Small Business And Immigration: Why Business Owners And Foreign Investors Should Be Paying Attention

Immigration. Walls. Visas. Bans.

 

The news cycle in the last few months has been awash with immigration upheaval, so much so that many people have started to tune it out.

 

If you are a business owner, especially one that is considering selling sometime in the near future, you really need to be paying attention to what’s going on in the world of immigration. The negative perception recent immigration changes created may end up having a dramatic effect on your business and your ability to successfully sell.

 

If you are a foreign investor who is considering a move to the United States, you should also be paying attention because immigration issues and changes could potentially slow down those plans.

 

Take the two on-hold travel and refugee bans. These bans not only stopped people from the seven and then six Muslim-majority nations from entering the United States, it made a dramatic and symbolic declaration about where America as a whole stands on issues of religious acceptance – whether that was the intention or not. In the wake of the travel ban there was a wave of canceled trips to the United States that affected the tourism industry (and the small businesses that industry supports) in a big way. Many foreign tourists canceled their trips to the U.S. because the bans created a perception that they might be stopped at the border or might face intolerance while here.

 

The second big piece of news was the new guidelines that will affect the H-1B Visa. While this Visa isn’t typically used by small businesses, the ripple effect of changes to this Visa program are being felt across the small business world. Like the travel ban, scaling back the recruitment of specialized foreign labor, especially in the technology sector, has damaged the perception of the United States as a tolerant place to work.

 

Visas were also in the news because of the Kushner family and their pitch to Chinese investors about the EB-5 as a pathway to citizenship in the United States.

 

The EB-5 program is much smaller than it’s more well known H-1B counterpart, and is vastly different in both purpose and requirements – but the reporting on both have cast the entire Visa system in a very negative light. The EB-5 is an investor Visa, meaning those who qualify have the intention of investing a substantial amount (think upwards of $500,000) in a business within the United States that will create jobs for American citizens – and the investor is granted a Visa for themselves and their immediate family (spouses and children) in return. EB-5 Visas are good for the economy in general and have long been used to fund major building projects that would in turn help small businesses in the surrounding areas. Losing or major restriction of the EB-5 would likely cause big problems for new building projects that boost the local small business economy.

 

Another major Visa program that touches the small business world is the E2 Visa. Like the EB-5, the E2 is an investor Visa – although it requires less capital. The E2 is typically used when foreign entrepreneurs want to buy a small business and use that ownership as a means to immigrate to the United States.

 

Although the E2 hasn’t caught the attention of the media or the current presidential administration, it would be worth paying attention if your business would help a foreign investor qualify for the E2 (pre-qualifying your business opens your pool of potential buyers to international buyers – a smart move). Changes to the E2 could result in fewer foreign investors coming to the U.S., which would be bad for small business sellers and foreign investors alike.

 

What’s a business owner to do? If you are considering selling your business, you might want to keep an eye on immigration policy changes, especially if your business is one that would qualify for the E2. If you are a foreign investor, don’t panic. If you’ve been keeping tabs on our immigration news cycle then you know that every potential change to the immigration system has been met swiftly and intensely with legal maneuvering, push-back and protest. The United States is a country made up of immigrant entrepreneurs and the descendants of those immigrant entrepreneurs. Massive change has little chance of long term survival because those changes are proving to be highly unpopular.

 

Have more questions about the link between small businesses and immigration? Contact us or visit www.E2Visa.com for more.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

http://www.InfinityBusinessBrokers.com

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You Can’t Pass On Your Passion – Why You Should Sell Your Family Business

Successful entrepreneurs share one very important thing – passion.

 

They have the drive to get up every morning and push their business to success.

 

Business owners who intend to hand their family business on to the next generation should consider that passion for your business isn’t something you can pass on when you give someone the keys.

 

Your children may have worked in your business since they were very young, but ask yourself this: if they could have chosen to do anything, would they choose to do this?

 

 

What happens when a family business is handed down to someone who either lacks the drive to be a successful entrepreneur or doesn’t really want the business they are given? The business takes a nose dive and dies. We’ve seen it happen many, many times.

 

Want a better outcome and future for both your business and your kids? First and foremost, ask your children about their own passions. If running your business for the rest of their working life doesn’t make the list – sell your business instead.

 

Selling means you can get a return on the personal investment you’ve made in your business. You can use that money to enjoy your retirement or perhaps to invest in a business that your children actually want. This way you can continue the entrepreneurial tradition of your family while preserving your children’s potential for success by allowing them to do something they really want to do.

 

Don’t let an unwilling heir run your business into the ground. Sell instead!

 

Are you worried that your children don’t have the drive to run your business once you retire? Would you like to know more about how to sell and then reinvest in a business where they could be successful? Feel free to contact us today.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

http://www.InfinityBusinessBrokers.com

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How Does A Business Seller Get Top Dollar? It’s All In The Books

Unless you own an accounting firm, it’s likely that the record keeping and accounting parts of your business aren’t necessarily your daily top priority. You have a business to operate, employees to manage, inventory to sell.

 

 

However, if you are thinking about selling your business in the future – those record keeping and accounting skills will be paramount in getting you the biggest bang for your business investment.

 

How? Think about this point from a buyer’s perspective.

 

You are looking at two nearly identical businesses. They are in the same industry, in similar markets and locations and they generate the same amount of cash flow. The first business has immaculate records that stretch all the way back to the day they opened the doors – tax returns, P&L statements, inventory records, payroll records, the list goes on. When you as a buyer request records for this first business, they are already complete and organized and are handed over almost immediately.

 

For the second business, a request during due diligence for records gets you a poorly copied set of two years of tax returns and a box of receipts.

 

Remembering that these businesses are essentially the same in terms of cash flow, which one are you going to be willing to buy and which one will you pay more money for? The first business, right?

 

Why? You know what you’re getting. The history of the business, the current numbers, the contracts and leases – everything is right there for you to look at. There’s no guessing or lack of transparency. It’s all there on paper in black and white.

 

If this scenario has you instantly picturing the dusty box of receipts shoved under your desk – all is not lost. Getting your books in order may be challenging, but the return on investment of time will likely be substantial. You want buyers to be looking at how well your business is doing, not wondering how someone so disorganized keeps the doors open.

 

If you need help, help is available. Your business broker can guide you and refer you to a CPA who specializes in making records useful during a business transaction. All you need to do is ask and be upfront about the condition your records are actually in.

 

Are you panicking about the box of disaster under your desk? Would you like to know what types of records business buyers are going to want to see? Please feel free to leave any questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

http://www.InfinityBusinessBrokers.com

 

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Weighing The Experts: Are You Really Getting Expert Advice Concerning Your Small Business?

 

As a business owner, you are your own Board of Directors, as all major business decisions are made by you alone. This can be a big job, especially because you may be an expert at running your own business, but you are not an expert at everything.

 

Who do you turn to when you need an expert’s advice?

 

For many small business owners, the answer is simple; you turn to your accountant or your attorney for help. Is this a good idea? It absolutely is in some circumstances, but there are important caveats for using this advice.

 

What about my attorney?

Your attorney is probably very specialized as almost all attorneys are. This specialization in the legal field is only going to help your business if you are using the appropriate attorney for the appropriate reason. You should have a business law attorney as your primary counsel, and then employ a more specific attorney if necessary, like a business litigation attorney if you are party to a lawsuit or an attorney who specializes in labor laws for a labor dispute.

 

What if you want to sell your business?

If you are looking to sell your business, then you will need an attorney who specializes in business transactions.

 

Why not just use your primary business attorney?

There are a few reasons. First, business transactions require specific knowledge just like any other area of the law, so a business transaction attorney is going to be the most knowledgeable.

 

Second, selling a business, like all other business related decisions, comes with a bit of risk. The job of your primary attorney is to protect you from any and all risk, so they are likely to advise you against your own business sale because of the inherent risk. Non-transaction attorneys kill business deals every day, deals that would have been fine had the appropriate counsel been sought.

 

Third, transaction attorneys are more efficient at negotiating and closing business deals than an attorney who has never closed a business deal before. It will mean less billable hours and more money in your pocket if you use a transaction attorney instead.

 

What about your accountant?

Accountants are different from attorneys because they are typically not as specialized, although you should really use as your primary accountant a CPA who has experience in your particular industry. Your primary accountant should be able to help you organize your financials and prepare your tax returns.

 

What your primary accountant should not do is give you a valuation for your business, or give you a valuation for any business you are looking to purchase.

 

Why? Business valuations are complex, and there are accepted methods for preparing a business valuation that an accountant who does not specialize in this field will not know. Typical valuations done by an unqualified accountant leave business owners with unrealistic expectations in the business market. Avoid this pitfall by hiring an accountant who specializes in business valuations.

 

The message here is you should absolutely listen to the advice of your attorney and accountant, but only if they are giving you advice within their realm of expertise. Hire a team of experienced professionals, and then only use each for what they specialize in. In the long run, it will save you from suffering the consequences of uninformed advice.

 

Are you a small business owner who has dealt with the consequences of uninformed advice? Leave us a comment or question here, and we will be happy to assist with getting you more informed answers.

 

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

http://www.InfinityBusinessBrokers.com

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5 Tips for Productivity in the Workplace

By Guest Contributor Jessica Trippler – www.BrinkResults.com

 

Here are five time management tips to help you with productivity at the office:

 

Time management in the workplace is a constant challenge. Disruptions, distractions and deadlines can keep your to-do list growing while leaving you feeling overwhelmed by failure.

 

Here are five time management tips to help you with productivity at the office:

 

1. PRIORITIZE: It’s easy to get caught up in routine tasks and busywork. Before you know it, hours have ticked by. Constantly ask yourself, “Is this the best use of my time at this minute?” Know what your big picture goals are and prioritize thoughts, conversations and activities which will have the greatest payoff. Make sure your goals are clearly defined, and devote the bulk of your time to work which produces results.

 

2. CLEAR THE CLUTTER: Don’t waste time looking for lost papers. Sort paperwork as soon as it comes in, with several different files designating the next action which needs to be taken. For example, you might have folders labeled: “To Read,” “To File,” “To Contact,” etc. Piles of paperwork are not only depressing, they may be distracting you from maintaining focus. Clear the clutter off your workspace so you can give the task at hand your full attention.

 

3. GIVE TECHNOLOGY A TIME-OUT: This is a tough one in today’s fast-paced, technology-driven marketplace. You may think you need to respond to business emails the minute they come in. However, research has proven that electronic interruptions make us less productive. Turn your email alerts off, and let voicemail answer your calls. Experts recommend checking your messages just three times a day: first thing in the morning, right after lunch and before you head home for the evening. This will allow you to respond in a timely manner to pressing issues, yet avoid wasting time on off-task communications.

 

4. MAKE A RECORD: For one week, write down how much time you spend on each task at work. Record all your thoughts, conversations and activities so you can understand where your time goes. You might be surprised to note how much time is wasted on unproductive tasks and conversations. This awareness will automatically make your more industrious.

 

5. ROCK YOUR ROUTINE: Once you’ve analyzed your time wasting habits, establish a new routine that prioritizes productivity. Create a daily schedule which assigns specific times to the tasks that will help you achieve your goals. Take the first 30 minutes of each day to plan your schedule, and set calendar alerts to remind you of your allotted time for each task. Build in solitary time, with the office door closed, designated for high-priority work. Set “office hours” for spontaneous demands, and make sure you build in time to tackle your to-do list so the mundane tasks stay manageable.

 

 

 

 

Jessica Trippler
Director of Client Services

Hire Right. Train Right. Manage Right.
Brink Results, LLC
10060 Amberwood Road
Fort Myers, FL 33913
Office: 239.334.1050 Ext. 204
Cell: 201.563.2243
Fax: 239.288.2493
www.BrinkResults.com
Request your complimentary PDP Report today<http://www.brinkresults.com/free-survey/>

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

http://www.InfinityBusinessBrokers.com

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Hire Right the First Time

By guest contributor Jessica Trippler – www.BrinkResults.com

“I hired someone with lots of experience, so why is their performance lacking?”

 

If you are a hiring manager, this is likely a familiar frustration. You hired someone with all the right skills and knowledge, but they can’t seem to get the job done. Maybe you’ve tried to “train right,” equipping your new hire with the tools for success, and to “manage right,” giving clear direction and frequent feedback. But if you didn’t “hire right” in the first place, then your efforts may seem futile.

 

Did you know that only 20 percent of employees studied over a 16-year period were in a job that “fit” their talents? It’s important to recognize that different jobs require different sets of behaviors and values for success. For example, extroversion is ideal for a salesperson, but introversion better suits a researcher. Selecting the right person for the job goes beyond resume credentials and interview skills.

 

The first step to hiring right is identifying the key indicators for success for the position you’re seeking to fill. Once those behavioral metrics have been established, you’re ready to screen candidates for potential matches.
The statistically proven PDP® survey system can take the guesswork out of hiring. It starts with ProScan®, a quick, non-threatening assessment tool which focuses on an individual’s strengths and motivators. Once applicants have taken this survey, JobScan® will find candidates who best “fit” the Job Model for a specific position.

 

No screening process can predict success 100 percent of the time, but PDP comes close. It has a 96 percent accuracy rate, offering a standard of reliability far beyond the “hit or miss” method of hiring based on resume credentials and interviewing skills alone. Using this precision hiring tool will boost your confidence that you have selected the best candidate for the job.

 

Inc. magazine ranks behavioral assessment among the “Four hiring practices of highly successful organizations.” When you survey applicants about their values and motivations, and match their talents to a specific job, you’re well on your way to “hiring right.”

 

Here are few other tips for conducting a successful interview:
● Simulate a “typical” task. This will allow you to gauge specific job-related skills, observe how a candidate interacts with existing team members and how he or she works under pressure. If time does not permit, ask the candidate to prepare something in advance to present in person, or assign a “homework” task after the interview.
● Evaluate email communication. Note how well candidates express themselves in writing, as well as the timeliness of their follow-up.
● Get the team involved. It’s critical to observe how well candidates jell with your current team. Your employees will bring differing perspectives and insights to the hiring discussion. New hires should complement and enhance the existing team.
● Check references. This may seem obvious, but too often this step is skipped. Don’t be afraid to ask former employers tough questions, and ask follow-up questions if you receive a vague answer.
The bottom line is this: Bad hiring costs your company money. It can result in disengaged employees, frustrated managers and high turnover rates. While retention may be improved through better training and management practices, it’s best to hire right the first time. That way, you will be certain your new hire has what it takes to become a high performing employee.

 

 

Jessica Trippler
Director of Client Services

Hire Right. Train Right. Manage Right.
Brink Results, LLC
10060 Amberwood Road
Fort Myers, FL 33913
Office: 239.334.1050 Ext. 204
Cell: 201.563.2243
Fax: 239.288.2493
www.BrinkResults.com
Request your complimentary PDP Report today<http://www.brinkresults.com/free-survey/>

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

http://www.InfinityBusinessBrokers.com

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3 Reasons This Is Your Year To Sell

 

Thinking about selling your business? The time is now. Here’s why:

 

● The economy is still in an upward trend, which means prospective buyers have access to the capital they need to purchase a business. The small business market is also booming, back up to levels we haven’t seen since the beginning of 2008. If you are a small business owner who survived the recent recession, you might remember how wonderful everything seemed in early 2008, right before the bubble popped. We might not be on the brink of another recession, but market fluctuations are difficult if not impossible to predict.

 

● We will also have a wave of Baby Boomer owned businesses hitting the market in the next few years, and as with anything else, oversupply will mean lower selling prices than you would get today.

 

● You also need to consider that it takes somewhere in the neighborhood of 9 to 12 months to sell the average business. Timing is everything, so if you start the process now you may not have your business sold until 2018. There’s no way to know that the next year or two might bring, so be preemptive instead of reactive and get your business listed in a positive market.

 

Would you like to know what businesses like yours have recently sold for? Do you have questions about the selling process? Please feel free to leave us any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

http://www.InfinityBusinessBrokers.com

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Hey Business Seller, Do You Know What Buyers Are Looking For?

When you are thinking about putting your business on the market, or have already done so, you may think you have considered all of the elements involved in a business sale, like finding a good business broker and making sure your financial records are in order. While a good business broker and complete financials are important, they aren’t the most important element of a business sale.

 

So, what is the most important element in a business sale? The answer to that question is simple.

 

Is someone willing to buy my business?

 

Have you thought about what a buyer is looking for when they are considering purchasing your business? Looking at your business from a buyer’s perspective is critical if you want to have a successful sale. Here are some points to consider:

 

 

First and foremost business buyers are going to consider price. The best way to attract good buyers is to price your business fairly right out of the gate. Negotiation games will drive potential buyers away, so talk with your business broker about how to price your business appropriately. A fair price is one that you can justify, either through your financial records or by other means specific to your industry.

 

The next major consideration? Will your business fit the life your buyer wants to have? Be ready to answer questions about the hours you put in, what kind of pay you take home, and what kinds of regular responsibilities they will need to accomplish on a daily basis.

 

Why are you selling your business? Buyers who ask why the business is for sale are looking for potential problems. Are you selling because you are ready to retire, or because you are trying to get off of a sinking ship? If you are trying to sell your business for health reasons (a subject that is obviously a private one) you may need to be prepared to disclose this detail if a buyer asks in order to dispel any doubts they may have about the business.

 

A buyer will also want to know what is included in the business sale, so this information should be ready as soon as you list your business. Are they buying a name, a customer list, inventory, equipment, etc.? The relationships you have built with your clientele and your suppliers are likely crucial to the success of your business, so a buyer will want to know that they can retain these relationships when they take over.

 

Lastly, a potential buyer will want to know if you are willing to help them get started. You are the person with the most expertise in your particular business, so a new owner will want to know that they have your support in making a successful transition. Are you willing to stay on for training? How long of a training period are you willing to do, or do you think the new owner will need? Would you be available on a consulting basis longer term and after the training period has ended?

 

What are potential buyers looking for? They are looking for a chance to own their own business, one they are confident about and that they were able to purchase at a reasonable price. If you as a seller can put yourself in the shoes of a buyer, you will have a much better vision of how your business needs to come across to potential buyers.

 

Are you a business seller who would like to know more about how to make your business appealing to potential buyers? Leave us a comment or question here, and we will be happy to assist you.

 

 

 

 

 

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

https://infinitybusinessbrokers.com

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Business Sellers: Surviving The Negotiation Table

The negotiation table in a business deal can be tough, especially if you are a business owner who is deeply passionate about the business you have worked so hard to create.

 

The key to surviving the negotiation part of your business transaction is to be objective and employ the following strategies:

 

 

  • Negotiate with your head, not your heart. Typically the first offer from a prospective buyer is low, but what you need to remember is this number is not the final price your business is going to sell for. The first offer is purely a starting point. A low-ball offer can send you over the edge, but you will need to restrain your emotions and try to see the offer in a positive light. Offers of any kind start the negotiation process.

 

  • Let your broker do the talking. A business broker is a huge asset during the negotiation stage of your transaction. They are an objective third party, and will therefore be able to help you navigate your negotiation in an objective way.

 

  • Always remember that you can walk away, and remember to use that fact to your advantage. If a buyer really wants to buy your business, then eventually you should be able to meet in the middle on price. If they are really low-balling you and refuse to budge, then it is always your call to walk away from the deal. Sometimes this works to motivate a buyer to come up on an offer, and sometimes it just means the deal is dead. Discuss these options with your broker to be sure you are making the decision to walk away based on an objective business decision, not because you were emotionally offended.

 

The most important pointer for a business seller in the midst of negotiations is this: Buying a business is an emotionless process. Your ability to understand this about the buyer will be the key to getting your business to the closing table.

 

Are you a business seller who has lost a deal during the negotiation phase because your emotions got the best of you? Would you like to know more about strategies that can help prevent the same circumstance in the future? Leave us a comment or question here, and we will be happy to assist you.

 

 

 

 

 

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

https://infinitybusinessbrokers.com

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Buying and Selling Businesses: Deal Killers

Whether you are in the market to buy a small business, or you are a small business owner who is looking to sell, it is important to understand the reasons that business transactions fall apart in order to avoid this issue yourself.

 

 

Business deals can be destroyed by either side, so whichever side of the fence you are on, avoid these pitfalls:

 

The Buyer’s Side

 

As a buyer, you need to be sure that you really want to buy a business. Are you really ready to take on the responsibility and work that it takes to run a small business? Do you have the support of your spouse and family? Owning a business will mean sacrifices for your family too, even if it is just in terms of the time that you would be able to spend with them.

 

Another reason that buyers have trouble getting to closing is unrealistic expectations. Do you understand how businesses are priced? Do you understand the buying process? Many new buyers go into the process believing that buying a business is a lot like buying a house, but nothing could be further from the truth. Talk to a business broker about your expectations early on in the game, as it will prepare you for the realities of a business transaction before you get there.

 

Do some research on your own to be sure you understand small business ownership and operations. You will want a good grasp on small business ownership before you get to the closing table. You do not want to be faced with a crash course your first day as a small business owner. If you have any doubt in your mind, it might be wise to resolve those doubts before you begin the business buying process.

 

The Seller’s Side

 

Many sellers put their business on the market purely out of curiosity. They want to see what the market is like, and really don’t have any legitimate reason or motivation to sell. This is a big mistake, as it alienates any good potential buyers that come your way.

 

The major issue that keeps businesses on the market forever is the price. Many business sellers have completely unrealistic expectations about the price and the market for their business. Use a business broker to alleviate this issue, as they will be able to properly evaluate your business based on the current market.

 

In the same line as price, as a seller you may need to accept seller financing as a part of any potential deal. Although it does occasionally happen, most of the time buyers do not come to closing with all the cash up front. If you are serious about selling your business, accepting seller financing will get you more potential buyers than if you refuse to do so.

 

Another major deal killer is dishonesty. As a seller, you should not try to hide the negative aspects of your business from buyers, as they will likely figure these issues out on their own during the due diligence phase. Failing to disclose that the business is in bad shape, that there is a major competitor moving in, or that you are dealing with a serious environmental issue are sure fire ways to make a deal fall apart.

 

Be sure that all owners of the business are in agreement about the sale, and check with your business broker and attorney about any legal ramifications of selling your business. You will not want any legal surprises the day before closing.

 

Keep the Deal Alive

 

Business transactions are inherently complicated, so it is important to remember some key points. First, honesty is the best policy. Second, trust the judgment of your business broker. Third, keep your expectations in the realm of reality. Lastly, be patient with the process. If all parties are serious about getting the deal done, any potential problems can ultimately be resolved.

 

Are you a business buyer who has questions about the process to find and buy a business? Are you a business owner who wants to know when the right time to sell would be? Please leave any questions or comments here and we would be happy to help.

 

 

 

 

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

https://infinitybusinessbrokers.com

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Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

9040 Town Center Parkway
Lakewood Ranch, FL 34202




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