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Who Will Buy Your Florida Business?

For most companies, there are several categories of prospective buyers.  The most obvious are other companies in the same business for whom the acquisition would be a logical expansion with potential economies of scale.  Consideration should also be given to suppliers and customers of the business.

However, based on our experience in selling hundreds of businesses, approximately 80% of the prospective buyers are individuals who want to control their own future.  Most of them will be moving into the area from other states and countries.

FLORIDA Business Opportunities, Inc is in continuous contact with all categories of buyers.  We utilize effective search procedures to find and screen those who are best qualified to buy.  For a confidential valuation of how much your business may be worth today, call 941-366-1500.

If you would like to compare your business to other similar ones for sale in Florida, just visit our website at:www.FLORIDABusinessOpportunities.com

Six Steps To Success When You Buy A Florida Business

Your Six Steps To Success To Buy A Florida Business:

  1. Commit to a deadline for buying a business (not just “looking” for one).
  2. Set aside time everyday to work on this project.
  3. Organize your finances.
  4. Work on determining what type of business will thrive from your strengths and not suffer from your weaknesses.
  5. Seek professional advice from a qualified business broker whom can help you in this process.
  6. Unless you have a wealth of experience buying businesses, then educate yourself about this process. Learn as much as you can. When it comes to investing in your future, you can never know too much!


Determine Your Investment Level

Determine with absolute certainty how much of your own cash you are prepared to invest. Forget any relatives who may have promised that they’ll “back you.” When the time comes to lay down the money, chances are they won’t be around.

Don’t bother looking at businesses that are unaffordable. Over 90% of small business purchases involve seller financing. Generally, this is 20% – 40% of the purchase price. If you have $100,000 to invest, don’t look at businesses that will sell for $500,000. It’s OK to dream, but be realistic.

Also, take the time to sit down with an SBA specialist abd a business broker to research all avenues for your financing if you have good credit. FLORIDA Business Opportunities is ready to help you now. View our thousands of listing today at www.FLORIDABusinessOpportunities.com

How To Value A Small Florida Business

VALUING a small Florida business is often the most challenging part of the process for prospective business buyers and sellers. In reality, it doesn’t have to be an overwhelming factor. First of all, buyers must keep in mind that the “Asking price” of a business does not necessarily represent what the business is worth. Furthermore, you should realize that a buyer’s valuation is usually quite different from what the seller believes and rightfully so; they have their sweat built in to their calculation, most of the time.

You should also know that valuation is an art, not a science. The key to establishing a valuation benchmark is to utilize a variety of formulas. We are not a fan of the “Rule of Thumb” method, since we do not believe that any two businesses are exactly the same. Valuation must be done based upon what you, as the buyer, can reasonably expect to generate in your pocket, so long as the business’ future is representative of the past historical financial data.

Having said this, the most viable valuation method for small businesses, is the multiple method. This formula applies a factor to the previous year(s) Owner Benefit figure to arrive at a purchase price. The Owner Benefit figure is a combination of several factors:
Pre Tax Profit + Owner’s Salary + Additional Owner Perks + Interest + Depreciation

Typically, small businesses will sell in a one to three times multiple of this figure. Now, this is a wide range so how do you determine what to apply? The best mechanism we have found is that a one times multiple is for those businesses where the seller is “the business”. In other words: as out the door goes the seller, so too can go the customers. Consulting businesses, professional practices, and one-man businesses come to mind.

Two to four times multiples are for businesses that have been around for several years, have shown sustainable growth, have a solid base of clients, assets that will not have to be replaced in the immediate future, are involved in growth industries, etc. Of course, there is a lot more to factor into the equation and you must always keep in mind that value is a personal assessment.

One thing that you should do is to ask the broker to provide you with the rationale for how they established the asking price. A good business broker will educate the seller regarding the market, and overall valuations and will price the business to generate the greatest amount of interest possible.

Always keep in mind the inexact nature of valuations. Use a variety of methods. Understand how the price was determined, remember that valuation is a personal formula, consider the potential return on your cash investment, never, ever buy a business just because the price is right – first and foremost be certain that the business itself is right for you!

See thousands of listings in Florida on our website at: www.FloridaBusinessOpportunities.com

Why Sell Your Florida Business Now?

The decision to sell a business with a Florida Business Broker is a very personal one, often relating to quality-of-life issues for the owner and his family. That being said, it is an extraordinarily good time to sell a business. The economy is strong. Interest rates are still low. The lending climate is favorable. And, of course, capital gains tax rates (which most business sellers can take advantage of) are at 20 percent.

Selling a business is the end of one journey and often the beginning of a new adventure. The business being sold often represents the bulk of the seller’s estate and the monetary value of the seller’s life’s work. The sale shouldn’t be rushed, but should be handled in a deliberate manner with proper professional help. The business should be prepared and packaged in a manner calculated to achieve the highest attainable price. The selling process should be managed in a way that maintains confidentiality and doesn’t interfere with day-to-day operations of the business. The transition to new ownership should be structured in a manner that ensures the continued health and viability of the business for both the employees and the new owners.

When handled correctly, the sale of a business can give the seller the money needed to start the next phase of his life, whether it leads to retirement, more time with family, the pursuit of other interests, or a new business venture. Although, at the closing, many sellers have mixed emotions about giving up their cherished “baby,” after the sale most sellers are soon exhilarated by their new-found freedom and prospects for life’s next adventure.

Learn how we can help you sell your business or view our may opportunities of businesses for sale at:www.FLORIDABusinessOpportunities.com

Buying A Florida Business vs Starting One

Every year thousands of people consider entrepreneurship. The two primary routes people use are starting their own Florida business or buying an existing one. Each path to business ownership has a variety of advantages and disadvantages that the would-be entrepreneur should consider.

Starting a Business
Starting your own business can be very rewarding, but generally requires an idea or concept that revolves around a unique product, technology, or marketing plan. Developing a business idea from scratch will usually involve less up front costs compared to buying a business, and can frequently be tested from a home or small office. You also won’t have to pay someone for goodwill. Keep in mind though that researching a new business idea is extremely important because frequently, ideas that seem to make initial sense do not after a detailed investigation. There may be little or no demand for the product or service, or competition may be so fierce that a profit cannot be made. Thorough research should tap as many resources as possible, such as the Small Business Administration, other business owners, the Internet, your local library, and relevant trade associations.
There are usually a number of disadvantages to starting your own business. You will need to attract customers, which can involve quite a bit of time and effort. Because there may be months or even years of few, if any, profits from the business, you may need to support yourself with personal savings. Financing a new business can also be very difficult. Most people rely on their family, friends, and personal funds to get them through the rough times until profitability. Another important factor to consider is the risk. The chances of survival for a start up business are very low. Some surveys indicate up to a 75% failure rate
.
Buying a Business
Buying a Florida business can be a more effective way to business ownership, but is frequently more costly. Existing business owners will expect you to pay a premium for providing you with an existing customer base and location. In addition, there can be contingent liabilities associated with buying an existing business, although structuring the transaction as anasset purchase can usually protect you from these liabilities.
The advantages to buying an existing business typically outweigh the disadvantages.
Existing businesses can usually obtain financing from financial institutions because they have an established history, assets, and a proven idea. Or, the seller of the business will provide a portion of the financing in the form of a loan. Established Florida businesses are less risky because there is an existing customer base, relationships with suppliers, operating processes, a known location, and employees have already been hired and trained. In addition, there is existing cash flow which will likely provide some immediate income to the buyer.
Experts generally agree that, in most cases, paying the extra cost for an existing business will outweigh the risks of starting one from scratch.

View our thousands of Florida Listings at: www.FLORIDABusinessOpportunities.com

Why 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.

www.FloridaBusinessOpportunities.com

Looking To Buy A Florida Business? Why?

Why are you looking to buy a Florida business? I want to:

> buying a job to earn a living
> acquiring an attractive lease or other real estate
> buying prestige (many business owners are respected community leaders)
> eliminating competition if you already have a business
> buying a hobby or retirement occupation
> seeking self-fulfillment and control of your own destiny
> seeking an opportunity for a child or other family member

Now ask yourself, what is it that I really like to do, and what is it that I’m really good at? If you have determined that you are a truly motivated buyer and you know the reasons that you want to own and operate a business, then you should begin searching only for those businesses that match what you like to do and ones that match your skills, capabilities and knowledge. Let us help you find that Florida business for your future.

Visit all of our available for sale listings at: http://www.FLORIDABusinessOpportunities.com