On April 9th and 10th, the New England Business Brokers Association is hosting a Conference titled “New Decade, New Opportunities.” The conference offers IBBA classes and workshops and is open to the public. You can learn more about the Conference and sign up for the classes and workshops at the NEBBA website.
Many of the classes and workshops at the Conference can be of value to individuals interested in buying or selling a business. There is a workshop that covers the basics of business valuation. There are two workshops that cover different ways to finance the purchase of a business. Anne Hunt, the Lead Lender Relations Specialist at the Boston SBA office, will conduct a workshop on SBA financing. Larry Carnell, of Benetrends, will explain how to use IRA funds to buy a business.
Two workshops will help individuals interested in buying or selling a business understand the sales process better. Scott Loring will present a workshop on negotiating. Marc Gudema, the writer of this blog, is conducting a workshop on managing the closing process. This workshop will present some of the problems that arise during closing and how to handle them.
There are two workshops that cover lead generation. Although they are focused on business broker lead generation, the information would be useful to any business owner. Debra Murphy will conduct a workshop on how to drive visitors to your website and increase your visibility. Glen Cooper will present a seminar on how to use LinkedIn to generate leads.
Most of the workshops are of value to business owners, but there are two workshops in particular that owners thinking of selling their businesses shouldn’t miss. Michael Coyle will present a workshop on Exit Planning. Ira Bryck, the Director of the University of Massachusetts Family Business Center, will conduct a workshop on the problems of selling a family business.
There are three IBBA courses being taught. Each is an all-day course. On Friday, Richard Mowrey is teaching course 301, Introduction to the M & A Process. In addition to business brokers, this course would be valuable to other advisors who are interested in learning more about what’s involved in the process of mergers and acquisitions. Covering both days are courses 220 and 221, Pricing Businesses.
Three workshops are being offered specifically for business brokers. Ted Burbank, who wrote a book on the subject, will teach a workshop on how to obtain up-front retainers. Jeremy Poock, an attorney, is conducting a seminar on what business brokers should do avoid legal pitfalls. Phil Steckler is leading a workshop on the attributes of successful brokers.
The cost to attend the workshops and courses is very reasonable. If you live within driving distance of Boston, there is no cost for travel or overnight stay as there would be with attending an IBBA Conference where these classes and workshops are normally presented. Check out the NEBBA website for more information and to sign up. Registration for the workshops is by one day or both. This is a great opportunity to attend workshops and increase your understanding of the buying and selling process at a very reasonable price.
Tuesday, March 9, 2010
Thursday, January 28, 2010
Is Your Business Transparent? by Paul Corrigan
Whenever an owner makes the conscious decision to sell their business, the next step is to prepare, market, and present the business to prospective buyers. Invariably, there are a few skeletons somewhere in the closet. While many a homeowner can and does paint over a reoccurring crack in the ceiling to “dress up the place”, this tactic almost never works to a seller’s advantage in a business deal.
Why? The typical business sale is reviewed by many different specialists, each of whom looks at the entire picture from a unique perspective. Attorneys, accountants, appraisers, lenders, and others may have a vested interest and/or a potential liability requiring a thorough due diligence on the project. The result is that an item which is not disclosed, never mentioned, or purposely covered up, is inevitably discovered at some point by someone. The later this discovery occurs in the sale process, the larger the issue looms and the deeper a hole in confidence and trust may grow. Thus, a seller can expect additional reporting, delays, negotiations, concessions and costs (particularly from outside professionals) to complete the transaction. In extreme cases, the whole deal may be cancelled.
Aren’t caveat emptor and “taking the Fifth” the standard mantras of business? Absolutely not! Nearly every signed document and all representations by associated professionals have warranties that the seller has disclosed all pertinent information to the best of their knowledge. Obviously, non-disclosure of, say, a chemical spill on real property could cause rescission of the contract and even legal action against the current owner. But even failure to discuss an employee who is known to be leaving in the future often leads outside parties to think “What else don’t I know about this business?” Now positions on all issues may stiffen and further hurdles are created to help ease the rising tide of uncertainty. However, if the initial discussion on employees included, “You know, Joe may be leaving the firm if his spouse takes that new job…”, a buyer looks for a solution as often as not. “Well, my brother-in-law would be great in that position. That won’t hold things up.” Now both sides take a more solution oriented approach to the negotiation.
But what if a unknown problem pops up? Of course that happens, but that is why a a pro-active stance helps discover business skeletons before someone else does. For instance, go to the state Revenue department and Disability Department and make sure your business is up-to-date by obtaining Certificates in Good Standing. Get a check on your UCC lien status. Many transactions are held up because an old paid-up unsecured debt has never had the UCC lien wiped off the books. If the lending institution no longer exists (very common today!), it can be a lengthy process to clean up these records.
Talk to an experienced business broker about what issues may affect the sale of a business. He will know what questions and information a buyer is likely to request. Being prepared for such questions and having quick access to desired information presents a business as responsive and capable. The more you see, the more you get. And doesn’t that just make a business all that much more attractive?
Why? The typical business sale is reviewed by many different specialists, each of whom looks at the entire picture from a unique perspective. Attorneys, accountants, appraisers, lenders, and others may have a vested interest and/or a potential liability requiring a thorough due diligence on the project. The result is that an item which is not disclosed, never mentioned, or purposely covered up, is inevitably discovered at some point by someone. The later this discovery occurs in the sale process, the larger the issue looms and the deeper a hole in confidence and trust may grow. Thus, a seller can expect additional reporting, delays, negotiations, concessions and costs (particularly from outside professionals) to complete the transaction. In extreme cases, the whole deal may be cancelled.
Aren’t caveat emptor and “taking the Fifth” the standard mantras of business? Absolutely not! Nearly every signed document and all representations by associated professionals have warranties that the seller has disclosed all pertinent information to the best of their knowledge. Obviously, non-disclosure of, say, a chemical spill on real property could cause rescission of the contract and even legal action against the current owner. But even failure to discuss an employee who is known to be leaving in the future often leads outside parties to think “What else don’t I know about this business?” Now positions on all issues may stiffen and further hurdles are created to help ease the rising tide of uncertainty. However, if the initial discussion on employees included, “You know, Joe may be leaving the firm if his spouse takes that new job…”, a buyer looks for a solution as often as not. “Well, my brother-in-law would be great in that position. That won’t hold things up.” Now both sides take a more solution oriented approach to the negotiation.
But what if a unknown problem pops up? Of course that happens, but that is why a a pro-active stance helps discover business skeletons before someone else does. For instance, go to the state Revenue department and Disability Department and make sure your business is up-to-date by obtaining Certificates in Good Standing. Get a check on your UCC lien status. Many transactions are held up because an old paid-up unsecured debt has never had the UCC lien wiped off the books. If the lending institution no longer exists (very common today!), it can be a lengthy process to clean up these records.
Talk to an experienced business broker about what issues may affect the sale of a business. He will know what questions and information a buyer is likely to request. Being prepared for such questions and having quick access to desired information presents a business as responsive and capable. The more you see, the more you get. And doesn’t that just make a business all that much more attractive?
Thursday, January 21, 2010
49 year-old HVAC Company
Location: Southeast Massachusetts
Listing Headline: Profitable HVAC
Description: established HVAC Company located in Southeast Massachusetts. Founded in 1960, PB employs 25 full time employees, 14 of which are Master Plumbers, 9 certified HVAC technician and the remainder office and clerical/technical staff. The company has 18 service vehicles and occupies over 10,000 sq. feet, in two buildings in a centrally located facility. The mix of business is 10% commercial and 90% residential. As example business currently has 3000 home keys of clients that are seasonal residents and perform shut off/turn on services in Fall and Spring. Geographic scope of the business is primarily The Cape & Islands but on occasion has performed contract work off Cape. Average annual sales in the past few years have been 5MM with solid repeat business.
Financial Information
Yearly Gross: $ 5,000,000+
Cash Flow: $ 711,417
Assets: $ 750,000+ (included)
Inventory: $ 25,000 +
Real Estate: not included but available on lease/lease to purchase or sale
Financing: Pending SBA Pre-Screen
Asking: $1,000,000.00
General Information
Year Established: 1960
Years Owned: 3
Facilities: 10,000 sq feet in two buildings, on office/showroom the other warehouse
Growth and Expansion: Increase base business with aggressive marketing and begin to introduce alternate energy plans such as Solar & Geothermal as alternatives to fossil fuel. The Cape has the highest energy costs in The State and new tax incentives make alternative energy payback much more realistic.
Support/Training: 30-60 days
Reason Selling: health issue
Employees: 25 FT PT
Franchise: Home-based: Re-locatable: yes
For more information, please contact
Company: ROI Corporation a BBANE Affiliate
Broker: Bill Hogan
Phone: 781-682-6209 ext. 223
Cell: 781 956 6196
Email: info@roibusinessbrokers.com
Listing Headline: Profitable HVAC
Description: established HVAC Company located in Southeast Massachusetts. Founded in 1960, PB employs 25 full time employees, 14 of which are Master Plumbers, 9 certified HVAC technician and the remainder office and clerical/technical staff. The company has 18 service vehicles and occupies over 10,000 sq. feet, in two buildings in a centrally located facility. The mix of business is 10% commercial and 90% residential. As example business currently has 3000 home keys of clients that are seasonal residents and perform shut off/turn on services in Fall and Spring. Geographic scope of the business is primarily The Cape & Islands but on occasion has performed contract work off Cape. Average annual sales in the past few years have been 5MM with solid repeat business.
Financial Information
Yearly Gross: $ 5,000,000+
Cash Flow: $ 711,417
Assets: $ 750,000+ (included)
Inventory: $ 25,000 +
Real Estate: not included but available on lease/lease to purchase or sale
Financing: Pending SBA Pre-Screen
Asking: $1,000,000.00
General Information
Year Established: 1960
Years Owned: 3
Facilities: 10,000 sq feet in two buildings, on office/showroom the other warehouse
Growth and Expansion: Increase base business with aggressive marketing and begin to introduce alternate energy plans such as Solar & Geothermal as alternatives to fossil fuel. The Cape has the highest energy costs in The State and new tax incentives make alternative energy payback much more realistic.
Support/Training: 30-60 days
Reason Selling: health issue
Employees: 25 FT PT
Franchise: Home-based: Re-locatable: yes
For more information, please contact
Company: ROI Corporation a BBANE Affiliate
Broker: Bill Hogan
Phone: 781-682-6209 ext. 223
Cell: 781 956 6196
Email: info@roibusinessbrokers.com
Wednesday, December 23, 2009
Happy Holidays From ROI
Wishing you health and happiness this Holiday Season and prosperity in the New Year. We value your friendship and thank you for your ideas and referrals. We look forward to continuing our relationship in the coming year.
Wednesday, December 9, 2009
New Listing
Large Full Service Restaurant
Listing #: (assigned once all required paperwork is submitted)
Location: Greater
Description: This beautiful full service family restaurant has been an institution in the community for over 40 years. Moderate price Italian/American concept, excellent location, extensive base of regular customers, 2 bars including 1 lounge, (liquor license to 1AM) 6000 sq ft, 200 seats, and ample off street parking. Excellent kitchen includes 3 complete kitchen stations to match demand. New POS terminals. Includes ATM, Lottery, and Keno terminals.
Financial Information
Yearly Gross: $ 2,000,000
Cash Flow: $ 150,972 per owner
Assets: Furniture, Fixtures and Equipment included in asking price
Inventory: $ 15,000 (included)
Real Estate: $ 800,000
Financing: Pending SBA Pre-Screen
Asking: $1,600,000
General Information
Year Established: 1960s
Years Owned: 45
Facilities: 6000 square foot facility with roomy kitchen, and huge basement
Concept: Moderately priced Italian American
License: Full liquor license to 1AM
Seating: 200
Parking: Plenty of off street parking
Lottery: Yes
Competition: Very little competition in town within concept
Growth and Expansion: Several significant opportunities for growth include expanded seating, banquet facility, catering, and additional focus on take-out and packaged signature. products.
Support/Training: Seller will train new owner
Reason Selling: Other interests
Employees: 65 part and full time (full/part-time?)
Franchise: ___no__ Home-based: _no____ Re-locatable: _no____
For more information, please contact
Company: ROI Corporation a BBANE Affiliate
Broker: Michael Thames
Phone: 781-682-6209 ext 207
Cell: 401-965-3032
Email: info@roibusinessbrokers.com
Information contained herein has been supplied and approved by the seller. ROI makes no claims as to the accuracy of the information. The buyer should verify all information independently during due diligence.
New Listing
Well Respected MarCom/Design Firm
Listing #: 1124
Location: Eastern Mass
Description: This full-service marketing communications and graphic design firm specializes in working with large corporate organizations across a variety of industries. This profitable, well run and highly respected firm has very long-standing relationships with an impressive list of some of the area’s best known companies.
The firm provides a broad spectrum of services, including: brand creation & development, package design, promotional program creation, web design and sales support material design. Their work is some of the best in the area. The creative talent is in place and the owner is willing to aid as needed in a smooth transition. 2008 was another growth year.
This is a great acquisition for any marcom/design firm looking to expand its client list and capacity; a mid-size advertising firm; or an industry insider looking to strike out on their own.
Financial Information
Yearly Gross: $1,758,204 (2008)
Cash Flow: $ 316,262: See Balance Sheet
Real Estate: Leased premises
Financing: Pending SBA Pre-Screen/ Some seller financing available
Asking: $699,000
General Information
Year Established: 1968
Facilities: Now in 6000 sf leased back from owner. Could be relocated to about 2500 sf
Growth and Expansion: Sales efforts could capitalize on well known client base to add more clients
Support/Training: Owner will assist in transition
Reason Selling: Owner has other interests
Employees: 8
Franchise: no Home-based: no Re-locatable: yes
For more information, please contact
Company: ROI Corporation a BBANE Affiliate
Broker: Gary Rayberg
Phone: 781-682-6209 ext. 208
Cell: 781-858-1030
Email: info@roibusinessbrokers.com
Information contained herein has been supplied and approved by the seller. ROI makes no claims as to the accuracy of the information. The buyer should verify all information independently during due diligence.
New Listing
Power Sports Dealership
Listing #: 1151
Location: Eastern MASS
Description: This power sports dealership features exclusive lines of Motorcycles, Dirt Bikes, ATVs, Jet Skis and Scooters. These include many well known name brands featuring exclusive territories. New and used machines account for 65% of sales with parts and accessories at 20% and service at about 15%. The area demographics are in a growth mode which bodes well for the new owner’s ability to grow the business. Some additional product lines may be available per owner. Also may be able to add other lines of equipment from existing manufacturers. This business has superior systems in place compared to the any competition and is ready to be taken to the next level!
Financial Information
Yearly Gross: $ 2,020,885 (2008)
Cash Flow: $103,910.00
Assets: Furniture, Fixtures, Equipment and dealerships with manufacturers approval
Inventory: $ 75,000
Real Estate: 7500+- square feet leased at $4288 per month
Financing: Some seller Financing available
Asking: $799,000
General Information
Year Established: 2004
Years Owned: 5
Facilities: Show Room, Service bays, office and parking
Competition: Very limited with exclusive product lines
Growth and Expansion: Some additional product lines may be available per owner . Also may be able to add other lines of equipment from existing manufacturers.
Support/Training: Owner will train
Reason Selling: Owner has other business interests
Employees: 5 full time
For more information, please contact
Company: ROI Corporation a BBN affiliate
Broker:
Phone: 781-682-6209 ext
Cell:
Email: @roibusinessbrokers.com
Information contained herein has been supplied and approved by the seller. ROI makes no claims as to the accuracy of the information. The buyer should verify all information independently during due diligence.
New Listing
LANDMARK CENTRAL NH RESTAURANT
Listing #:1135 BBANE 62081
Location: Central NH
Listing Headline: A rare find. Great Restaurant with high traffic count, high gross sales and large following. Real Estate is Available for sale or lease.
Description: A landmark facility and business of this caliber is seldom brought to market. The restaurant features almost 15,000 square feet of top notch furnishings and equipment. Seating is in the 450 range with ample parking on a high traffic road. A full liquor and entertainment license are currently in place. This is a jewel property and currently needs no remodeling. This business is great for an experienced operator or a small to mid size chain. Well known and highly respected serving locals and tourists alike. 69% of sales are food and 32% are Beverage. Serious inquiries only. Motivated seller. Professional valuation is on file for business and real estate.
Financial Information
Yearly Gross: $ 2,700,000
Cash Flow: $352,000
Assets: $ 450,000 included
Inventory: $ 40,000 not included
Real Estate: $ 2,600,000 offered for sale or lease
Financing: Pending SBA Pre-Screen
Asking: $995,000 (R.E and business offered at $3,595,000)
General Information
Year Established: 1990
Years Owned: 9
Facilities: State of the art and available for sale or lease.
Growth and Expansion: Use entertainment license, increase marketing
Support/Training: Management available to stay in place
Reason Selling: Owner has other business interests
Employees: 55
Franchise: no Home-based: no Re-locatable: no
For more information, please contact
Company: ROI Corporation a BBANE Affiliate
Broker:
Phone: 781-682-6209 ext.
Cell:
Email: info@roibusinessbrokers.com
Information contained herein has been supplied and approved by the seller. ROI makes no claims as to the accuracy of the information. The buyer should verify all information independently during due diligence.
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