They’re Watching – 3 Ways Business Sellers Can Make A Good Impression

Posted in Sellers Articles

Published August 23, 2017

If you are in the market to sell your business, you might feel that your business speaks for itself.

 

 

The financials, the location – they will tell buyers all they need to know if they are considering taking your place as the owner.

 

Guess what? Buyers are also taking a long hard look at you. Your actions will speak volumes about the way you run your business and what they can expect from you throughout the sale process. Here are three things you should try to do – to not only gain the trust of a potential buyer, but to put your business in the best possible light:

 

Be honest.

About everything. Sure, every business has a skeleton or two in the closet, but trying to hide or gloss-over these issues when in negotiations with a buyer will make you look like a liar in the end. During the due diligence process, buyers get a chance to dig into your business, so anything you try to keep from them will eventually come out. If you are honest about any issues right out of the gate, most buyers will be willing to deal with those issues. If you try to keep a buyer in the dark, the inevitable unveiling of any issues will probably kill your deal.

 

Don’t be a disorganized mess, even if you really are.

If organization isn’t really your thing, then you need to give yourself an organizational make-over before you get in front of buyers. Your business broker will be able to help you figure out what needs a good once-over, like your records. You want buyers to be able to read and understand your books, as your financial records are what a buyer uses to determine what they are willing to pay for your business. A big box of jumbled sales slips is not going to impress anyone.

 

Follow through.

If you tell your buyer you will meet them, show up and don’t cancel last minute. We see deals fall apart because sellers mentally check-out long before the closing table and start blowing off meetings and phone calls with potential buyers. If you are this cavalier with a buyer, then how cavalier have you been in your relationships with the community or vendors – relationships that a new owner is going to rely on? Show that you are a man (or woman) of your word, and you will be speaking volumes about the value of the reptation of your business.

 

Are you thinking about selling your business, but your records are a disorganized mess? Do you have more questions about what buyers are watching for? Please feel free to leave us a comment or question here, and we will 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

 

 

No Comments »



Big Price? Big Mistake – Selling Your Business

Posted in Sellers Articles

Published June 28, 2017

 

It can be really difficult to see a business that you have built from the ground up objectively, but there is a crucial decision that you will need to make as a business owner that will need to made without any emotion – pricing your business.

 

New businesses come on the market every day that are priced ridiculously high. They might be great businesses, but most of the time a business that has an over-inflated price will get no traction on the market and will stay listed forever.

 

When a business first hits the market it can create a lot of action from buyers, but those buyers can be permanently driven away if the price is completely insane.

 

So why do people list their businesses too high?

 

Usually one of two things has happened:

 

They got some bad advice. There are great professionals like business brokers and business transaction accountants that can help a business owner price their business correctly right out of the gate. There are, on the other hand, lots of people who know little to nothing about the buying and selling of businesses who give terrible pricing advice. Your brother-in-law who sold his bar in 1986, the CPA who does your taxes, your attorney neighbor who practices labor law – while well intentioned, none of these people know anything about the business market or about what a business like yours could actually sell for. Seek the advice of a qualified business broker who will know how to price your business the right way – to sell.

 

They wouldn’t listen. Even though you have put all of your blood, sweat and tears into your business, a buyer is only interested in numbers you can prove. Your business broker will help you use comparable businesses that have already sold, the numbers you have on the books and other pricing qualifiers to help you set your asking price realistically. Pricing only becomes an issue if you as the seller refuse to listen to the advice. A good broker will not let you demand any price you want, they will refuse the listing if you decide that it is your unrealistically high price or “the highway”. Be very wary of a broker who will let you list your business for whatever you demand – you will end up staying on the market indefinitely.

 

The message here? Seek proper advice and then listen to that advice. Successful business sellers go into the selling process with realistic expectations and with the right help.

 

Are you a business seller who made the mistake of pricing your business too high? Have you asked for advice on setting the price but got an answer you didn’t agree with? Please feel free to leave us a question or comment here, and we will be happy to help you with finding the right price for your business.

 

 

 

Michael Monnot

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

http://www.InfinityBusinessBrokers.com

No Comments »



Going to Market: What Business Sellers Should Know

Posted in Business Broker Why & How, Sellers Articles

Published April 19, 2017

“I’m ready to put my business on the market, how should it look?”

 

 

Is your business in the kind of shape it needs to be in order to sell? Most owners think that the business is fine as-is. This is typically not the case. If you would like to get top dollar for your business, it needs to be appealing to a potential buyer. While the aesthetics, like cleanliness and fresh paint do a lot for a first impression, the “guts” of your business are what really need to be appealing to a buyer. 

 

How do you make the “guts” of your business more appealing?

 

First, get everything in order. If your financials are a mess or are nothing more than a few boxes stuffed with papers, you will need to sit down with your business broker or business transaction accountant and get them worked out. A buyer will need to be able to understand your numbers if you want them to make a fair offer for the business.

 

Once you have an offer on the table, the examination of your numbers hasn’t ended, it has just begun. What happens after an offer is made is a process called “due diligence”. In this stage the buyer will get a chance to comb over all aspects of the business, and then they have the opportunity to decide if they would like to proceed to the closing table. If your business has any issues that are unresolved, they will most likely come to light during this time, and will drive a buyer away. Solve potential problems before a buyer finds them. This will help keep buyers from walking away.

 

Another way to make your business look like a great opportunity to potential buyers is to use the services of a business broker. There are multitudes of issues that can kill a deal, and in order to be aware of what those are, you need the help of someone who has been through the process many times before. The experience of your broker during the marketing and due diligence aspects of a business sale will be instrumental in securing the very best price and a successful closing.

 

Have any questions about how we would help get your business into “sale shape”? Have you tried to sell a business and lost a deal because of unresolved issues? Please feel free to share your experiences or questions here. We look forward to speaking with you.

 

 

 

 

Michael Monnot

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

https://infinitybusinessbrokers.com

 

No Comments »



Sneaky, Sneaky – Why A Business Seller Really Needs A Business Broker

Posted in Sellers Articles

Published October 19, 2016

 

 

If you are on the road to sell your business, you probably already know the importance of confidentiality when it comes to maintaining the integrity of your business. If you don’t, here’s why it is completely and totally necessary:

 

When the average person hears that a business is for sale, it immediately conjures the image that the business is in some kind of trouble – possibly teetering on the brink of failure. This is, of course, not reality – but this dangerous false perception can cause real havoc within your business if the word gets out that you are trying to sell. Think about what your employees will think if they think the business is about to close the doors. Think about what your competition might do if they think you are about to go under. You can lose vendors, contracts, future customers. Not good.

 

This is why, instead of trying to sell your business on your own, you really need a good business broker at your side. One of the major responsibilities of a business broker is maintaining that all important confidently – and therefore the integrity of your business.

 

How do we as brokers maintain confidentiality?

 

We ask questions, do our homework and we make people sign legally binding confidentiality agreements.

 

What kind of questions do we ask? The kind that will weed-out the sneaky, sneaky people who have no business knowing that your business is for sale.

 

We get a list of people from you that you don’t want knowing the business is for sale, like your current or former staff or a big competitor. We get the full name and physical address of anyone who wants to sign a non-disclosure agreement for your business. We “Google” people to find out if they really are who they say they are. We have multiple ways to research prospective buyers, and we use those research tools. By doing our homework, we ensure that your confidentiality stays in place.

 

Doing our homework also means we catch sneaky people, and we catch them all the time. Staff members who pose as someone else to find out if the for-sale rumors are true. The owners of competing businesses who have their parents or siblings call, pretending to be buyers. Real estate agents posing as business brokers calling on behalf of someone on the don’t-disclose list.

 

Our diligence when it comes to confidentially is what keeps your business safe. A buyer on their own probably isn’t going to know the industry well enough to know when someone is posing as someone they’re not. You aren’t going to have the time to properly vet curious potential buyers – you need to run your business and prep it for sale, both of which take enormous amounts of time and energy. Don’t go it alone and risk irreparably damaging your business. Having a good broker at your side is essential to keep confidentiality in place.

 

Do you have more questions about the importance of confidentiality or how we go about keeping it in place? Would you like to know more about other parts of the business selling process? Ask us! Please leave 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

 

No Comments »



Types Of Business Ownership – Florida

Posted in Become a Business Owner, Buyers Articles

Published March 11, 2012

One of the most important decisions when forming your business is the corporate structure.

 

 

Here’s a look at some of your options in the state of Florida:

 

Sole Proprietorship

If the business is privately owned, in the USA it is a Sole Proprietorship. In the majority of cases this is a single person, who owns and leads the business. Simultaneously the Sole Proprietorship is the most common corporation structure. This type has some downsides. The owner is absolutely liable with his assets. He or she is liable for taxation and it is not easy to receive money for this type of business. He or she also has to apply for a business license.

 

General Partnership

The partners lead this business together and all of the partners are absolutely liable for accounts payable. The General Partnership has more administration effort and is more cost-intensive. Also for this type of business you have to apply for a business license.

 

Limited Partnership

The Limited Partnership consists at least of 2 people, a General and a Limited Partner. The Limited Partner has supervision, available and limited. He can’t be part of the management and acts as an investor. The Limited Partner leads and is liable for the business. A shareholder contract has to be prepared for the forming of the business. Furthermore you have to request a Certificate of Limited Partnership with the Secretary of State.

 

Limited Liability Company (LLC)

The Limited Liability Company is not accepted in all states but it is in Florida. The shareholders are personally liable for taxation and the accountability is limited to the business assets. For the forming of the business the filing documents have to be registered with the Secretary of State. At least two shareholders are required for a Limited Liability Company. Our accountant can inform you about tax benefits for other types of companies.

 

Corporation

The most used type of business for forming a company in the USA is the corporation. By presenting the Articles of Corporation to the Secretary of State, you can carry out the forming of the corporation quickly. Forming the company in Florida, the registered office is also in Florida. The corporate structures are governed by the laws of the State of Florida. The Florida Corporation can carry out business in every state of the USA. All of the states require a registration. Foreign nationals can also form a Corporation in Florida. A registered agent (a person headquartered in Florida) has to be named to receive and deliver mail/documents.

 

Before you make a decision it is important to contact a tax consultant. We can connect you to our partners to make it easy for you to make the right decision.

 

This article doesn’t present any legal advice, but solely serves as general information.

 

Are you thinking about buying a business but have questions about the formation of your business entity? Would you like to know more about the pros and cons of the choices above? Ask us! Leave any questions or comments here and we would be happy to help.

 

 

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

No Comments »



What You Should Know – Selling Your Business: What Can I Do To Help My Business Sell?

Posted in Sellers Articles

Published March 5, 2012

What Can I Do To Help Sell My Business?

 

You can cooperate fully with us and any other professionals that you are using. A buyer will want up-to-date financial information.  If you use an accountant or bookkeeping firm, you can work with them on making current information available.  If you are using an attorney, make sure he or she is familiar with the business closing process and the laws of your particular state.

 

You might also ask if their schedule will allow them to participate in the closing on very short notice.  If you and the buyer want to close the sale quickly, usually within a few weeks, unless there is an alcohol or other license involved that might delay things, you don’t want to wait until the attorney can make the time to prepare the documents or attend the closing.  Time is of the essence on any business sale transaction.  The failure to close on schedule permits the buyer to reconsider or make changes in the original proposal.

 

And finally, your team of advisors must all be working towards the common goal of selling your business for the best price and terms available in the marketplace, and closing the sale as quickly as possible!  Only by being as cooperative as possible with our firm, can we best handle your business interests.

 

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

 

No Comments »



What You Should Know – Selling Your Business: What Do I Do When Someone Wants To Buy My Business?

Posted in Sellers Articles

Published March 5, 2012

What Happens When There Is A Buyer For My Business?

 

 

When a buyer is sufficiently interested in your business, we will help in the preparation of an offer or proposal.  This offer or proposal may have one or more contingencies.  Usually, they concern a detailed review of your financial records and may also include a review of your lease arrangements, franchise agreement (if there is one) or other pertinent details of the business.  The buyer’s proposal will be presented to you for your consideration.  You may accept the terms of the offer or your may make a counter-proposal.  You should understand, however, that if you do not accept the buyer’s proposal, the buyer could withdraw it at any time.

 

We will submit all offers to you for your consideration.  At first review, you may not be pleased with a particular offer; however, it is important to look at it carefully.  It may be lacking in some areas, but it might also have some pluses to seriously consider.  There is an old adage that says, “The first offer is generally the best one the seller with receive.”  This does not mean that you should accept the first, or any offer – just that all offers should be looked at carefully.

 

When you and the buyer are in agreement, we will work with both of you to satisfy and remove the contingencies in the offer.  It is important that you cooperate fully in this process.  You don’t want the buyer to think that you are hiding anything.  The buyer may, at his point, bring in outside advisors to help them review the information.  When all the conditions have been met, final papers will be drawn and signed.  Once the closing has been completed, money will be distributed and the new owner will take possession of the business.  As your business broker professional, we will work with you throughout the entire sales process.

 

Are you curious about the typical time frame for the transaction process with a business like yours? Would you like to know more about how to handle initial offers? Ask us! Please feel free to leave questions or comments here and we would be happy to help.

 

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

No Comments »



What you Should Know – Selling Your Business: What Can Business Brokers Do?

Posted in Business Broker Why & How, Sellers Articles

Published March 5, 2012

Selling your business is a major decision!  You have devoted your time, money and energy to building, running and operating your business.  It may well represent your life’s work.  You have decided that now is the right time to sell, and you want the very best professional guidance you can get.  This is when working in tandem with a professional business broker can make the difference between just getting rid of the business and selling it for the very best price and terms!

 

Below is one of the most common questions asked by sellers.  The response is based on both experience and knowledge.  If you have any questions that we have not covered please don’t hesitate to contact us.

 

What Can Business Brokers Do – And, What Can’t They Do?

 

Business brokers are the professionals who will facilitate the successful sale of your business.  It is important that you understand just what a professional business broker can do – as well as what they can’t.  As your business broker we can help you decide how to price your business and how to structure the sale so it makes sense for everyone – you and the buyer.  We can find the right buyer for your business, work with you and the buyer, every step of the way until the transaction is successfully closed.  We will also help the buyer in all the details of the business buying process.

 

A business broker is not, however, a magician who can sell an overpriced business.  Most businesses are saleable if priced and structured properly.  You should understand that only the marketplace could determine what a business will sell for.  The amount of the down payment you are willing to accept along with the terms of the seller financing can greatly influence not only the ultimate selling price, but also the success of the sale itself.

 

Are you thinking about selling your business and have questions about what a business broker will bring to the table? Would you like to know what businesses like yours have recently sold for? Please feel free to leave questions and comments here and we would be happy to help.

 

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

No Comments »



Buying a Business – What you Should Know: What Can Business Brokers Do – And, What Can’t They Do?

Posted in Become a Business Owner, Buyers Articles

Published March 5, 2012

Buying a business is a major decision!

You will devote your time, money and energy to finding, purchasing and operating a business.  You hope it will represent your life’s work.  You have decided that now is the right time to buy, and you want the very best professional guidance you can get.  This is when working in tandem with a professional business broker can make the difference between just buying a business and buying the right business for you at the very best price and terms!

 

Below is one of the most common questions asked by buyers.  The response is based on both experience and knowledge.  If you have any questions that we have not covered please don’t hesitate to contact us.

 

What Can Business Brokers Do – And, What Can’t They Do?

 

Business brokers are the professionals who will facilitate the successful purchase of a business.  It is important you understand just what a professional business broker can do – as well as what they can’t.  As your business broker we can help you decide which businesses match your skills and experience and which businesses do not.  We can help identify a fair price for a business and how to structure the acquisition so it makes sense for everyone – you and the seller.  We can find the right business for you to buy and work with you and the seller step-by-step until the transaction is successfully closed.  We will also help the seller in all the details of the business selling process.

 

A business broker is not, however, a magician who can find the perfect business.  All businesses have their unique set of challenges.  You should understand a business transition will be difficult.  You may have issues with the economy, employees, suppliers, new competitors and at times the seller.  You may not initially achieve the results the prior owner achieved.  It is important to understand how the amount of the down payment along with the source and terms of financing can greatly influence not only the ultimate purchase price, but also the success of the acquisition itself.

 

Are you thinking about buying a business but aren’t convinced that you need the services of a business broker? Would you like to know what type of business would meet your goals? Please feel free to leave comments or questions here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

No Comments »



So You Own Your Own Business…

Posted in Business Broker Why & How, Sellers Articles

Published March 5, 2012

Do you own your own business?

 

 

Congratulations, you are the backbone of the United States economy. It isn’t the “Fortune 500”, the Wall Street giants – it is definitely the entrepreneur that has made this country the greatest in the history of mankind.

 

Now something that you may not be aware of, someday you have to make a decision that you probably haven’t given much thought to… one day your participation in the business will have to come to an end.

 

When it becomes obvious, you have three choices and two of them are not good: 1) Sell. 2) Liquidate. 3) Shut down and fade away. Oh, forgot to mention you could pass it on to your children, which generally will end up in category 3..

 

Next question: What is your business supposed to look like if you are going to take it to market? Having been in the business for many years, we can assure you that this is the most important question of all.  If everything is not in order, your business will not sell.  If you are fortunate enough to receive an acceptable offer, that is just the beginning and not the end, because of a process called “Due Diligence”. Your business must pass muster in a buyer’s eyes in order to get to the closing table.

 

There are any number of things that will stop a sale in it’s tracks.  You need to be aware of what they are.  Your solution is to spend some time with an experienced and knowledgeable business broker. An experienced broker can guide you from listing all the way through due diligence and on to closing. Make the best choice and talk to one of our brokers today.

 

Have you thought about selling and are curious about what businesses like yours have recently sold for? Do you have questions about the business sale process? Leave any questions or comments here and we would be happy to help.

 

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

No Comments »



Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

9040 Town Center Parkway
Lakewood Ranch, FL 34202



Search



Recent Posts

Categories

Archives

Tags