period. Count payroll costs that were both paid and incurred only once. For information on what qualifies as payroll costs, see Interim Final Rule on Paycheck Protection Program posted on April 2, 2020 (85 FR 20811).

2. Eligible nonpayroll costs. Nonpayroll costs eligible for forgiveness consist of: (a) covered mortgage obligations: payments of interest (not including any prepayment or payment of principal) on any business mortgage obligation on real or personal property incurred before February 15, 2020 (“business mortgage interest payments”); (b) covered rent obligations: business rent or lease payments pursuant to lease agreements for real or personal property in force before February 15, 2020 (“business rent or lease payments”); and (c) covered utility payments: business payments for a service for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020 (“business utility payments”). An eligible nonpayroll cost must be paid during the Covered Period or incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period. Eligible nonpayroll costs cannot exceed 25% of the total forgiveness amount. Count nonpayroll costs that were both paid and incurred only once. The amount of loan forgiveness the Borrower applies for may be subject to reductions as explained in PPP Schedule A.

De lo malo sale lo bueno

duda@fcbb.com — Thu, 20 Jul 2023 00:59:16 GMT

¡Grandes cadenas fuera, pequeñas empresas adentro!

Un estudio reciente de la Asociación Nacional de Agentes Inmobiliarios cita datos interesantes sobre la reutilización de centros comerciales vacíos.

Las grandes cadenas se han mudado de sus tiendas físicas, dejando enormes vacantes y dolores de cabeza para los propietarios de centros comerciales y negocios independientes en esos centros comerciales que basaron su negocio en el tráfico peatonal de los ahora desaparecidos inquilinos ancla. Nombres como J Crew, Sears, Foot Locker, Nordstrom, Payless Shoes y muchos otros han desaparecido y con ellos, la pérdida de puestos de trabajo. Con estas enormes cantidades de espacio vacante, los centros comerciales han estado vendiendo a grupos de inversión a precios increíblemente reducidos, incluso tan bajos como $1 por pie cuadrado. Como ejemplo de un centro comercial remodelado está el Cloverleaf Mall en Richmond Virginia. En 2006, el centro comercial fue remodelado para un desarrollo de uso mixto de varias fases anclado en un Kroger Marketplace de 123,600 pies cuadrados que incluye espacio para oficinas, restaurantes, tiendas minoristas y un componente residencial llamado Chippenham Place. Algunos centros comerciales incluso se han convertido en centros logísticos de Amazon y otros en edificios de oficinas.

Hay muchos otros centros comerciales vacantes que han reutilizado sus centros para atraer a las pequeñas empresas independientes. Sí, estamos hablando de las mismas empresas que lucharon y perdieron negocios debido a las cadenas ahora desaparecidas.

NAR informa que las ciudades locales de todo el país se han sumado a la remodelación de estos centros comerciales no operativos con incentivos fiscales para atraer nuevos inquilinos. Algunos centros comerciales se han remodelado para incluir apartamentos e incluso senderos y parques para caminar o pasear.

Entonces, de todas las malas noticias de hoy, ¿cuál es la buena noticia? La buena noticia es que el propietario de la pequeña empresa ha regresado a estos centros comerciales reconstruidos ahora no anclados y también los trabajos. Las pequeñas empresas en los EE. UU. proporcionan más del 60% de todo el empleo según la Administración de Pequeñas Empresas y crean más de 1,5 millones de puestos de trabajo al año. BusinessInsider.com confirmó que al menos 3300 cadenas de tiendas cerrarán en 2020. Las malas noticias del cierre de las grandes cadenas brindan una oportunidad muy necesaria para los empresarios comerciales de "mamá y papá" en los EE. UU.

Desde 1994, First Choice Business Brokers ha ayudado a compradores y vendedores de pequeñas empresas. Ahora vemos el resurgimiento de los propietarios de pequeñas empresas que anteriormente pueden haber perdido negocios debido a la llegada de los centros comerciales y las grandes cadenas. Como decíamos, de lo malo sale lo bueno.

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Out Of The Bad Comes The Good

duda@fcbb.com — Thu, 20 Jul 2023 00:58:07 GMT

Big Chains Out, Small Business In!

National Association of Realtors recent study cites interesting facts regarding the re-purposing of vacant malls.

The big chains have moved from their brick and mortar stores leaving huge vacancies and headaches for mall owners and independent businesses in those malls who based their business on the foot traffic from the now gone anchor tenants. Names such as J Crew, Sears, Foot Locker, Nordstrom, Payless Shoes and many others have disappeared and with them, the loss of jobs. With these huge amounts of vacant space the malls have been selling to investment groups at unbelievably discounted prices even as low as $1 per square foot. As an example of a redeveloped mall is the Cloverleaf Mall in Richmond Virginia. In 2006 the mall was redeveloped for a multi-phased, mixed-use development anchored by a 123,600 square foot Kroger Marketplace which includes office space, restaurants, retail stores and a residential component called Chippenham Place. Some malls have even been converted to Amazon fulfillment centers and others to office buildings.

There are many other vacant malls that have repurposed their centers to bring in the small independent businesses. Yes, we are talking about the same businesses that struggled and lost business due to the now defunct chains.

NAR Reports that across the country local cities have joined in redeveloping these non-operational malls with tax incentives to bring in new tenants. Some malls have been redeveloped to include apartments and even walking/strolling paths and parks.

So, from all of today’s bad news, what is the good news? The good news is that the small business owner has returned to these now non anchored redeveloped malls and so have the jobs. Small businesses in the US provide over 60% of all employment per the Small Business Administration and create over 1.5 million jobs annually. BusinessInsider.com confirmed that at least 3,300 chain stores are closing in 2020. The bad news of the big chains closing provides a much-needed opportunity for the “mom and pop” business entrepreneurs in the US.

Since 1994, First Choice Business Brokers has been assisting buyers and sellers of small businesses. Now we see the resurgence for small business owners who may have previously lost business due to the advent of shopping malls and big chains. As we said, from the bad comes the good.

Due Diligence ¿Qué significa para la vendedora?

duda@fcbb.com — Thu, 20 Jul 2023 00:52:27 GMT

La preparación del vendedor facilita la debida diligencia

Pasos para que los vendedores se preparen para el eventual proceso de diligencia debida.

El Comprador ha hecho una oferta sobre su negocio y en el Acuerdo de Compra establece que necesita diez días para completar su diligencia debida sobre su negocio, ¿qué debe hacer usted como vendedor?

El comprador querrá ver sus estados financieros y declaraciones de impuestos si aún no se han proporcionado.

Sugerencia # 1 cuando le entrega la lista de negocios a su corredor; trate de dar los últimos 3 años de sus pérdidas y ganancias, balances y declaraciones de impuestos. Esto no solo le ahorrará mucho tiempo y le mostrará al Comprador que usted es franco con sus documentos.

El Comprador querrá validar los ingresos y los gastos que ha mostrado en sus P&L para que comprenda completamente los ingresos reclamados en el negocio.

Consejo # 2 es una gran idea dar una explicación por escrito a su agente de cualquier "agregación posterior" para que el Comprador no esté tratando de adivinar cómo llegó a sus cifras.

A menos que el Comprador comprenda cómo llegó a sus cifras de ingresos, seguirá solicitando más pruebas de ingresos.

Consejo # 3 Cuanta más información (mantenimiento de registros) proporcione a su corredor por adelantado, menos información tendrá que seguir solicitando el comprador. Trate de proporcionar la mayor cantidad de documentación (informe de impuestos sobre las ventas, etc.) a su corredor. Recuerde que dependiendo de la época del año, el Comprador querrá información financiera actualizada.

Consejo # 4 Trate de mantener su grabación al día. Se han perdido muchas ofertas debido a que el Vendedor no le informó al Comprador sobre cambios importantes en los ingresos brutos o netos.

Due Diligence ¿Qué significa para el Comprador?

Muchos compradores solicitan la debida diligencia en un negocio cuando hacen una oferta, pero no están seguros de lo que esto abarca.

El Vendedor debe proporcionarle al Comprador sus declaraciones de ingresos y posiblemente sus declaraciones de impuestos.

La diligencia debida generalmente no incluye contingencias que deban completarse, como licencias, acuerdos de empleados u otros elementos similares.

Trate de armar una lista de los elementos que desea revisar para que no esté constantemente pidiendo elementos adicionales. El Vendedor habrá sido informado por el Corredor de que necesitará proporcionar ciertos artículos a un comprador.

Como Comprador, tiene la obligación de revisar los documentos proporcionados por el Vendedor o hacer que su asesor profesional los revise. Desafortunadamente, no puede pedir ni confiar en su corredor para que complete su diligencia debida por usted.

Una vez que reciba los documentos solicitados, deberá tomar una decisión dentro del plazo establecido en el Acuerdo de Compra.

Si decide que necesita más documentación para respaldar los ingresos que reclama el Vendedor, intente hacerlo lo antes posible, ya que tiene ciertas limitaciones de tiempo para obtener estos documentos. Está bien pedirle al vendedor que explique ciertos gastos o cambios en los ingresos netos del vendedor.

Finalmente, asegúrese de comprender completamente los ingresos y gastos del negocio antes de seguir adelante.

Una vez que libere su Diligencia debida, declara que está satisfecho de que las cifras que le proporcionó el Vendedor parecen ser correctas y está avanzando en la transacción.

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Due Diligence What Does It Mean To The Seller?

duda@fcbb.com — Thu, 20 Jul 2023 00:50:00 GMT

Seller’s preparation makes smooth due diligence

Steps for sellers to prepare for the eventual due diligence process.

The Buyer has made an offer on your business and in the Purchase Agreement it states that he needs ten days to complete his due diligence on your business, what should you as the seller do?

The buyer will want to see your financial statements and tax returns if they have not already been supplied.

Tip # 1 when you give the business listing to your Broker; try to give the last 3 years of your P&L’s, Balance Sheets and tax returns. This will not only save a lot of time and will show the Buyer that you are forthright with your documents.

The Buyer will want to validate the income and expenses that you have shown on your P&L’s so that they fully understand the income claimed on the business.

Tip # 2 it is a great idea to give a written explanation to your agent of any “add backs” so that the Buyer is not trying to guess how you arrived at your figures.

Unless the Buyer understands how you arrived at your income figures he or she will keep asking for more proof of income

Tip # 3 The more information (record keeping), that you supply to your Broker up front, the less information the Buyer will have to keep asking for. Try to provide as much documentation (Sales tax reports etc.), to your Broker. Remember depending upon the time of the year, the Buyer will want up to date financials.

Tip # 4 Try to keep your recording keeping up to date. Many deals have been lost due to the Seller not letting the Buyer know of any major changes to the Gross or Net income.

Due Diligence what does it mean to the Buyer?

Many Buyers ask for Due diligence on a business when making an offer but are not sure what this encompasses.

The Seller should be supplying the Buyer, with their income statements and possibly their tax returns.

Due diligence usually does not include any contingencies that need to be completed such as licensing, employee agreements or other such items.

Try to put a list together of the items that you want to review so that you are not constantly asking for additional items. The Seller will have been advised by the Broker that he will need to supply a buyer with certain items.

As a Buyer you do have an obligation to either review those documents supplied by the Seller or have your professional advisor review the documents. Unfortunately you cannot ask or rely on your Broker to complete your Due diligence for you.

Once you receive the documents requested, you will need to make a decision within the time period set up in the Purchase Agreement.

If you decide that you need more documentation to support the income that the Seller is claiming, try to do this as soon as possible since you have certain time constraints to obtain these documents. It is OK to ask the Seller to explain certain expenses or changes to the Sellers net income.

Finally, make certain that you fully understand the income and expenses of the business before going forward.

Once you release your Due Diligence, you are stating that you are satisfied that the figures given to you by the Seller appear to be correct and you are moving forward in the transaction.

Últimas noticias sobre sus fondos de jubilación

duda@fcbb.com — Thu, 20 Jul 2023 00:40:09 GMT

La SBA anuncia un acceso más rápido a los fondos de jubilación para compras comerciales

Últimas noticias sobre la compra de un negocio con fondos de jubilación.

Si planeaba usar sus fondos de jubilación para el pago inicial o el precio total de compra de un negocio, pero se desanimó por la cantidad de tiempo adicional que tomaría, ¡tenemos EXCELENTES NOTICIAS!

El jueves 7 de mayo de 2020, la SBA anunció que los socios prestamistas preferidos, conocidos como PLP, ahora pueden aprobar estas transacciones internamente.

¿Qué significa esto para usted? No más largos tiempos de espera de la SBA.

Puede utilizar sus fondos de jubilación libres de impuestos y multas.

Ahora puede utilizar sus fondos de jubilación rápidamente y, por qué no, ¡es su dinero!

Obtenga más información sobre cómo usar sus fondos de jubilación libres de impuestos.

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Breaking News On Your Retirement Funds

duda@fcbb.com — Thu, 20 Jul 2023 00:36:29 GMT

SBA announces faster access to retirement funds for business purchases

Breaking News on purchasing a business with retirement funds.

If you planned on using your retirement funds for the down payment or total purchase price of a business but were put off by the extra amount of time it would take we've got GREAT NEWS!

Thursday, May 7th 2020 the SBA announced that preferred lending partners, known as PLPs, are now able to approve these transactions in-house.

What does this mean to you? No more extensive SBA wait time.

You can use your retirement funds free of taxes and penalties.
You can now utilize your retirement funds quickly and why not, it's your money!

Learn more about using your retirement funds tax free.

Añadir Espaldas: ¿Qué Son?

duda@fcbb.com — Thu, 15 Jun 2023 03:59:49 GMT

Comprender el verdadero ingreso neto del vendedor

Una comprensión más profunda de qué gastos del vendedor se pueden agregar de nuevo a la línea de fondo de manera realista.

El posible comprador de un taller de reparación de automóviles en venta en California notó, mientras realizaba due diligence, que un asistente de oficina figuraba en la nómina. Pero había visitado el negocio como cliente y nunca había visto a nadie trabajando en la oficina.

Al preguntar sobre esto, se enteró de que se estaba pagando un "salario" de $ 1,500 por mes a la cuñada del vendedor, y que ella figuraba como asistente de oficina, pero en realidad no trabajaba en la compañía.

Eso es un "add-back" y debe incluirse con los ingresos netos que dijo el vendedor.

El comprador estaba preocupado por este descubrimiento. También fue confusa la afirmación del vendedor de que los gastos de automóviles, como la gasolina y el seguro cobrados como costos comerciales, deberían agregarse nuevamente a las ganancias.

Estos son solo dos ejemplos de las muchas preguntas y fuentes de confusiones que pueden surgir al tratar de comprender los costos reales involucrados con la operación de un negocio. La confusión se produce porque muchos, si no la mayoría de los vendedores, intentan mostrar la menor cantidad de ingresos posible para reducir los impuestos que deben pagarse. Luego, cuando llega el momento de vender, el propietario del negocio tiene el objetivo opuesto, querer mostrar la mayor cantidad de ganancias posible para justificar el precio que se pide para el negocio.

La forma típica de resolver este dilema es que el vendedor señale los costos cobrados a la empresa pero que no son realmente necesarios para operar.

Buenos ejemplos de estos gastos son los gastos personales del propietario pagados a través del negocio, entre otros artículos.

Estas explicaciones, sin embargo, a veces plantean más preguntas de las que responden.

Cuando el comprador que estaba investigando el negocio Investigó lo que decía el vendedor, se enteró de que aunque no había nadie físicamente presente en la oficina durante el horario comercial, era necesario tener a alguien que se encargaba del trabajo de oficina. La cuñada venía por las tardes o los fines de semana para equilibrar la chequera de la compañía, verificar que todas las piezas ordenadas se cargaran contra las órdenes de reparación, comparar los estados de cuenta de los proveedores con las facturas individuales, manejar las responsabilidades de nómina e impuestos sobre las ventas y encargarse de las tareas relacionadas.

Y si bien era cierto que el vendedor estaba cobrando al negocio por sus gastos personales de automóvil, también era el hecho de que el automóvil se usaba para actividades comerciales necesarias, como recoger piezas y llevar a los clientes a su hogar u oficina.

Un estado de pérdidas y ganancias ajustado bien preparado anticipa las preguntas del comprador y define claramente qué gastos en el estado operativo son y cuáles no son necesarios para una gestión eficiente del negocio.

Pero no todos los vendedores saben cómo proporcionar esa información de una manera que sea fácil de entender. Y no todos están dispuestos a participar en una divulgación completa y completa.

Depende del comprador cuidadoso cuestionar cada elemento en el estado de ingresos y gastos. Y para hacer preguntas como:

- ¿Es necesario cada gasto detallado para operar el negocio correctamente?

- ¿El total listado para cada artículo es el gasto real, o es el costo real más bajo o más alto que lo que se ha ingresado en los libros?

El comprador de negocios inteligentes no acepta, sin lugar a dudas, las cifras enumeradas en el P&L y las finanzas de una empresa que se está considerando, pero investiga un poco para saber qué representan realmente las cifras.
Parte del trabajo de Business Brokers es interrogar al vendedor sobre cada artículo para determinar si el gasto es un "verdadero gasto comercial" o es un gasto que es necesario para administrar el negocio.

Un Business Broker competente revisará los P & L del vendedor y "refundirá" los números agregando los "gastos no esenciales" que se pagaron a través del negocio para llegar a un ingreso neto ajustado para el negocio.

Los compradores encontrarán que el 98% de los propietarios de pequeñas empresas tienen algún tipo de adición y no deben alejarse del negocio si están satisfechos con las explicaciones del vendedor de las "adición".

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Add Backs: What Are They?

duda@fcbb.com — Thu, 15 Jun 2023 03:56:15 GMT

Understanding the seller’s true Net income

A deeper understanding of which seller expenses can be added back to the bottom line realistically.

The prospective buyer of an auto repair shop for sale in California noticed, while conducting Due Diligence noticed that an office assistant was listed on the payroll. But he'd visited the business as a customer and had never seen anyone working in the office.

When inquiring about this, he learned that a "salary" of $1,500 per month was being paid to the seller's sister-in-law, and that she was listed as an office assistant, but didn't actually work at the company.

That's an "add-back" and it should be included with net income the seller said.

The buyer was troubled by this discovery. Also confusing was the seller's assertion that auto expenses, such as gas and insurance charged off as business costs, should be added back to profits.

These are just two examples of the many questions and sources of confusions that can surface when trying to understand the actual costs involved with operation of a business. The confusion comes about because many, if not most sellers attempt to show as little income as possible to reduce the taxes that have to be paid. Then, when it's time to sell, the business owner has the opposite objective, wanting to show as much earnings as possible to justify the price being asked for the business.

The typical way of resolving this dilemma is for the seller to point out the costs charged to the business but not really necessary to operate.

Good examples of these expenses are the owner’s personal expenses paid through the business amongst other items.

These explanations, however, sometimes raise more questions than they answer.

When the buyer who was investigating the business looked into what the seller was saying, he learned that although there was no one physically present in the office during business hours, it was necessary to have someone handling office work. The sister in law came in on evenings or weekends to balance the company check book, verify that all parts ordered were charged against repair orders, to compare vendor statements with individual invoices, handle payroll and sales tax responsibilities and take care of related duties.

And while it was true that the seller was charging the business for his personal auto expenses, it also was the fact that the car was used for needed business activities such as picking up parts and taking customers to their home or office.

A well prepared adjusted profit and loss statement anticipates buyer questions and clearly defines what expenses on the operating statement are, and what are not necessary for efficient management of the business.

But not every seller knows how to provide that information in a way that's easy to understand. And not everyone is willing to engage in full and complete disclosure.

It's up to the careful buyer to question every item on the income and expense statement. And to ask questions such as:

- Is each itemized expense necessary in order to operate the business properly?

- Is the listed total for each item the actual expense, or is the real cost lower, or higher than what has been entered in the books?

The smart business buyer does not accept, without question, the figures listed in the P&L and financials of a company being considered, but does some investigating to learn what the figures actually represent.
Part of the Business Brokers job is to question the seller about each items to determine if the expense is a “true business expense” or is it an expense that is necessary to run the business.

A competent Business Broker will review the seller’s P & L’s and “recast” the numbers by adding back the “non-essential expenses” that were paid through the business in order to arrive at an Adjusted net income for the business.

Buyers will find that 98% of small business owners have some type of add back and should not walk away from the business if they are satisfied with the seller’s explanations of the “add backs”.

¿Su negocio se trata solo de usted?

duda@fcbb.com — Thu, 15 Jun 2023 03:46:35 GMT

Mirando su negocio a través de los ojos del Comprador

Ideas para despersonalizar su negocio y hacerlo más deseable para los compradores.

Muchos vendedores sienten que su negocio debe reflejar su propio toque personal y, de alguna manera, eso puede ser bueno, SIN EMBARGO, no cuando está vendiendo su negocio.

Hay muchos vendedores que "personalizan" demasiado su negocio y hacen que sea demasiado sobre ellos como propietarios de negocios para que un comprador se vea a sí mismo en el negocio. Los compradores a menudo se preocupan de que el negocio dependa del vendedor y cuando esté tratando de vender su negocio, esto funcionará en su contra.

Incluso hemos visto a lo largo de los años muchos escenarios diferentes que con pequeños ajustes podrían haberse evitado. Por ejemplo, teníamos un restaurante exclusivo donde los propietarios etiquetaban cada elemento del menú con sus propios nombres, por ejemplo, Mary's Meat Loaf o Ricky's Ribs. ¿Qué sucede cuando un comprador se hace cargo de ese negocio? ¿Mantienen los elementos del menú como Mary's Meat Loaf a pesar de que su nombre es Sue? Si cambian los nombres de los elementos del menú, la reimpresión de los menús tiene un costo y, lo que es más importante, los clientes pensarán que las recetas ahora son diferentes y que no pueden pedir su comida favorita. Incluso es una buena idea mirar alrededor de su negocio con nuevos ojos. ¿Su negocio está cubierto con artículos personales como fotos familiares o fotos de su último viaje de pesca, o incluso recuerdos de logros? Los premios para un restaurante o servicios comerciales son excelentes, pero demasiados artículos personales pueden restar valor a la hora de vender.

Mire su negocio a través de los ojos de un comprador. Podría tener un negocio muy exitoso que sea propiedad de una familia con demasiada personalización. Cuando llegue el momento de vender, esto asustará a los compradores potenciales porque creen que los propietarios están tan atados a sus clientes que la empresa perderá ingresos una vez que la empresa cambie de manos.

Los vendedores de este restaurante en particular habían intentado anteriormente vender su negocio sin éxito. Cuando tomamos la lista, nos dimos cuenta de que nos estaban contratando por nuestra experiencia y, a menudo, por consejos de sentido común. Inmediatamente sugerimos que los vendedores hicieran cambios en su menú para eliminar sus nombres de cada artículo. El resultado fue que vendimos el negocio en un período de tiempo muy corto. Su negocio fue realmente exitoso, pero los compradores no pudieron ver más allá de toda la personalización con este pequeño cambio, su negocio se volvió mucho más vendible, lo que por supuesto resultó en compradores y vendedores felices.

Un comprador potencial debe creer que el negocio que se ofrece es transferible sin una pérdida importante de negocio debido a la relación de los vendedores después de que se complete la transacción.

Como Business Brokers, siempre aconsejamos a los dueños de negocios que están considerando vender que despersonalicen su negocio antes de comercializarlo. Entonces, ¿cómo elimina el propietario de la empresa la personalización, como una gran cantidad de fotos familiares, etc., sin alertar a todos de que está considerando vender? Un método del que hemos sido testigos es que el dueño del negocio considera alguna remodelación o pintura "pequeña" donde necesita quitar artículos.

La conclusión es que si está considerando vender su negocio, hable con su profesional de First Choice para revisar si su negocio no solo es vendible y deseable, sino también si su negocio está listo para venderse según la forma en que el comprador lo verá. Asegúrese de que el comprador no sienta que su negocio es "todo sobre usted".

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Is Your Business All About You?

duda@fcbb.com — Thu, 15 Jun 2023 03:35:20 GMT

Looking at your business through the eyes of the Buyer

Ideas to de-personalize your business and make it more desirable to Buyers.

Many sellers feel that their business should reflect their own personal touch and in some ways that may be good HOWEVER not when you are selling your business.

There are many sellers who over “customize” their business making it too much about them as business owners for a buyer to see themselves in the business. Buyers often have concern that the business is dependent on the seller and when you are trying to sell your business this will work against you.

We have even seen over the years many different scenarios that with small tweaks issues could have been avoided. For instance we had an upscale restaurant where the owners labelled each menu item with their own names, for example Mary’s Meat Loaf or Ricky’s Ribs. What happens when a buyer takes over that business? Do they keep the menu items as Mary’s Meat Loaf even though their name is Sue? If they do change the names of the menu items there is a cost for menus to be re-printed and more importantly will the customers think that the recipes are now different and they can’t order their favorite meal. It’s even a good idea to look around your business with fresh eyes. Is your business covered with personal items such as family photos or photos of your last fishing trip, or even mementos of achievements? Awards for a restaurant or business services are great but too many personal items can detract when selling.

Take a look at your business through the eyes of a buyer. You could have a very successful business that is family owned with too much personal customization. When it comes time to sell, this will scare off potential buyers because they believe that the owners are so tied in with their customers or clients that the business will lose revenue once the business changes hands.

The sellers of this particular restaurant had previously attempted to sell their business with no success. We realized when we took the listing that they were hiring us for our experience and often common sense advice. We immediately suggested that the sellers make changes to their menu to remove their names from each item. The result was that we sold the business within a very short time period. Their business was truly successful but buyers couldn’t see past all the personalization with this small change their business became much more saleable which of course resulted in happy sellers and buyers.

A potential buyer must believe that the business that is being offered is transferable without a major loss of business because of the relationship of the sellers after the transaction is completed.

As Business Brokers, we always advise business owners who are considering selling to de-personalize their business prior to the business being marketed. So how does the business owner remove personalization such as an abundance of family photos etc. without alerting everyone that they are considering selling? One method we have witnessed is that the business owner considers some “small” remodeling or painting where he or she needs to remove items.

The bottom line is that if you are considering selling your business, talk to your First Choice professional to review whether your business is not only saleable and desirable but also if your business is ready to sell from how the buyer will view it. Make sure that the buyer will not feel that your business is “All about you”.

¡El CALIENTE mercado de ventas de pequeñas empresas de hoy!

duda@fcbb.com — Thu, 15 Jun 2023 02:02:06 GMT

La economía hace que comprar sea una realidad

Ventas récord reportadas por el sitio web nacional BizBuySell

El mercado está caliente: los baby boomers que se jubilan y los ingresos en aumento impulsan las ventas récord de las pequeñas empresas

El informe Insight del segundo trimestre de 2018 de BizBuySell.com examina las transacciones y la demografía detrás de los niveles récord de pequeñas empresas que cambian de manos

San Francisco, CA - BizBuySell.com, el mercado de negocios para la venta más grande de Internet, informó hoy un número récord de pequeñas empresas que cambiaron de manos en la primera mitad de 2018. El crecimiento se puede atribuir en gran medida a un número creciente de Baby Boomers que salen su negocio, así como mejorar las finanzas del negocio. Los resultados completos se incluyen en el informe Insight Q2 2018 de BizBuySell, que agrega estadísticas de transacciones comerciales para la venta informadas por los corredores comerciales participantes en todo el país.

Se informó la venta de un total de 5,383 negocios en los dos primeros trimestres de 2018, lo que pone el año en camino de superar el récord de 2017 de 9,919 transacciones. Solo en el segundo trimestre, 2.705 empresas cambiaron de manos, un aumento del 6,7 por ciento con respecto al mismo período del año pasado y la mayor parte de cualquier trimestre desde que BizBuySell comenzó a rastrear datos en 2007.

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¿Cómo puedo reducir los gastos comerciales durante Covid?

duda@fcbb.com — Thu, 15 Jun 2023 01:59:34 GMT

Reducir los costos mediante la revisión de los gastos puede ayudarlo a superar estos tiempos difíciles.

Todos sabemos que cada dólar cuenta especialmente durante esta crisis.

Mientras que algunos dueños de negocios están solicitando préstamos PPP, los dueños de negocios inteligentes también están evaluando dónde se gasta cada $.

Ahora es un buen momento para examinar todos los gastos de su negocio. Uno de esos gastos son las tasas y tarifas de procesamiento de su tarjeta de crédito.

Ahora más que nunca, todos los dueños de negocios están tomando tarjetas de crédito como su principal forma de pago para un servicio sin contacto y sin contacto. Encontramos un banco de procesamiento de tarjetas de crédito que ofrece revisiones gratuitas de las tasas y tarifas de procesamiento de tarjetas de crédito. Si no pueden superar sus tarifas y cargos actuales, le pagarán $1,000*. ¿Quién no podría usar $ 1,000 adicionales en este momento? U.S. Bank Payment Solutions dice que confían en que pueden superar la mayoría de las tasas porque son un administrador directo, sin intermediarios para pagar. También descubrimos que ni siquiera requieren que tengas una cuenta bancaria en su banco.

Algunos otros gastos a considerar revisar son las primas de seguros, servicios de seguridad y servicios de nómina. Muchos proveedores de servicios comerciales ofrecen algunos de sus servicios a precios regulares sin costo alguno o con grandes descuentos, solo tiene que preguntar.

First Choice Business Brokers está ayudando a los dueños de negocios a organizar su tasa de procesamiento de tarjetas de crédito y revisiones de tarifas sin costo alguno.

¡Queremos ayudarte a ahorrar cada $ que puedas!

*Se pueden aplicar los términos y condiciones de Cumplir o Superar.

No hay ninguna obligación, no tiene nada que perder al tener una revisión de las tasas y tarifas actuales del servicio de procesamiento de tarjetas de crédito.

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Vender un negocio durante un divorcio

duda@fcbb.com — Thu, 15 Jun 2023 01:33:03 GMT

Información sobre el proceso de venta de un negocio durante un divorcio de un experto.

El Sr. Smith es dueño de algunas lavanderías. Los ha tenido durante 15 años. Ha estado casado durante 19 años. Desde hace algunos años, el Sr. Smith ha pensado en venderlos. Se puso en contacto con un par de corredores de negocios y decidió que First Choice sería su elección si decidiera vender.

Su esposa ha solicitado el divorcio, lo que fuerza la mano del Sr. Smith. Ahora debe decidir vender las lavanderías o tasarlas y comprárselas a su cónyuge pagando la mitad del valor.

Le pedimos al abogado de divorcios de Las Vegas, Rock Rocheleau, que nos ayudara a nosotros y al Sr. Smith a comprender las opciones del Sr. Smith.

Nevada es un estado de propiedad comunitaria. Lo que significa que durante un divorcio todas las propiedades y bienes adquiridos durante el matrimonio se valoran y se dividen en partes iguales. Con un negocio, como una casa, el valor puede basarse en una tasación o permitir que la casa se venda. Al permitir que un corredor comercial venda el negocio, el Sr. Smith afirma que el valor debe ser el que pagará el mercado. Esto lo convierte en la solución más fácil. Pero, ¿y si el Sr. Smith quisiera quedarse con las lavanderías?

¿Cómo se determina el valor de un negocio?

Se utilizan tres enfoques principales para determinar el valor de una empresa: Estos tres enfoques se utilizan cuando la empresa no se vende realmente en el mercado abierto.

Enfoque basado en el mercado . Compara el negocio con otros negocios similares que han vendido. Con estos datos, se asigna un valor. Similar a cómo se tasa o valora una casa.
Enfoque basado en activos . A los activos tangibles del negocio se les da un valor justo de mercado y se suman. Esto es similar a la venta de activos de una empresa, excepto que no se considera la buena voluntad de la empresa o la base de clientes.
Income-Based Approach . Evalúa el valor presente de las ganancias futuras basadas en el negocio. Este es el enfoque más común.

Mi primera impresión es que sería mejor para el Sr. Smith contratar a First Choice Business Brokers para vender el negocio. De esta manera, no hay que adivinar cuál es el valor adecuado. Pero el Sr. Smith puede querer que un negocio continúe funcionando después del divorcio. En ese caso, se deben revisar los enfoques de valoración comunes y elegir el mejor.

Market Approach to Valuing a Business

El enfoque de mercado utiliza métodos similares a los que utilizan los agentes inmobiliarios cuando determinan el valor de una propiedad. Se compara el precio de venta de otros negocios similares que han sido vendidos recientemente. El evaluador luego asigna un valor justo de mercado del negocio de propiedad comunitaria basado en el rango de precios de negocios similares.

El problema está en encontrar negocios que hayan vendido que sean verdaderamente comparables. El precio de venta de estos negocios puede haber sido influenciado por factores desconocidos, tales como:

La motivación para la venta.
Las tendencias del mercado
El negocio vendido puede haber sido descontado por alguna razón no revelada, por lo que la venta no es realmente comparable.
Es posible que otras comparaciones no sean precisas, como el tamaño de la empresa, la cantidad de empleados y las ganancias anuales.
Los activos intangibles, o la falta de ellos, pueden haber afectado la venta
Es posible que no se hayan vendido negocios similares, lo que obligó al evaluador a buscar un nicho comercial más amplio. Por ejemplo, una empresa que vende específicamente silenciadores personalizados para vehículos ecológicos puede tener que valorarse con un mercado de piezas de vehículos más amplio. Como resultado, estas valoraciones podrían inflar o devaluar considerablemente el valor real de las empresas.

Debido a todos estos factores, el enfoque de mercado dista mucho de ser preciso al dividir el negocio de bienes gananciales entre los dos cónyuges durante un divorcio.

Enfoque de activos para valorar un negocio

El método de enfoque de activos puede funcionar bien para empresas que tienen un valor basado en activos tangibles como bienes inmuebles, equipos, inventario y cuentas por cobrar. En el enfoque de activos, un tasador suma todos los activos y resta los pasivos.

Desafortunadamente, esto no es tan fácil como parece. La mayoría de las empresas tienen activos tangibles e intangibles. Un activo intangible se refiere a cosas como propiedad intelectual, contratos comerciales y buena voluntad. El enfoque de activos no tiene en cuenta estos factores al asignar un valor.

Para las prácticas profesionales cuyo valor se basa en estos activos intangibles, el enfoque de activos no suele ser el mejor método de valoración.

Enfoque de ingresos para valorar un negocio

El enfoque de ingresos utiliza diferentes enfoques matemáticos basados en el flujo de caja. El evaluador revisa la historia del negocio específico y compara sus ganancias con otros negocios similares. También se consideran los riesgos de falla. Todos estos enfoques matemáticos convierten las ganancias futuras esperadas en un valor actual.

La desventaja es que el valor se basa en una predicción en lugar del valor actual. No puede garantizar que el valor asignado coincidirá con el valor futuro de las empresas. Esto puede dejar a uno o ambos socios en corto a largo plazo.

Para el Sr. Smith, debe contratar a un experto para que valore el negocio en función del enfoque de ingresos y, al mismo tiempo, contratar a un corredor de negocios para ver a cuánto se venderían las lavanderías en el mercado abierto. De esta manera, el Sr. Smith puede elegir qué vía produce la mayor cantidad de dinero para que él y su esposa se dividan.

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¿Listo para la jubilación pero no la mecedora?

duda@fcbb.com — Thu, 15 Jun 2023 01:13:43 GMT

Ideas para mantener tu cerebro activo después de la jubilación

Por qué la vida no termina con la jubilación laboral

Como corredores de negocios durante más de 24 años, escuchamos una y otra vez a personas que desean retirarse de sus trabajos corporativos y tomar una nueva oportunidad en la vida como propietarios de negocios. Orgullosamente hemos sido parte de estos eventos que cambian la vida y estamos aquí para ayudarlo a encontrar el "negocio del próximo capítulo" perfecto.

Después de pasar años trabajando en un empleo, por fin llega el día de la jubilación. ¡Excelente!

Muchos médicos creen que una persona que deja de usar su poder mental es un gran candidato para la enfermedad de Alzheimer. La solución es muy simple. El jubilado debe dedicarse a un pasatiempo que requiera capacidad mental o considerar la posibilidad de iniciar un negocio. Muchas de las personas que contactan con nuestras oficinas son jubilados que aún son jóvenes y activos y quieren controlar su futuro.

Hoy, muy afortunadamente, vivimos en un mundo donde los 65 años todavía se consideran jóvenes. La esperanza de vida de un hombre en 1958 se consideraba de 72 años. Hoy, según la Tabla uniforme de esperanza de vida de 2013, un hombre de 70 años tiene una esperanza de vida de 27 años más.

¿Qué quiere decir esto? Significa que nunca es demasiado tarde para trabajar por cuenta propia siendo dueño de su propio negocio. Esto puede brindarle la oportunidad de disfrutar de su retiro posterior al trabajo en una nueva carrera en la que usted determina su éxito. First Choice Business Brokers tiene una gran selección de muchos negocios en venta y uno de estos podría satisfacer sus necesidades.

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Ready For Retirement But Not The Rocking Chair?

duda@fcbb.com — Wed, 14 Jun 2023 02:07:49 GMT

Ideas to keep your brain active after retirement

Why Life does not end with Job Retirement

As business brokers for over 24 years, we hear time and time again people wanting to retire from their corporate jobs and take on a new lease in life with business ownership. We’ve proudly been part of these life changing events and are here to help you find the perfect “next chapter business”.

After spending years working in a job, the day for retirement finally comes. Great!

Many doctors believe that a person who stops using their brain power is a great candidate for Alzheimer’s disease. The solution is very simple. The retiree should take up a hobby that requires brain power or consider owing a business. Many of the people who contact our offices are retirees who are still young and active and want to control their future.

Today, very luckily, we are living in a world where age 65 is still considered young. The life expectancy of a male in 1958 was considered to be 72. Today according to the Uniform Life Expectancy Table 2013 a 70 year old man has a life expectancy of an additional 27 years.

What does this mean? It means that it is never too late to become self-employed by owning your own business. This can give you the opportunity to look forward to enjoying your post job retirement in a new career where you dictate your success. First Choice Business Brokers has a large selection of many businesses for sale and one of these just might fit your needs.

Selling A Business During A Divorce

duda@fcbb.com — Fri, 09 Jun 2023 04:53:33 GMT

Information on the process of selling a business during a divorce from an expert.

Mr. Smith owns a few laundromats. He’s owned them for 15 years. He’s been married for 19 years. For a few years now Mr. Smith has thought about selling them. He’s contacted a couple of business brokers and decided First Choice would be his choice if he decided to sell.

His wife has filed for a divorce, which forces Mr. Smith’s hand. He now must decide to sell the laundromats or value them and purchase them from his spouse by pay for half of the value.

We asked Las Vegas divorce attorney Rock Rocheleau to help us and Mr. smith understand Mr. Smith’s options.

Nevada is a community property state. Which means during a divorce all the property and assets acquired during the marriage are valued and divided evenly. With a business, like a home, the value can be based on an appraisal or allow the home to be sold. By allowing the business to be sold by a business broker, Mr. Smith is stating the value should be what the market will pay. This makes for the easiest solution. But what if Mr. Smith wanted to keep the laundromats?

How Do You Determine the Value of a Business?

There are three main approaches used in determining the value of a business: These three approaches are used when the business is not actually being sold in the open market.

Market-Based Approach . Compares the business to other similar businesses that have sold. Using this data, a value is assigned. Similar to how a home is appraised or valued.
Asset-Based Approach . The tangible assets of the business are given a fair market value and added up. This is similar to an asset sell of a business except the goodwill of the business or customer base is not considered.
Income-Based Approach . Assesses the present value of the business based future earnings. This is the most common approach.

My first impression is it would be best for Mr. Smith to hire First Choice Business Brokers to sell the business. This way there is no guessing at what the proper value is. But Mr. Smith may want a business to continue running after the divorce. In that case, the common valuation approaches should be reviewed and the best one chosen.

Market Approach to Valuing a Business

The Market Approach uses similar methods that are used by real estate agents when they determine the value of a property. The sale price of other similar businesses that have been recently sold is compared. The evaluator then assigns a fair market value of the community property business based on the price range of similar businesses.

The problem is in finding businesses that have sold that are truly comparable. The selling price for these businesses may have been influenced by unknown factors, such as:

The motivation for the sale
Market trends
The business sold may have been discounted for some unrevealed reason, so the sale is not truly comparable.
Other comparisons may not be accurate, such as the size of the business, the number of employees, and annual profits.
Intangible assets, or the lack thereof, may have affected the sale
There may have been no such similar businesses sold, forcing the evaluator to look for a broader business niche. For example, a business that specifically sells custom mufflers for eco-friendly vehicles may have to be valuated with a broader vehicle parts market. As a result, these valuations could considerably inflate or devalue the businesses’ actual worth.

Because of all these factors, the Market Approach is far from accurate in dividing the community property business between the two spouses during a divorce.

Asset Approach to Valuing a Business

The asset approach method may work well for businesses that have value based on tangible assets like real estate, equipment, inventory, and accounts receivable. In the asset approach, an appraiser adds up all the assets and subtracts the liabilities.

Unfortunately, this is not as easy as it sounds. Most businesses have both tangible and intangible assets. An intangible asset refers to things like intellectual property, business contracts, and goodwill. The Asset Approach does not take these factors into account when assigning a value.

For professional practices whose value relies on these intangible assets, the asset approach is usually not the best valuation method.

Income Approach to Valuing a Business

The Income Approach uses different mathematical approaches based on cash flow. The evaluator reviews the history of the specific business and compares its profits to other similar businesses. Risks of failure are also considered. All these mathematical approaches convert expected future profits into a present-day value.

The downside is that the value is based on a prediction rather than the current standing value. It cannot guarantee the assigned value will match the businesses’ future value. This can leave one or both partners shorted in the long term.

For Mr. Smith he should hire an expert to value the business based on the income approach, while at the same time hiring a business broker to look at what the laundromats would sell for on the open market. This way Mr. Smith can choose which avenue produces the most money for him and his wife to split.

How Do I Cut Business Expenses During Covid?

duda@fcbb.com — Fri, 09 Jun 2023 04:53:32 GMT

Cutting costs by reviewing expenses can help you through these tough times.

We all know that every dollar counts especially during this crisis.

While some business owners are applying for PPP loans savvy business owners are also evaluating where every $ is spent.

Now is a great time to examine all your business expenses. One of those expenses is your credit card processing rates and fees.

Now more than ever, every business owner is taking credit cards as their main form of payment for touch-less, non-contact service. We found a credit card processing bank that is offering free reviews of credit card processing rates and fees. If they can't beat your current rates and fees, they will pay you $1,000*. Who couldn't use an extra $1,000 right now? U.S. Bank Payment Solutions says they are confident that they can beat most rates because they are a direct servicer, no middleman to pay. We also found they don't even require you to have a bank account with their bank.

Some other expenses to consider reviewing are insurance premiums, security services and payroll services. Many business service providers are offering some of their regularly priced services at no cost or deeply discounted, you just need to ask.

First Choice Business Brokers is helping business owners arrange for their credit card processing rate and fee reviews at no cost.

We want to help you save every $ you can!

*Meet or Beat terms and conditions may apply.

There is no obligation, you have nothing to lose by having a review of your current credit card processing service rates and fees.

Today’s HOT Small Business Sales Market!

duda@fcbb.com — Fri, 09 Jun 2023 04:53:32 GMT

Economy makes buying a reality

Record high sales reported by BizBuySell national website

The Market is Hot: Retiring Baby Boomers and Rising Revenues Fuel Record Small Business Sales

BizBuySell.com's Second Quarter 2018 Insight Report examines the transactions and demographics behind the record levels of small businesses changing hands

San Francisco, CA - BizBuySell.com , the Internet's largest business-for-sale marketplace, reported today a record number of small businesses changing hands in the first half of 2018. The growth can largely be attributed to a growing number of Baby Boomers exiting their business as well as improving business financials. The full results are included in BizBuySell's Q2 2018 Insight Report, which aggregates statistics from business-for-sale transactions reported by participating business brokers nationwide.

A total of 5,383 businesses were reported sold in the first two quarters of 2018, putting the year on pace to surpass 2017's record-high of 9,919 transactions. In Q2 alone, 2,705 businesses changed hands, an increase of 6.7 percent over the same time last year and the most of any quarter since BizBuySell began tracking data in 2007.

akron

5 Mistakes to Avoid When Purchasing a Small Business in Akron

1. Due Diligence

2. Financial Records

Reviewing Profit and Loss Statements

Examining Balance Sheets

Analyzing Cash Flow Statements

3. Legal Agreements

4. Market Analysis

5. Valuation

Understand the Valuation Methods

Don't Rely Solely on Seller's Numbers

Consider Future Potential

Get Professional Help

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