SBA Lending

SBA Lending Money for 2018 – NOW Is The Time To Act!

GOOD NEWS! SBA Lending Requirements are Easing!

The SBA (Small Business Administration) has released the 2018 Business Lending Guidelines.

It looks like the Government, and the SBA Lending Requirements are finally turning more “business-friendly” and SBA lending guidelines are easing.

Here is a link to download the 10 page document if you feel like torturing yourself through a bit of “Dry” reading on SBA Lending Guidelines.
DOWNLOAD DOCUMENT HERE
The Biggest Changes Can Be Found On Page 6

======If Link Doesn’t Work – Copy Past Link Below ======
https://drive.google.com/file/d/1Aun3LQpc2buQHMlcZxwpjIDFwXS-2oGH/view?usp=sharing
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Here is a Break-Down/ Translation” of SBA Lending Highlights .

1: Start-Up Businesses: “At a minimum, SBA requires an equity injection (borrower contribution) of no less than ten (10) percent of the total project costs for a start-up business.”

Translation: You need a minimum of 10% of the TOTAL project cost out of your pocket.

2: Buying of an Existing Business: “SBA requires an equity injection of no less than 10 percent of total project costs. Seller debt may not be used to meet this requirement unless it is on full standby for the life of the SBA loan.”

Translation: There is no such thing as No Money Down – 100% financing to buy a business with SBA financing. Contrary to the “Snake-Oil” salesmen out there, there is no such thing as 100% financing – you’re REQUIRED to have a little “Skin-in-the-game.” You need to have a minimum of 10% out of your pocket.
(This is a great opportunity).

3: Change of Ownership between existing owners (“partner buyout”): The pro-forma equity position after the change of ownership must be at least 10 percent of the total assets. Otherwise, the remaining owner(s) must provide an additional equity injection that will result in no less than a 10 percent net worth of total assets.

Translation: If you’re buying out a partner, you need to have a MINIMUM of 10% “skin-in-the-game.”

4: Removed the requirement for 25% equity injection when intangibles exceed $500,000in change of ownership loans in order to process under a Lender’s delegated authority.

Translation: This is GREAT News! You don’t need as much money or equity to buy the “Good-Will” value of the business.

5: Clarified that Lenders must consider seller debt as debt in all applications, including debt refinance and change of ownership.

Translation: ANY debt on the purchase of a business is considered and weighed against the DSCR. (Debt Service Coverage Ratio).

Synopsis: This is WONDERFUL News for Small Business!

With SBA Lending requirements easing, the banks will begin lending money again, and I fully expect this will spark a MASSIVE increase in expansion and business sales.

  • If you’re looking to buy a business, Money will be easier to get.
  • If you’re looking to EXPAND your business organically or by “Rolling-Up” competitors, Money will be easier to get.

Personal Prediction: Small Businesses have been struggling to survive for the past 10 years, and there are a LOT of baby-boomer business owners looking to retire.

With the resurgence of the American economy, SBA Lending requirements easing, and the “Business Friendly” attitude of Washington, 2018 will kick off what might very well be the largest transfer of assets and business sales the world has ever seen.

NOW IS THE TIME to take action –

If you want to sell, get your paperwork in order and call a Business Broker TODAY.
>>>> Call Me! <<<<

If you want to buy, get in while the getting’ is good – because easier lending from banks will lead to higher selling prices!

 

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Prepare Your Business For Sale

Prepare Your Business For Sale

Tips to Prepare Your Business For Sale

Do you know when you want to sell your business?
Can you sell it, if an unfortunate circumstance happens to you?Prepare Your Business For Sale

If you’re like 96% of the other business owners out there, the answer is a resounding NO.

According to statistics gleaned from multiple sources, If you take any 100 businesses and put them up for sale, you will find

  • 80 will never be sold
  • 16 will sell at a discount of 30%-50%
  • 4 will sell at full price or slightly higher.

If you’re like most business owners, you’re doing just about everything you can to keep the lights on, make payroll, service your customers and clients, and make a living.

Preparing your business for sale ahead of time is an important aspect for every business owner to address.

Unfortunately, 96% of the time it is overlooked, and is precisely the reason why only 4 out of every 100 business put up for sale ever sell at full price or slightly above.

It is critically important for a business owner to have an end-goal and exit plan in place the entire time the doors are open.

As a business advisor/broker, I can’t tell you the amount of times I have witnessed successful businesses suddenly closing the doors for one reason or another.
Leaving in their path a trail of shattered careers, broken dreams, and unemployed people.

What usually happens is:
They lose their passion for the business and it stops in its tracks, or they, or a family member suffer a tragic loss, have an accident or gets sick.

When this happens, the decision is made to sell and unfortunately, the business just isn’t sellable in its current condition.
Management is not in place, book-keeping is not in order and expenses ate out of whack, etc.
In normal circumstances, it can take anywhere between 2 and 3 years from the time a business owner decides to sell until the business is in a position to where it can actually be sold.

This means, if something happens to the business owner who doesn’t have a plan in place ahead of time, then they are forced to sell the business for a lot less than it is actually worth, if they can sell lit at all!

During the operation of your business, there are many things that you can do to ensure that your business can be sold for the price that you deserve.

  • Keep Clean Books!
  • STOP living out of the business – STOP taking write-offs!
  • Systematize as much of the daily operation as possible.
  • If you don’t have them, create an operations and procedures manual.
  • Get and train good help.
  • Tighten up accounts receivable.
  • Make yourself replaceable – in another words, do whatever it takes to make the business operate without your constant daily involvement.

In business, there will be a figure that the business owner takes as profit – often referred to as EBITDA.  (Earnings Before Interest, Tax, Depreciation and Amortization) and a sale price which is calculated as a multiple of that figure.
It is IMPORTANT for you to increase the business revenue as high as possible if you need the money out of the business to support your lifestyle, give yourself a raise and pay the taxes, or at the very least, get a separate business credit card and use it and it alone for your write-offs.
This way, you have an easy to follow paper trail to “add-back” to the EBITDA.

I have seen examples (in high-cash businesses), where this has cost the business owners hundreds of thousands of dollars!

FACTIOD: If you save 30 cents on the dollar of business earnings of tax, that is good in one way, but the other way is this ….. because the money is not in the officially on the books, you can lose $3 or $4 per dollar of earnings in the eventual sale price.

Getting proper advice from business broker specialists is critically important.

Remember: Prepare Your Business For Sale
Accountants are paid to help you save on taxes – not increase business value
Attorneys are paid to keep you out of jail.
Neither of them know much, or anything at all about increasing business value and selling it for top dollar.

You may think you’re invincible and nothing bad will ever happen, and I sincerely hope it never does – but you never know, and it is very important to understand that if something DOES goes wrong, you may have to sell quickly … so prepare your business for sale.

At Corporate Business Brokers, we offer what we call Business Staging Services and we work with you to help you prepare your business for sale ahead of time.

For more information Click Here and learn about Business Staging.

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Make Sure You Check Out Who You’re Doing Business With!

One of the biggest mistakes people make when dealing with business broker, regardless of which side of the isle you are on, is to check out who that person is.

Don’t Believe a Word They Say ….. Take a Look At What Others Have To Say About Them First!

Below is a 3 culmination of a few testimonials I have collected in my business career.

>>https://youtu.be/DR7EImkC1uE<<

When the video is over, and you’d like to chat, feel free to contact me here for your business needs.

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preparing your business for sale

Tips to Preparing Your Business For Sale

Tips to Preparing Your Business For Sale

Do you know when you want to sell your business?
Can you sell it if an unfortunate circumstance happens to you that might force you to sell?

If you’re like 96% of the other business owners out there, the answer is a resounding NO.
If you’re like most business owners, you’re doing just about everything you can to keep the lights on, make payroll, service your customers and clients, and keep your head above water.

Preparing your business for sale is a vital aspect of any business owners’ journey through the lifecycle of their business. Yet, 94% of the time it is overlooked.

According to statistics gleaned from multiple sources, (including www.bizbuysell.com)
If you take any 100 businesses and put them up for sale, you will find:

  • 80 will never be sold
  • 16 will sell at a discount of 30%-50%
  • 4 will sell at full price or slightly higher.

It is for this reason that I have written extensively about the typical Business Lifecycle, which is a necessity for business owners to understand.

Why is this important?
In any business that you operate, you need to keep the goal and the end in mind for the business.  Preparing Your Business For Sale is a necessary step.

Let’s face it: most people usually don’t know what their end goal is for the business, and thats why so mane of them end up closing their doors.
As a business advisor/broker, I have seen countless numbers of business people who are operating successful businesses and suddenly find themselves out of business.
They get sick, a family member might get sick, or they might lose passion for what they are doing, and the business stops in its tracks.
When this happens, the decision is made to sell and unfortunately it isn’t sellable!

In my experience, depending on management and book-keeping, it can take anywhere from two to three years from when a business owner decides to sell until the business is in a position that is can actually be sold.

This means, if something happens to you and you haven’t planned ahead of time, then you could be left selling a business for a lot less than you thought it was worth, if you can sell it at all.

During the operation of your business, there are many things that you can do to ensure that your business can be sold for the price that you deserve.

  1. Keep Clean Books!
  2. Systematize as much of the daily operation as possible.
  3. Get good help.
  4. Make yourself dispensable – in another words, make the business operate without your constant daily involvement.
  5. Tighten up accounts receivable.
  6. If you don’t have them, create an operations and procedures manual.
  7. STOP living out of the business – STOP taking write-offs!

In business, there will be a figure that the business owner takes as profit (often called EBITDA – earnings before interest, tax, depreciation and amortization) and a sale price which is calculated as a multiple of that figure.
It is IMPORTANT for you to increase the business revenue as high as possible if you need the money out of the business to support your lifestyle, give yourself a raise and pay the taxes.
If you save 30 cents in the dollar of earnings of tax, that is great; but due to the fact that the money is not in the official books, you can lose $3 or $4 per dollar of earnings that you take as cash in the eventual sale price.

I have seen examples where this has cost business owners hundreds of thousands of dollars!

Obtaining the advice of your consultants on all of these aspects of your business is critically important in preparing a business for sale.

You may think that it will never happen to you, but it is important to understand that if something goes wrong, you may have to sell quickly and it is important to understand what you need to have in place.

At Corporate Business Brokers, we offer what we call Business Succession Planning Services and we work with business owners to properly prepare their business for sale ahead of time.

For mote information Click Here and learn about Business Staging.

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Trump Presidency and Business Sales

Trump Presidency and Business Sales – 4th Quarter Sales Shatter All Records

Trump Presidency and Business Sales – 4th Quarter Sales Shatter Records!

Love Him or Hate Him, It Makes No Difference – Entrepreneurs Ecstatic Over The Trump Presidency!

Small Business Entrepreneurs, both Buyers and Sellers Have Optimistic Outlook For The Future.

Biz Buy Sell, the Internet’s largest business for sale marketplace, reports business sales for the 4th quarter of 2016 are up over 17%. Trump Presidency and Business Sales
This increase SHATTERS all business sales records from the beginning tracking began.

Love him or hate him it doesn’t matter – Trump is getting all the credit.

Business Buyers and Business Sellers are jumping with glee and have a much more positive outlook about the future for 2 reasons:

  1. Buyers are willing to pay higher prices because they see a robust economy for the future, and
  2. Sellers are willing to sell their business after holding on for dear life over the past 8 years, and to move onto other ventures, or simply retire.

ALL GOOD STUFF FOR ENTREPRENEURS!

The link below will take you to the original report if you’d like to read the original for yourself.

http://www.bizbuysell.com/news/media_insight.html?utm_source=bizbuysell&utm_medium=bbs_email&utm_campaign=sellerb011217

Record Number of Small Businesses Were Bought & Sold in the USA in 2016; Trump’s Election Spurs Optimism Among Small Business Owners According to BizBuySell.com.

  • 7,842 closed transactions were reported in 2016, the highest yearly total of small business sales since tracking data began in 2007.

Business broker surveys:

  • 63 percent of respondents experienced more deals in 2016 than in 2015.

Primary factors for the reported growth include:

  • Improving small business environment
  • More owners looking to sell,
  • More qualified buyers on the market and
  • Better financing options.

Business Revenue Up: The median revenue of sold businesses grew 5.2 percent from $449,462 in 2015 to $472,798 in 2016.

Cash Flow Up: Median cash flow also increased, up to $107,551 from $102,000 the year prior. These growing financials likely enticed more buyers into the market, spurring transactions.

Baby Boomers are looking to sell their business to retire and capitalize on the strong market, and 98 percent of all business brokers surveyed expect the same, or more Baby Boomers will want to sell their business in 2017.

Long story short, a Trump Presidency isn’t just making Wall Street Companies go higher, but Main Street Companies are benefiting also.

Read The Original Article And Check Out the Spreadsheets For Yourself.
>>>> CLICK HERE <<<<

Copyright Trump Presidency and Business Sales – PBF

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How To Increase The Value Of Your Business 400%

How To Increase The Value Of Your Business

Here are three Steps You Can Take To Increase The Value Of Your Business By 400% So You Can Sell Your Business For Top Dollar And Walk Away Wealthy.

In this post, I’m going to tell a story about Laura Steward and her company Guardian Angel.

Steward had gotten her IT consulting firm up to $400,000 in revenue when she called in a business broker for a valuation of her company.

Disappointed is an understatement when she learned that her company was worth less than fifty percent of one year’s sales.

The price of the business was low for two reasons:

  1. She had no recurring revenue
  2. The sales she had were totally dependent on her personally.

Determined to sell for Top Dollar, Laura hired a business exit coach and under his guidance, she did what she had to do, transformed her business into a much more valuable and sellable company within 18 months by making just three strategic moves:

1. Designed a Monthly Program

The first thing Steward did was to design a monthly program called Angel Watch, which offered her clients ongoing protection from technology problems. Steward offered customers ongoing remote monitoring of their networks, pre-emptive virus protection and staff on call if there was ever a problem.

What she did was, she approached all of her clients with a calculation of what they had spent with her firm over the past 12-months, including the cost of her customer’s downtime.
She then made the case that by signing up for Angel Watch, they would save money.
BOOM – 90% of her customers switched from hourly to the Angel Watch program.

2. Doubled Her Rates

Next Laura doubled her personal consulting rates. That way, when one of the customers who decided not to opt into Angel Watch called her firm, they were quoted one rate for a technician’s time or twice the price to have Steward herself. Not surprisingly, most customers opted for the cheaper option and others chose to re-consider their decision not to sign up for Angel Watch.

3. Put a Survivor Clause In The Annual Contract

Her Exit Coach introduced her to a little thing called a “survivor clause” and she immediately included it in her  Angel Watch contracts, which stipulated that the obligations of the agreement would “survive” a change of ownership of her company.

Laura successfully sold here business at a price that was more than four times the original valuation she had received just two years before, and the cost of hiring the business exit coach was a mere drop in the bucket considering the much higher price she received for the business.
Copyright: How To Increase The Value Of Your Business

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Moral of the story: The Best Are Free Because They Save, or Make You More Than They Cost.

If you’d like to learn more about How To Increase The Value Of Your Business and hire a Business Exit Coach, visit: www.BizExitCoach.com

 

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best business brokers

Why The Best Business Brokers Are Free

The Best Business Brokers Are Free Because They Save,
or Make You More Than They Cost

It’s a simple thing really. The best are free because they save or make you more money than they cost.

It seems like everyone these days is taking advantage of poor helpless victims. Taking away their ‘free’ and charging ridiculous rates for something you could have done on your own! I’d like to show you an example of why the best are free.

Lets Take a Look At This As A Business Broker:

EXAMPLE: You have a business you want to sell. The business is in the “Basic” Industry. Not the “Service” Industry – because they sell for a lower multiple.

Gross sales are $1,000,000. Net profit (EBITDA) is $150,000.
A reasonable ‘For Sale’ asking price is normally 2.5 times Owner Benefit (EBITDA) or in this case about $375,000.

  • Business Broker A charges only 8% commission on the sale, or $30,000.
  • Business Broker B charges 15% commission on the sale. That equals $56,250.

Business Broker A takes the information provided and plunks the business in the MLS system and waits for a buyer to come along. (Statistically, this type of business listing has a 24% chance of selling within a year, and will sell for approximately 75% of your asking price).

8 months go by, no action and the broker talks you into lowering the price to $350,000.
Three more months go by and finally – you have an offer for 75% of the asking price. You counter the offer and settle at a 20% discount, or a final sales price of $ $280,000.
(Total Time to Closing: 12 months).

Now you pay the Broker 8% commission, ($22,400) and end up walking with $257.600.
A bit disappointing, but your out of the business after 12 months, and you can move on to other things.

Now Let’s just jump onto Broker B:

He does things completely differently.
He has you take an online business scoring survey (www.OurBizScore.com) and get a Sellability Score of 64.

About a week later, you go to his office for a private and confidential meeting (Confidentiality is of utmost importance so you go to his office because the the walls might have ears at your place, and you can’t risk the confidentiality).

At the office, you go over the Business Score and he points out a few things you can do immediately to begin increasing your score.  By the end of the meeting, you decide to take his advice and hire his firm for $1,200 per month.

He assures you he and his team can help you increase your Sellability Score and increase the sales price of your business significantly.

You and his team are going to work on “Staging” the business before put it on the market.

You find is a bit hard to swallow, but everything he says makes perfect sense, and he has the statistics to back it up. So you bite the bullet and go along.

At this point, no other Business Broker you have ever talked to has given you this much information. All they wanted to do was get you to sign a listing agreement!

FAST FORWARD 4 MONTHS:

  • Your books are clean as a whistle and you are showing higher profits on paper because you did the “line-item-veto” of non-revenue creating expenses.
  • You’ve developed operating procedures and the employees are doing more work without you actually being there.
  • Because you have more time on your hands, you’ve had time to negotiate with your suppliers and got better prices and terms, which will mean better profit margins.
  • You fired a few bad customers and this made it possible for you to add a few new ones.

All in all, the business now has a positive story and bright future because of the work you did together, and it is on track to be running itself within the next couple months.

RESULT:
You have increased your Sellability Score to a respectable 81 and have a documented and believable future with provable forward looking financials.

Now, you’ve built up the value of the business and have increased the EBITDA to $175,000. You have also increased projected profits of $25,000, so you have now have a “Realistic” asking price of $600,000. ($200,000 X 3 = $600,000).

Remember- during these past four months you’ve been paying Broker B monthly, resulting in $4,800 in ‘staging’ fees, but at the same time, profits have increased by $9,000 over the same timeframe, leaving you with an additional profit of $5,200 or about $1,300 per month.

Now you list the business at $600,000 and a buyer comes along within the next four months offering you 90% of your asking price, or $540,000 Cash, Close in 30 days. You accept the offer.  (which is $225,000 HIGHER Than Broker A).

Broker B’s breakdown goes a little something like this:

  • $540,000 sale price minus 15% commission (of $81,000) = $459,000.
  • $1,300 additional profit per month, over 8 months = $10,400.
  • Your ‘Net” after 8 months proceeds = $469,400.

Comparing apples to apples;

  • With Broker A, you walk with only $257,600.
  • With Broker B you walk with $469,400…and that’s pretty dang good!
  • The difference is a whopping $211,800!

Moral of the Story:
The Best Are Free Because The Save,
or Make You More Than They Cost.

Get Your Business Sellability Score Today – FOR FREE and Without Obligation

Visit http://www.OurBizScore.com

It is a Statistically Proven Method to Increase The Sellability Score of your business and increases the value of your business before you place it on the market.

To learn more about Corporate Business Brokers and what we do, feel free to contact us.

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business exit strategy

The Ultimate Business Exit Strategy

Any Business Owner Can Create The Ultimate Business Exit Strategy by Taking Advantage Of My Free Business Exit Strategy Session Because My Clients Sell Their Businesses For More Money Than They Ever Thought Possible ….

If you’ve been thinking about selling your business for a while now and aren’t sure if you can, I’d like to help you create a MAJOR business BREAKTHROUGH.business exit strategy

Here’s the scoop ….

Over the past 3 years, our office has been contacted by a huge number of small business owner that wanted to sell and can’t.

These poor folks have been stuck in the business with no way out, because they have a business that no-one is willing to buy.

  • Some of them threw-in-the-towel and close their doors.
  • Some of them sold for pennies on the dollar because they were miserable and wanted out.
  • A few of them were willing to get some outside help, (FROM US) and now they have a business that operates profitably and pretty much on its own. They have a well thought out exit plan and sleep well at night knowing they can sell their business whenever they want and move on with their life.

After dealing with so many business owners and their struggles, I decided to do something about it, and came up with the Ultimate Business Exit Strategy Session and with a little work, we can make virtually any business more valuable than it is now, and more importantly, make is Sellable!

So I am just now revealing ….

** NEW For a Limited Time **

For business owners who are thinking of selling their business anytime within the next 5 years, I’d like to invite you to take advantage of a special “Business Exit Planning” strategy session.

Wat You Will Get Out of It:

  • Create a crystal clear vision for your “Ultimate Business Exit” plan so you can sell your business any-time you’re ready.
  • Uncover hidden challenges that are sabotaging the eventual sale of your business. (I’ve never seen a business without at least one).
  • Quiet Down the haunting “What-Ifs” that keep you awake staring at the ceiling at at 2 O’clock in the morning.

At the end of the session, you will leave feeling renewed, re-energized, and inspired knowing you can easily increase the value of your business, and when the time comes, easily sell it for a lot more money than you can today.

If you’d like to take advantage of this very special, very limited, and totally FREE 30 minute “Ultimate Business Exit Strategy” session, visit http://pbforsberg.com/breakthrough/ and download  “Business Exit Plan Scorecard” and return it to me.

The response we get from this very unique offer is HUGE …..  so it might be a few days before we get back to you.

Please be patient, and if we don’t contact you within 3 business days, please accept my apologies and re-send the request.

PS: The sooner you send us your answers, the more likely you are to get a session.

 

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Business GPA Score

Business GPA Score

It is Vitally Important to know your business GPA Score when you are in business for a multitude of reasons.

Your business will run better

Your business will not “Depend” on you being there every minute.

Your business will be more profitable

When you get read to sell your business, you will be able to sell it for more money than others in your industry, and you will sell it much faster.

You should get your business GPA score every year so you can track your success and adjust accordingly.

Look at the statistics below on business sales, prices, and business GPA score comparisons.

Business GPA Score

For more information about increasing your Business GPA visit www.PBForsberg.com and learn how you can get a the help of a Business Exit Specialist and increase your Business GPA.

 

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