Tag Archives: Jacksonville Fl business for sale

How to Sell a Business – What Matters

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How to Sell a Business – What Matters

How to Sell a Business What Matters

 

Selling a business  can be a difficult process.  Knowing How to Sell a Business and what matters greatly increase your chances of a successful Sale and transition.  Someone may walk in your office one day and offer you 100% cash  at an elevated valuation but that is not very likely at all.  I had owned a business in a very fast growing industry and I was presented with a couple very strong cash offers at fairly lofty valuations but these offers where based on the growth curve of the industry and market conditions overall.  I wasn’t ready to sell my business at that time and several years later when I was ready to sell,  the process of selling  the business and  finding the right buyer and transition for my business  presented a much different challenge.

Ive been involved with the business acquisition  process for over 25 years as a Business Buyer of Multiple businesses, a business Seller, and as a Business Broker assisting others.  I find the following to be important when both Selling a Business and Buying a Business.

  • The quality of the business is important- “We are the highest rated Window Washing business in Jacksonville”
  • The quality of the industry is important – Are you in a growth industry? or a Mature  industry ?    “A rising tide raises all ships”
  • The quality or the overall marketplace we all conduct our business in is important. During our recently experienced recession obtaining money to finance an acquisition was difficult and overall number of business sales were down significantly.
  • The timing of when your business may be best ready to sell and when you as a business owner are ready to sell may not coincide.

 

As you can see some aspects that affect the likelihood of successfully selling your business may reside out of your immediate control.  But knowing more about the process, How to Sell a Business and What Matters, and the current market can only aid in your decision making process.

A Recent survey of fellow business broker professionals involving 100’s of business broker professionals denote  consolidate information regarding Buying a Business in South Carolina, Florida and the entire US as well as Selling a Business in South Carolina, Florida and the US.     Topics in this survey included information regarding who is likely to buy your business,  why will they buy your business and what will they pay for your business.  All businesses have differences yet many businesses share similarities:

Why Will You Sell Your Business?

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Who will Buy your Business?

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Why will they Buy your Business?

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What will they Pay For Your Business?

whats my business worth

 

 

 

 

 

 

 

 

 

 

Business Sold for Multiples

 

 

 

 

 

The amount that Buyers are paying for Businesses ( as a multiple of earnings or cash flow  has remained fairly constant over the last few years.)

SDE- Sellers Discretionary Earnings

EBITDA – Earnings Before Taxes Interest Depreciation and Amortization

So, Timing, knowing who you may best market your business to, what sort of value expectations  you can expect all affect the likelihood of a successful business sale and transition.  There is a lot to knowing How to Sell a Business but getting ready to sell your business and knowing  when you are ready are  are a couple of the very important 1st steps.

Above data  provided by survey of over 300 business brokers throughout the USA coordinated thru International Business Brokers Assn and M&A Source and Graziadio School of Business.

Looking to Sell a Business in South Carolina Florida or SE USA or looking to Buy a Business in South Carolina Florida or SE USA please contact me Scott M Messinger  at Scott@GatewayBusinessAdvisors.com or directly at   for more info see www. SellaBusinessAdvisors.com

Current Market for Selling a Business

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Selling a Business

 

 

What is Current Market for  Selling a Business  (or Buying a Business). I’ve been involved with business sales for approximately 25 years.  Fifteen years as a business buyer and Seller during which I acquired 9 businesses and 9 years as a business broker representing business buyers and sellers.

As a business broker working with business Sellers and Buyers in South Carolina and Florida we are afforded access to a lot of market information as it relates to business transactions, what businesses are selling for, and trends.  Sales Data and terms  on these private transactions are not readily available to the general public.

 As a business owner or potential business buyer it is not unusual to “hear about someone that sold his business of $X “.  But often that information is incomplete or erroneous.

Below is some market information showing charts and trends relating to business sales throughout the US.  I believe it can provide some insights to both potential business sellers in South Carolina or Florida as well as Business Buyers.  Also below I’ve highlighted my insights to what I believe some of this information means and what may be worth noting.

A review of over 7000 businesses sold during 2015 show:

 

  • The median asking price grew 12.5 percent from $200,000 in 2014 to $225,000.
  • The median sale price also increased a solid 7.6 percent year-over-year, from $185,000 to $199,000.

 

What is my business worth?

 

 

 

 

 

What Does this graph say about Businesses Sold?

A significant determinant of a business sales price is “Multiple of Cash Flow” or “Multiple of SDE (Sellers Discretionary Earnings).  But this “Multiple” does vary based on business size ( Sales and Cash Flow).  Businesses Sold with Sales of $1M-$5M will generally sell at a different multiple than business sold with Sales of $100k-$1M .  Above graph shows as the cash flow of a business increases the multiple of cash flow also increases .  This graph shows a business with approx. $150k of cash flow sold for 2.5 x that cash flow (CF). Whereas a business with  $1M in cash flow sells for 3.1 times that cash flow (CF).

 

What is Value of my Business

 

 

 

 

 

 

What does above graph say about Business Value  and or Business Selling Price. ?

 

Above Graph depicts that The price of businesses sold ( as a multiple of cash flow ) has remained fairly steady over the last 4 years.  Going forward, I expect this to remain consistent thru 2016.

types of businesses for sale

 

 

 

 

 

 

 

 

 

What type of businesses are being sold?  Above chart shows the types of businesses sold throughout the US in 4th quarter of 2015.

Are you looking to buy a business in South Carolina or Florida?   Are you looking to sell your business.  A business is not bought or sold in a vacuum.  How does your business measure to other like or similar businesses?   No two  businesses are the same, but similarities do exist.  Understanding value or potential value may be one of the more important steps that goes into the process of buying or selling a business.

Thinking about buying or selling a business?  Please feel free to contact me Scott Messinger Business Broker to discuss any questions you may have on the process.  And it is a process.  Also, feel free to search on businesses for sale on my site  at:

www. SellaBusinesssAdvisors.com.  or contact me at Scott@GatewayBusinessAdvisors.com

or call direct at (864) 210-8226 or (239) 770-2421.

 

Selling South Carolina Business

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Selling  South Carolina Business

….When Your Product is You.  Doing business in today’s web based world is changing almost daily.  You work on your website,  get on Facebook,  you try to learn all about social media to either try to just keep up, or maybe to move your marketing efforts forward.How does this affect Selling South Carolina Business.

Your competitors may have the ability to learn more than you to stay a step ahead of you.  They may have discovered the next best Facebook app to get them more Likes, Fans, and or interest.  Others may have more money than you and can outspend you, they can Out-Tweet you, out post you, out pagerank you, out comment you, out link you….

Be The Best You Can Be

Small Business Marketing- Selling a Business

But no one can Out-You You.  Or stated in the first person- “You Cant Out-Me Me”  .We all are busy trying to move our businesses forward but do we really know if Twitter will be in ours or others marketing plans 5 years from now.  So how or where does one focus.  Is your product or service you sell- you?  

I am a business broker based in  South Carolina and I help/work with people with the process of buying and  selling South Carolina Business.  One aspect of the business that makes a business more saleable is the ability for the business to not be dependent upon the owner so that if/when the owner is “replaced” a transition can be seamless.  So building a business based on the brand or product being “You” can appear counter-intuitive.

My view based on my experiences is that a customer does business as much with “the way a company does business”, “company philosophies”, “company approach”, as much as they do business with a certain individual.  When you think about it we do like the person that we do business with but what is it that we really like?  I tend to think it’s the way that person deals with me,  and it’s easy to assume that approach starts” at the top”.

 

How Important is Business Owner when Selling a Business?

So I think it’s easy to assume if a customer/client likes the approach or way you do business as an owner and your “brand” is based on how you approach service and ethics and business practices- that this is who the company is and the company is NOT you.   If you as the business owner demand honest ethical reliable hard work from yourself and customers see that, they know what your expectations as a business owner are.

So if you as a business owner are not truthful, don’t return phone calls, think it’s ok to quote one price and then demand another price after the work is done why would the customer expect anymore from anyone else in your organization.

Submit Your Business To Your Philosophy

But the product/brand that you are building on the web content that you post to build your brand may not need to be about you by name- it may be your philosophies, your ways and approaches toward running your business.  I have been posting business articles about my experiences, views, and ideas for several years.  When someone engages me as a business broker -they are engaging me, and they can understand me through my writings if they choose to do that as a starting point- or they can choose not to engage me as a business broker because of my writings.

Maybe you don’t have the most experience, maybe you are not the smartest, maybe some of what you offer has some shortcomings- most everything does.  We all have areas of what we do that can use improvements, but you know you do bring something to the table that is unique to you.

So as the internet changes and strategies change on what new  site/app/blog/tweet/hashtag/social bookmark you should be using- you can retain certainty that you and your story will forever remain unique.  There is only one You.  But as the old song goes from The Who – Who Are You? – You are your feelings, your beliefs, your experiences, ideals, likes, dislikes,  the good and the not-so-good of you, and your way of going thru life (and business).

Nobody can do you better than you.  So when you are creating or building a brand,  and the brand is you- no competitor no matter how much money or how smart or how experienced is going to out you- you.

Scott Messinger is a Business Broker that is currently based in South Carolina and also works in Florida and Southeast USA.  I have personally purchased multiple business and currently own and operate businesses and business interest in multiple states.  If you are looking to sell your business in the Upstate ( Greenville, Spartanburg, Anderson, Clemson included)  Please feel free to contact me.

Scott Messinger  Business Broker South Carolina (864) 210-8226   Scott@GatewayBusinessAdvisors.com

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 Businesses For Sale-

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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