Business Broker Russell Cohen Blog

Miami Business Broker Explains The Process Of Selling Your Business Step by Step

By Biz4Sale | Published: May 10, 2012

Anyone selling a business should be considering the elements of the sales process. Business brokers are invaluable in each of these considerations:

Think It Through – Know What You Want

Do you want to retire completely or continue to have a hand or profit in the business? Do you want to move or stay where you live? Surprisingly, some people are not clear on these basic aims. Business brokers can help you refine these goals and the ways to achieve them.

Know What You Are Offering and Why You Are Selling

Is the business growing or declining? Is the competition getting tougher? Are the facilities and equipment in good working order or are they approaching the end of their useful commercial lives. Does the business need an infusion of capital to be profitable? Are most of your customers there just because of you (goodwill)? Are you tired of the ratrace or are you ready to embrace a new chapter in life? Professional business brokers know how to express each of these circumstances to your greatest benefit.

Prepare Your Records – Orderly and Understandable

If you are trying to sell your business, you have a duty to provide honest information to your potential buyer. You make the job of your business brokers (and the sale of your business) easier if your financials, net worth statements, contracts, employment procedures, etc. are organized in such a way that the reviewer can discern clear information without having to conduct overly consuming research. Your professional may choose to reorganize your information (truthfully, of course) to your greatest benefit. Easily discernible records vastly assist in this process.

The Two Big Questions – Price and Marketing

The biggest concerns of the business seller will always be, “How much can I get?” and “How and to whom should I try to sell?” Business brokers are the consummate experts in these areas. They work for you. Their job is to maximize what you get out of the deal and to let you know, straight up, if you have unreasonable expectations. They know where to look for customers, how to package your deal and how to advertise. Will public knowledge of a pending sale hurt the business and the chance for a sale?

Professional business brokers study and are experienced in all of these situations. It’s what they do. They optimize your benefit in terms of both asset return and expedience of sale.

For additional questions or information click on Miami Business Broker

Multiple Offers Should Help to Maximize Business Selling Price – Fort Lauderdale Business Brokers

By Biz4Sale | Published: May 3, 2012

When you’re ready to sell your Florida business it’s never a good idea to do this yourself. You will forget important elements! Using Fort Lauderdale business brokers can save you time, money and headaches. First off, you need to ask yourself how educated you are on confidentiality agreements, the due diligence process, business valuation methods and whether you should sell, stocks, assets, liabilities or the entire package. If you plan on selling your business name, logo and other intellectual property such as signage or your telephone number do you know how to value intellectual property?

More Offers Are Better

Do you know how to capture buyers who are interested in your for-sale business? Essentially, the more offers you have, the better chance you have of selling your business. This is why it’s so important to seek out Fort Lauderdale business brokers who understand how to interview and select buyers who are really interested, not just those who are curious or want to gain an upper hand.

Interviewing and Selecting

The biggest advantage you’ll gain from hiring a Fort Lauderdale business broker is their experience and ability to weed out the curious and the non-desirable. Believe it or not, you may even fall into the trap of the non-experienced business broker! These are the types that will only utilize your desire to sell the business for their own gain.

They do this by offering promises that are outrageous such as a selling price more than your business is even worth. They may also talk you into releasing financial information with fast-talking promises to make you feel confident they are well-qualified and have ample contacts to sell your business. If you’re unsure on business or intellectual property valuation methods, don’t choose a business broker via a recommendation or from the telephone book. Take the time to ask questions on how many businesses the broker has been involved with, obtain some recommendations and above all, ask them questions such as the types of businesses they’ve sold in the past.

A good Fort Lauderdale business broker will understand the market, work with you to value your business, bring in many offers and work with you throughout the entire process to ensure you sell your business at the best price the market will bear.

For additional information or to contact us click on Fort Lauderdale Business Brokers

Posted in Selling a Business | Tagged business broker south florida, business brokers, buying a business, fort lauderdale business broker, selling your business | Leave a comment

Think Like A Buyer When Selling Your Business – Palm Beach Business Brokers

By Biz4Sale | Published: April 27, 2012

When you’re hoping to sell your business there are a number of things to be concerned about. There are a few ways you can get a step-up on your buyer and anticipate their moves before they have thought them up themselves. If you want to swim with the piranhas you’re going to have to nip a few toes; if you want to sell your business, you’re going to need to think like your buyer.

Understand what the buyer is after – One of human beings greatest faults and one of the things which every business seller can be at fault of is being too rooted in your own self-interest. If you would take yourself out of the equation for a moment, you’ll likely find that your deal is skewed towards your own interests; at least in your own mind. Think about what the buyer is after; what could make this deal impossible for them to say no to? If all business sellers would simply take a minute and put themselves in their buyers shoes they may find that the work is done for them. The schematics of the deal will fall into place effortlessly if you let them.

Be Upfront when selling your business– You would hate to be trying to hide something negative about your business; be it the structure of the building, last year’s receipts, inflated accounting or anything else; only for this to be revealed later on and to be bitten by it down the road. Rather than fight that fight, be upfront. Not only does this tactic save time on the vetting; then the buyer is a lot more likely to be straight with you. You can know sooner if this deal is a good fit or if the time has come to part ways.

If you’re able to be flexible with financing, be flexible! – Financing is another bugaboo. If you’re outright owner and are able to be flexible with financing you may as well offer that up as an option. This may allow you to keep your hand in the kitty just a little longer and enjoy continued fruits of your labor. Be wary of the hostile takeover – Don’t be too nice. If you feel as though you’re being stepped on, best to revert to a defensive pose.

It’s also a good idea to have a trusted partner on your side to help broker the deal.

For additional information or to contact us click on Palm Beach Business Brokers

Posted in Selling a Business | Tagged business broker south florida, buy a business in south florida, palm beach business brokers, sell your business in south florida, selling your business | Leave a comment

What questions should you ask when Buying a Business? Palm Beach Business Brokers

By Biz4Sale | Published: April 23, 2012

Asking the Good Questions

You may want to know why the owner is selling a business. Regardless of the answer to the question why the sale, you may want to make the right decision to buy and at what price. If, for instance, the owner decides to sell in order to retire, that could be a good enough reason to motivate you to buy. When, however, a business owner is relatively young and is selling a business “to do something else”, you may want to think twice before making that purchase. It could be that the owner is not telling you all about the reason behind the sale.

Asking to see the financial statements of the past three years of a business you are buying is equally pertinent. Buying a business is like buying an income stream, you therefore should ask about the financial statements of the business. Further, asking to know who your biggest competitors are and what they are doing in the marketplace will give you a competitive advantage. And the expert knowledge of business brokers can help you better understand the trends in the business industry you are buying and indicators about threats and opportunities which should all factor into the purchase price of the business.

Buying A Business in South Florida

Also, you may want to know what the seller has been doing to increase sales and profits and what were the seller’s handicaps—whether it was lack of resources or lack of capital to have made those investments to grow the business. Again, it won’t hurt to ask whether the seller is willing to finance part of the purchase price. Over 75% of businesses sold in the US involve some seller financing with comparatively better financing terms.

Overall, asking all the important questions can help you get specific information about a business you are buying and the responses you get will help you begin to understand the general sophistication and motivation level of the seller. And going into the process of buying with the support of experienced business brokers gives you the edge.

For additional information or to contact us click on Palm Beach Business Brokers

Posted in Selling a Business | Tagged business broker palm beach, buy business, buying a business, selling your business, south florida business for sale | Leave a comment

Palm Beach Business Brokers Discuss Book Value Vs Fair Market Value

By Biz4Sale | Published: April 13, 2012

Selling a business is by no means an easy or straight forward task. It’s always in the best interest of each party to look out for their own bottom line which, of course, in a business negotiation is at direct odds with the bottom line of the other party. When selling your business it’s often wise to utilize the skills of business brokers to make sure you’re getting the best valuation for your assets possible. Here we’ll discuss the difference between Book Value as it compares to Fair Market Value and how you can get the most out of business brokers to know the difference as it relates to your situation.

What is Business Book Value?

Book Value is exactly what it sounds like; the value your business shows on its books and business brokers can further explain it if needed. It’s typically how much money your business makes minus how much money it costs to make it. Book Value does take into account depreciation of a business’s assets but not really most other intangible factors.

What is Fair Market Value?

Fair Market Value is the value of your business after you’ve accounted for all of the other factors that strict book value doesn’t look for. What is the business need for the service you provide going to look like in the future? Are there 5 other businesses for sale within 50 miles that have a very similar service or product? None of that’s figured into your book value, but it’s remarkably important to Fair Market Value.

How Do The Two Interact?

In a typical business sale a strict reliance on Book Value is often disadvantageous for the seller rather than the buyer. This is due to the fact that Fair Market Value tends to be higher than Book Value given the way that they’re calculated. It’s important to leverage the expertise of business brokers native to the Palm Beach area to make sure you’re valuing your business correctly for sale.

How Do Business Brokers Fit In?

People aren’t going to beat down your door just because you decided to list your business for sale, nor are they going to offer you the best price for what you’ve got to offer. It’s important to find industry professionals who will not only help you value your sale properly but also who will get your business in front of as many potential buyers as possible.

For additional information or to contact us click on Palm Beach Business brokers

Posted in Business Broker | Tagged business book value, business brokers, business fair market value, business value, palm beach business brokers, sell your business, selling your business | Leave a comment

What Is Goodwill? Miami Business Brokers

By Biz4Sale | Published: April 6, 2012

When it comes time for selling your business, there are different ways to do so. Knowing the laws about taxation and how it is figured for the sale of a company will help save both parties a lot of anxiety. If the business is not sold in a certain way, the taxes paid by both parties can be quite large.

If you explore the idea of goodwill, you may find that to be the way to go. In business, goodwill means the buyer is paying the seller more money than the total value of all the assets combined. Both parties are able to leave the transaction with more money, as it is taxed in a different bracket.

Since tax law and selling businesses are in and of themselves quite intricate, seek advice from a professional. You may immediately think to yourself that acquiring a business broker is a bad idea and that it will cost you a great deal of money. But it is really the reverse. Yes, there will be an outlay of money for hiring business brokers. But they have intimate knowledge of the transaction you would like to propose. So, by hiring business brokers, you could walk away with more money at the end of the day. In business, the more important figure is what is at the bottom of the balance sheet, not how you got there.

One helpful link is a calculator, into which you can plug all your numbers. It will give you a general idea of how much should be given for the goodwill of the sale.

When seeking the help of business brokers, you should see how much experience they have in this field. One good source to check is Russell Cohen at Transworld Business Brokers. He has nineteen years of experience behind him and knows how to make a sale beneficial to both parties.

Also, it is recommended that you do not speak your staff, competitors or customers that you wish to sell your business. Historically, so much as a whiff of a rumor that you wish to place your company on the market for sale can have devastating effects on your daily business. Place a generic ad for sale, which does not specify what company is to be sold. Once you have found a potential buyer, check the financials before identifying the company and find out their business history.

For additional information or to contact us click on Miami Business Brokers

Posted in Business Broker | Tagged business brokers, goodwill, miami business brokers, sell your business in south florida, selling your business | Leave a comment

Price Your Business Using Business Valuation Techniques – Palm Beach Business Broker

By Biz4Sale | Published: March 30, 2012

If you are contemplating to merge, acquire or sell your business in Palm Beach, seeking the assistance of reputed business brokers like the Transworld will do a world of good to you. With their vast market knowledge, integrity and ability, the professionals at Transworld will guide you through the daunting business valuation with utmost precision. At the outset, the business brokers will suggest you some precautions to take like:

•Validate your reasons to sell your business as only convincing sale reasons will produce more interest among the buyers

•Advice you on how selling a business for emotional or economic reasons can lead to wrong deals

•To be cautious regarding the business documents and financial records: Business brokers will meticulously prepare the business documents and financial records needed prior to selling the business and also advice on what more information is necessary

Selling your Business through Business Brokers Palm Beach

Using the services of the business brokers from a successful broker firm like Transworld has many advantages. It has full-fledged staff of over 85 licensed professionals, working from conveniently placed offices at Fort Lauderdale, West Palm Beach, Port St. Lucie, Miami, Jacksonville and Orlando. It has cracked umpteen business sales, mergers and acquisitions throughout US and other international places through its highly sophisticated online systems. The staff at Transworld, South Florida, works as a part of your team for the sale of your business.

There are some methods typically used by the business brokers to value a business and fix its pricing before a sale. Depending on the kind of business you wish to sell, one of the business valuing methods will work like:

•Profit based valuation – most common method of valuation and done for businesses which show enough profit

•Asset based valuation – is used for businesses when a buyer is interested only in its assets which are being sold separately

•Comparable sales method – the business’s value is based on those businesses sold recently and was similar in business type, location and sales

•Rule of the thumb – for businesses which show figures regarding their customer/client number or the sales/gross profit.

As any winning business brokers, the staff at Transworld operate with total confidentiality and honesty to make the business deal successful for both parties – the seller and the buyer. They believe that prosperity awaits only those who strike acceptable deals in business.

For additional information click on Palm Beach Business Broker

Posted in Business Broker | Tagged business broker, business broker palm beach, business broker south florida, business valuation | Leave a comment

Important Fundamentals For Selling Your Business in the Southeast – Fort Lauderdale Business Brokers

By Biz4Sale | Published: March 23, 2012

Are you thinking about selling your business? Adequate preparation helps to ensure you get the best deal and the smoothest transaction. There are several important things to keep in mind. People who own and operate businesses are not necessarily equipped with the necessary skills to leverage a lucrative sale. They are probably not very familiar with the business market, and they may not understand the challenges of selling a business. Skilled business brokers can handle the details or guide you through the process.

Sales Essentials

Price and confidentiality are two trademarks of a competent business broker or adviser. He or she will know how to research and identify qualified buyers, utilize industry marketing strategies, and successfully close a deal. The sale of a business can impact employees and customer on both sides, which is why signing of a non-disclosure agreement is recommended.

Financing Options

Some buyers offer a no- or low-down payment, but there is no compulsion to accept this. A serious seller will value a financial level of commitment through a reasonable down payment. Financing handled by the seller is often cheapest. This option reassures the buyer that the seller is confident, and there are no processing fees. Typically the interest rate is lower than a bank or credit union, but the loan’s length may be shorter. Banks are more likely to make loans on businesses that have demonstrated a solid profit history. But tax documents and fees are required at the outset. Sometimes a friend or family member will make a personal loan to finance a new business. Clear documentation as to loan term and payment schedule should be signed by both parties.

How Long Before a Business Sells?

Businesses usually spend more time on the market than a residential property. The confidential nature of a business sale prevents a sign from being posted at the location. Often it takes between six and eighteen months to sell.

Advertising a Business for Sale

Thanks to the rapid growth of Internet commerce, available businesses can be located through several websites and databases, including Busboys, BizmarketFlorida, Florida Business Brokers Association, and Multiple Listing Service, among others. Area newspapers often attract inquiries. Lawyers, accountants, and realtors sometimes make referrals, as well. If you are not sure you can accurately value your business or successfully apply negotiating techniques, let our trained staff help you find the sale you are looking for.

For more information click on Fort Lauderdale Business Brokers

Posted in Selling a Business | Tagged business broker fort lauderdale, business broker south florida, selling your business, selling your business in the southeast | Leave a comment

I’m Looking to Buy a Business – Miami Business For Sale

By Biz4Sale | Published: March 16, 2012

Being a major economic center and prime tourism hub, Miami offers endless opportunities if you’re looking to buy a business. Now that you’ve decided to be your own boss, it’s not as easy as handing over the money. Just like any other business venture, buying a Miami business for sale involves a judicious assessment of the business. Before plunging, it is best to know and understand vital pieces of information about the business such as:

Reason For Selling Your Business

There are various reasons why sellers sell their businesses. Retirement, divorce, migration, medical problems, economic conditions, struggling business and new challenges are some of them. All these reasons are valid but you need to look deeper for any hidden issues like lawsuits, liens or adverse claims on the assets of the business to prevent getting into trouble in the future.

Business Viability

Profitability is anchored on viability or the capability of the business to succeed. The factors to be considered in determining the viability of a business vary from person to person and greatly depend on the type of niche and industry. Find out if there is a ready, sustainable or better yet a captive market for the product. If the product is of a good brand, there should be little problem. Otherwise, make sure that the seller transfer to you the marketing or networking strategies necessary to sustain the product’s marketability.

Due Diligence

A Miami business for sale is not exempt from due diligence scrutiny. For instance, its financial condition can be determined by checking on its cash flow statements, balance sheets, income statements and tax returns for specified years. Among others, assets, operations, management, human resources, business structure and legal issues should as well be reviewed to determine its actual condition.

Pricing Your Business For Sale

One of the most challenging tasks when selling or buying a business is setting the right price. Sellers tend to value their businesses higher to achieve the highest profit possible while buyers would work for a good buy at a lower price. At this point, you may need the services of a professional to review the financials and apply the generally accepted valuation methods. Also check for intangible assets like intellectual capital, trade secrets, market exclusivity, special skills and expertise. After all is said and done, the right price is the price at which the seller is willing to sell and you, the buyer, are willing to buy

For more information click on Miami Business For Sale

Posted in Business Broker | Tagged business broker, miami business broker, miami business fro sale, sell business in Miami | Leave a comment

Miami Business Brokers – How Much is My Business Worth?

By Biz4Sale | Published: March 9, 2012

The range of reasons why you have decided to sell your business can run the gamut; being dependent on personal finances, professional transition or even a result of the present economy. The effort you poured into its establishment warrants, at the very least, a similar return when you entrust it to someone else. OF course, this can be difficult to ascertain if you are unfamiliar with some of the particulars of the competitive Florida real estate; in this case, competent Miami business brokers can enhance your prospects due to a wide range of abilities and access virtually guaranteed to help you end up with a much better sale than you would obtained alone.

When selling a business, one of the many things that Miami business brokers specialize in is an awareness of the actual market value for your business. Frankly; you are likely to overshoot the value, just as most people would when evaluating their life’s work. The key, however, is rarely how much your business is worth to you; but how much it’s worth to another. Your Miami business brokers can carry out accurate appraisals and market-value assessments of your business in the Florida scene, which drastically cuts down the time your business spends on the market, holding you from moving on to bigger and better things.

A good broker will also be well-versed in the techniques that work in instituting a marketing campaign that will get results; preparing an information pamphlet for their large list of contacts to distribute or make highly-visible to prospective buyers. These would all be very time-consuming and inefficient things for you to try and corral on your own, especially since all the effort would presumably be a one-time thing, and the quality of hastily garnered contacts couldn’t possibly approach the trust of years-long associations.

Your Miami business brokers, lastly, can easily pre-qualify buyers to make sure time isn’t wasted, and any interested parties are actually capable of putting forth the required capital, usually by requiring a sizable down-payment of the full amount in an escrow account. They have the expertise to handle the do’s and don’ts of contract negotiations, meting out advice on the best avenue to take. And; because their success is entirely tied to yours, your Miami business brokers are inherently trustworthy to get you the best possible deal.