How to Spot a Business that Will Stand the Test of Time

Owning a successful business is one of the oldest and most dependable ways to build wealth and financial stability, but how can you be sure that the goose that lays the golden eggs keeps on laying? The savvy choice is to look for businesses that provide goods or services with consistent demand and low-cost scalability.

Health Care
It is no secret that the 55+ demographic is one of the fastest-growing in the country, and set to comprise over a quarter of the population in less than 10 years. Providers that offer home health aides and other forms of eldercare will grow at a similar pace. Health care has the added benefit of being a business that produces steady demand: people will always be interested in ways to improve their health and wellness.

Repetitive Service Businesses
Offering solutions to common problems is a great business strategy, and guarantees easy access to willing customers. Pest control, automobile maintenance, electronics repair, pet care, and cleaning services are all great examples of products and services that could build the core of a successful business.

Franchises
Franchises have long been stable investments. A big part of that stability comes from the trustworthiness of an established brand. Another key feature of franchises is the support offered by their corporate team, support that could be a competitive edge over independent businesses.

If you’re thinking about buying or selling a business in South Florida, the experienced team at VR Blue Ocean Business Brokers is here to help! As one of the largest networks of business intermediaries in the world, we offer extensive assistance and have a history of successful sales. With our global reach, we can confidently match buyers with sellers, and have done so since 1979.

Effective Negotiation Tactics to Get the Best Deal on a Business for Sale

When you’re in the market to buy an established business, being able to properly negotiate is especially important. Sometimes, you’ll make an offer and then the seller will propose a counteroffer. You must be determined enough to get through this process and reach a deal. To assist you in the process, here is a look at some key negotiation tactics to help you finalize a good deal.

These three negotiation tips can help you get the best deal when buying an established business.

Follow the Market
Researching different trends on the market can give you an indication of how companies are performing in different areas. A large number of opportunities in a specific area could give you leverage in negotiations. Sellers are often enthusiastic about the potential of their business. By having a clear understanding of the market and being able to predict where the market is going in the future, you can leverage that information to get a better deal.

Be Aware of Your Strengths and Limitations
Before you start negotiations, make sure that you can put down your initial payment. If you don’t know your limitations, you may end up taking a bad deal. Never agree to a deal if you are unsure that you will be able to make a profit long term.

Research the Seller
Talk to the seller to learn more information about them and why they want to sell. Adjust your sales pitch to align with their goals.

If you’re thinking about buying or selling a business in South Florida, the experienced team at VR Blue Ocean Business Brokers is here to help! As one of the largest networks of business intermediaries in the world, we offer extensive assistance and have a history of successful sales. With our global reach, we can confidently match buyers with sellers, and have done so since 1979.

4 Ways to Determine an Asking Price When Selling Your Business

When selling your business, you’ll likely gather little buyer interest if you price your business too high. Price it too low, and you leave money on the table. Selling a business is a fluctuating marketplace, anyway, which means that you’ll need to use your financial statements, asset values, ROI figures, goodwill worth, and industry comparable figures to determine a current fair market price for your business.

Using a Fort Lauderdale business broker is always recommended when selling your business. But if you’re looking for a few ways to determine what the asking price should be, considering these four things can help.

1. Determine the value of your tangible assets
This is the sum of all your business’s physical assets, from fixtures and upholstery to inventory. Assigning value can be tricky given the age and condition variables to acquisition cost. Keep in mind, the sum doesn’t account for factors like cash flow and intangible assets. So, if the asking price you have in your head is close to the liquidation sum, then offloading these assets prior to selling the actual business may be a cost-effective way to start the exodus from your business.

2. Get your financial statements in order
The income-based value of your business comes from documents like your gross revenue and profit/loses income statement, cash flow statement, asset and liability balance sheet, and statement of seller’s discretionary earnings (SDE). The latter is also called a statement of owner’s cash flow, and it’s of particular interest to buyers because it shows the business’ profits after backing out of discretionary, non-recurring expenses. You’ll want these documents for both the current year and the past three years.

3. Estimate the value of your business using an earnings multiple
Earnings multiple helps you estimate value based on multiples like revenue, cash flow, profit trends, products, industry authority, and customer base. It’s basically ratios of business value to key financial indicators. These vary based on factors like geographical location, industry, and niche, but most values fall between one to four times the annual cash flow. You can get a ballpark sale price for your business by multiplying your SDE by your earnings multiplier.

4. How do comparable businesses stack up?
Use commercial real estate sites, such as BizBuySell.com, to research other businesses for sale in your category, size, market area, and estimated price point. Use a valuation report to see if your price is close or needs major adjusting.

In closing, the process of gathering an accurate selling value can help you identify your business’s strengths and weaknesses for growth, help you decide if selling is the most prudent move, and ultimately impact how quickly and efficiently your business sells if you do put it on the market. While you can use the above steps to help you wrap your head around an approximate figure, nothing replaces the accuracy of a professional business broker. As one of the largest networks of business intermediaries in the world, VR Blue Ocean Business Brokers offers extensive assistance and has a history of successful sales. With our global reach, we can confidently match buyers with sellers, and have done so since 1979.

10 Questions Every Business Buyer Wants Answered

If you’re flirting with the idea of selling a business, it’s imperative that you be equipped to field questions from prospective buyers. To prime yourself for hard-hitting queries, consider these common concerns that potential investors have.

Why are you selling?
Whether your business is no longer financially viable, or you’ve decided to retire from the industry, honesty is the best policy.

Is profitability attainable?
When attempting to prove this point, you’ll want to have your financial documents at the ready. Not only is this savvy, but it’ll help establish credibility as well.

Is there a future here?
Given your decision to sell the business, it’s not uncommon for inquiring business owners to challenge the likelihood of success.

How does it perform in the market?
Any investor worth their salt will want to know if and how your business is positioned in the market.

What are the employees like?
If your staff is staying behind, highlight their capabilities in an effort to sway probable buyers.

Is the price competitive?
A simple comparison will reveal whether or not your business is priced right. Again, it’s vital that you provide documentation to validate your claims.

How much industry support have you granted?
If your business doesn’t have a loyal consumer base, you can kiss any investment opportunities farewell.

Are there financing options?
If your business can’t be financed, you’ll need to be candid about this setback.

Is it too good to be true?
If there are any complications you’re keeping hidden, they’ll inevitably come to light.

How is the lease assigned?
The closing conditions are exceedingly important, and your buyer will want to be privy to these proceedings.

If you’re looking to sell your business, and deal minimally with finding and communicating with a buyer, we recommend hiring a Fort Lauderdale business broker. As one of the largest networks of business intermediaries in the world, VR Blue Ocean Business Brokers offers extensive assistance and has a history of successful sales. With our global reach, we can confidently match buyers with sellers, and have done so since 1979.

How to Find the Right Buyer for Your Business

When selling a business, finding the most qualified buyer is vital. Working with the wrong buyer can lead to problems later on, especially if the new buyer is incapable of operating the business or meeting financial responsibilities.

Here are some tips to keep in mind when seeking out the best buyer.

List buyer requirements
Level of experience, cash on hand for a down payment and sale time frame are some things that a seller must decide before listing his or her business for sale.

Create an enticing listing
The listing is the first impression buyers are going to see. Information in listings can vary but include these as a minimum: financial information, location, headline, and contact info.

Screen the potential buyers
If the potential buyer doesn’t meet the original requirements, pass that buyer by. If additional background or financial information is needed, get help from a business broker.

Due diligence is a must
The seller must ensure the potential buyer is a fit for the business. Background checks can save a seller from a potentially disastrous deal.

Understand the types of buyers
Strategic buyers want a business that dovetails with their existing business assets. They are more likely to keep the business intact with some small changes.

Financial buyers are more interested in the profitability and will have no qualms about changing anything to keep a business profitable.

Selling a business has enough challenges without working with unsuitable buyers. Keep these tips in mind for a successful experience. If you’re looking to sell your business, and deal minimally with finding and communicating with a buyer, consider hiring a Fort Lauderdale business broker. As one of the largest networks of business intermediaries in the world, VR Blue Ocean Business Brokers offers extensive assistance and has a history of successful sales. With our global reach, we can confidently match buyers with sellers, and have done so since 1979.

To learn more visit vrblueocean.com or call us at (954) 543-1962.

Understanding the Types of Business Buyers in Today’s Marketplace

If you’re thinking of selling a business in South Florida, understanding the intentions of potential buyers can help you avoid surprises down the road. Your hopes and dreams for your business are just as important as the buyer’s — and ideally they will go hand-in-hand. The buyer of your business should be prepared with a business plan that describes his or her plan for the business and a strategy for success.

When selling a business, there are generally two types of buyers to look for. Here are some tips for identifying and understanding each.

The first type of business buyer is strategic buyers. These buyers are mainly concerned about how your business fits with their own long term plans and current portfolio of assets. They are often competitors or a stakeholder in a larger business looking to diversify by entering a new market. Because of their personal interest in expanding their own offerings, strategic buyers will probably pay more than other prospects and then expand the business. Their business plan likely including hiring more employees, increasing the customer base and adding products or services. Strategic buyers also offer greater seller security and control after the sale, with partnership opportunities and slower exit transitions.

The second type of business buyer is financial buyers, who tend to be more interested in the financials of your business. Their main concerns are profitability and stability. Financial buyers are typically investors or private equity firms who are looking for an investment that requires little involvement and a guaranteed return. To ensure this return, financial buyers won’t hesitate to streamline operations, eliminate unnecessary intermediaries and possibly lay off employees. While this might be the type of buyer that fits your needs, be sure to consider the potential consequences of a financially driven purchase.

If you’re looking to sell your business, and deal minimally with finding and communicating with a buyer, we recommend hiring a VR business broker. Selling a business can be an overwhelming process, especially if you don’t know how to do it on your own. As one of the largest networks of business intermediaries in the world, VR Blue Ocean Business Brokers offers extensive assistance and has a history of successful sales. With our global reach, we can confidently match buyers with sellers, and have done so since 1979.

To learn more visit vrblueocean.com or call us at (954) 543-1962.

 

How to Determine if Your Business Is Worth Selling

Life throws many curveballs. If for whatever reason, you’re considering stepping down from the ownership of your business, here are five steps you should take to determine if your business is worth selling.

1. Review your financial statements

Determine if your business has strong enough financial records. There should be at least three years of records, and they should show that profits have stayed ahead of operating costs.

2. Evaluate brand strength

A well-known brand and positive reputation make your business appealing to buyers. Do you have a unique and appealing trademark or domain name? An effective marketing program is also a plus.

3. Is your business location ideal?

Is your local customer base growing or is your market all online? Examine the physical condition of equipment and the building. A long-term, transferable lease is another selling point.

4. Consider your staff and customer base

Can your current team stay on board when the ownership transfers? If your business has a loyal customer base, buyers will perceive much more value.

5. Make improvements

After taking the previous steps, you should know which areas need improvement and devise a plan to implement whatever changes are needed.

The final decision

If taken all the right steps and determined that your business is worth selling, you’re ready for the final decision. You should know whether you need to spend more time on improvements or if you can get a good price now. A helpful next step would be to speak with a South Florida business broker. Selling your business can be overwhelming, especially if you don’t know how to do it on your own. That’s why many business owners hire a VR business intermediary for help. As one of the largest networks of business intermediaries in the world, we offer extensive assistance and have a history of successful sales. With our global reach, we can confidently match buyers with sellers, and have done so since 1979.

To learn more visit vrblueocean.com or call us at (954) 543-1962.

 

Selling a Business in 2019: Four Important Things to Keep in Mind

With rising sale prices for profitable, healthy businesses in 2019, you may consider cashing in on your own business. In 2018, BizBuySell found that 60 percent of business owners felt they’d get a fair asking price if they sold their businesses. But, before you jump into making a sale, keep these four important things in mind when planning your exit strategy.

Work on Your Exit Strategy Right Now
Even with business sale prices on the rise, they won’t stay that way for long. Many baby boomers are retiring and selling more than ever. Increased supply means downward pressure on sale prices. Also, 2020 is a U.S. presidential election year, in which business sales tend to be slower.

Keep Investing in Your Business
Deciding to sell means investing more in the business. Be proactive with increased marketing, upgrade equipment and facilities, and eliminate excess or obsolete inventory. Prospective buyers prefer to buy companies trending upwards and are poised to compete and succeed for the long term. Buyers may pay a premium for a company with lots of positive momentum throughout its operation.

Get Your Financials Prepared
Rising labor costs, interest rate hikes, and other increased overhead costs have led to decreased revenue for many businesses. So, proving your business’s own long term profitability is more important than ever. Make sure your profit and loss statements are clean and consistent. Be able to explain any variances over the last three to five years. In a market full of profitable businesses, make sure your business shows clear potential to be the best in your given market.

Speak with a South Florida business broker

Selling your business can be overwhelming, especially if you don’t know how to do it on your own. That’s why many business owners hire a VR business intermediary for help. As one of the largest networks of business intermediaries in the world, we offer extensive assistance and have a history of successful sales. With our global reach, we can confidently match buyers with sellers, and have done so since 1979.

To learn more visit vrblueocean.com or call us at (954) 543-1962.

 

What Small Business Buyers Need to Know for 2019

Thanks to the vivacious market and the turn of the year, 2019 is the prime time to buy a business. Businesses for sale are exciting small business entrepreneurs everywhere. Currently, the market is jam-packed with healthy businesses for sale.

There are several factors that should be considered before buying that could affect the long-term profitability of the business. Here is an inside look at a few things that are expected to impact the market in 2019.

1. Baby Boomers
Baby boomers are providing the market with a slew of profitable businesses that they are ready to sell. As people over 65 start to retire, this presents young entrepreneurs with many opportunities to enhance their existing portfolio. This trend will only continue as the younger baby boomers come of retirement age in years to come.

2. SBA Loans
A common means of financing, SBA loans are now more accessible than ever before. Strong businesses on good financial ground will be funded for buyers who are qualified. While these loans offer reduced down payments, expect an increase in interest rates. It’s smart for buyers to consider both traditional loans and SBA loans.

3. Low Unemployment Rate
With fewer workers available, small business will have to compete with larger companies when offering wages and benefits. Rising operation costs will no doubt affect profits negatively for years to come. Competition should always be considered before buying.

If you’re thinking about buying or selling a business in South Florida, the experienced team at VR Blue Ocean Business Brokers is here to help! As one of the largest networks of business intermediaries in the world, we offer extensive assistance and have a history of successful sales. With our global reach, we can confidently match buyers with sellers, and have done so since 1979.

How Business Brokers Take The Stress Out Of Buying And Selling A Business

If you are a business owner who is ready to sell your business, you know that there are many factors to consider before selling. On the other hand, you may be interested in purchasing a company. In both cases, hiring a professional South Florida business broker who is familiar with your industry will take the guesswork out of making sound financial decisions.

What Are Business Brokers? 
Business brokers are like real estate agents. They find opportunities for buyers and sellers to connect to see if there can be a mutually beneficial business sale. The typical business broker networks with a variety of leaders in different industries. Business brokers make selling and buying a smooth transaction.

How Business Brokers Help You Sell A Business
Selling a business isn’t as straightforward as you may think. Similar to selling a house, business brokers must analyze the market, economic outlook for the area, and compare what other businesses are selling for. It’s their job to find and help fix any issues that would delay the sale of your business. The broker will screen potential buyers for you and negotiate the best purchase price.

How Business Brokers Help The Buying Process 
It’s essential for a business broker to have detailed knowledge of what their client is looking for when it comes to purchasing a business. By evaluating their financial interests, work history, and training, business brokers arrange meetings with sellers to find the perfect opportunity.

If you’re thinking about purchasing or selling a business in South Florida, the team at VR Blue Ocean Business Brokers is here to help! As one of the largest networks of business intermediaries in the world, we offer extensive assistance and have a history of successful sales. With our global reach, we can confidently match buyers with sellers, and have done so since 1979.