chicago-land-west

Key Steps to Take When Selling Your Business: A Detailed Guide

Mon, 18 Nov 2024 20:41:13 GMT

Understanding the Value of Your Business

When it comes to selling your business, knowing its true value is crucial. This understanding helps you set a fair price and attract the right buyers. Here are some key steps to consider:

Conducting a Professional Valuation

Hire a qualified appraiser to assess your business.
Use multiple methods to get a well-rounded view of its worth.
Consider both tangible and intangible assets in the valuation.

Identifying Key Value Drivers

Look at factors that increase your business's value, such as:

Strong customer relationships
Unique products or services
Efficient operations

Focus on improving these areas before selling.

Analyzing Market Trends

Research current market conditions to understand demand.
Keep an eye on competitors and their pricing strategies.
Stay informed about economic factors that could affect your sale.

Understanding the value of your business is not just about numbers; it’s about recognizing what makes your business special and how it fits into the larger market.

Preparing Financial Statements and Records

When selling your business, having clear and organized financial statements is crucial. These documents provide potential buyers with a snapshot of your business's financial health. Here are some key steps to prepare your financial records:

Organizing Financial Documents

Gather all financial statements, including income statements, balance sheets, and cash flow statements.
Ensure that all records are up-to-date and accurately reflect your business's performance.
Create a folder or digital file for easy access to these documents.

Ensuring Tax Compliance

Review your tax returns for the past few years to ensure they are complete and accurate.
Address any outstanding tax issues or audits before listing your business for sale.
Consult with a tax professional to understand any implications of the sale on your taxes.

Highlighting Profitability

Prepare a summary that highlights your business's profitability over the years.
Include key metrics such as gross profit margin, net income, and revenue growth.
Use charts or graphs to visually represent your financial performance, making it easier for buyers to understand.

Having well-prepared financial statements not only builds trust with potential buyers but also helps you get a better price for your business.

Enhancing Business Operations

Streamlining Processes

To make your business run better, it’s important to look at how things are done. Improving efficiency can save time and money. Here are some ways to streamline processes:

Identify tasks that can be automated.
Eliminate unnecessary steps in workflows.
Use project management tools to keep everyone on track.

Improving Customer Relations

Happy customers are key to a successful business. To enhance customer relations, consider:

Asking for feedback regularly.
Offering loyalty programs to keep customers coming back.
Training staff to provide excellent service.

Upgrading Technology

Keeping up with technology can give your business an edge. Here are some upgrades to consider:

Invest in new software that fits your needs.
Use cloud storage for easy access to files.
Implement security measures to protect customer data.

Enhancing your business operations not only makes your company more attractive to buyers but also helps in achieving long-term success. Working with Chicago business brokers like First Choice Business Brokers Chicago West can provide valuable insights into what improvements can be made.

Assembling a Team of Advisors

When selling your business, having the right team of advisors can make a big difference. These experts can guide you through the process and help you make informed decisions. Here are some key advisors you should consider:

Hiring a Business Broker

A business broker can help you find potential buyers.
They understand the market and can set a fair price for your business.
Brokers handle negotiations, making the process smoother for you.

Consulting with Legal Experts

Legal advisors ensure that all contracts are clear and fair.
They help you understand your rights and responsibilities during the sale.
Having a lawyer can protect you from potential legal issues.

Engaging Financial Advisors

Financial advisors can help you understand the financial aspects of the sale.
They can assist in preparing your financial statements and records.
A good financial advisor will help you plan for taxes after the sale.

Having a strong team of advisors is crucial. They provide support and expertise that can lead to a successful sale.

Developing a Marketing Strategy

Identifying Target Buyers

To sell your business successfully, you need to know who might want to buy it. Understanding your ideal buyer is crucial. Here are some ways to identify them:

Research your industry to find potential buyers.
Look for competitors who might want to expand.
Consider investors looking for new opportunities.

Crafting a Compelling Narrative

A good story can make your business more appealing. Think about:

What makes your business unique?
The journey of your business and its achievements.
How your business can benefit the buyer.

Utilizing Online Platforms

In today’s world, online presence is key. You can:

Use social media to reach a wider audience.
List your business on online marketplaces.
Create a website that showcases your business.

A strong marketing strategy can make a big difference in attracting the right buyers and getting the best price for your business.

Negotiating the Sale

Setting Clear Objectives

When you decide to sell your business, it’s important to know what you want from the sale. Setting clear goals can help you stay focused during negotiations. Here are some objectives to consider:

The minimum price you are willing to accept.
The timeline for the sale process.
Any specific terms you want in the agreement.

Understanding Buyer Motivations

To negotiate effectively, you need to understand why the buyer wants to purchase your business. This can help you tailor your approach. Consider these motivations:

They may want to expand their current business.
They could be looking for a new investment opportunity.
They might want to enter a new market.

Handling Counteroffers

During negotiations, you may receive counteroffers from potential buyers. It’s essential to handle these carefully. Here are some tips:

Stay calm and don’t rush your response.
Evaluate the counteroffer against your objectives.
Be prepared to negotiate further if necessary.

Negotiating the sale of your business is a crucial step. Taking the time to understand your goals and the buyer's needs can lead to a successful outcome. Remember, if you’re looking to sell my business in Chicago , being well-prepared is key.

Conducting Due Diligence

When selling your business, conducting due diligence is a crucial step. This process involves gathering and reviewing important information to ensure a smooth sale. Being prepared can help you avoid surprises later on.

Preparing for Buyer Inquiries

Gather all necessary documents, including financial statements, contracts, and employee records.
Create a list of frequently asked questions that buyers might have.
Be ready to provide clear and honest answers to any inquiries.

Ensuring Transparency

Share relevant information openly with potential buyers.
Make sure that all financial records are accurate and up-to-date.
Consider having a third party review your documents to confirm their validity.

Addressing Potential Red Flags

Identify any issues that could raise concerns for buyers, such as legal disputes or financial inconsistencies.
Develop a plan to address these issues before they become obstacles in the sale.
Communicate openly about any challenges to build trust with potential buyers.

Conducting thorough due diligence not only helps in building trust but also makes the selling process smoother. By being organized and transparent, you can make a positive impression on buyers.

Finalizing the Sale Agreement

When you reach the point of finalizing the sale agreement, it’s crucial to ensure that every detail is clear and agreed upon. This step is essential for a smooth transition and to avoid any misunderstandings later on.

Reviewing Legal Documents

Carefully read through all legal documents related to the sale.
Make sure all terms are clear and fair for both parties.
Consult with a legal expert to clarify any confusing points.

Agreeing on Terms and Conditions

Discuss and agree on the final sale price.
Outline payment methods and timelines.
Specify any conditions that must be met before the sale is complete.

Securing Necessary Approvals

Ensure that all necessary approvals are obtained from relevant parties.
This may include board approvals, regulatory approvals, or other necessary consents.
Keep a record of all approvals for future reference.

Finalizing the sale agreement is a critical step that requires attention to detail and clear communication. By taking the time to review documents, agree on terms, and secure approvals, you can help ensure a successful sale.

Transitioning Ownership Smoothly

When selling your business, it’s crucial to ensure a smooth transition of ownership. This process can significantly impact the future success of the business and the satisfaction of all parties involved.

Communicating with Employees

Keep your team informed about the sale process to reduce uncertainty.
Hold meetings to address their concerns and answer questions.
Reassure them about their roles and the company’s future.

Managing Client Expectations

Notify clients about the change in ownership in a timely manner.
Explain how the transition will affect them, if at all.
Emphasize the continuity of service and support they can expect.

Ensuring Continuity of Operations

Create a detailed plan for the transition period.
Assign responsibilities to ensure that daily operations continue without interruption.
Monitor the transition closely to address any issues that arise.

A smooth transition is essential for maintaining trust and stability within the business. It helps to keep both employees and clients engaged and reassured during the change.

Post-Sale Considerations

Handling Tax Implications

After selling your business, it’s important to understand how the sale will affect your taxes. Here are some key points to consider:

Consult a tax professional to understand your new tax responsibilities.
Be aware of capital gains tax, which may apply to the profit from the sale.
Keep records of all transactions related to the sale for future reference.

Reinvesting Proceeds Wisely

Once the sale is complete, think about how to use the money you received. Here are some options:

Invest in new ventures that align with your interests.
Consider saving for retirement to secure your future.
Explore real estate or stocks as potential investment opportunities.

Reflecting on the Sale Process

Take some time to think about the entire selling experience. This can help you learn and grow:

What went well during the sale?
What challenges did you face?
How can you apply these lessons in the future?

Reflecting on your journey can provide valuable insights for your next steps. It’s a chance to celebrate your achievements and plan for what comes next.

Conclusion

Selling your business can be a big step, but it doesn’t have to be overwhelming. By following the key steps we discussed, you can make the process smoother and more successful. Remember to plan ahead, get your finances in order, and seek help from experts when needed. Take your time to find the right buyer who values your hard work. With the right approach, you can close the deal and move on to your next adventure with confidence.

The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or business advice. While every effort has been made to ensure the accuracy of the information presented, readers are encouraged to consult with qualified legal, financial, and business advisors for guidance tailored to their specific circumstances. First Choice Business Brokers Chicago West disclaims any liability for actions taken based on the content of this blog. Selling a business involves complex processes and professional assistance is recommended to ensure compliance with applicable laws and regulations.

How to Accurately Value a Small Business for Sale

Thu, 10 Oct 2024 02:48:53 GMT

Understanding the Importance of Accurate Business Valuation

Why Accurate Valuation Matters

Accurate business valuation is crucial for several reasons:

Determines the selling price : A fair valuation helps set a realistic price for your business.
Attracts buyers : Buyers are more likely to show interest if they see a well-valued business.
Facilitates negotiations : Knowing the true value aids in effective discussions with potential buyers.

Common Pitfalls in Business Valuation

Many mistakes can occur during valuation, including:

Overestimating assets : Inflating the value of physical items can mislead buyers.
Ignoring market trends : Not considering current market conditions can lead to inaccurate pricing.
Failing to update financial records : Outdated information can skew the valuation process.

The Role of Business Brokers in Valuation

Business brokers play a key role in the valuation process:

They provide expertise in assessing business worth.
Brokers can help identify potential buyers and market the business effectively.
They assist in navigating the complexities of the sale, ensuring a smoother transaction.

Understanding the importance of accurate valuation can make a significant difference in the sale process. It not only helps in setting the right price but also builds trust with potential buyers.

Key Factors That Impact Business Valuation

Financial Performance

The financial health of a business is one of the most important factors in its valuation. Strong financial performance can significantly increase a business's value. Key elements to consider include:

Revenue trends over the past few years
Profit margins and net income
Cash flow stability

Market Conditions

The overall market environment can greatly influence how much a business is worth. Factors to keep in mind are:

Economic trends and conditions
Supply and demand for similar businesses
Competition in the market

Industry Trends

Different industries have unique characteristics that can affect valuation. Important aspects include:

Growth potential of the industry
Changes in consumer preferences
Technological advancements impacting the industry

Location and Demographics

Where a business is located can also play a crucial role in its value. Consider these points:

Local economic conditions
Population demographics and trends
Accessibility and visibility of the business location

Understanding these factors can help you make informed decisions when valuing a business. By considering financial performance, market conditions, industry trends, and location, you can arrive at a more accurate valuation.

Methods for Valuing a Small Business

When it comes to selling a small business, understanding how to value it accurately is crucial. There are several methods that can help you determine the worth of your business. Here are three main approaches:

Asset-Based Approach

This method focuses on the total value of the business's assets.
It includes both tangible assets (like equipment and inventory) and intangible assets (like trademarks and patents).
The final value is calculated by subtracting liabilities from total assets.

Income-Based Approach

This approach looks at the business's ability to generate income.
It often uses metrics like cash flow or earnings before interest, taxes, depreciation, and amortization (EBITDA).
The value is determined by estimating future earnings and applying a capitalization rate.

Market-Based Approach

This method compares your business to similar businesses that have recently sold.
It helps to understand what buyers are willing to pay in the current market.
Factors like location, industry, and size play a significant role in this valuation.

Understanding these methods can help you choose the best way to value your business. Each approach has its strengths and can provide valuable insights into your business's worth.

Preparing Financial Statements for Valuation

Importance of Clean Financial Records

Having clear and accurate financial records is crucial when valuing a business. Clean records help potential buyers understand the true value of the business. Here are some key points to consider:

Ensure all income and expenses are documented.
Regularly update financial statements to reflect current data.
Keep personal and business finances separate.

Standardizing Financial Statements

Standardizing your financial statements makes it easier for buyers to compare your business with others. This includes:

Using consistent formats for income statements and balance sheets.
Following generally accepted accounting principles (GAAP).
Providing detailed notes on any unusual transactions.

Working with Accountants

Collaborating with an accountant can greatly enhance the quality of your financial statements. They can help by:

Ensuring accuracy in your records.
Offering insights into financial trends.
Preparing statements that meet industry standards.

Preparing your financial statements properly can make a big difference in how your business is valued. It shows potential buyers that you are organized and serious about the sale.

The Role of Business Brokers in Chicago

How Brokers Assist in Valuation

Business brokers in Chicago play a crucial role in helping you determine the right price for your business. They have the experience and knowledge to assess your business's worth accurately. Here are some ways they assist:

Market Analysis : They study similar businesses in your area to see what they sold for.
Financial Review : Brokers look at your financial records to understand your business's performance.
Valuation Methods : They use different methods to find a fair value for your business.

Choosing the Right Broker

Selecting the right business broker is essential for a successful sale. Here are some tips:

Experience : Look for brokers who have experience in your industry.
Reputation : Check reviews and ask for references.
Local Knowledge : Choose brokers familiar with the Chicago market, like First Choice Business Brokers Chicago West.

Broker Fees and Agreements

Understanding how brokers charge for their services is important. Here are some common fee structures:

Commission-Based : Most brokers take a percentage of the sale price.
Flat Fees : Some may charge a set fee for their services.
Retainer Fees : A few brokers might ask for an upfront payment.

Working with a knowledgeable business broker can make the selling process smoother and help you get the best price for your business.

Enhancing the Value of Your Business Before Sale

Improving Financial Performance

To make your business more appealing to buyers, focus on boosting its financial health. Here are some ways to do that:

Increase sales by improving marketing strategies.
Cut unnecessary costs to improve profit margins.
Regularly review and adjust pricing strategies to stay competitive.

Strengthening Customer Base

A strong customer base can significantly enhance your business's value. Consider these steps:

Build loyalty programs to keep existing customers.
Gather customer feedback to improve services or products.
Expand your reach by targeting new customer segments.

Upgrading Business Operations

Improving how your business runs can make it more attractive to buyers. Here are some ideas:

Invest in technology to streamline processes.
Train employees to enhance their skills and productivity.
Create clear operational procedures to ensure consistency.

Enhancing your business's value is not just about numbers; it's about creating a strong foundation that attracts buyers and ensures a smooth sale.

Legal Considerations When Selling a Business

Understanding Legal Requirements

When selling a business, it’s crucial to know the legal rules that apply. Understanding these requirements can help avoid future problems. Here are some key points to consider:

Licenses and Permits: Ensure all necessary licenses and permits are up to date.
Contracts: Review any contracts with suppliers, customers, or employees.
Compliance: Make sure your business complies with local, state, and federal laws.

Drafting Sales Agreements

A sales agreement is a legal document that outlines the terms of the sale. It’s important to have a clear and detailed agreement to protect both parties. Here are some elements to include:

Purchase Price: Clearly state how much the buyer will pay.
Payment Terms: Outline how and when payments will be made.
Assets Included: List all assets that are part of the sale.

Navigating Tax Implications

Selling a business can have tax consequences. It’s wise to understand these before finalizing the sale. Consider the following:

Capital Gains Tax: Be aware of taxes on profits from the sale.
Tax Deductions: Look into possible deductions related to the sale.
Consult a Tax Professional: Getting advice from a tax expert can help you make informed decisions.

Selling a business involves many legal steps. Taking the time to understand these can lead to a smoother process and fewer headaches later.

Marketing Your Business for Sale in Chicago

When you're ready to sell your business in Chicago , effective marketing is key to attracting the right buyers. A well-thought-out marketing plan can make all the difference. Here are some important steps to consider:

Creating a Marketing Plan

Identify Your Target Audience: Know who would be interested in your business.
Set a Budget: Decide how much you can spend on marketing.
Choose Your Channels: Think about where to advertise, like online platforms or local newspapers.

Utilizing Online Platforms

List on Business Sale Websites: Use sites that specialize in businesses for sale in Chicago.
Social Media Promotion: Share your listing on platforms like Facebook and LinkedIn.
Email Marketing: Send out emails to potential buyers or interested parties.

Engaging with Potential Buyers

Be Responsive: Answer inquiries quickly to keep buyers interested.
Provide Detailed Information: Share important details about your business, like financials and operations.
Offer Tours: Let potential buyers see the business in action.

Marketing your business effectively can lead to a quicker sale and a better price. Make sure to highlight what makes your business unique and valuable.

Negotiating the Sale of Your Business

Setting Realistic Expectations

When selling your business, it's crucial to have realistic expectations about its value and the sale process. Understanding the market and your business's worth can help you set achievable goals. Here are some tips to consider:

Research similar businesses in your area to gauge their selling prices.
Be open to feedback from potential buyers.
Prepare for negotiations by knowing your bottom line.

Handling Offers and Counteroffers

Once you start receiving offers, it's important to handle them wisely. Here’s how:

Review each offer carefully, considering both price and terms.
Don’t rush; take your time to think about each offer.
Be ready to make counteroffers that reflect your business's true value.

Closing the Deal Successfully

Closing the deal is the final step in selling your business. To ensure a smooth process, keep these points in mind:

Confirm all terms are clear and agreed upon by both parties.
Work with legal professionals to draft the necessary documents.
Stay in communication with the buyer to address any last-minute concerns.

Negotiating the sale of your business can be challenging, but with the right approach, you can achieve a successful outcome.

Post-Sale Transition and Support

Ensuring a Smooth Transition

After selling your business, it’s important to make sure everything goes smoothly. A good transition helps the new owner take over without problems. Here are some key steps to consider:

Create a Transition Plan: Outline what needs to be done during the handover.
Communicate Clearly: Keep in touch with the new owner and answer their questions.
Set a Timeline: Agree on when different tasks should be completed.

Providing Training and Support

Training the new owner and their team is crucial. This helps them understand how the business works. Here are some ways to provide support:

Offer Hands-On Training: Show them how to handle daily tasks.
Share Important Documents: Provide manuals, guides, and other resources.
Be Available for Questions: Let them know they can reach out for help.

Handling Post-Sale Legalities

After the sale, there may be legal matters to address. It’s important to:

Review Contracts: Make sure all agreements are clear and understood.
Complete Necessary Paperwork: Ensure all legal documents are filed correctly.
Consult a Lawyer if Needed: Get professional help for any complex issues.

A smooth transition not only benefits the new owner but also helps maintain the reputation of the business you built.

Conclusion

Valuing your small business correctly is very important when you want to sell it. At First Choice Business Brokers Chicago West, we help business owners figure out how much their business is really worth in Chicago. Our skilled brokers use reliable methods to give you a fair and accurate value. In this article, we discussed the main things that affect how much a business is worth and shared tips to help you understand and increase your business's value. Let us assist you in setting the right price for a successful sale.

How to Sell a Small Business in 10 steps

Tue, 10 Sep 2024 22:46:57 GMT

1. Business Valuation

Before selling your small business, it's crucial to determine its value. This step helps you set a fair price and attract serious buyers. Accurate valuation ensures you don't undervalue or overprice your business.

Steps to Valuate Your Business

Assess Assets and Liabilities : List all physical and intangible assets, and subtract liabilities.
Evaluate Earnings : Look at past earnings and future profit potential.
Market Comparison : Compare your business with similar ones recently sold in your area.
Professional Appraisal : Consider hiring a professional appraiser for an accurate valuation.

A well-done valuation can make the selling process smoother and more profitable.

For expert assistance, you can reach out to First Choice Business Brokers Chicago West. They specialize in helping small business owners with valuations and sales.

2. Financial Records

When selling your small business, having your financial records in order is crucial. Buyers will want to see a clear picture of your business's financial health.

Organize Your Financial Statements

Ensure that all your financial statements are up-to-date and accurate. This includes:

Income statements
Balance sheets
Cash flow statements

Tax Returns

Buyers will likely request to see your tax returns for the past three to five years. Make sure these documents are readily available and organized.

Profit and Loss Statements

Prepare detailed profit and loss statements. These documents help buyers understand your business's profitability over time.

Expense Reports

Keep thorough records of all business expenses. This includes receipts, invoices, and any other documentation that shows your spending.

Business Brokers Chicago West recommends keeping your financial records in pristine condition to facilitate a smoother sale process.

Financial Projections

Provide potential buyers with financial projections for the next few years. This helps them see the future potential of your business.

Professional Review

Consider having a professional accountant review your financial records. This adds credibility and can help identify any discrepancies or areas for improvement.

By maintaining well-organized and accurate financial records, you make your business more attractive to potential buyers and streamline the selling process.

3. Business Plan

Creating a solid business plan is crucial when selling your small business in Chicago . This document will provide potential buyers with a clear understanding of your business's operations, goals, and potential for growth.

Key Components of a Business Plan

Executive Summary : This section should provide a brief overview of your business, including its history, mission, and key achievements.
Business Description : Detail what your business does, the market it serves, and its unique selling points.
Market Analysis : Include information about your industry, target market, and competitors. Highlight any market trends that could impact your business.
Organization and Management : Outline your business's organizational structure, including information about the owners, management team, and board of directors.
Products or Services : Describe the products or services your business offers, including any plans for future development.
Marketing and Sales Strategy : Explain how you attract and retain customers, including your pricing strategy, advertising methods, and sales process.
Funding Request : If you are seeking funding, detail how much you need, how you will use the funds, and your proposed repayment plan.
Financial Projections : Provide financial forecasts, including income statements, cash flow statements, and balance sheets for the next three to five years.
Appendix : Include any additional information that could help potential buyers understand your business, such as resumes, permits, or lease agreements.

A well-prepared business plan can significantly increase the attractiveness of your business to potential buyers. It shows that you have a clear vision and a structured approach to achieving your goals.

At First Choice Business Brokers Chicago West, we understand the importance of a comprehensive business plan in the selling process. Our experts can help you create a plan that highlights the strengths and potential of your business, making it more appealing to buyers.

4. Legal Structure

When selling a small business, understanding and addressing the legal structure is crucial. The legal structure of your business can significantly impact the sale process, taxes, and the final deal.

Review Your Business Entity

First, identify your business entity type, such as a sole proprietorship, partnership, corporation, or LLC. Each type has different legal and tax implications.

Consult with Legal Professionals

It's essential to consult with legal professionals to ensure all legal aspects are covered. They can help you understand the legal requirements and potential liabilities.

Update Legal Documents

Make sure all your legal documents are up-to-date. This includes contracts, leases, and any other legal agreements. Buyers will want to see these documents during the due diligence process.

Address Liabilities

Identify and address any outstanding liabilities. This could include debts, pending lawsuits, or other legal obligations. Clearing these up can make your business more attractive to buyers.

Ensuring your legal structure is in order can streamline the selling process and help you avoid potential pitfalls.

By following these steps, you can ensure that your business's legal structure is well-prepared for sale. For more detailed guidance, consider reaching out to First Choice Business Brokers Chicago West .

5. Marketing Strategy

Selling a small business requires a well-thought-out marketing strategy. This step is crucial to attract the right buyers and ensure a smooth sale process.

Identify Your Target Audience

First, you need to identify who your potential buyers are. Are they individuals, other businesses, or investment groups? Knowing your audience helps tailor your marketing efforts.

Create a Marketing Plan

Develop a comprehensive marketing plan that outlines how you will reach potential buyers. This plan should include online listings, social media promotion, and possibly hiring a broker like First Choice Business Brokers Chicago West .

Utilize Online Platforms

List your business on popular online platforms where buyers search for businesses. Websites like BizBuySell and BusinessBroker.net are good places to start.

Leverage Social Media

Use social media channels to spread the word about your business sale. Platforms like LinkedIn, Facebook, and Twitter can help you reach a broader audience.

Hire a Business Broker

Consider hiring a professional business broker to help market your business. First Choice Business Brokers Chicago West can provide valuable expertise and access to a network of potential buyers.

A well-executed marketing strategy can significantly increase the chances of selling your business quickly and at a good price.

Monitor and Adjust

Keep track of your marketing efforts and be ready to make adjustments as needed. Monitor which strategies are working and which are not, and tweak your plan accordingly.

6. Finding Buyers

Finding the right buyer for your small business is crucial. Here are some steps to help you in this process:

1. Use Business Brokers

Business brokers can be a great help in finding potential buyers. They have a network of contacts and can market your business to the right audience. Consider reaching out to First Choice Business Brokers Chicago West for expert assistance.

2. Online Marketplaces

List your business on online marketplaces. Websites like BizBuySell and BusinessBroker.net are popular places where buyers look for businesses to purchase.

3. Networking

Use your personal and professional networks to spread the word. Sometimes, the best buyer is someone you already know.

4. Industry Contacts

Reach out to people in your industry. They might know someone who is looking to buy a business like yours.

5. Social Media

Promote your business sale on social media platforms. LinkedIn, Facebook, and Twitter can be effective tools to reach potential buyers.

Finding the right buyer takes time and effort, but with the right strategies, you can find someone who values your business as much as you do.

7. Negotiation

Negotiation is a critical step in selling your small business. It’s where you and the buyer come to an agreement on the terms of the sale. Here are some key points to consider:

Be Prepared

Before entering negotiations, make sure you have all your documents in order. This includes financial records, business plans, and any legal documents. Being prepared can give you an edge.

Know Your Bottom Line

Determine the lowest price you are willing to accept for your business. This will help you stay firm during negotiations and avoid making hasty decisions.

Stay Flexible

While it’s important to know your bottom line, you should also be open to compromise. Flexibility can help you reach a mutually beneficial agreement.

Use a Broker

Consider hiring a professional broker, like First Choice Business Brokers Chicago West, to assist with negotiations. They have the experience and knowledge to help you get the best deal possible.

Keep Emotions in Check

Selling a business can be an emotional process, but it’s important to stay calm and focused during negotiations. Emotional decisions can lead to poor outcomes.

Remember, the goal of negotiation is to reach an agreement that satisfies both parties. Stay patient and keep your end goal in mind.

8. Due Diligence

Due diligence is a critical step in selling your small business. It involves a thorough investigation by the buyer to verify all the information you have provided. This process helps the buyer ensure that they are making a sound investment.

What Buyers Look For

Buyers will typically examine several key areas during due diligence:

Financial Records: Buyers will scrutinize your financial statements, tax returns, and other financial documents to ensure accuracy and transparency.
Legal Issues: Any pending lawsuits, intellectual property rights, and compliance with local regulations will be reviewed.
Operational Aspects: The efficiency of your business operations, including supply chain, employee contracts, and customer relationships, will be assessed.

Preparing for Due Diligence

To make the due diligence process smoother, you should:

Organize Documents: Gather all necessary documents, including financial records, legal papers, and operational manuals.
Be Transparent: Be honest about any issues or challenges your business faces. Transparency builds trust.
Seek Professional Help: Consider hiring professionals like accountants and lawyers to help you prepare.

Pro Tip: Working with experts from First Choice Business Brokers Chicago West can make the due diligence process more efficient and less stressful.

Common Challenges

During due diligence, you might face some challenges, such as:

Time-Consuming: The process can be lengthy and may require a lot of your time and attention.
Unexpected Issues: Buyers may uncover issues you were not aware of, which could affect the sale.
Negotiation Hurdles: Findings during due diligence can lead to renegotiations of the sale terms.

By being well-prepared and transparent, you can navigate the due diligence process successfully and move closer to closing the deal.

9. Sales Agreement

Once you've found a buyer and agreed on a price, the next step is to draft a sales agreement. This document is crucial as it outlines the terms and conditions of the sale.

Key Elements of a Sales Agreement

A well-drafted sales agreement should include the following elements:

Purchase Price : Clearly state the agreed-upon price for the business.
Payment Terms : Specify how and when the payment will be made.
Assets Included : List all the assets that are part of the sale, such as equipment, inventory, and intellectual property.
Liabilities : Detail any liabilities the buyer will assume.
Warranties and Representations : Include any guarantees made by the seller about the business.
Contingencies : Outline any conditions that must be met for the sale to proceed.
Closing Date : Set a date for when the sale will be finalized.

Legal Review

Before signing, it's essential to have the sales agreement reviewed by a legal professional. This ensures that all terms are fair and legally binding.

At First Choice Business Brokers Chicago West, we recommend consulting with a lawyer to avoid any legal pitfalls.

Finalizing the Agreement

Once both parties are satisfied with the terms, the sales agreement can be signed. This is a significant milestone in the process of selling your business.

Remember , a well-prepared sales agreement protects both the buyer and the seller, making the transaction smoother and more secure.

10. Closing the Deal

Closing the deal is the final step in selling your small business. This stage involves several important actions to ensure a smooth transition.

Finalizing the Sales Agreement

Ensure that all terms and conditions agreed upon during negotiations are clearly outlined in the sales agreement. This document should be reviewed by legal professionals to avoid any misunderstandings.

Transfer of Ownership

The transfer of ownership includes handing over all business assets, such as property, inventory, and intellectual property. Make sure to also transfer any necessary licenses and permits.

Settling Financial Obligations

Before the deal is closed, settle any outstanding debts or financial obligations. This includes paying off loans, taxes, and any other liabilities.

Informing Stakeholders

Notify employees, customers, and suppliers about the change in ownership. Clear communication helps maintain trust and ensures a smooth transition.

Final Meeting

Hold a final meeting with the buyer to go over any last-minute details and ensure that both parties are satisfied with the terms of the deal.

First Choice Business Brokers Chicago West can assist you in navigating the complexities of closing the deal, ensuring a seamless transition for both you and the buyer.

Conclusion

Selling a small business can seem like a big job, but by following these 10 steps, you can make the process smoother and more successful. Remember, it's important to plan ahead, get the right help, and stay organized. Whether you're working with experts like First Choice Business Brokers Chicago West or handling things on your own, taking it step by step will help you reach your goal. Good luck with your sale, and here's to your next adventure!

How To Appraise A Business For Sale?

Thu, 08 Aug 2024 23:25:59 GMT

Understanding the Basics of Business Appraisal

Defining Business Appraisal

Business appraisal is the process of determining the value of a business. This is crucial when you are looking to buy or sell a business. Knowing the true value helps in making informed decisions.

Importance of Accurate Valuation

An accurate valuation is essential for several reasons:

It helps in setting a fair price for the business.
It aids in securing financing from banks or investors.
It ensures that all parties involved are treated fairly.

A precise valuation can make or break a deal, especially in competitive markets like business for sale Chicago .

Common Methods of Appraisal

There are several methods to appraise a business, including:

Asset-Based Approach : This method calculates the value based on the company's assets and liabilities.
Income Approach : This method looks at the business's ability to generate future income.
Market Approach : This method compares the business to similar businesses that have been sold recently.

Each method has its pros and cons, and often, a combination of these methods is used to get the most accurate valuation. For expert advice, you can consult with professionals like First Choice Business Brokers Chicago West .

Gathering Essential Financial Information

Reviewing Financial Statements

To start, you need to look at the business's financial statements. These include the balance sheet, income statement, and cash flow statement. These documents give a clear picture of the company's financial health. Make sure to check for any inconsistencies or red flags.

Analyzing Cash Flow

Cash flow analysis is crucial. It shows how money moves in and out of the business. Positive cash flow means the business can pay its bills and invest in growth. Negative cash flow could be a warning sign.

Assessing Profit Margins

Profit margins tell you how much money the business makes after all expenses. Higher profit margins usually mean the business is doing well. Compare these margins to industry standards to see how the business stacks up.

At First Choice Business Brokers Chicago West, we emphasize the importance of thorough financial analysis. This step can make or break your decision to buy a business.

Evaluating Tangible and Intangible Assets

Identifying Tangible Assets

When appraising a business, it's crucial to identify all tangible assets. These are physical items the business owns, such as:

Real estate
Equipment and machinery
Inventory
Vehicles

Tangible assets are easier to value because they have a clear market price or can be appraised by experts.

Valuing Intangible Assets

Intangible assets, while not physical, can be just as valuable. These include:

Trademarks and patents
Brand reputation
Customer lists
Proprietary technology

Valuing these assets can be tricky, but they often play a significant role in the overall worth of the business.

Intangible assets can sometimes be the most valuable part of a business, even though they don't have a physical form.

Considering Goodwill

Goodwill represents the extra value a business has beyond its tangible and intangible assets. This can come from:

Strong customer relationships
Good employee relations
High-quality products or services

Goodwill is often reflected in the price a buyer is willing to pay above the book value of the business. At First Choice Business Brokers Chicago West, we understand the importance of accurately assessing goodwill to ensure a fair valuation.

Market Analysis and Competitive Landscape

Researching Industry Trends

To appraise a business, you need to understand the industry it operates in. Researching industry trends helps you see where the market is heading. Look at reports, news articles, and expert opinions. This will give you a clear picture of the industry's future.

Analyzing Competitors

Knowing who the competitors are is crucial. Make a list of the main competitors and study their strengths and weaknesses. This will help you understand how the business stands out. You can use this information to see if the business has a competitive edge.

Understanding Market Position

The market position of a business tells you how well it is doing compared to others. Check the business's market share and customer base. A strong market position often means the business is doing well. This can make the business more valuable.

When you understand the market and the competition, you can make a better appraisal. This is where First Choice Business Brokers Chicago West can help. They have the expertise to guide you through the process.

Legal and Regulatory Considerations

Reviewing Legal Documents

When buying a business, it's crucial to go through all legal documents. These include contracts, leases, and any agreements the business has with suppliers or customers. Missing out on these can lead to unexpected problems later.

Understanding Regulatory Requirements

Every business must follow certain rules and regulations. These can be local, state, or federal laws. Make sure the business you're buying is in compliance with all of them. This can include health and safety standards, environmental laws, and employment regulations.

Assessing Potential Liabilities

You need to know if the business has any debts or legal issues. This can include pending lawsuits, unpaid taxes, or other financial obligations.

Ignoring potential liabilities can result in significant financial loss and legal troubles down the road.

By carefully considering these legal and regulatory factors, you can avoid many common pitfalls when buying a business. For expert advice, you might consider consulting with professionals like First Choice Business Brokers Chicago West.

Finalizing the Appraisal Report

Compiling the Data

After gathering all the necessary information, the next step is to compile the data. This involves organizing financial statements, asset valuations, and market analysis into a coherent format. Accuracy is crucial at this stage to ensure the final report is reliable.

Writing the Appraisal Report

When writing the appraisal report, clarity and thoroughness are key. The report should include:

An executive summary
Detailed financial analysis
Asset valuations
Market and competitive analysis
Legal and regulatory considerations

Presenting the Findings

Presenting the findings is the final step. This can be done through a written report or a formal presentation. It's important to explain the valuation methods used and justify the final appraisal value.

A well-prepared appraisal report can make a significant difference in the sale of a business. It provides potential buyers with a clear understanding of the business's worth.

For expert assistance in business appraisals, consider reaching out to First Choice Business Brokers Chicago West .

Frequently Asked Questions

The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or business advice. While every effort has been made to ensure the accuracy of the information presented, readers are encouraged to consult with qualified legal, financial, and business advisors for guidance tailored to their specific circumstances. First Choice Business Brokers Chicago West disclaims any liability for actions taken based on the content of this blog. All decisions regarding the appraisal, purchase, or sale of a business should be made with professional assistance to ensure compliance with applicable laws and regulations.

¿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.

chicago-land-west

Key Steps to Take When Selling Your Business: A Detailed Guide

Understanding the Value of Your Business

Conducting a Professional Valuation

Identifying Key Value Drivers

Analyzing Market Trends

Preparing Financial Statements and Records

Organizing Financial Documents

Ensuring Tax Compliance

Highlighting Profitability

Enhancing Business Operations

Streamlining Processes

Improving Customer Relations

Upgrading Technology

Assembling a Team of Advisors

Hiring a Business Broker

Consulting with Legal Experts

Engaging Financial Advisors

Developing a Marketing Strategy

Identifying Target Buyers

Crafting a Compelling Narrative

Utilizing Online Platforms

Negotiating the Sale

Setting Clear Objectives

Understanding Buyer Motivations

Handling Counteroffers

Conducting Due Diligence

Preparing for Buyer Inquiries

Ensuring Transparency

Addressing Potential Red Flags

Finalizing the Sale Agreement

Reviewing Legal Documents

Agreeing on Terms and Conditions

Securing Necessary Approvals

Transitioning Ownership Smoothly

Communicating with Employees

Managing Client Expectations

Ensuring Continuity of Operations

Post-Sale Considerations

Handling Tax Implications

Reinvesting Proceeds Wisely

Reflecting on the Sale Process

Conclusion

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