Category - Business Seller

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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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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Why The Best Are Free

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

You might be wondering what all that gibberish means, so I’ve outlined three scenarios for you, each detailing why the best are really free.

First you might need a re-education of what ‘free’ really means. Sure it relates to your personal freedoms. And yeah, you’re right; freeing slaves or a person who is oppressed is also a definition. So what does free mean?

Free can be one of three things:

  1. an adjective,
  2. an adverb, or
  3. a verb.

It all really just depends on the way you’re using the word, or interpret its true meaning.

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 a couple of examples of why the best are free. I challenge you to choose which is the best in each example…then we’ll see how well you do!

The first example is pretty easy, you ready?

There are two accountants to choose from. Accountant A charges $4,000 to do your taxes while accountant B charges only $1,000.

Do you already know who the best is? Probably not – keep reading.

Now, let’s suppose you made $125,000 last year and end up with a $15,000 tax bill- no biggie right? It can be scary to some people, but for others, depending on how you look at it, might be grateful for making $125,000 in the first place.

So let’s get back on track here:
Accountant A finds legal loopholes and strategies, and sets you up with a defined benefit program where you can deposit a sizable amount of cash into, and you end up with a final tax bill of $2,500. (and $10,000 in your defined benefit retirement plan)

Long story short, you end up paying the Accountant $4,000, pay the IRS $2,500, costing you $6,500. (but you also got $10,000 in retirement tucked away)

Go accountant A!!

Now lets take a look at Accountant B, he does the minimal amount of work and you pay him $1,000 for doing the work and write a check to the IRS for $10,000. Costing you $11,000, (And nothing in your retirement).

Wrapping it up,

Accountant A: Total cost $6,500

Accountant B: Total Cost $11,000

Basic Math:
Accountant A SAVED You $4,500 (Plus another 10 Grand in your retirement)

Looking at this example, which one cost you less money? Obviously, Accountant A.
He was the best because he made or saved you a heck of a lot more than he cost!

Now Lets Take a Look At This From A Business Brokerage Side of Things:

You have a business you want to sell.

The gross sales are $1,000,000. Net profit (EBITDA) is at $150,000.
A reasonable ‘For Sale’ asking price is normally 2.5 times the net profit, (EBITDA) or in this case about $375,000.

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

Business Broker B 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.

Now you need to pay 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 A:

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

You send him copies of your past 3 years Tax Returns, P&L Statements and Balance Sheets.

About a week later, he then has you come into his office for a private and confidential meeting (Confidentiality is of utmost importance so you go to his office because the “Walls don’t have ears” in his office).

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 and by the end of the meeting you decide to 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.

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 had to say made sense and he has the statistics to back up his claims. So you bite the bullet and go along.
After-all ….. no other Business Broker you have ever talked with has given you this much information. All the 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.
  • You’ve developed a couple operating procedures and the employees are doing more work without you actually being there.
  • Because you have more time on your hands, you have gotten your suppliers to lower their fees and terms.
  • You fired a few bad customers and this has made it possible for you to add a few new ones.
  • Because you’re not needed every minute in the business, you begin attending more functions and actually begin enjoying it.

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

Instead of listing the business for sale at the previous revenue, you have built up the value of the business and have increased the actual EBITDA to $175,000 with a multiple of 3, and have a higher “projected and predictable” future earnings of an additional $25,000, so you now list the business at a price of $600,000 ($200,000 times 3) which give you a new listing price of $600,000.

Remember- during these past four months you’ve been paying Broker 1 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 the business is listed at $600,000. 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 B).

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

It’s easy to understand why the best are free because they save or make you more money than they cost!

As you can see by this second scenario, just because Broker A charged more upfront, asking for a higher commission rate- he also did twice the amount of work that Broker B and made you a whole lot more money!

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

At Corporate Business Brokers, we do the same thing other Business Brokers Do, and We Also Do More Because We Offer Business Staging and Business Value Builder Services.

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

 

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How to Increase Business Value

Video How to Increase Business Value By 71% Or More

Video How to Increase Business Value By 71% Or More

If you’re like most business owners, you would like to learn how to How to Increase Business Value because the majority of your wealth is tied up in your company.

By increasing the value of your company, you increase your net worth significantly.

I’d like to introduce you to a statistically proven way to increase business value by 71% or more.

Through a quantitative analysis of over 18,000 businesses, we’ve discovered that companies that achieve a Value Builder Score of 80+ out of a possible 100 receive offers to buy their business that are 71% higher than what the average company receives.

… And this can be done in as little as 12- 18 months with little effort on your part.

Get Your Value Builder Score Now:
http://corpbizbroker.com/score/ 

Announcing the Business Value Builder Score – For a limited time, you can get your Value Builder Score completely FREE and without any obligation on your part whatsoever.

Once you have your score, you’ll be able to compare it to eight key drivers to company value.
Like a pilot working his instrument panel, you can quickly zero in on which of the eight drivers is dragging down your value the most and then take corrective action.

Your overall Value Builder Score is derived from your performance on the eight attributes that drive the value of your company:

  1. Financial Performance:
  2. Growth Potential:
  3. The Switzerland Structure:
  4. The Valuation Teeter Totter:
  5. The Hierarchy of Recurring Revenue:
  6. The Monopoly Control:
  7. Customer Satisfaction:
  8. Hub & Spoke:

To find out how you’re performing on the eight key drivers of company value and start your journey to increasing the value of your largest asset.

To Learn more about How to Increase Business Value:

Get Your Value Builder Score Now:
http://corpbizbroker.com/score/ 

Copyright How to Increase Business Value

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Business Ownership Life Cycle

The Typical Business Ownership Life Cycle

Kenny Rogers Sings a Song “You Gotta Know When To Hold ‘Em and You Gotta’ Know When To Fold ‘Em”

Picture via GoogleImages

Picture via Google Images with personal edits

Every business goes through a number of changes during the course of its lifetime, and business owners should make sure they understand exactly where they are in the cycle so they can prepare for the next stage.

In this brief report, I’m going to do my best to identify each stage of the business cycle from a 30,000ft view so business owners can identify where they arena the cycle and take action, and people interested in buying a business will have a better idea of where to look and why.

The 7 Stages:

  1. Start-Up
  2. Growth
  3. Growth Slowdown
  4. Sustaining
  5. Decline
  6. Decay
  7. Failure

All Business’s have a lifecycle commonly referred to as the Business Stage.

  1. Start Up

The seed stage of your business life cycle is when your business is just a thought or an idea.
This is the very conception or birth of a new business.

There are numerous challenges for a business start-up.

  • Money is tight and resources are thin
  • Marketing is new and not established
  • Customers have not yet been identified
  • Front end customer service systems are not yet established
  • Back end product delivery systems might be a bit hap-hazard

At this stage of the business the owner is way over-worked and under-paid.

You need to really watch your pennies because this is where most start-ups fail, and the number one reason is they run out of money to operate.

 

  1. Growth Stage

Your business is born and the doors are open. You’re selling your products and services to customers.

The phone is ringing, you are having fun and are very excited about the future!!

Money’s a bit tight because you’re building inventory and hiring employees, but you don’t mind because you are doing what you set out to do and are living the dream!

The Future Looks Bright!

 

  1. Growth Slowdown Stage

Your business has made it through the infancy stage.
Revenues and customers are increasing as well as other opportunities.

You’re making money and find yourself somewhat mired in the mud of day to day operations. Dealing with employees and customers.

The fun and exciting part is beginning to wain because you are busy working “in” the business more and more.

You begin to realize this thing you created is growing bigger than you can effectively handle and you realize you can’t do it all.

This is the optimum time for a business owner to sell – This where the business will sell for the most amount of money because it has a solid growth record. It is also at the point that it isn’t fun anymore for the owner.

If nothing else, it at this stage of the business cycle that the owner should begin planning an exit strategy.

 

  1. Sustaining Stage

Your business has now matured into a thriving company with a place in the market and loyal customers. Sales growth is not explosive but manageable. Business life has become more routine.

This is where you begin to rest on your laurels and begin to back off a bit. You feel you have worked hard to get where you are and deserve a bit of time to coast. Most business owners at this stage begin to get bored and neglect to pay attention to the competition.

This is where ALL business owners should at least BEGIN thinking of selling – right when they begin to get bored with the business. The owner has reached their peter principal and stop growing.

This is where the business owner should do one of two things –

  • SELL: This is the big opportunity for your business to cash in on all the effort and years of hard work. before its too late, or
  • EXPAND: Begin Expansion through acquiring the competition – especially the competitors that have entered stage 6 or 7.

 

  1. Decline Stage

This where the business owner has mentally checked out.
They might be bored to tears with the business and lost interest, turned it over to management, or simply lost focus.

Competition might have taken a bite out of the business, or changes in the economy or market conditions. All of which can decrease sales and profits.

Unfortunately for most companies, this is where the owner has to take immediate and drastic action to get the business back on track, but in realty, they tend to do the exact opposite.

Instead of investing in the business and taking back the reigns, they make cuts to marketing and advertising, they stop investing in the business and begin cutting back on everything.
Unfortunately for the owner, they are in denial about just about everything pertaining to the business and they tend to look the other way.

They are unknowingly becoming “Don’t-Wanters” in the business.

 

  1. Decay Stage

Denial has set in completely and it shows – the more revenue drops, the more the cutbacks.

This is about the time when most business owners snap out of it and decide to sell the business and get out.

Unfortunately, it is way late in the game for them to get a good price for the business because previous sales show a negative trend and buyers are quite hesitant to buy a declining business.

This is the last chance for the business owner to get honest with themselves and face reality. It is the last chance for them to either get with it and grow revenue, or get out.

If they don’t, Stage 7 is imminent.

 

  1. Failure Stage

Game over – the business owner puts a lock on the door and liquidates inventory in a “going out of business” sale. All those years of hard work and sacrifice are down the drain. Dreams shattered, employees lives turned upside down, jobs lost, etc.

 

According to business broker statistics, only 24% of business sell, leaving about 76% of business listed for sale that end up closing their doors with a going out of business sale with shattered dreams.

According to the Largest Business Selling website BizBuySell.com, they claim 4 out of 5 businesses listed for sale by owner never sell. Simple math, that equates to 80% of businesses listed for sale by owner end up closing their doors in silent defeat, dreams shattered and a lifetime of work and sacrifice down the drain.

Understanding where your business fits on the life cycle will help you foresee upcoming challenges and make the best business decisions.

Whether your business is a glowing success or a dismal failure depends on your ability to adapt to its changing life cycles.

 

 

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Biggest Business Seller Mistake

The #1 Biggest Business Seller Mistake and The #1 Reason Why So Many Businesses Close Their Doors in Silent Defeat.

Everyday small business owners who believed they could work their butts off for a few years and eventually sell their business for a nice profit and retire, end up closing the doors to their business in silent defeat.

Dirty Book text

  • Dreams are shattered, families destroyed, employees careers ruined, and more.
  •  All of their hard work and sacrifice gone. Washed down the drain like an old hairball.
  • It doesn’t have to be that way, and it can easily be avoided if they do just one thing.

I’m a business broker and reviewing financial information about businesses takes up a large part of my day. My office is good at it, and we take it very seriously.

When you spend as much time as we do reviewing P&L’s, Balance Sheets and 1120S forms, certain pattens begin to emerge.

Patterns of success and patterns of failure.

In just about every single business transaction, it all comes down to one common denominator.

The Books – and the Biggest Business Seller Mistake that is made is … The Books Are A Mess!

If You Want To Avoid The Biggest Business Seller Mistake And Sell Your Business At a “Fair & Reasonable” Price …. Make Sure You Have “Clean Books”!

What I mean about “Clean” is, the P&L’s need to be in order and “Self-Explanatory”. If the person reviewing the books comes up with a bunch of questions that need answering, you can be sure the seed of doubt has begun to sprout.

The more questions, the more doubt. The more doubt, the more dis-trust.

I have seen it more times than I’d like to admit – the buyer wants to buy, the seller wants to sell, an agreement is drawn up and Due Diligence begins.

Both parties are excited and happy. Unfortunately, the excitement and happiness is short lived.

Due Diligence is the period when the seller provides the buyer with all sorts of financial and business information. The buyer begins pouring over the company financial records, and questions arise.

Unfortunately, more often than not, the deal dies because the books are vague or a mess, and the seller cannot confidentially answer the questions of the buyer. 

The vaguer the explanations, the more doubt – the more doubt, the more the buyer digs, and then dis-trust shows it ugly little head and much to the sellers disappointment, the buyer walks.

If You Want to Sell a Business Fast and For a Good Price, I Have Two Words Of Advise FOR YOU ….
*** CLEAN BOOKS ***Clean Bookkeeping

If you want to sell your business, I highly suggest you plan ahead and get your books in order and Avoid The #1 Biggest Business Seller Mistake!

Accept the fact that you might have to pay the tax man for a year or two. Do what you need to do and  Make Sure The Books Are “Squeaky-Clean”.

Anything less and you run the risk of selling your business for pennies on the dollar or worse, closing the doors in silent defeat and shattered dreams.

I’m not just another business broker who only lists and sells businesses.
My wife and I buy fix and flip businesses ourselves, and 3 months ago we closed on one, and are in the middle of performing Due Diligence on two others right now.

We look for businesses that have all the right things wrong with them, and bad bookkeeping is the one of those things.

So, if you are a business owner thinking of selling your business you now know how to Avoid The #1 Biggest Business Seller Mistakes. Now is the time for you to clean up the books and get them in order so you can sell your business at a “Fair & Reasonable” price.

The easiest way to clean up the books is to use an accounting software program such as Quickbooks.

If you are looking to buy a business, there are two ways of doing it.JMtQl

  1. Find a business with clean books, be prepared pay a higher price with less risk
  2. Find a business with dirty books – negotiate a great deal and be prepared to clean them up.

I’d love to hear back from you – please leave a comment in the comments section.

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