Blog - South Florida Business Broker Russell Cohen

Business Broker Russell Cohen


Business Broker Russell Cohen Blog

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

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... read more

Palm Beach Business Brokers Discuss Book Value Vs Fair Market Value

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... read more

What Is Goodwill? Miami Business Brokers

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... read more

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

If you are contemplating to merge, acquire or sell your business in Palm Beach, seeking the assistance of reputed business brokers like the Murphy will do a world of good to you. With their vast market knowledge, integrity and ability, the professionals at Murphy 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 Murphy 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 Murphy Business Brokers, 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... read more

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

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... read more

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

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... read more

Miami Business Brokers – How Much is My Business Worth?

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... read more

Palm Beach Business For Sale – Business Broker South Florida

In a booming economy like that of South Florida, competition is a normal occurrence. With increasing entrepreneurial enthusiasm, selling a business itself has become a flourishing business. For this reason, if you have a Palm Beach Business for sale and you are looking for a buyer, it is important to enlist the services of a business broker. Why You Need a Business Broker Selling a business is a complicated process that needs substantial time and special skills that business brokers have trained for. At this point of your business, you cannot afford to neglect the daily operation of your business. It is your task to run your business more seriously now than ever to keep it in top shape as if you would want to keep it forever, hence the need for a broker. Remember that competition is a market force that can influence pricing and the marketplace offers unlimited options for buyers who are looking for Palm Beach businesses for sale. The broker’s job is to prepare the necessary requirements, look for a buyer and sell your business for an acceptable profit in the quickest time possible. This entails considerable legwork as he should be able to present a healthy background of your business. Among others, he needs to gather information on your financial standing, management structure and style, employee profile, products and services offered and other company characteristics that are good selling points. This is a tedious task you may not be able to handle without sacrificing the continuous operation of your business. What to Look for in a Business Broker It is always wise to look... read more

7 Ways to Exit Your Business, Choose One – Palm Beach Business Brokers

If you’re an entrepreneur, you probably began your business to either pass it down to your children or sell it so that you can finally have a fulfilled retirement.  However, there are often very large stumbling blocks that can have huge implications as you go along the road to that sale.  You put a lot of money into your business throughout the years, so you really have to make sure that you get that money out in your exit strategy.  It just isn’t enough to do all that hard work to make your business worth a fortune if you can’t get those rewards back out. So is wise to exit your business planning ahead. Palm Beach Business Brokers – Exit Strategies So, for those who always plan ahead regardless if it’s buying a business or selling your business, and for those of us who should, there are certain exit strategies to be followed, including… Know that the strategy you used to start your business should be just as important as what you would use to sell it in order to reap the just rewards. The successful exit is generally the original motivation for business ownership in the first place. Don’t wait until the last minute to sell.  You can’t wait for your business to stagnate.  Sell when business is booming, but don’t be in a rush so that you leave money on the table. Get your affairs in order.  Make sure your records (financial) are accurate and ready for sale. There are legal requirements, contracts, valuations, equipment, assessment of stock, liabilities and many other requirements.  None of which is... read more

Need help With Palm Beach Business For Sale?

The thought of having a Palm Beach business for sale and selling it yourself can be a daunting task. However, in order to get off to a good start a professional business broker will set you in the right direction. A business broker with trustworthy experience in assisting many business owners to sell their companies can be the lucid voice in a successful selling venture. When selling a company, business brokers can assist you to correctly estimate the price of your Palm Beach business.  Since business brokers understand the needs of buyers, they can provide essential counsel so that you can be attentive to the details that will give your company paramount selling appeal and make it more salable. In addition, business brokers can draw more potential buyers to your business with their extensive contacts and resources. If you are in the throes of whether it is worth it to use a business broker to assist you with your Palm Beach business for sale, you will find the benefits justifiable. The goal of a business broker is to sell your business in confidence along with its assets, supplies, and real estate in the shortest time achievable, at the most excellent price and terms, and with as little inconvenience as possible.  To ensure success with your Palm Beach business for sale, there are several steps that will secure a buyer and close the sale for you. Those are: Business Valuation Business valuation encompasses the business’s net income including interest expense, salary, depreciation, optional expenses and other personal extras compensated by the business. Marketing Business For Sale The marketing strategy must... read more
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M & A Source • International Business Brokers Association (IBBA) • Business Brokers of Florida • FICPA • Better Business Bureau *Boca Raton Chamber of Commerce * Davie/Cooper City Chamber of Commerce * Society of Commercial Realtors* Independent Insurance Agents of Broward County* Network Professionals - South Florida Networking Group* 6 Degrees of Golf