7 Ways to Exit Your Business-Choose One

Ways To Exit Your Business

There are several ways one may exit their business.  Business Owners may want to exit a business they have owned for decades just because they just no longer have an interest.  Or a small business owner may “get out of their business” after a short period of time of just owning it a year or 2.  I am a Business Broker based in Anderson South Carolina and and assist business owners with this very important decision.

Most all entrepreneurs and small business owners  think long and hard before they decided to buy a business or start a business.  So often so little thought goes into an exit strategy.  A small business may be the result  ones passion or burning desire to provide a certain service or product.

A small business can also be and usually is one of the largest asset a small business may own.  It can be a passion but it also is an investment. A significant investment.  Most investments one enters into an exit strategy should exist before the investment is made.

You buy a commercial property to rent out with the intention to rent it for 10 years, hope for market appreciation and  plan to sell in 10 years.

You buy a stock.  You buy at $10 a share and plan to sell if stock goes to $15  (unless the company fundamentals change).

You decide to start or buy a business, it gets going and does well- is your plan just to run it forever? Well you cant, because none of us are here forever.

Emphasize On Making Plans For Your Business

If your plan is to start a business grow and run the business until you are 65 and then sell it- you have a plan and are ahead of most.  It is so easy to start and buy a business and spend a lot of time preparing for that acquisition or start up, then get wrapped up in the transition or start-up, then get wrapped up in the day to day, and then one day you get real sick, and you have no one in your business that knows how to run your business, and laying in bed decide that you may need a plan- it may be to late then.

I am currently a business broker  based in Anderson South Carolina and find my role of meeting with small business owners brings awareness to the need for an exit strategy.  I had owned my own small business for 20 years and realized how ensconced with the day to day one can get with their small business.  There are several ways to exit ones business- I primarily work with small business owners looking to sell their Florida business, but observe some of the other exit mechanism and have been personally involved with several of these methods.

These are a few methods a small business owner may utilize to exit a business.  Some are good, some not so good.

The Good, the Bad and Ugly Ways to Exit Your Business:

  1. Sell at profit- can include “merger with other companies
  2. Sell at Loss
  3. Close your doors-bankruptcy, long term negative cash flow.
  4. Poor Health, Significant Injury, Death
  5. LBO (Leveraged Buy Out)
  6. Successfully grow it to such a size and take it public
  7. leave to children

Or some combination of the above- one could die and leave the business to the children

But when you look at the above list you recognize that some of the exit strategies you choose on your schedule and others are “chosen for you” and you have less control over the time frame.  Your plans can change and often do, but I suggest you plan to have a plan

For assistance on exit strategy planning and for Free no obligation consultation:

Scott Messinger

Scott@GatewayBusinessAdvisors.com

Florida Business For Sale News 7.28.2011

Florida Business For Sale  Florida Businesses Sold Activity (June 7.28.2011)

I am a Florida Business broker working with business owners selling their Florida  business, 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 July 26, 2011)

  • Businesses Sold in Florida through Business Brokers of Florida  in last 30 days  – 63 vs  48 in last documented 30 day period (up 24%)
  • Top 2 industries of  Businesses Sold in Florida through Business Brokers of Florida in  last 30 days:  15 Florida Restaurants Sold in Florida     5 Beauty Shops/Hair Salons Business sold in Florida
  • Avg Days it took to sell Florida Businesses Sold in last 30 days  – 277 days-  (9 months)- doesnt include businesses that were removed from market without selling

Businesses Currently For Sale through Business Brokers of Florida – 3336  vs. 3213 in last 30 day period

Business Currently for Sale in Jacksonville Florida Area with Adjusted Cash Flow Greater than $100,000

Animals/Pets
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703237 Saint Johns, Florida USA Pet Grooming 259,000 259,000 166,444 300,454
Automotive
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703089 Duval, Florida USA Trailer Sales
/Service
79,000 79,000 144,886 1,130,000
BBF-74703142 Duval, Florida USA Auto General Repair 189,900 100,000 101,659 444,290
BBF-74703302 Duval, Florida USA Auto Salvage 350,000 175,000 117,944 475,180
BBF-74703250 Duval, Florida USA Auto General Repair 980,000 500,000 180,833 437,467
BBF-73900330 Duval, Florida USA *Lender Pre-Qualified* Auto General Repair 989,000 989,000 185,820 425,015
BBF-74703182 Duval, Florida USA Tire Dealer 1,500,000 1,000,000 183,057 949,000
Beauty/Personal Care
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703188 Duval, Florida USA Hair Salon
/Day Spa
295,000 210,000 125,834 300,163
Business Services
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703194 Duval, Florida USA Valet Parking 275,000 175,000 121,903 410,000
Cleaning/Clothing
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-73909310 Saint Johns, Florida USA Dry Cleaners 175,000 175,000 119,234 340,616
BBF-74703162 Duval, Florida USA Coin Laundry 599,000 300,000 111,538 304,038
Construction
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703176 Duval, Florida USA Contractor Gutters 199,000 199,000 103,473 275,470
BBF-75609055 Duval, Florida USA Contractor A
/C & Heating
275,000 220,000 115,929 664,768
BBF-75609043 Duval, Florida USA *Contract Pending* Contractor General 995,000 645,000 351,079 3,009,376
BBF-75609042 Duval, Florida USA Contractor General 1,645,000 1,295,000 351,079 3,009,376
BBF-74703234 Duval, Florida USA Site Preparation 6,000,000 6,000,000 501,324 16,385,479
Distribution
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-72002137 Duval, Florida USA Dist-Computer Software 1,000,000 950,000 293,839 2,794,019
Engineering
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-75609093 Duval, Florida USA *Contract Pending* *Lender Pre-Qualified* Engineering Environmental 138,000 25,950 138,396 318,970
Financial Related
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-16412029 Duval, Florida USA Collection Agency 825,000 825,000 225,125 560,875
BBF-75609032 Duval, Florida USA Banking
/Finance
5,350,000 5,350,000 754,624 8,653,570
Fitness
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703201 Saint Johns, Florida USA *Lender Pre-Qualified* Fitness Center 249,000 45,000 102,316 301,857
BBF-74703100 Saint Johns, Florida USA Fitness Health Club 399,000 399,000 176,418 636,532
Food Business Retail
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703240 Duval, Florida USA Deli
/Catering
119,000 60,000 100,984 380,000
Furniture Retail
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703219 Duval, Florida USA Furniture Store 89,900 50,000 104,000 200,000
Gas Station
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703101 Duval, Florida USA Gas Station
/C-Store
175,000 175,000 142,139 529,000
BBF-74703292 Duval, Florida USA Gas Station
/C-Store
499,000 350,000 391,129 1,528,161
Jewelry
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703146 Saint Johns, Florida USA Jewelry Retail 595,000 595,000 287,069 703,214
BBF-74702968 Duval, Florida USA Jewelry Wholesale 1,399,500 1,399,500 875,000 1,240,000
Lawn/Landscaping
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703279 Saint Johns, Florida USA Tree Service 249,000 249,000 150,000 500,000
Liquor Related Biz
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703267 Duval, Florida USA Sports Bar 139,000 60,000 112,750 396,000
BBF-74703295 Saint Johns, Florida USA Liquor Nite Club 249,000 249,000 268,333 1,174,560
BBF-74703193 Saint Johns, Florida USA Sports Bar 295,000 295,000 152,857 798,312
BBF-74703149 Saint Johns, Florida USA Bar
/Restaurant
395,000 275,000 221,711 895,478
BBF-74703262 Duval, Florida USA Liquor Nite Club 425,000 425,000 110,000 350,000
BBF-74703044 Saint Johns, Florida USA Beer
/Wine Bar
495,000 275,000 218,922 415,877
BBF-74703212 Duval, Florida USA Adult Entertainment 2,400,000 1,900,000 650,000 1,200,000
Manufacturing
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-75609119 Duval, Florida USA Mfg-Metal Products 1,150,000 975,000 199,323 1,777,176
BBF-75609120 Duval, Florida USA Mfg-Metal Products 2,000,000 1,825,000 199,323 1,777,176
Medical Related Biz
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-75351040 Saint Johns, Florida USA Medical Speech Therapy 350,000 350,000 120,022 412,187
BBF-75608123 Duval, Florida USA Non-Med Home Care 520,000 520,000 132,836 478,615
BBF-74703087 Duval, Florida USA Laser Clinic 1,050,000 800,000 401,744 925,000
BBF-74703095 Duval, Florida USA Medical Spa 1,050,000 800,000 149,676 829,108
BBF-40901900 Duval, Florida USA Medical Equipment 1,650,000 1,320,000 455,007 1,488,927
Moving
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-75609103 Duval, Florida USA Moving Storage Company 6,755,000 6,755,000 403,767 717,133
Office Supplies
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-72002134 Saint Johns, Florida USA *Lender Pre-Qualified* Office Supplies 275,000 275,000 101,162 508,621
Pool & Spa Business
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703303 Saint Johns, Florida USA Pool
/Spa Supply Store
279,000 279,000 138,786 647,042
Printing/Typesetting
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-72002133 Saint Johns, Florida USA *Lender Pre-Qualified* Printing Business 275,000 275,000 101,162 508,621
Recreation
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74920353 Duval, Florida USA Entertainment 465,000 465,000 144,740 687,542
BBF-73909338 Duval, Florida USA Game Room 622,500 622,500 415,103 1,597,605
BBF-26407049 Duval, Florida USA Casino Ship 5,750,000 5,750,000 2,951,895 8,778,545
Rental Business
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703259 Duval, Florida USA Rental Party Goods 650,000 400,000 214,053 540,611
Restaurants
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703256 Duval, Florida USA American Restaurant 99,900 74,900 102,433 335,232
BBF-74703097 Duval, Florida USA Italian Restaurant 190,000 95,000 109,572 414,186
BBF-74703207 Duval, Florida USA Breakfast Lunch 199,000 150,000 140,000 550,000
BBF-74703255 Duval, Florida USA Pizza Shop 225,000 225,000 112,839 455,755
BBF-74703268 Duval, Florida USA Italian Restaurant 250,000 150,000 141,778 564,583
BBF-74703306 Duval, Florida USA American Restaurant 250,000 200,000 148,825 827,520
BBF-74703056 Duval, Florida USA Pizza Shop 275,000 275,000 110,220 600,000
BBF-75609082 Duval, Florida USA Pizza Shop 295,000 145,000 190,354 682,930
BBF-74703156 Saint Johns, Florida USA Cafe Type Eatery 450,000 250,000 216,735 629,690
BBF-74703278 Duval, Florida USA Italian Restaurant 599,900 300,000 330,469 1,263,569
BBF-74703055 Duval, Florida USA Pizza Shop 699,900 399,900 204,958 1,515,000
Retail Miscellaneous
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703285 Duval, Florida USA Retail Tobacco Store 550,000 400,000 307,298 1,539,648
Shoes/Footwear
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-74703147 Duval, Florida USA Shoes Retail 299,000 149,500 100,100 400,816
Transportation
Listing No.  Location  Category Detail  Price  Down  Adjusted Net  Sales 
BBF-75608126 Duval, Florida USA Medical Transport 520,000 520,000 132,836 478,615

Highlighted Industry:

Heating and Cooling Contractors for Sale in Florida, includes HVAC Businesses For Sale in Florida,  A/C Companies For Sale in Florida

  • Number of HVAC or A/C Businesses  Sold in Florida in last 2 years -6
  • Average Adjusted Cash Flow of  HVAC Businesses sold in Florida  – $155,000
  • Average  Sale Price of HVAC Businesses sold in Florida in last 2 years  $295,000
  • Number of  HVAC  Businesses  Currently For Sale in Florida- 21

HVAC businesses in Florida  are very good opportunities for both the strategic buyer, looking to grow revenues by acquisition, and  a  good business for one looking to relocate to Florida.  Recurring revenue, large demand for the A/C component of the business and the good cash flow these businesses can generate are  a few reasons buying a HVAC business in Florida may be a good fit.  Looking to Buy a business in Florida?

*All above info compiled from data available via the bbfmls website.


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 Businesses For Sale-

Florida Business For Sale  Florida Businesses Sold Activity (June 6.8.2011)

I am a Florida Business broker working with business owners selling their Florida  business, 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.

 

Recent Businesses Sold in Florida Activity

  • Businesses Sold in Florida through Business Brokers of Florida  in last 30 days  – 48
  • Top 2 industries of  Businesses Sold in Florida through Business Brokers of Florida in  last 30 days:  9 Florida Restaurants Sold in Florida     4 Lawn Service Business sold in Florida
  • Avg Days it took to sell Florida Businesses Sold in last 30 days  – 270 days-  (9 months)

Businesses Currently For Sale through Business Brokers of Florida – 3213

Businesses Sold in Florida through Business Brokers of Florida over last year –  872

  1. Businesses For Sale through Business Brokers of Florida with Net Income Less than $100k – 1196
  2. Businesses For Sale through Business Brokers of Florida with Net Income More  than $100k –  1117
  3. Businesses For Sale through Business Brokers of Florida with Net Income More  than $200k  – 484
  4. Businesses For Sale through Business Brokers of Florida with Net Income More  than $300k –   223
  5. Businesses For Sale through Business Brokers of Florida with Net Income More  than $400k –   112
  6. Businesses For Sale through Business Brokers of Florida with Net Income More  than $500k –  66
  7. Businesses For Sale through Business Brokers of Florida with Net Income More  than $1M        -19

Highlighted Industry:     Automotive  Business For Sale in Florida                      Automotive businesses for sale include Auto Repair businesses for sale,Towing Businesses For Sale in Florida, Auto Car Washes for Sale in Florida, Auto Car Sales Businesses for Sale in Florida, Auto Body Shops for Sale in Florida, and other Auto related businesses .

  • Number of Automotive Businesses  Sold in Florida in last 2 years -54`
  • Average Days it took to sell –  282
  • Number of Automotive Businesses  Currently For Sale in Florida- 186

Currently I represent a Towing Business For Sale in Jacksonville Florida. This business for sale is available with or without Realestate and relizes revenue streams from towing, service, storage and resales. Looking to Buy a business in Florida?

All above info compiled from data available via the bbfmls website.


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

 

11 Steps to Business Failure in 2011

The Internet is a fantastic source of knowledge and information.  How to be a better person, how to make more money, how to make body parts bigger/smaller/ better?  And there are many list available on how to be more successful.   We all aspire to be better.   I had started and owned a business for 20 years and had years of triple digit sales growth and solid double digit sale growth.    Even while  running and growing a business one tries to determine what you are doing right and wrong.

How To Avoid Business Failure?

Find something that is working and try to make it repetitive.  Find something that is not working and try to eliminate it before it brings further undesirable results.

I have a good friend that is an attorney and we would discuss business and he accounted his success to the fact that he consistently and diligently returned phone calls.  To that I say What?  Something so simple as just returning a phone call made you better than your counterparts?  And the answer to that is yes. Not everyone does return phone calls or emails .  So you can be better than the next guy by just returning phone calls.

To me this business practice is just a given, but I find to others it is more of an “optional service” that they provide.  Sometimes the difference between success and failure is not some long winded algorithm or new gee-whiz technology, it is focus on the basics and do them right and do them consistently.  Currently I am  a business broker based in Florida and work with small business owners in the process of buying and selling businesses.  I consistently find so many of the business issues I have had as a business owner are shared by so many other business owners.

Avoid Business Failure

Photo (c) theidgroup.co.uk

Tips For Steering Clear Of Business Failure

Do you want to have a better business?  Do you want to improve your business?  Then review the below list.  If you are wondering what may be the fast track to business failure then use the below as a guideline:

  1. Dont keep good track of your numbers and dont feel the need to really understand them.  That job should be for others.
  2. Dont return emails phone calls timely
  3. Continue to delay your involvement with Internet marketing, social marketing and  website optimization
  4. Dont  pay attention to existing customers and clients
  5. Be willing to treat customers and employees improperly, as long as you the business owner benefit, and when you do something wrong to others that benefit you- assure yourself that its “just business”.
  6. Dont take any time to review where you are spending your advertising/marketing dollars.  Assume that even though you have not been getting results from your current efforts that if you do nothing long enough results will occur… eventually.
  7. Dont embrace technology, continue to fight it and close your mind to “new ways”.
  8. As a business owner dont take any time planning for a business exit strategy
  9. Minimize the value of input from employees.  You are the boss and because of that fact your way is the only way.
  10. People say “either your business grows or your business dies”- dont believe that. Believe you have enough customers right now and that is good enough.
  11. Dont worry about any long term planning. Long term planning is really a waste of your valuable time.

Like most list, this list as well can go on and on.  Want to run a better business in 2011?

Its not Who You Know its Who Knows You

Our business world revolves around the type and number of business contacts and relationships we have nurtured.  Quality business relationships play a large part in a successful business. I am a business broker based in Florida and and I strongly value the business relationships I have. I don`t necessarily want to know more relevant people, I want more people to know me. As we network and strive to grow our business, its important to remember its not who you know, its who knows you.

Establishing The Right Relationships

We use various means to establish those relationships.  When we make it our goal to grow our businesses by “getting out there and meeting more people”, that effort can be somewhat miss-guided.  For every business person the needs are a little different.  I help people buy and sell business.  I strive to speak to more people that are considering buying a business.

I also prospect and market to reach small business owners that have an interest in selling their business.  In some businesses the largest asset may be the production equipment, in others it may be their building they own, in my business as a business broker my largest asset along with my experiences may be my business relationships.

Actually to me the concept of Business Relationships has changed significantly over the last several years with the evolving of the internet and social media. And the definition of a business relation has become somewhat blurred.

“On Facebook I have 1800 friends”, “on Twitter 12,000 Follow Me and I follow 14,000” “On Linked-In I have 2200  Contacts”.-  I actually dont have these sort of numbers but many of us know people that do.  The real fact, at least for me, is that if I have to use all my fingers and toes to count my real friends I consider myself fortunate.

Business Relationships

Photo (c) sheranescloset.com

Does Knowing People Mean That They Know You?

Do the 1800 Facebook friends know you ?, Do the 14,000 on Twitter know you?, Of the 2200 Contacts on Link-ed In , how many are going to shoot me an email when they want to Buy a Business or Sell a Business in Florida, or buy printer paper, or get my lawn service, or whatever my business offers?

As we strive to network and expand our sphere of relationships I recently got reminded of the actual goal of this effort , or rather what the end result of this effort should actually be.  Very often I think thru my networking efforts, I want to meet people, when really what I want to do is have people meet me, get to know me. I know who President Obama is,  I don`t really”know” President Obama.  So I know of President Obama- does that help my business -no.  But what if President Obama knew me or knew of me?

I know of Bill Gates-Microsoft.  So what?  What if Bill Gates knew of me?  But from a practical standpoint, knowing the president of the small business right here on Main St is nice, but meeting him and striving to get him to know me, and when he and his friends are talking and one strikes up the all to common conversation of ” Do you know anyone who…..”   can help me buy a business in Florida, this small business owner can say yes, I know this great business broker and his name is…