Category Archives: buy a business

Starting Or Buying A Business-Own or Rent Building?

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Starting a business, or buying a business involves many decisions  ranging from what one should  put on your business card to where to locate your business.  Many small businesses are run from ones own personal residence,  and there are many advantages and disadvantages that can come along with that strategy.

But operating your business from a leased space, rented space, or a space you or your business would buy, can be a very important decision for your business.  The business that I had owned for 20 years, I had owned the building and surrounding property, (I still own and lease back, even after the sale of the business).

Owning A Real Estate For Your Business

Currently my role as a business broker has me working with business owners that both own the building they operate the business from they are selling and business owners that rent their space. Of  almost 1000 businesses sold in the state of Florida in the last year,  thru the Business Brokers of Florida of which I am a member of, less than 8% of them involve real estate.

Is it better to Own or Rent your Businesses Property?  

Most business owners in Florida that sold their business rent their buildings.  There are just way more non- owner occupied properties than owner occupied properties.  Again I owned and currently own and rent out the building I operated my business out of.  My thought process was that I had long term plans for my business and I viewed it as a means of building equity.  I do look at it a little different in today`s economy.

I do know of several business owners here in Florida that bought their building 5-10 years ago, ( they viewed the acquisition as an investment) and while the business may be doing somewhat ok during these difficult lean times, the building is so upside down that it may take 5, 10+ years or more, before the amount owed on the building is equal to or greater than market value.

To exacerbate that dilemma, ” like spaces” may be rented at a fraction of what monthly mortgage, insurance, and taxes payments may be.  It would be nice to be able to treat this expense as other expenses and when you have a more cost effective means just pursue that route, but buying/selling a building (or a business)  is not a very liquid investment- especially in today`s market.

Some Pros of owning a building may include:

  • more control, no landlord to report to and changes to your building allow you greater flexibility
  • potentially over the long haul you can accumulate equity
  •  If you are buying now, are you buying at a real value price, and its hard to argue that locking in at todays interest rates would not be a good thing.

On the Con side:

  • One must consider the opportunity cost of the money that is devoted to a down payment when buying a building- how much could that money have helped you grow your business?
  • If you need to move your business a  rental/lease agreement may allow you greater flexibility.
  • Owning a building is more responsibility

Operating lean, low overhead, low monthly expenses greatly enhances the likelihood of acceptable profits.  I am pleased I had owned my building I operated my business out of, but would I make the same decision today to buy a building to run my business from?

If I were buying a business here in Florida would I require that I can buy the building along with the business I am buying- today I am not so sure. Leaning  towards the flexibility of renting until  further clarity on where  on economy is truly heading seems to be a reasonable approach.

Florida Business For Sale Florida Businesses Sold Activity 2011

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Florida Business For Sale  Florida Businesses Sold Activity 2011

I am a Florida Business broker working with business owners selling their Florida  businesses, and business owners and individuals looking for acquisitions.  Prospective business buyers I work with are located in Florida, US., and Business buyers in Europe and throughout the world.

As a  member of Business Brokers of Florida, which is the largest state Association of Business Brokers in the United States we have access to significant data regarding businesses being bought and sold .   Thousands of businesses for sale are represented by over 1000 business brokers that are members of this Association.  These business brokers list their respective businesses for sale and prospective business buyers on a centralized listing site and buyers and sellers of businesses are brought together. Several thousand businesses for sale are listed, modified, and advertised thru this website.  Valuable information regarding Florida business for Sales and Florida Businesses Sold help me as a Business Broker Professional  keep track of the ebb and flow of the Florida Business Acquisition Market.  Understanding a business to assist in selling that business requires an understanding of the numbers behind  that business.  And understanding the marketplace in which this business may be sold is furthered by a review of the data surrounding businesses being bought and sold in Florida. The below are a few statistics, totals, and items of note surrounding the business acquisition and sales market in the State of Florida. Other businesses are bought and sold without the assistance of members Business Brokers of Florida, and that info is not included in this analysis.

Businesses Sold in Florida Activity for 2011

Businesses Sold in Florida through Business Brokers of Florida  in  2011  – 859  vs 931  in 2010.  About a 7% drop.

Averages of all businesses sold in 2011:

Average Sales – $541,000   Average Price Sold For- $243,000   Average Adjusted Net- $96,000   Days on Market  224 (note all DOM (days on market) numbers DO NOT include those taken off the for sale market)

Florida businesses sold in 2011  Items of note:

  • Restaurants sold in Florida – Number sold- 199   Avg Sales-$326k  Avg  Sold Avg.Price-$140k     Adj Net-$67k  DOM 211

over 20% of all businesses sold in 2011 were restaurants!  Currently 670 are for sale

  • Dry Cleaners/Laundry Business sold in Florida-39  Avg. Sales-$174k Avg.  Sold Avg. Price-$119k   Avg. Adj Net-$64k

fairly active sector- fairly low business entry point, and fairly easy learning curve.

  • Manufacturing businesses sold in Florida- 15   Avg. Sales $1.3M   Avg.Sold price-$713k Avg. Adj Net-$148k DOM-275

Florida is a very service oriented business community, not a lot of manufacturing activity, relatively.

  • Lawn Service Businesses Sold in Florida-33 Avg. Sales-$190k   Avg. Sold Price- $ 115k  Avg. Adj Net- $73k  DOM-186

lots of lawn service business sold and for sale in Florida but almost exclusively “smaller” with average sales of $190k

  • Insurance related businesses Sold in Florida-15  Avg. Sales- $226k    Avg. Sold Price-$335k  Avg. Adj.Net- $110k  DOM -166

I took note of insurance because they received a very good multiple when compared to most other industries 3+ times adjusted Net. and the average days on market less than 6 months- a fairly fast sell time.

As of December 28,2011…

Businesses Currently For Sale through Business Brokers of Florida – 3392 vs. 3373   in last 30 day period.  about same.

  • Number of Business Currently for Sale in Jacksonville Florida Area (Duval County and St.Johns County) – 209
  • Number of Business Sold in Jacksonville Florida Area in2011- 48
  • Number of Restaurants for Sale in Jacksonville Fl Area-56 (about 25% of all Jacksonville businesses for sale)

Current Business Interest and Activity Observations: as of  December 28,2011

Is there a pent up supply being created.?  Every year business owners get closer to exiting their businesses.  Another year has gone by.  How many business owners planned or intended to sell their business in 2010 or 2011 and have decided to delay that action?

Will this “supply” of businesses for sale affect the price that a business may realize due to a potential increase in supply?  If demand stays consistent and supply increases, prices by market forces tend to move down.  So how does one balance the strategy to wait until company performance improves vs selling into a potentially lower valued market?  I always like to think tomorrow will be better as I am a fairly optimistic person- things will get better, just not sure how many tomorrows its going to take.

 

  • *All above info compiled from data available via the bbfmls website. And addresses information about businesses being bought and sold and reported thru this Professional organization of Business Brokers of Florida.

For more info or questions regarding the Florida Business Acquisition Market or Florida Businesses for sale please contact

Scott M Messinger

Scott@Sellabusinessflorida.com

239.770.2421


 

Florida Business For Sale Florida Businesses Sold Activity (Nov.22, 2011)

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Florida Business For Sale  Florida Businesses Sold Activity (Oct.12, 2011)

I am a Florida Business broker working with business owners selling their Florida  businesses, and business owners looking for acquisitions.  Prospective business buyers I work with are located in Florida, US., and Business buyers in Europe and throughout the world.

As a  member of Business Brokers of Florida, which is the largest state Association of Business Brokers in the United States we have access to significant data regarding businesses being bought and sold .   Thousands of businesses for sale are represented by over 1000 business brokers that are members of this Association.

These business brokers list their respective businesses for sale and prospective business buyers on a centralized listing site and buyers and sellers of businesses are brought together. Several thousand businesses for sale are listed, modified, and advertised thru this website.  Valuable information regarding Florida business for Sales and Florida Businesses Sold help me as a Business Broker Professional  keep track of the ebb and flow of the Florida Business Acquisition Market.

Understanding a business to assist in selling that business requires an understanding of the numbers behind  that business.  And understanding the marketplace in which this business may be sold is furthered by a review of the data surrounding businesses being bought and sold in Florida. The below are a few statistics, totals, and items of note surrounding the business acquisition and sales market in the State of Florida. Other businesses are bought and sold without the assistance of members Business Brokers of Florida, and that info is not included in this analysis.

Recent Businesses Sold in Florida Activity (as of  Nov 22. 12, 2011)

  • Businesses Sold in Florida through Business Brokers of Florida  in last 30 days  – 42 vs 28 in prior 30 day (Oct.12,2011) documented  period
  • Top  industry of  Businesses Sold in Florida through Business Brokers of Florida in  last 30 days:   Restaurants   (as usual…) other most active- Lawn Service, Contractor, Retail
  • Avg Days it took to sell Florida Businesses Sold in last 30 days  – 235 (about 8 months vs. –  (5 months)- in last documented 30 day period (Oct 2011), doesnt include businesses that were removed from market without selling (One Florida  business sold in 1341 days)

As of Nov 22, 2011…

Businesses Currently For Sale through Business Brokers of Florida – 3373 vs. 3301   in last 30 day period.  up about 2%

  • Number of Business Currently for Sale in Jacksonville Florida Area (Duval County and St.Johns County) – 217
  • Number of Business Sold in Jacksonville Florida Area in last year- 46

Current Business Interest and Activity Obseravtions: as of  Nov 22, 2011

My profession has me involved with speaking to many business owners in Florida and many “prospective business buyers”. Recent discussions continue to enforce consistent facts about todays business acquisition and sales market in Florida:

  • People are actively  looking to buy good businesses.  
  • Business Owners are hesitant to put their business up for sale because the business is down from peak or higher levels. 
  • A business offering Seller financing both attract more buyers and increases the likelihood of the business sale.

*All above info compiled from data available via the bbfmls website. And addresses information about businesses being bought and sold and reported thru this Professional organization of Business Brokers of Florida.

For more info or questions regarding the Florida Business Acquisition Market or Florida Businesses for sale please contact

Scott M Messinger

Scott@Sellabusinessflorida.com

239.770.2421


 

Website & SEO Before You Sell Your Business

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Selling your business requires you to prepare your business for sale. One of the important steps in preparing your business for sale is a well designed web site that produces results. Below is information from the perspective of an SEO Web Design firm.

Tampa SEO is a full service web design and SEO agency in Tampa, FL. Here’s an article they wrote regarding web design and SEO prior to selling your business.

Why You Need SEO & a New Website Before Selling Your Business

So you have decided to sell your business and are making moves to get top dollar for your baby. Being a good business owner you understand that although your business means the world to you in the business world it is about proving the dollar amount from both an appraisal and sales perspective.

Whatever your business may be, the prospective buyers want to see the purchase and new ownership process go as seamlessly as possible. This means all your records are in order, the permits or licenses are all up to date, and most importantly the business will continue to be as or more successful than it was with new owners. Tampa SEO highly recommends that a new website and SEO campaign can help you with the latter.

Your business website represents your professionalism

When it comes to business success most owners will agree that the online market is one of the most important. Your website is the representation of your products and services, your image, your authority in your industry, and a way to provide potential customers information in a day and age where the Internet is the first place people look. Basically, having a well-designed website will help build business, retain business and represents everything you have worked so hard for when you yourself can’t make a live impression.

Tampa SEO knows that a modern website helps businesses before, during, and at the end of their operation so that they can showcase their professionalism and utilize their website as an additional marketing tool. Although having a great website will help with conversions your business will still need a way to attract customers and PROVE that it is a great marketing tool before its sale. This is where search engine optimization (SEO) comes into play.

SEO

Photo (c) topseopicks.com

SEO is simple, easy, and fast way to get increased market share prior to selling

While a website can be the source and reason you convert leads, SEO is the reason these leads are finding you. A new website and SEO campaign helps customers or clients who are already looking for your products or services find you quickly and easily. When a customer goes on to Google and searches for a generic phrase related to your business SEO makes your website come up high in the rankings and improves the chances that that customer will make a purchase from you.

This relates to the sale of your business because with SEO all the website activity is quantifiable. When you can prove to potential buyers that you have X amount of traffic and X amount of conversions you have proved your market share and ability to sustain business in the future. This is a great selling point as most other marketing campaigns- TV, radio, Yellowpages, etc. are difficult if not impossible to measure.

Shows new buyer you have continued to improve the business while selling

Every business buyer wants to know that the risk they are taking by purchasing your business is justified. What better way than showcasing to them through your new website and SEO analytics that your business is sustainable and can continue to grow through attracting new customers online. You have showcased the effort to improve marketing before you sell your business and have begun the process of attracting a bigger clientele through SEO.

It seems that websites and Internet marketing are a piece of every business plan these days. When selling your business make the decision easy for the buyer. Showcase to them that you care about the success of the business even after ownership has been transferred by investing in a website and SEO campaign that will continue to be successful even after you are gone. It is a huge buying factor and can improve the bottom line you can charge for your business as it is all justifiable.

Scott M Messinger is a business broker based in Florida.  I work with both business owners and individuals in the process of buying and selling businesses.  I normally write my views and perspectives from a small business owners standpoint.  The above article is helpful information provided from the perspective of an SEO Web Design Company.

 

 


 

Florida Business For Sale Sold Activity (October 12,2011)

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Florida Business For Sale  Florida Businesses Sold Activity (Oct.12, 2011)

I am a Florida Business broker working with business owners selling their Florida  businesses, and business owners looking for acquisitions.  Prospective business buyers I work with are located in Florida, US., and Business buyers in Europe and throughout the world.

As a  member of Business Brokers of Florida, which is the largest state Association of Business Brokers in the United States we have access to significant data regarding businesses being bought and sold .   Thousands of businesses for sale are represented by over 1000 business brokers that are members of this Association.

These business brokers list their respective businesses for sale and prospective business buyers on a centralized listing site and buyers and sellers of businesses are brought together. Several thousand businesses for sale are listed, modified, and advertised thru this website.  Valuable information regarding Florida business for Sales and Florida Businesses Sold help me as a Business Broker Professional  keep track of the ebb and flow of the Florida Business Acquisition Market.  Understanding a business to assist in selling that business requires an understanding of the numbers behind  that business.  And understanding the marketplace in which this business may be sold is furthered by a review of the data surrounding businesses being bought and sold in Florida.

The below are a few statistics, totals, and items of note surrounding the business acquisition and sales market in the State of Florida. Other businesses are bought and sold without the assistance of members Business Brokers of Florida, and that info is not included in this analysis.

Recent Businesses Sold in Florida Activity (as of  Oct. 12, 2011)

  • Businesses Sold in Florida through Business Brokers of Florida  in last 30 days  – 28 vs 63 in prior 30 day (July 26,2011) documented  period
  • Top  industry of  Businesses Sold in Florida through Business Brokers of Florida in  last 30 days:   Restaurants   (as usual…)
  • Avg Days it took to sell Florida Businesses Sold in last 30 days  – 162 (about 5 months vs.  277 days-  (9 months)- in last documented 30 day period (July 2011), doesnt include businesses that were removed from market without selling

As of Oct. 12, 2011…

Businesses Currently For Sale through Business Brokers of Florida – 3301 vs. 3336   in last 30 day period. about same

  • Number of Business Currently for Sale in Jacksonville Florida Area (Duval County and St.Johns County) with Adjusted Cash Flow Greater than $100,000- 67
  • Number of Business Currently For Sale In Jacksonville Fl area with adjusted cash Flow greater than $200,000 –  21
  • Number of Business Currently For Sale In Jacksonville Fl area with adjusted cash Flow greater than $300,000 – 9

 

Current Business Interest and Activity Obseravtions: as of Oct 12,2011

As a business broker I work with many “Business Buyer Prospects“.  I realize so many will remain perpetually  “Prospects” and a select few will actually result in being “Business Buyers” I both understand and accept this fact. 

But recently  I have been working with several buyer prospect that had a goal/objective of finding Florida Business For Sale with adjusted cash flow of $300,000.

  • Of the 3301 business for Sale in Florida 193 have adjusted cash flow greater than $300,000  about 5% !  
  • Of the 3301 business for Sale in Florida 103 have adjusted cash flow greater than $400,000  only about 3% !
  • Number of business sold in Florida with adjusted cash flow greater than $300,000 in last year – 36 

Buying 2 synergistic businesses that may produced a combined $300,000 adjusted cash flow or owner benefit is a strategy that is being considered.

*All above info compiled from data available via the bbfmls website. And addresses information about businesses being bought and sold and reported thru this Professional organization of Business Brokers of Florida.

For more info or questions regarding the Florida Business Acquisition Market or Florida Businesses for sale please contact

Scott M Messinger

Scott@Sellabusinessflorida.com

239.770.2421