Tag Archives: Buy a Greenville business

What Did Businesses Sell For 1st Quarter 2018

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What Did Businesses Sell For 1st Quarter 2018

                                     May 22, 2018
What Did Businesses Sell For 1st Quarter 2018  and Why?                        Email Scott today for More Info                   
Information gathered by a survey of over 270 Professional Business Brokers reveal the current information of the market defining what businesses are selling for AND why. This information is based on the sales of hundreds of business during Q1 2018 and some behind the scenes info of the hows and whys-What Did Businesses Sell For? – and what does it mean? – Businesses sell for a multiple of cash flow. The multiple it sells for is dependent on the industry, the size of the business and other factors. As you can see below businesses are selling for the same multiple of cash flow in Q1 2018 as they were in Q1 2018.  Yet most businesses have improved from 2014 so many  businesses are selling for more……

Who is Buying a Business? and Why? – the below results from the survey of 270 business brokers show that the reason and the type of buyer varies based upon the size of business bought.  Still almost 50% of businesses that attempt to sell do not sell.

 

What Did Businesses Sell For first quarter 2018

****  Buyers Looking For- HVAC Businesses, Pest Control, Businesses with cash flow of $1M+                                                                                            C- Stores , Self Storage                                  

 Email Scott Today For More Info

Scott M. Messinger is a former and current business owner that has personally purchased 8 + businesses. Former owner of successful production/manufacturing/distribution business of 20 years that was successfully sold and transitioned. Member of Gateway Business Advisors serving South Carolina Florida and Southeast USA. Member of the Business Broker of Florida Assn. For a FREE current listing of Businesses FOR sale see: www.SellaBusinessAdvisors.com call South Carolina (864) 210-8226 Florida (239) 770-2421

 

Buying a Business -What is a good Deal?

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Buying a Business -What is a good Deal?

Buying a Business -What is a good Deal?

Buying a Business

 

Buying a Business is not an easy process.  Selling a business is not an easy process.  Knowing what is a good deal for a business buyer and what is a good deal for the seller greatly assist in achieving the goals of a business buyer or business seller.  Understanding what may be the components of a “Good Deal”  as a business buyer or a business seller  is both important and necessary. I am a business broker and have been involved with business acquisition and sales for over 25 years as broker representing business buyers and business sellers and as a business buyer and business seller of multiples businesses for my own personal gain.

I work with Business Sellers in South Carolina and Florida.  I also work with prospective business buyers in Florida, the Upstate, South Carolina, USA and internationally.

There are many components to a successful business purchase and or business sale.

A discussion I always have when working with a prospective business buyer or one looking to sell a business is to make and keep the “Totality of the Deal” a top priority.  There are many aspects of a business sale that make up the totality of the deal.   It’s easy to just look at Price and go into the process thinking Price is the goal/target of a successful business sale or successful business acquisition.   A business sale involves Price, timing, conditions,  terms including non-compete, transition, seller post sale involvement, financing, handling accounts receivables,  handling payable if applicable, and the list can go on.  I define the totality of the deal as how all the components of a business sale meet the goals of a business buyer or business seller.  Consider the following scenario –

A business seller may want to sell his/her business for $1M.  As a business broker I engage with 2 prospective business Buyers: In this scenario both buyers are willing to make an offer on this $1M Business for sale. Prospective Business Buyer A  offers $1M but requires Seller to stay on for 2 years and wants to pay 60% Down and pay balance over 5 years and wants to keep all Accounts Receivables that are on books at time of closing. Also Buyer A demands to know and meet with top 5 major customers before consummating sale. Prospective business Buyer B  offers $900k,  willing to have Seller stay on as long as Seller wants,  has financing setup so Seller gets entire amount at closing, and Seller keeps all Accounts  Receivables.

SO what deal is better for the seller?   What Buyer believes their offer is most likely to get accepted by the Seller?   While a lot of business acquisitions share commonality every business sale is different. What is important to one business buyer may not be important to another business buyer.  What is important to a Business seller is ultimately best determined by that business seller.  A business selling for $300k may be considered overvalued by some and a business selling for $5M may be considered “cheap” or a good value by others.  But setting the goal of trying to achieve a deal that carefully weighs the entire totality of the deal greatly increases the odds of reaching what may be a good deal for you as a business buyer or a business seller.

Scott Messinger is a Professional Business Broker working with business owners looking to sell their South Carolina Business or Florida Business.  Also working with business buyers throughout the South east USA, throughout the nation, and international business buyers as well.

Currently represent businesses for sale in Anderson South Carolina, Greenville South Carolina, Pendleton South Carolina, Pickens County, Jacksonville Florida as well as other areas of South Carolina and Florida.

For More information or to discuss how to sell your business for more, email  Scott@GatewayBusinessAdvisors.com or call (864) 210-8226

 

How to Sell Your Business for More

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How to Sell Your Business for More

How to sell your business for more.  At some point a business owner considers selling their business.  Sometimes it is just a fleeting thought.  Sometimes its a thought of  “I don`t need this anymore, get me out”.  Other times its a well planned out progressive process.  You want to sell your business- how do you sell it for more. It can just start with a phone call -How to sell my Greenville business?

This sounds like a fairly straight forward approach, but just as the selling of a business process can be very involved, the question of how to sell it for more firstly needs definition.  I am a business broker based in Anderson South Carolina, focus on businesses for sale in Florida and South Carolina,  and speak to many many business owners about the potential sale of their business.  I also sold my own business several years ago.

Selling Your Business When The Time Is Right

Selling my Greenville SC Business

Just consider the simple analogy of having a rusty bike in the garage with flat tires that you want to sell today.  You put it out at the end of the drive way put a For Sale sign on it- what do you think it will sell for?  How can you sell that bike for more tomorrow than you can today? How to sell my Greenville business for More?

Selling Your Business For More:

  • Selling your business for more can be a very good thing and very reasonable goal.
  • Trying to sell a business for more than it is worth can ultimately result in your business not being sold at all.
  • Setting the Goal today to improve your business, prepare it for sale so that it is worth more after your improvements is probably your best approach
  • Wanting to sell your business for more than “what you heard a local competitor sold for” can also be a mis-guided path.

Preparing Your Business For Sale

So selling your business for more is a reasonable and understandable goal.  How do you get more for your business?  Start today preparing your business for sale.  Like so many of your other important business decision, prepare yourself a to-do list and systematically address those items.  Below are some items you will want to include on your to-do list to help ready your business to sell for more. Ask and honestly answer these questions about your business.

When looking at how to sell my Greenville  business for more, ask yourself -How  are your financials?  Are there some unusual entries on your P/L that have escaped needed adjustment?  Are all sales accounted for?   Do you have a good clean P/L statement?  For smaller businesses Do you have a P/L and Balance sheet?

Again, when looking at how to sell my Greenville  business for more, determine, how reliant is your business on you.  What can you do today to help your company be more about your company and less about you.?

How documented are your systems, procedures, policies, pricing structure?

Is your customer base as diverse as it should be?  How reliant is your business on a few key customers.  And again do those customers do business with you the business owner or with the company?

Do you have the opportunity to add recurring revenue streams to your business, but elected to not pursue?  Do you have some contracted customers that you just haven’t updated contracts with?

When analyzing how to sell your business fore more, Spend some time to meet with some of your trusted advisers.  Dont rely on information you hear through the grapevine about this person selling their business for this amount.  Talk to your attorney, your accountant , or visit with a business broker start to really learn the marketplace.   Have you scraped the rust off your bike?, painted it ? oiled the chain? pumped up the tires?  put an ad in the newspaper? on the Internet?- Is your bike worth more today than it was yesterday?

How to sell my Greenville business  for more tomorrow or next year  than it is worth today?  Start today preparing your business for sale.

Scott Messinger is a Professional Business Broker working with business owners looking to sell their South Carolina Business or Florida Business.  Also working with business buyers throughout the South east USA, throughout the nation, and international business buyers as well.

Currently represent businesses for sale in Anderson South Carolina, Greenville South Carolina, Pendleton South Carolina, Pickens County, Jacksonville Florida as well as other areas of South Carolina and Florida.

For More information or to discuss how to sell your business for more, email  Scott@GatewayBusinessAdvisors.com or call (864) 210-8226

Selling a Business -Its about Time

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Selling a Business- It’s about Time

Selling a Business is a process.  Many factors go into a successful business sale.  I am an experienced Business Broker working with business sellers and business buyers in both South Carolina and Florida.

Below is a description of the role time plays when selling a business. And how one should take the time to plan a business sale and understand if the timing is right when selling a business,

Selling a Business Its about Time

When selling a business, setting the right selling price is important, finding a qualified interested buyer is important, finding the right deal structure is important and in the background of all of this is TIME.

The money involved with selling a business is the engine that that drives the deal forward but inevitably time is the steering wheel that affects where and when the deal goes through.

What affect does time have on the selling a business process?

  1. Is it the right time for the business owner to sell his or her business? Are they ready financially and emotionally?
  2. Is it the right time to try to sell the business according to the economy. A few years back during the recession (or whatever you call it) was it the right time to sell a business when business lending was significantly down and sales and business performance were down?
  3. Is it the right time for a business buyer? Is it the right time in the business buyer’s life?  In all my experiences most business buyers mostly, but not always, seem to fall in a certain age demographic of say 30-55 years old. So often someone under 30 may have the interest in buying a business yet may not have the financial means.  A business buyer over 55 may have the financial means yet may not have the energy or perceived time horizon to engage in the long term decision. Or family situation can also affect timing. (That being said I did personally buy a business when over 55 years old).  But the time needs to be right for the business buyer
  4. When selling a business, how much time is needed to sell a business. How much time will pass between the decision to sell, to signing documents at a business sale closing? I’ve sold a business that took 3 days to sell and sold another business that took 3 years.  An often misunderstood part of selling a business is how much time is involved in selling a business.  Yes it does happen sometimes when someone knocks on your door , offers to buy your business, and soon after a business sale occurs.  But that scenario is definitely not the norm.  Using a business broker is a decision that should strongly consider time.
  5. Most business owners I know have a full day handling their business. For many, this is an understatement.  But generally most business owners are busy running and growing a business.  How does a business owner find the time to add on the added responsibility of trying to sell their business.  Selling a business involves putting together a marketing package, marketing, vetting prospective prospects, trying to maintain confidentiality, securing NDA’s, etc..  All this occurs before meeting with prospective buyer.  Offers, Due Diligence handling, contracts, etc. are all elements that may occur after finding a buyer, and all of this requires time. (and a certain level of expertise)
  6. If the Buyer needs bank financing to buy a business- how long does it take to secure financing? If the Seller is offering to stay on during transition how much time is he/she willing to stay on for?
  7. More than likely the Seller will agree to a Non-Compete upon a successful business sale. How much time is the non-compete in effect for?

 

Is the time right for selling your business?  Is the time right for you?  Are you ready mentally and financially?  As a business owner selling a business- do you have the time?,   As a starting point take the time to seek some answers to these questions.  You may not have the time but must make the time to properly analyze this very important decision.

Scott Messinger is a Professional Business Broker working with business owners looking to sell their South Carolina Business or Florida Business.  Also working with business buyers throughout the South east USA, throughout the nation, and international business buyers as well.

Currently represent businesses for sale in Anderson South Carolina, Greenville South Carolina, Pendleton South Carolina, Pickens County, Jacksonville Florida as well as other areas of South Carolina and Florida.

For More information email  Scott@GatewayBusinessAdvisors.com or call (864) 210-8226

Selling My Business – How Much is my Business Worth

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Selling My Business How Much is my Business Worth.  Almost all businesses are for sale to some degree. Lets say your business is not For Sale. Assume  Your business is worth $500,000.  You love what you are doing, someone contacts you with an offer to buy your business for $900,000.  Is your business now For Sale? The preceding is not a likely scenario for most business owners.  To successfully sell your business planning and preparation is needed.  But if you are now or at some point considering the sale of your business you may want to consider the following 3 points:Planning on Selling my Business

1.     Identify your honest interest level  when selling your business. Early in the decision process of selling your business consider what approach you may take towards selling your business.  As a Business Broker working in both South Carolina and  Florida I interact with the various interest levels by small business owners.

  • My business is not for sale but if someone walks in and offers me way more than what I think it is worth- I would consider selling my business
  • My business is not for sale but if you run across someone that would want to buy it please let me know.
  • I want to pursue selling my business but I won’t sell it for less than…( A somewhat inflated price) .  I am willing to accept that it may take 1-2 years to sell my business, and if priced too high I can accept the fact that my  business may not even be sold.
  • I want to pursue selling my business and after significant due diligence I feel the price I am seeking is consistent to what other like businesses have recently sold for.
  • I want to sell my business and I want out now.  I will set my price aggressively and set a lower price than price currently sought for businesses similar to mine.  I will expect this aggressive pricing to both help me sell my  business and decrease the amount of time it will take to sell my business.

If you do have a true interest in selling your business as suggested in above  last 2 points you do need to  exercise due diligence to gain understanding of what the value of your business may be.

2.    You can expect that the  perceived value of your business to you and the value of the business to a potential buyer will probably be 2 different values.

  • Ultimately the price of your business is what a willing and able buyer is prepared to pay to buy your business.
  • Seek “reasonableness” to your price that you will seek to sell your business for. If similar businesses to yours are sold at 1 1/2 times adjusted cash flow, why is yours worth 3 times adjusted cash flow?
  • Ask yourself what you honestly would pay to buy your business.
  • Do a free Search on my website https://sellabusinessadvisors.com  0r similar sites to research what similar businesses to yours is asking to sell their business for.  Remember – all businesses are different, but use such a search as part of your due diligence.  A business for sale asking price and the price a business sold for can be greatly different, but asking prices can provide some basis-while current  Businesses Sold information is more pertinent
  • Speak to your trusted advisers.  A business broker may be able to help with non-public info on sold businesses in your area.  Your accountant or attorney also  may or may not be aware of such sales as well.  A Professional Business Valuation specialist may benefit you.

3.    Whether it  is part of your exit strategy to sell your business or not, you should have an exit strategy.

  • Most small business owners do not have an exit strategy. “I haven’t thought about Selling my Business”
  • We all desire to exit our business on our own terms rather than an exit forced by health, business downfall, or other life changing situations.
  • If you own a business you should have an exit strategy.  Do some planning, perform some due diligence. Know what you have or may have.
  • Even if you are not planning to sell your business there is value in knowing  approximate value of this potentially large asset.  You know what your house is worth, you car, your other assets. Understanding the value of your business can be a significant piece of information when planning ahead.

Selling my business  in South Carolina or Florida can be a rewarding experience when done properly.  Understanding  a proper value for your business can set the stage to a successful sale of your business..

For more information or interest in a confidential meeting please contact me Scott Messinger  at Scott@GatewayBusinessAdvisors.com.  Business Broker Licensed in both South Carolina and Florida