VR Has Sold More Businesses In The World Than Anyone.® |
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Franchising Your Business By Peter C. King, VR Business Brokers/Mergers & Acquisitions, CEO Franchising is a technique for expansion appropriate for small, one-location businesses and nationally active companies alike. It is often regarded as one of the safest means of achieving growth; although it does have many advantages, franchising requires careful planning to be successful. A business concept franchise involves a franchisor, a company that lends its trademark or trade name and its business system to the franchisee, who pays a form of royalties and an initial franchise fee for the right to do business under the franchisors name and system. Advantages to franchising include: - Providing an affordable means of accelerating expansion.
- Spreading the financial risk of expansion.
- Product or goods can be bought in bulk to cove the whole franchise network, thus increasing competitiveness and profit margins.
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Keeping the Train on the Tracks By JoAnn Lombardi, VR Business Brokers/Mergers & Acquisitions, President Normally, a business owner who’s looking to sell has to keep their intentions close to the chest. You don’t want to upset your employees, your customers or the vendors; any of which could cause a major disruption in your operation and be a detractor to potential buyers. Since selling your business can be both an emotional and overwhelming process, it’s important to consult an expert, not a generalist! You need to find someone to facilitate the process to where you will be able to continue operating the business as normal while they identify a qualified buyer. A qualified buyer will want to see a thriving and well-operated business if they are to put down a substantial financial investment. A professional business intermediary is equipped with the tools and experience to ensure that you don’t make any pivotal mistakes. Below are some areas that will help you stay on the track to a successful sale of your business. Pricing the Business at the Fair Market Value Although many sellers would like to see their business’ worth based on the time, effort and finances they have spent, you don’t want to go in and overprice a business. When you make that decision to sell, you have to be able to understand what buyers are looking for so that you can come to a win/win arrangement. If the price you’re looking for is higher than what the fair market value is, chances are you will have a difficult time finding a buyer who’s willing to write a check and pay a premium. |
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3 Things to Consider Before Selling Your Business For business owners, summer often brings extra challenges like slower sales cycles and the musical chairs of employee vacations. However, summer is also a good time to unplug and take stock of where you are in your life and your business. If that process leads you to think about a sale of your business, you’re going to want to get ahead of the game in three key areas: #1: Deal with the things that scare buyers away There are a few big red flags that scare buyers away, especially financial buyers who play an increasing role in one’s exit options today. You will want to review your business, acknowledge where you have weaknesses, create a plan to improve what you can, and be ready to explain what you cannot. |
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What's an HVAC company worth? 10 key considerations when valuing HVAC businesses Every industry poses its own unique set of considerations for business appraisers. This variety is part of what makes business valuation work so interesting and rewarding, but it can also present a challenge for practitioners working in an unfamiliar industry. For appraisers preparing to value a heating, ventilation, and air-conditioning (HVAC) company, there is a range of industry-specific factors to navigate. Let’s explore some of the special considerations for valuing an HVAC company, as identified in BVR’s special report, What It’s Worth: Valuing HVAC Companies. What are the key factors that impact the value of an HVAC company? As a service industry, HVAC businesses are not capital-intensive, and a great deal of company value is intangible. The industry is highly competitive, with low barriers to entry (barriers are mostly licensing and training), and is impacted by technological changes. In recent years, industry profit margins have expanded due to construction growth, allowing for an increase in prices. Low interest rates have encouraged home purchases and improvements, and recovery in per-capita disposable income has encouraged upgrades. Energy tax credits have provided incentives to refurbish or upgrade, and there are significant technological changes due to energy-efficient equipment and automated systems. As a result of this growth, companies have expanded their workforce and continue to hire new workers as demand increases. |
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Chicken and Poultry Distributor| $1,445,000 |Artesia, CA |
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VR Located in North Tampa, FL is assisting in the Sale of a Production Rental Company This company was a long established and successful B2B services provider in Audio Visual, Staging and Event Management Services to corporations. It operates an equipment rental business which generates a strong annual renewable revenue stream as the service provider to a smaller firm. This company was a full service production event company with the latest technology. The company provides services to hotels, nightclubs, churches, etc. |
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The Structured Sale - For Sellers of a Business or Real Estate A Broker’s Best Tax-Deferral Sales Tool The all cash, or financed sale by Addendum or Agreement, is modified into a unique type of installment sale, whereby specific installment payments are secured by U.S. Treasury Obligations. The Structured Sale is a unique opportunity for a seller to maximize the return on their sale dollars while receiving management free, tax-deferred income that’s guaranteed. Using pre-tax sale dollars, a customized scheduled of installment payments is designed to meet the seller’s specific needs. Created by Agreement or an Addendum to an existing Sale Agreement between the seller and buyer, the establishment and documentation is done so in accordance withInternal Revenue Code Section 453(b), installment sales. The program is available to sellers in all fifty states and there’s no out-of-pocket costs to seller or buyer. Most sellers are unaware of the fact that capital gains, in some situations, can trigger the Alternative Minimum Tax. It’s a complicated issue in determining whether the gain is to be treated as a capital gain, as ordinary income or maybe a little bit of both. To be considered is the method of depreciation used, the amount of income, as well as the scheduled phase-out of the AMT exemption. As such, it is imperative that the seller seeks the advice of a CPA. INSTALLMENT PAYMENT OPTIONS - Periodic payments that are payable monthly, quarterly, semi-annually or annually. A single, deferred lump sum payment is also available if the deferral period is for more than about seven to ten years due to prevailing interest rates.
- The first payment can be deferred for a few months, a few years or several.
- Any combination of the above other than shorter term payments of about five years or less.
- Ideal for the seller staying on with the company under a management contract. Defer the first payment to coincide with the completion of the management contract.
- Payments can begin before age 59 1/2 and after 72 1/2.
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The Best Kept Secret for Funding Your Dream Business As business brokers, it is your objective to help clients find the best concepts. And, while they may be interested in a specific concept, there is always a possibility that funding will be an issue. As creative brokers we look outside the box assist our clients with their businesses, there is an out of the box funding solution that you may not know about.
Upon entering the work force, we were advised to save for the future, so we’ll have the means to live in the future. Whether we have a company sponsored retirement plan, are investing in a personal IRA or making regular investments into a savings account, the importance of building a nest egg for the next chapter of life is understood. But the reality is, Americans aren’t saving enough for a comfortable retirement. According to analysis of data collected by the Federal Reserve in 2016, the average American household has a median balance of $7,000 and an average balance of $30,600 in their savings. And retirement accounts aren’t necessarily better. Although, according to 2017 data, as reported by Vanguard, the average American retirement account balance is nearly $104,000. But when factoring out accounts with larger balances, the median retirement account balance is at $26,000. |
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Congratulations VR in New Haven, CT for Facilitating the Sale of a Full Service Marina This marina had 175 slips with occupancy rates that exceed 80%. They had an award winning boat sales and service operation that derives a ready base of customers from the marina tenants. The marina is situated in a protected harbor adjacent to LI Sound that offers boaters direct access to region's best recreational boating and fishing grounds. Over the last seven years, current owners undertook an extensive capital investment program to upgrade and refurbish all slips and showrooms, bring the operation into full environmental compliance and make it one of the most hospitable and versatile marina's in the Northeast. |
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Thinking of selling your business or looking for an established |
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Have you ever considered selling businesses? |
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