ROI Corporation

NEBBA Conference April 9 & 10 Woburn, MA: Don't Miss This Incredible Educational Opportunity

2010-03-09T13:14:00.000-05:00

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.

Is Your Business Transparent? by Paul Corrigan

2010-01-28T14:25:00.000-05:00

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?

49 year-old HVAC Company

2010-01-21T14:24:00.000-05:00

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

Happy Holidays From ROI

2009-12-23T12:49:00.000-05:00

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.

New Listing

2009-12-09T13:24:00.001-05:00

Large Full Service Restaurant

Listing #: (assigned once all required paperwork is submitted)

Location: Greater Providence

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

2009-12-09T13:21:00.000-05:00

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

New Listing

2009-12-09T13:18:00.001-05:00

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

New Listing

2009-12-09T13:16:00.000-05:00

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

New Listing

2009-12-09T13:08:00.000-05:00

Great Neighborhood Restaurant and Bar with additional Income. Real Estate Available!

Listing #: (assigned once all required paperwork is submitted)

Location: (MA/RI area off Rt 95 )
Description: Great business with the best food in town. 90 seats with full liquor and entertainment licenses. Serves Pizza and full lunch and Dinner. Low prices and high food quality attract the locals and those passing through town as well. Much new equipment including hood, water, Fryolators, Walk ins (rebuilt), Ice Machine, Beer System etc. POS system is in place. Ample parking. Owner is tired and says to sell. Great opportunity to own a neighborhood eatery with the security of the real estate. Owner financing available. There is a great second income from the property as well. Fantastic potential to increase sales exist. More details available.

Financial Information
Yearly Gross: $627,000 plus $138,000
Cash Flow: $50,000 plus $33,000 total $83,000
Assets: Furniture, Fixtures, equipment, client list, phone numbers
Inventory: $4,000
Real Estate: $699,000
Financing: Some seller financing available
Asking: $899,000

General Information

Year Established: 1950

Years Owned: 5
Facilities: 4300 sf, For sale or lease

Concept: Casual Dining

License: Liquor and Entertainment

Seating: 90

Parking: 50

Lottery: $18,000
Growth and Expansion: See the ROI Agent for details

Support/Training: Owner will offer training
Reason Selling: Owner is tired
Employees: 2 full 20 part-time

Franchise: no Home-based: no Re-locatable: no

For more information, please contact
Company: ROI Corporation a BBANE Affiliate

Broker: Gary Rayberg/Michael Thames

Phone: 781-682-6209 ext

Cell:

Email: info@roibusinessbrokers.com

New Listing

2009-12-09T13:05:00.001-05:00

Successful Plumbing and Heating Company

Listing #: 1136

Location: Central NH

Description: Long established company serving sixty percent residential and forty percent commercial clients with a diverse customer base. The firm offers plumbing (45%), HVAC (45%), Alternative Energy, Water Pumps and Gas Piping (10%). The owner will consider staying on and it may be possible to continue to have his license on the corporation if needed. Due to good working conditions, the employee turnover has been minimal and existing help is experienced and capable. This is a great business for an in industry buyer or someone with related experience who wants to bring the business to the next level.

Financial Information

Yearly Gross: $ 1,252,479

Cash Flow: $ 175,000
Assets: $61,000 Furniture, Fixtures, Equipment,
Inventory: $5000
Real Estate: $ 2,400 per month lease
Financing: Pending SBA Pre-Screen
Asking: $ 395,000 (Professional Valuation on File)

General Information

Year Established: 1991

Years Owned: 18
Facilities: 2,000 square foot Building

Support/Training: Owner will train and consider staying on with business
Reason Selling: Wants to let someone take the business to the next level
Employees: 5 full time

Franchise: __no___ Home-based: _no____ Re-locatable: _no____

For more information, please contact

Company: ROI Corporation

Broker: Gary Rayberg

Phone: 781-682-6209 ext. 208

Cell: 781-858-1030

Email: info@roibusinessbrokers.com

New Listing

2009-12-02T13:10:00.002-05:00

Child Safety Services

Location: Eastern Massachusetts

Description: Exceptional small business opportunity for an entrepreneur with a modest investment to generate a significant income. Company provides products and services necessary to “child proof” the home. This is a ground floor opportunity in a new industry. Little to no overhead. Business can be operated from home. Flexible, scalable, portable. Excellent track record, great clients, scores of referrals. Business is easy to learn. Training and support is available from seller and industry association. Owner has developed excellent marketing tools including great website, very effective search engine optimization, and positive local television coverage. Several opportunities to expand business including online sales, daycare safety, home safety for senior citizens, CPR/1^st aid training, car seat installations, pool fencing, and playground safety inspections. This business does well by doing good. Have fun and make money.

Financial Information

Yearly Gross: $100K in 2008 – on pace for $125K in 2009
Cash Flow: $48K in 2008
Assets: $500 (included in sale)
Inventory: $500 (included in sale)
Real Estate: NA
Asking: $$80K

General Information

Year Established: 2002

Years Owned: 8

Competition: Very little competition within 25 mile radius
Growth and Expansion: Significant growth opptys incl online product sales and development of complementary service lines

Support/Training: Seller will train new owner
Reason Selling: Growing family
Employees: 2 incl owner

Franchise: ___no__ Home-based: _Yes____ Re-locatable: _Yes____

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

New Listing

2009-12-02T12:47:00.004-05:00

Deli/ Sandwich Shop/ Pizza/Meat Market Facility with Clientele

Listing #: (assigned once all required paperwork is submitted)

Location: Hanover MA

Listing Headline: Beautiful facility with many possibilities.Long term lease possibl.e

Description: This 1150 square foot shop on busy RT 53 is set up as a gourmet Meat Shoppe and offers prepared foods as well. The build out and equipment are all top notch with a very recent investment of over $300,000. Conversion to a full service deli/ sandwich shop or other concept appears easy. The owner has other business interests and says sell. A long term lease should be available. Come with your concept and save many thousands of dollars. This is a top notch facility and location that even has a loyal following. Full equipment list available. Asking $95,000 or best reasonable offer.

Financial Information
Yearly Gross: $Not Disclosed
Cash Flow: $ Not Disclosed
Assets: $ included
Inventory: $ (included no)
Real Estate: Leased
Financing:
Asking: $95,000

General Information

Year Established: 2

Years Owned: 2
Facilities: 1150 sq foot in high traffic area. $3265 per month plus CAM
Growth and Expansion: endless possibilties

Support/Training: owner will train if needed

Reason Selling: other business interests
Employees: 0

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

New Listing

2009-12-02T12:46:00.002-05:00

Perfect for Easy Conversion to Assisted Living Facility!

Listing #: 1149A

Location: Lakes Region NH Update, New Price!!!!

Description: This main street Inn has been a center for social gatherings since before the turn of the last century. Restored with love and attention to detail over several years there is much warmth and charm from days gone by. The building shows beautifully and has been substantially updated in all systems.(Owner claims to have spent over $1,000,000 in upgrades) Featuring twelve private rooms with full baths and furnished with period antiques which are included in the asking price. The in town location could be perfect for conversion to assisted living. Two full apartments featuring two bedrooms each are also located on the top floor. These two units would be great for rental or owner/ manager quarters. Or sell as condo as they are legal condominiums. A full service restaurant and bar with function room is included with a full wall stone fireplace. Restaurant would be easy conversion to dining hall and large recreation room etc. The Inn, apartments and restaurant can be sold as a single unit but are permitted and approved as separate condos as well! Come enjoy the wonderful life style of central New Hampshire. Estimates to add elevator are on file with the broker. Owner says sell!! This could be a real money maker as an assisted living facility. Statistics indicate an increasing demand for assisted living facilities.

Financial Information
Yearly Gross: $ Not Disclosed
Cash Flow: $Not Disclosed
Assets: $800,000 plus (real estate, furnishings, restaurant equipment, etc)
Inventory: $ 0
Financing: Seller financing available for qualified buyer

Asking: $ 595,000
General Information

Year Established: Not Disclosed

Facilities: Restored building. Owner will consider offers for restaurant condo separately as well as for entire building.
Growth and Expansion: Increased Marketing and a full time owner will grow this business

Support/Training: Owner will aid in transition

Reason Selling: Part time owner is retiring for health reasons
Employees: FT 5 PT

Franchise: No Home-based: No Re-locatable: No
For more information, please contact
Company: ROI Corporation a BBANE Affiliate

Broker: Gary Rayberg

Phone: 781-682-6209 ext.

Cell: 781-858-1030

Email: info@roibusinessbrokers.com

Why Do I Need a Business Broker?

2009-11-25T14:58:00.001-05:00

You've decided to sell your small business. Congratulations, that wasn't an easy decision to make. Now you have to decide how to sell. In broad terms you have two choices. You can do it yourself or you can hire a business broker. This is an important decision as well. For most small businesses, i.e. those that sell for between $300,000 and $4 million, a business broker may charge a commission of between 6% and 15% of the sales price. That's a lot of money. Can a broker deliver value in excess of this cost? Following are two key benefits of using a broker.

Most business owners have an unrealistically high assessment of their business' value. It's easy to understand how they can feel this way. Often the business is the culmination of the owner's life's work. There's the emotional investment related to personal sacrifices the owner and his or her family made to the business' success. Selling the business can feel like the logical time for "payback". Additionally, owners approaching retirement can feel pressured to inflate the value to meet their retirement goals.

Placing an unrealistically high value on a business creates two problems. At best you will significantly increase the time it takes to sell. At worst you risk limiting or eliminating potential buyers. Qualified buyers typically have several purchase options available to them and will not waste time evaluating businesses that are overpriced.

Business brokers can help you to succeed by helping you to determine a realistic and defensible price for your business. They do this in two ways. First, the broker will complete a Brokers Opinion of Value. This is an estimate of the business' value based on the owner's discretionary cash flow and a sales multiple that is supported by recent sales of comparable businesses in the sellers industry. Second, the broker can arrange for an appraisal to be completed by independent valuation firm. Professional appraisal will establish a realistic price necessary to attract buyers and support the price in negotiations with buyers. In addition a valuation will be required for the bank and SBA if financing will be required to complete the deal.

The second benefit a broker brings is the ability to find buyers while keeping your sale confidential. The owner of a business for sale faces a bit of a paradox. On the one hand you want to create the largest possible market for your business. You're tempted to advertise, to tell everyone you know, to scream it from the rooftop in an effort to find buyers. On the other hand you have to protect the information that your business is for sale. You don't want your customers to know you want to sell because they might be tempted to try the competition. You don't want your employees to know because they might look for another job. You certainly don't want your competitors to know. You probably don't want your suppliers, your banker, or your landlord to know. So how do you advertise a secret? It's almost impossible for an owner to find a buyer while at the same time ensuring that the information does not fall into the wrong hands.

Brokers on the other hand are perfectly positioned to solve this problem. The first thing a good broker will do is sign a Confidentiality Agreement protecting your information. The broker has access to marketing vehicles the owner does not have. The broker will create ads for relevant websites, business press, broker networks, etc. that contain enough information to attract buyers without identifying you or your business. Potential buyers will respond directly to the broker to request additional information. Most brokers will require potential buyers to sign an NDA before releasing the identity of your business.

These are two ways that good brokers help owners succeed in the sale of their business. Owners are encouraged to do their homework to select the right broker. Ask for references. Make sure the broker's track record is relevant to your business. Read the listing agreement carefully and run it by your attorney before you sign. Make sure you're compatible with the broker; you're going to be working closely together for several months to possibly as long as two years before the deal closes and there will be bumps along the way. But once you find the right broker you will have taken a big step forward on the road to selling your business.

Written By: Michael Thames