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Why Some Florida Business Deals Fall Apart

Deals fall apart for many reasons – some reasonable, others unreasonable.

For example:

• The seller doesn’t have all his financials up to date.

• The seller doesn’t have his legal/environmental/administrative affairs up to date.

• The buyer can’t come up with the necessary financing.

• The well known “surprise” surfaces causing the deal to fall apart.

The list could go on and on and this subject has been covered many times. However, there are more hidden reasons that threaten to end a deal usually half to three-quarters of the way to closing. These hidden reasons silently lead to a lack of or loss of momentum.

This essentially means a lack of forward progress. No one notices at first. Even the advisors who are busy doing the necessary due diligence and paperwork don’t notice the waning or missing momentum. Even though a slow-down in momentum may not be noticeable at first, an experienced Florida business intermediary will catch it.

The sooner this loss of momentum is addressed, the better the chance for the deal to continue to closing. Because the root of the problem is often an emotional issue, it has to be faced directly. An advisor, the intermediary or someone close to the person should immediately make a personal visit. Another suggestion is to get the buyer and seller together for lunch or dinner, preferably the latter. Regardless of how it happens, the loss of momentum should be addressed if the sale has any chance of closing.

We have many Florida Business For Sale at this time. Please view our website to find one for you.

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Start A Business or Buy An Existing One

Building your own business is hard work. That’s why many entrepreneurs choose to buy an existing Florida business rather than starting from scratch. But how can you avoid sinking all your resources into a business that is sure to fail? What should you look for? What should you avoid?

There are several advantages to buying an existing business as opposed to starting your own. Most obviously, you save time. Suppose you want to start a retail business. It may take months for you to build an adequate inventory. Opening your own restaurant means creating your own recipes and menus; building a manufacturing business from scratch can take years. But when you purchase an existing business, the “dirty work” has already been done.

If the business you want to buy offers a product or a service, you can evaluate the operating history and better understand the demonstrated market. Are people buying the product or service? What are they willing to pay? What type of advertising has been most effective? When you start your own business, it can take many years of trial and error to establish your market. Purchasing a business can alleviate this process.

Buying an existing business will allow you to evaluate its cash flow and operating expenses, giving you a better idea of how much investment capital you will need. When you start your own business, these numbers are much more difficult to estimate, and investors consider start-up businesses higher risk than existing ones with operating histories and proven track-records.

Perhaps the biggest advantage to buying over starting a business is the existing business’s potential. You may see growth opportunities the current owner doesn’t, or maybe you have a superior business plan. Your enthusiasm and excitement for the business can revive it and help it to grow, and often relatively minor changes in advertising, personnel, or procedure can greatly improve profitability.

We have thousands of Florida businesses for sale at: www.FLORIDABusinessOpportunities.com

Why Use A Florida Business Broker

One of the most frequent questions asked by prospective business buyers is whether or not they should hire a business broker. The initial response is always: “yes… but.” The “but” is that you should “use” one, not “hire” one. A business broker can have a very specific and important role in the buying process. The “but” is related to understanding what that role is.

Business Brokers in Florida almost always represent the deal in a transactional role. The seller pays their commission and even if they are assisting you in the process.

Business-For-Sale Listings

They can provide you with access to business-for-sale listings and details about the business that you may not discover on your own.

Always Good To Have A Buffer Between You and The Seller:

They can be a conduit to help deliver bad news to the seller. There may be instances where you have to retract or modify an offer and certainly times where you’ll need to adopt an aggressive negotiating position. Since you’ll most likely need the seller to train you after the purchase, it’s not a good idea to aggravate them too severely. As such, let the business broker deliver the bad news.

The Paperwork Is Astounding

A business purchase, no matter how small, requires a tremendous amount of coordination and document chasing. The data you’ll need from a seller to evaluate a business, the documentation required to close a deal and the overall chasing that must be done between buyer/seller and their professional advisers, can be astounding. A good broker will be an enormous help putting all of it together.

A business broker cannot help you buy the right business. They can assist you, but ultimately it is up to you to make that decision. A business broker cannot afford to spend countless unpaid hours searching for the right business for you. The search is something that you must do. They’ll provide you with the tools to do it, but it’s your responsibility to get the ball rolling. A business broker cannot conduct the investigation for you. They may suggest common things to look for, but they won’t be your detective. A business broker cannot negotiate the best deal for you. Most will certainly attempt to bring all parties to a point of understanding, but if you want the best deal, then you must realize that nobody cares more about your investment than you do.

Don’t just call or email a broker inquiring about a particular listing. The point of your contact is to first determine how effectively they communicate and to get the dialogue going.

In your first contact, don’t ask for three years of financials or other confidential information. Simply express your interest and request that they send you a standard non-disclosure document to execute so they will be able to tell you more about the business – Help Them to Help You.

View our over 4,000 listings for sale at: http://www.FLORIDABusinessOpportunities.com

New Year – New Florida Business

Are you the average business buyer? You are if you are frustrated trying to buy a Florida business. More than 90% of people who want to buy a small or midsize company are discouraged. They are sick and tired of the puffery, the overpriced businesses, the losers masquerading as wannabe winners “with potential.”

Most of these people give up trying to buy a business, despite the fact that business ownership is one of the safest and most profitable ways to earn income and build net worth. They quit because they are not willing to settle for a mediocre deal. Worse, too many buyers purchase the wrong company or they buy the right company the wrong way. Yet, there is an abundance of mature, fairly priced companies for sale by-owner on the hidden market. We can show you how to find and buy them. We are Florida’s Business Brokers.

View thousands of Florida business for sale listings at:  www.FLORIDABusinessOpportunities.com

Buy A Florida Business With Your IRA or 401K

Over thirty years ago the ERISA Act created IRAs and 401(k) plans to allow investors to control their retirement savings, in contrast to traditional pension plans.


Besides investing in stocks, bonds and mutual funds, tax payers can also use these savings – which are excluded from taxes – toward financing their own business.


Using retirement funds to start up or purchase a business has become more popular since 2001, when the dot-com bubble burst and made stocks less attractive and sent hundreds of downsized executives out looking for something else to do.


Today, more and more taxpayers are cashing in their retirement accounts and placing these funds into a very specific type of trust that provides the beneficiary with the ability to use this money to make an equity contribution in a business in exchange for the trust holding a relatively high percentage of ownership in that business.


These people feel that they can get a greater return on their life savings by investing in their own business and adding in some sweat equity, and end up with a larger nest egg upon retirement.


These trusts are being organized so they can comply with the rules of the Employee Retirement Income Security Act (ERISA) and be classified as a Qualified Trust so they can receive certain benefits under the rules of the Internal Revenue Service.


One of these benefits is that the individual who withdraws his or her retirement money from a recognized tax-exempt retirement plan, like a 401(k), will not be subject to any IRS penalties for early withdrawals.


Another benefit is the opportunity to start a business debt-free by not having to borrowing start up capital and having the burden of note and interest payments. When startup companies are financed with equity from outside sources it can be the most expensive avenue of financing because the company is worth so little.


Let a Business Broker help you. Would you like to buy a business? View our 3000+ Florida business listings at: www.FLORIDABusinessOpportunities.com

Spend Money Before You Buy A Florida Business

We routinely read articles offering advice to potential business buyers on things to consider when embarking on the process of purchasing a business – as kind of a do-it-yourself guideline. But amazed at the lack of advice given to these buyers to use experienced professionals where applicable in the process instead of ‘going it alone’ .

A question that we often ask potential buyers is: Would you buy a house without proper professional involvement and representation? If not, then why would you buy something as potentially risky as another persons business without proper professional assistance?

Buying a Florida business is a simple process if you just want a write a check and be done with it. However, what’s complicated about the process is whether to write the check and, if so, what amount should the check be written for and under what terms. It is wise to recognize that making these decisions requires more skill and experience than any one individual typically possesses.

Okay, so what experience or skill is needed to make a wise buying decision about a business and where can you obtain this assistance?

When purchasing a Florida business, you should consider: the products and services offered by the business; the markets served by the business; the business’ management team, personnel and internal operations; the condition of the business’ books and finances; the nature of any contracts, agreements, or other obligations that the business is bound to or possesses the right to; a fair market value for the business; and the purchase terms for the business that can be supported by the resources of the business and the buyer – just to mention a few.

To properly evaluate these things, a potential buyer will, at a minimum, require the expertise of an attorney, an accountant and an experienced Florida Business Broker.

All in all, get the most advise as possible. Our listings are changing daily, view them often at:
www.FLORIDABusinessOpportunities.com

Are You Ready To Buy A Florida Business

The first step in this process is to find out if you are truly fully motivated to operate a small business (whether you start it or buy it). Ask yourself these questions: 

  • Do you know what kind of business you want to buy?
  • Are you “technically” qualified and experienced enough to run the business?
  • Do you have the temperament to deal with fickle customers, demanding creditors, and difficult employees?
  • Do you have the attention-to-detail that most businesses demand?
  • Can you deal with the bookkeeping requirements of the business?
  • Are you prepared to devote a great deal of time to the business ?
  • Can you deal with adversity without losing your cool?
  • Can you deal with uncertainty without losing sleep?
  • Are you a good people-person who can successfully deal with both customers and employees?
  • Can you accept the potential significant financial loss that investing in a business exposes you to?

Ready to go?

Your first step is to view all our current Florida Businesses For Sale at:   www.FLORIDABusinessOpportunities.com

Email us any questions you may have. Good luck!