westchestersouth

Business Valuation Services for Partnerships & Buy-Sell Agreements

Wed, 11 Feb 2026 01:43:14 GMT

A business partnership is often compared to a marriage, but in the professional world, the "pre-nuptial" agreement is your Buy-Sell Agreement . While these documents are designed to protect owners during transitions, they are only as effective as the valuation behind them. An outdated or vague valuation formula can lead to costly legal battles, frozen operations, and financial loss for departing partners.

At First Choice Business Brokers Westchester South , we provide specialized business valuation services in Westchester, NY , to help partners establish a clear, defensible, and fair price for their business interests before a "trigger event" ever occurs.

Why Your Buy-Sell Agreement Needs a Modern Valuation

In 2026, the Westchester business landscape is more dynamic than ever. Relying on "book value" or a fixed price set five years ago is a risk most partnerships cannot afford to take.

1. Avoiding the "Ticking Time Bomb" of Fixed Pricing

Many local businesses use a "fixed price" method in their agreements, meaning the partners agreed on a value years ago and promised to update it annually. In reality, this update rarely happens. If a partner exits when the business is worth double that amount, or half, it creates an immediate conflict of interest.

2. Navigating "Trigger Events" with Confidence

A buy-sell agreement is typically triggered by the "5 Ds":

Death: Ensuring the deceased partner’s family is compensated fairly.
Disability: Providing liquidity for a partner who can no longer work.
Divorce: Preventing a former spouse from becoming an accidental business partner.
Departure/Retirement: Creating a smooth path for succession.
Dispute: Offering a pre-set "escape hatch" when partners no longer see eye-to-eye.

Our Business Valuation Process for Partnerships

Valuing a partnership interest is more complex than valuing a 100% sale. As leading business brokers in Westchester , we look beyond the balance sheet to provide a comprehensive Market Price Analysis .

Standard of Value & Levels of Value

We define whether the valuation should be based on Fair Market Value (what a third party would pay) or Fair Value (often used in legal disputes). We also address "minority discounts"—does a 25% stake in a company carry the same per-share value as a 51% stake? In a partnership, these details are the difference between a handshake and a lawsuit.

Tangible and Intangible Assets

Our business valuation services in Westchester, NY , account for:

Adjusted EBITDA: We "normalize" financial statements by removing personal expenses and one-time costs to show the business's true earning power.
Goodwill: The value of your brand, your recurring client base in Westchester, and your proprietary systems.
Market Multiples: We compare your business to recent 2026 sales data from similar industries across the Tri-State area.

The Benefit of Professional Oversight

While your CPA handles your taxes and your attorney drafts your contracts, First Choice Business Brokers provides the missing link: Market Reality. Working with a professional broker ensures:

Objectivity: We act as an unbiased third party to help partners reach an agreement.
Funding Alignment: If your buyout is funded by life insurance, we ensure your coverage matches the actual value of the business.
Discretion: All valuation discussions are kept strictly confidential to protect your staff and reputation.

Market-Based Facts

A partnership is a powerful vehicle for growth, but it requires a clear roadmap for the journey's end. By utilizing professional business valuation services in Westchester, NY , you protect your investment, your partners, and your legacy. Don't leave your most valuable asset to chance; ensure your buy-sell agreement is backed by market-based facts.

Frequently Asked Questions

Protect Your Business Partnership Today

Is your buy-sell agreement up to date? Contact the experts at First Choice Business Brokers Westchester South for a confidential valuation and ensure your business is prepared for whatever the future holds.

�� Get Your Confidential Business Valuation

�� Call our Mamaroneck Office : +1 (914) 281-1960

First Choice Business Brokers Westchester South

565 Alda Rd, Mamaroneck, NY 10543, United States

Visit Our Website

Disclaimer : The information provided in this article is for general informational purposes only and does not constitute legal, financial, or tax advice. Every business partnership is unique, and specific outcomes vary based on individual circumstances and professional guidance. Before making decisions regarding buy-sell agreements or valuations, you should consult with qualified legal and tax professionals. First Choice Business Brokers Westchester South is not responsible for any actions taken based on the information provided herein.

What Service-Based Businesses Can I Buy in Westchester County?

Wed, 11 Feb 2026 01:20:08 GMT

Selling or buying a business is a monumental step, but in a thriving hub like Westchester County, the opportunities in the service sector have never been stronger. Whether you’re an aspiring entrepreneur or an investor looking to diversify, service-based industries offer the stability and recurring revenue that make for a secure investment.

At First Choice Business Brokers Westchester South , we specialize in connecting buyers with high-quality businesses for sale in Westchester . If you’ve been wondering where to start your journey, here is a look at the top-performing service industries in our local market today.

Top Service Industries for Sale in Westchester (2026 Trends)

The 2026 market in Westchester is defined by a "flight to stability." Buyers are prioritizing "recession-resistant" businesses that provide essential services to the county's affluent residential and commercial base.

1. Home & Property Services

Westchester’s real estate remains some of the most valuable in the country. This creates a massive, evergreen demand for property maintenance.

Landscaping & Tree Care: Long-established companies (some over 50 years old) frequently come to market as owners retire. These businesses often include valuable equipment and loyal client lists in towns like Rye, Scarsdale, and Mamaroneck.
Specialized Restoration: Demand is surging for niche services like tile and grout restoration, water damage repair, and "green" HVAC transitions as New York pushes for cleaner energy.

2. Health, Wellness & Medical Services

With a growing aging population and a high local focus on wellness, healthcare services are a powerhouse in the Westchester economy.

Medical Spas & Urgent Care: We are seeing a trend of "connected businesses" where urgent care centers and med-spas operate side-by-side.
Senior Care: Non-medical home care franchises and independent agencies are highly sought after due to their scalability and high margins.

3. B2B & Professional Services

For those looking to move away from retail hours, B2B services offer a professional lifestyle with stable weekday operations.

Land Surveying & Architecture: With constant development in White Plains and Yonkers, firms with decades of archived records are "gold mines" for new owners.
Staffing & Outsourced Labor: As companies look for flexible workforce solutions, staffing agencies with Fortune 500 contracts in the Tri-State area remain top-tier acquisitions.

Why Buy an Existing Service Business?

When you choose to buy a business in Westchester rather than starting from scratch, you are purchasing more than just a name—you are purchasing a foundation.

Immediate Cash Flow: Unlike a startup that may take years to turn a profit, an established service business generates revenue from Day 1.
Trained Workforce: In today’s labor market, the most valuable asset you can acquire is a team that already knows the customers and the operations.
Lender Credibility: Banks and the SBA are far more likely to finance an acquisition with 3–5 years of proven tax returns than a speculative new venture.

How First Choice Business Brokers Can Help

Navigating the landscape of businesses for sale in Westchester requires local expertise. At First Choice Business Brokers Westchester South , we don't just show you listings; we guide you through the entire lifecycle of the deal:

Confidentiality: We ensure the sale remains discreet to protect the business’s reputation.
Strategic Matching: We help you find a business that fits your specific skill set and financial goals.
Negotiation & Closing: From the letter of intent to the final purchase agreement, we are in your corner.

Preparation & Professional Guidance

The service sector in Westchester County is a vibrant, diverse, and profitable arena for new owners. Whether you are interested in a high-end design-build firm in Mamaroneck or a profitable bread route in Yonkers, the key to success lies in preparation and professional guidance.

Frequently Asked Questions

Ready to Start Your Journey?

If you're ready to buy a business in Westchester , don't go it alone. Let the local experts show you the path to a successful acquisition.

�� Schedule Your Free Consultation with FCBB Westchester South

�� Call us today: +1 (914) 281-1960

First Choice Business Brokers Westchester South

565 Alda Rd, Mamaroneck, NY 10543, United States

Visit Our Website

Disclaimer : The information provided in this article is for general educational purposes only and should not be considered legal, financial, or tax advice. Every business sale is unique, and laws and regulations may vary by state and industry. Before making any decisions regarding the sale or purchase of a business, you should consult with qualified legal, financial, and tax professionals. First Choice Business Brokers Westchester South is not responsible for any actions taken based on the information provided herein.

Building Your Professional Deal Team: Why Brokers, Accountants, and Attorneys are Essential

Wed, 04 Feb 2026 20:50:43 GMT

Selling a business is likely the most significant financial event of your life. In the competitive and high-stakes market of Westchester County , navigating this journey alone is not just stressful, it can be financially risky. The most successful transactions, characterized by high valuations and smooth transitions, are almost always handled by a "Deal Team."

At First Choice Business Brokers Westchester South , we view ourselves as the "quarterback" of this team. We guide the process and keep it moving, but a winning game requires specialized players in every position. To protect your interests and ensure a seamless handover, you need a group of specialists working together in a collaborative effort.

The Core Members of Your Deal Team

To achieve a high-value sale while minimizing risk, you should consider the following professional support:

1. The Business Broker (FCBB Westchester South)

We are your front-line advocates and the engine behind the transaction. Our role is to bridge the gap between "running a business" and "selling a business."

Market Price Analysis: We conduct a thorough analysis to objectively value the business, moving beyond the emotional "owner's price" to determine a figure that attracts buyers while maximizing your return.
Confidential Marketing: We tap into a massive network of pre-screened buyers without alerting your employees, customers, or competitors.
Filtering "Tire-Kickers": We identify serious prospects and ensure only financially qualified individuals see your sensitive data.
Timeline Management: We keep the process moving, facilitating communication between all parties to prevent "deal fatigue."

2. The Accountant (CPA)

Financial transparency is the bedrock of trust. If a buyer cannot verify your numbers, the deal will likely collapse.

Clean Records: A buyer will typically want to see at least three to five years of clean tax returns and profit-and-loss statements.
Tax Strategy: Your accountant should help you understand the tax implications of the sale (such as capital gains) and ensure your records are presentation-ready.
Note: FCBB does not perform due diligence or audit your books; we rely on the professional records you and your accountant provide.

3. The Attorney

While we provide standard forms and facilitate the deal flow, an attorney is essential for the legal "heavy lifting."

Drafting and Review: They review and draft the specific language in the purchase agreement, handle non-compete clauses, and ensure that all professional requirements for the transfer of ownership are met.
Litigation Protection: Having an attorney review the deal is your best defence against post-sale disputes, ensuring that your liability is limited.

Critical Strategy: Asset Sale vs. Stock Sale

One of the most important decisions your deal team will help you make is determining the structure of the transaction. In New York, the distinction between an Asset Sale and a Stock Sale can have massive financial consequences.

Asset Sale: The buyer purchases specific items—like equipment, inventory, and customer lists—but the legal entity stays with you. Buyers often prefer this because they can "step-up" the tax basis of assets for better depreciation. However, for you, it can lead to higher taxes (ordinary income vs. capital gains) and potential "double taxation" if you are a C-Corporation.
Stock Sale: The buyer purchases the entire company entity. This is usually the "cleanest" way for a seller to exit, often qualifying for favorable long-term capital gains rates. In New York, stock sales are generally taxed based on the seller's residence, a vital consideration for Westchester residents.

Your Accountant will run the numbers on both scenarios, while your Attorney ensures the contracts reflect the chosen path.

Navigating Legal and Municipal Hurdles in Westchester

Selling a business in Westchester often involves more than just a private contract. There are local regulatory and "hidden" hurdles that only an experienced deal team can navigate:

Bulk Sale Requirements: In New York, the state must be notified of a "bulk sale" to ensure the seller doesn't have outstanding sales tax liabilities. If this isn't handled correctly by your Attorney , the buyer could become liable for your unpaid taxes.
Leases and Estoppels: If your business has a physical location in Mamaroneck, White Plains, or Yonkers, your landlord is a silent partner in your sale. You will likely need a "Tenant Estoppel" or a lease assignment. Your Broker often manages the relationship with the landlord, while your Attorney reviews the assignment terms.
Municipal Permits: From Health Department permits to signage rights, your team ensures that all local Westchester County licenses are transferable, allowing the buyer to operate immediately.

Understanding the Due Diligence Process

Once a buyer makes an offer, they will enter a period of investigation. It is critical to understand that FCBB does not complete due diligence. During this phase:

Buyer's Responsibility: Buyers are encouraged to seek their own professional assistance. They should hire their own accountants and attorneys to verify financial data and review contracts.
The Seller’s Responsibility: You must be prepared to provide documentation—from payroll records to vendor contracts—promptly.
Our Facilitation: We help coordinate the exchange of this information, often through a secure Virtual Data Room (VDR), to ensure the process remains organized and stays on schedule.

Professional Comparison Table

Frequently Asked Questions

Conclusion

Selling your business is a complex journey, but you don't have to walk it alone. From the initial valuation to the final handshake, First Choice Business Brokers Westchester South is dedicated to protecting your interests and maximizing your exit value. By following a structured process and leveraging local market intelligence, you can transition with the confidence that you’ve secured the best possible outcome.

Ready to Start Your Next Chapter?

Don't leave your hardest-earned asset to chance. Whether you are ready to list or just curious about your current market value, our experts are here to help.

Schedule Your Free Consultation
View Current Businesses for Sale in Westchester
Call Us Today: +1 (914) 281-1960

First Choice Business Brokers Westchester South

565 Alda Rd, Mamaroneck, NY 10543, United States

Disclaimer : The information provided in these articles is for general informational purposes only and does not constitute professional advice. Every business sale is unique, and specific outcomes may vary. Before making any decisions related to the sale of your business, you should consult with qualified professionals. First Choice Business Brokers Westchester South does not perform due diligence or provide auditing services.

Business Brokers in Westchester: Your Guide to a Successful Sale or Purchase

Wed, 04 Feb 2026 20:26:30 GMT

Selling or acquiring a company is one of the most significant financial milestones an entrepreneur will ever face. In the vibrant and competitive landscape of the Lower Hudson Valley, navigating this process requires more than just a listing—it requires a strategic partnership. At First Choice Business Brokers Westchester South , we combine deep local expertise with a proven national framework to ensure your transition is profitable, confidential, and smooth.

Whether you are looking to unlock the value you’ve built over decades or are ready to invest in a new venture, working with local business brokers in Westchester ensures you have the data-driven guidance necessary to close the deal.

The 5 Essential Steps to Selling Your Business

1. Professional Valuation & Market Analysis

The first hurdle in any sale is moving from an emotional price to a market-clearing price. Many owners rely on hearsay or outdated metrics, but business brokers in Westchester look at the "hard art" of valuation. We analyze your Seller’s Discretionary Earnings (SDE), industry multiples, and local demand to provide a realistic Market Price Analysis. An accurately priced business attracts serious buyers and prevents the "stale listing" syndrome.

2. Financial & Operational Cleanup

A buyer is purchasing your future cash flow. To maximize value, your records must be impeccable. This involves organizing three to five years of tax returns, P&L statements, and lease agreements. Simultaneously, you should focus on "owner-dependency"—the less the business relies on you for daily operations, the more valuable it becomes to an investor.

3. Strategic & Confidential Marketing

Privacy is paramount. You don't want employees, customers, or competitors knowing your business is for sale until the time is right. We utilize a "blind profile" strategy, marketing the opportunity to our extensive network of pre-screened buyers without revealing the business's identity. This maintains stability while driving competitive interest.

4. Managing Due Diligence & Negotiations

Once a Letter of Intent (LOI) is signed, the "due diligence" phase begins. This is where most unguided deals fall apart. We act as the buffer and facilitator, managing the flow of information between attorneys, accountants, and the buyer to ensure questions are answered promptly and the momentum toward closing remains high.

5. Closing and Transition Planning

The final step involves the legal transfer of assets and a structured handover period. A successful sale includes a clear plan for training the new owner and communicating the change to staff and clients. Our goal is to ensure that the legacy you built continues to thrive long after you’ve moved on to your next chapter.

Frequently Asked Questions

Conclusion

Ready to Start Your Next Chapter?

Don't leave your hardest-earned asset to chance. Whether you are ready to list or just curious about your current market value, our experts are here to help.

Schedule Your Free Consultation
View Current Businesses for Sale in Westchester
Call Us Today: +1 (914) 281-1960

First Choice Business Brokers Westchester South

565 Alda Rd, Mamaroneck, NY 10543, United States

Disclaimer : This content is provided for general informational purposes only and does not constitute legal, financial, or investment advice. Business outcomes vary, and readers should consult qualified professionals before making any business, legal, or financial decisions.

How to Evaluate a Business Before You Buy in Westchester

Fri, 26 Dec 2025 04:14:06 GMT

First Choice Business Brokers, Westchester South Office

The Critical Decision

The dream of owning a successful enterprise in Westchester County is thrilling. With its affluent demographics, dense population centers, and vibrant economic activity, Westchester offers unparalleled opportunities for business acquisition. But this highly desirable market comes with a premium. A transaction here is not a simple handshake; it is a significant, high-stakes investment in your future. At First Choice Business Brokers (FCBB) , Westchester South Office, we operate under the guiding principle: Your Success, Our Priority.

When you decide to buy a business in Westchester , the most critical phase—the foundation upon which your future success rests—is due diligence. This rigorous, multi-faceted evaluation must go far beyond a simple review of the asking price. It’s about verifying the truth behind the seller’s claims, identifying hidden risks, and confirming the stability of your future income stream.

As your local business brokers in Westchester, we are a Confidential, Professional, and Results-Driven brokerage dedicated to guiding you through this complex process. We are experts in due diligence and structuring win/win deals. We've experienced the challenges buyers face and provide the navigational guidance necessary to acquire a business with confidence.

Financial Due Diligence: Deconstructing the Numbers

The purchase price of a business is merely the starting point. The real value is hidden in the operational expenses, the owner's discretionary spending, and the sustainability of the revenue. This section outlines the crucial financial steps you must take.

The Buyer's Mandate for Professional Review

Before diving into the numbers, it is absolutely critical to understand your role. While First Choice Business Brokers facilitates the entire transaction—from initial listing search to closing—due diligence is ultimately the buyer's responsibility.

We strongly encourage that you retain a qualified team:

Accounting Professionals (CPAs or Forensic Accountants): To thoroughly examine and verify all financial records, tax returns, and the quality of earnings.
Transactional Attorneys: To review and advise on all legal documentation, contracts, leases, and liability exposure.

Our expertise at FCBB lies in providing experienced transactional guidance, organizing the documentation efficiently, and coordinating the process so your professional team can perform their audit thoroughly and efficiently. We prepare the runway; your team flies the financial plane.

The Art of Recasting (Seller’s Discretionary Earnings - SDE)

In small to mid-sized businesses, the reported net profit rarely reflects the true cash flow available to a new, non-operating owner. This is where recasting , or normalizing the financial statements, comes in. Recasting seeks to identify and "add back" any non-essential or discretionary expenses the current owner deducted from the business's profits.

Common legitimate "Add-Backs" to verify include:

Owner’s Salary and Perks: The current owner’s salary, personal insurance, cell phone bills, and vehicle expenses are all covered by the business.
Non-Recurring Expenses: One-time costs, such as legal fees from a specific lawsuit, a significant equipment repair, or moving expenses.
Excessive/Discretionary Expenses: Above-market rent paid to an owner-related entity, or personal travel deducted as a business expense.

FCBB helps compile and structure the necessary documents (tax returns, P&Ls, balance sheets) into a cohesive package for your accounting professionals, helping them efficiently verify or challenge these recasting claims. Your CPA must ensure these adjustments are legitimate and justifiable.

Quality of Earnings (QoE) – Sustainability is Key

Beyond simply recasting, a Quality of Earnings (QoE) review assesses the sustainability of the revenue. A business can look profitable on paper, but if its foundation is weak, the investment is shaky.

Customer Concentration: Is more than 10-15% of the business’s revenue coming from a single customer? Losing one client post-acquisition could devastate the business. Your review must confirm a diverse, stable customer base.
Margin Analysis: Are the gross and net margins in line with industry standards? Look for unexplained, recent dips that could signal market pressure or price erosion. Conversely, look skeptically at sudden, massive spikes that might be non-repeatable sales.
Working Capital: The difference between current assets and current liabilities. Does the business have sufficient immediate cash flow to meet its short-term operating needs without requiring the new owner to inject capital immediately?

Asset Valuation and Liabilities

You must establish the fair market value and condition of the tangible assets being sold.

Fixtures, Furniture, and Equipment (FF&E): Review the condition, age, and replacement cost of all major equipment. Are they owned outright or subject to liens or leases?
Inventory: For retail or distribution businesses, assess inventory obsolescence to optimize stock levels. Does the valuation include outdated or unsaleable stock?
Hidden Liabilities: Work with your attorney to investigate UCC filings, pending litigation, or undisclosed vendor debt. A business purchase often means inheriting certain liabilities; your team must identify and quantify all of them.

Operational Assessment: The Day-to-Day Reality

Financial viability means nothing if the business cannot operate independently of its current owner. Operational due diligence ensures you are buying a machine, not just a set of spreadsheets.

The "Key Man" Risk and Human Capital

Many small businesses rely heavily on the personal charisma or unique skills of the founder. If the business success hinges on the owner's personal relationships or specialized knowledge:

Owner Dependence: How easily can the existing staff perform the owner's duties? A good broker helps structure a transition period, but true independence is the goal.
Employee Structure: Review key employee contracts, non-compete/non-solicitation agreements, and assess the stability of the organizational chart. Are there any impending retirements or key departures? Losing top talent during the transition can derail the entire investment.

Systems, Processes, and Technology

A scalable business is one that runs on documented systems, not scattered ideas.

Scalability: Are the current operating systems (Point of Sale, Customer Relationship Management, accounting software) robust enough to handle growth? Are they cloud-based and modern, or outdated legacy systems that require an expensive overhaul?
Documentation: Crucially, ask: Are the operating procedures documented? A business run on "tribal knowledge" (information held only in the heads of long-time employees) is a high risk. Detailed Standard Operating Procedures (SOPs) are essential.
Supplier Relations: Review key supplier contracts to ensure compliance and optimal performance. Are the pricing and terms stable? Can the buyer easily assume these existing relationships, or are discounts tied specifically to the current owner?

Lease and Location Evaluation (Critical in Westchester)

In a high-cost real estate market like Westchester, the lease agreement often holds more value—and more risk—than the physical assets.

The Lease Term: Ensure the remaining lease term aligns with your investment timeline. If the lease is expiring soon, the renewal terms must be favorable.
Assignment & Landlord Cooperation: The lease must be assignable to the new owner, and the landlord must approve the transfer. FCBB facilitates this critical negotiation, working to preemptively resolve issues that can create "rough waters" in the transaction process. The transaction can fail if the landlord refuses to cooperate or demands unreasonable terms.

Market, Legal, and Growth Potential

A thorough evaluation involves examining the competitive landscape outward and the legal framework downward.

Local Market Dynamics and Competition

Your due diligence should confirm that the business has a strong, defensible position within its specific Westchester market.

Geographic Analysis: What is the brand recognition and reputation within the immediate locale (e.g., White Plains, Yonkers, Rye)?
Competitive Audit: Conduct a detailed review of the top 3-5 local competitors. What is the business’s unique selling proposition? Is the market saturated or open for growth?
Growth Potential: What are the realistic, verifiable opportunities for expansion? Beware of growth projections that rely entirely on the buyer making massive capital investments.

Regulatory and Licensing Compliance

The burden of compliance falls immediately on the new owner.

Westchester Specific Zoning: Your attorney must confirm that the current use of the property complies with all local zoning ordinances.
Permits and Licenses: Review all required municipal and state licenses, permits, and certifications (e.g., health permits, liquor licenses). Are they current, and, most importantly, are they transferable to a new owner?

Legal Health and Intellectual Property

Contracts: Review standard customer agreements, vendor contracts, and employment contracts for favorable, assignable terms.
Legal History: Are there any past, pending, or threatened legal claims? A comprehensive legal review is non-negotiable.
Intellectual Property (IP): Does the business rely on any protected trademarks, proprietary recipes, software code, or patents? Ensure these are legally transferred in the sale.

Conclusion: Your Partner for a Confident Acquisition

Buying a successful business in Westchester County is an achievable goal, but one that requires comprehensive, structured diligence across all pillars: Financial, Operational, and Legal/Market.

Don't leave a six-figure decision to guesswork. While the excitement of the acquisition is strong, the discipline of due diligence must be stronger. You need specialized guidance to navigate the unique complexities and high values inherent to the Westchester landscape.

First Choice Business Brokers, Westchester South Office, offers objective, expert, and confidential guidance at every turn. We offer experienced transactional guidance by aligning you with a "skilled crew" that may include industry-specific lenders, contract attorneys, and appraisers, charting a clear path to a smooth closing.

Ready to begin your journey to acquire a thriving business in one of the most dynamic markets in New York?

Your Journey Starts Here

Contact your local business brokers in Westchester today to schedule your initial consultation and ensure you buy a business in Westchester on the right foot.

First Choice Business Brokers, Westchester South Office, makes your success our priority.

Frequently Asked Questions

Disclaimer : The information contained in this blog post is for informational purposes only and is not intended to be a substitute for professional financial, legal, or accounting advice. When considering the purchase or sale of a business, you are advised to consult with an independent, licensed financial advisor, CPA, and attorney regarding your specific situation and jurisdiction. First Choice Business Brokers, Westchester South Office, acts solely as a transaction facilitator.

How to Sell Part of Your Business in Westchester

Mon, 29 Sep 2025 23:51:43 GMT

Selling part of your business can be a smart strategy to free up capital, bring in new partners, or sharpen your focus on core operations. But to do it successfully, you’ll need the right preparation, clear planning, and trusted guidance. At First Choice Business Brokers Westchester South , we help business owners navigate this complex process with confidence.

Step 1: Understand the Value of Your Business

Before moving forward, you’ll need a clear picture of what your business is worth.

Financial Health: Review your balance sheets, income statements, cash flow, debts, and liabilities.
Market Position: Assess your market share, growth potential, and competitive advantages.
Key Assets: Identify both tangible (equipment, property) and intangible (brand reputation, intellectual property, customer relationships) assets that drive value.

Knowing your true value ensures you set fair expectations for both yourself and potential buyers.

Step 2: Prepare Your Business for Sale

The stronger your business looks on paper and in practice, the more attractive it will be to buyers.

Streamline Operations: Improve efficiency, reduce waste, and highlight scalable processes.
Organize Financial Records: Keep all tax filings, financial statements, and supporting documents clear and up-to-date.
Enhance Appeal: Strengthen your brand, improve physical space if applicable, and showcase your loyal customer base.

Pro tip: Working with an experienced business broker ensures your business is presented in the best possible light.

Step 3: Find the Right Buyers

Not every buyer will be a good fit for your goals. Consider these categories:

Strategic Buyers: Businesses in related industries seeking synergies.
Private Equity Firms: Investors with both capital and growth expertise.
Through a Business Broker: Brokers like First Choice Business Brokers Westchester South can tap into extensive buyer networks, saving you time and connecting you with the right opportunities.

Step 4: Negotiate the Sale

Once interest is on the table, negotiations begin.

Set Clear Terms: Define the exact percentage of the business being sold, assets or liabilities included, and timeline.
Handle Due Diligence: Buyers will examine financials, contracts, employee records, and more. Be transparent and organized.
Finalize the Agreement: Draft a legally sound sales contract that protects both parties. Always have it reviewed by legal professionals.

Step 5: Address Legal & Tax Considerations

Selling a portion of your business has significant legal and tax implications.

Sales Agreement: Ensure all terms and contingencies are covered.
Tax Impact: Work with a tax advisor to plan for capital gains or other liabilities.
Compliance: Stay aligned with all business regulations to avoid complications.

Step 6: Transition Ownership Smoothly

A successful sale isn’t just about signing papers — it’s about keeping your business strong through the transition.

Employee Communication: Keep staff informed and maintain morale.
Seamless Handover: Create a clear transition plan for responsibilities.

Customer Relationships: Reassure clients that services and quality will remain consistent

Final Thoughts

Selling part of your business is a strategic decision that requires preparation, expertise, and professional guidance. At First Choice Business Brokers Westchester South , we help local business owners make informed decisions and achieve successful outcomes — whether you’re unlocking growth potential or planning for the future.

Disclaimer The information provided in this article is for general educational purposes only and should not be considered legal, financial, or tax advice. Every business sale is unique, and laws and regulations may vary by state and industry. Before making any decisions regarding the sale of your business, you should consult with qualified legal, financial, and tax professionals. First Choice Business Brokers Westchester South is not responsible for any actions taken based on the information provided herein.

7 Steps to Finding the Right Business for Sale

Sun, 21 Sep 2025 21:28:29 GMT

How a Business Broker Can Help

The Tri-State area is home to a thriving and diverse business market, but successfully acquiring a company—whether a family firm or an established franchise—requires specialized knowledge. If you're looking for a business for sale , the right strategy is the difference between a significant investment and a costly mistake. Working with experienced local business brokers gives you access to crucial off-market listings, accurate valuations, and expert negotiation support. Here are seven smart steps to guide your journey to a smooth acquisition and long-term success.

Step 1: Define Your Search Criteria and Budget When Buying a Business

Start by clarifying what you want — which industry, the size of the business (revenue and cash flow), the geographic area within The Tri-State, and how hands-on you want to be. Define your budget, identify how much you can invest, and determine whether you need financing.

A broker can help you refine these criteria based on what’s realistic given the current market.

Step 2: Engage Local Business Brokers Early

Selecting one of The Tri-State's top local business brokers early gives you an advantage. These brokers understand the local business-for-sale landscape — what kinds of businesses are available, what buyers are looking for, and how valuations work in the area.

For example, one firm highlights its focus on helping clients buy or sell businesses in Westchester, NY, with professional valuation and transaction support.²

Broker tip: Use initial consultation meetings to assess the broker’s local network, past deal experience, and depth of listings for “business for sale in Westchester.”

Step 3: Research the Market and Review Business Listings

Before you make a move, explore what’s available. Search for businesses for sale across various industries to get a feel for asking prices, deal structures, and what looks like a good match for you. One listing portal shows dozens of brokers ready to assist buyers and sellers.

Your chosen broker should provide curated listings (including confidential ones) and help you filter opportunities according to your criteria.

Step 4: How to Evaluate a Promising Business for Sale in The Tri-State

When you find a promising listing for a business for sale, assess it on multiple dimensions — financial performance (revenue, profit, cash flow), operations, employees, customer base, lease or real estate, and liabilities.

Your local business broker will guide you through the review process, help you interpret the information, and highlight any red flags early (for example, outdated equipment, contract dependencies, or local regulatory restrictions).

Step 5: Conduct Due Diligence for Business Acquisitions

The due diligence phase begins once you decide to pursue a specific business. This involves verifying financial statements, tax returns, intellectual property or lease assignments, employment obligations, etc. Your broker helps to coordinate due diligence, maintains confidentiality, and keeps the process on track.

Step 6: Negotiate Terms and Structure the Business Deal

Negotiation is about more than just the purchase price. It includes how the deal is structured (asset sale vs. share purchase), whether the seller stays on for a transition period, non-compete clauses, financing terms, and timing.

A seasoned local business broker understands typical deal structures in the county and can help you craft an offer that aligns with both market expectations and your goals.

Step 7: Close the Deal and Plan the Transition County

After terms are agreed upon and due diligence is complete, you’ll move to closing — legal documents, transfers, escrow, lease assignments, and more. Then comes the transition: how you step in, how employees are notified, and how customers are retained.

The right local business brokers will support you through closing and even during the handover period to maximize your chance of ongoing success.

How a Business Broker Makes a Difference

Access to Off-Market Business Opportunities: The Hidden Inventory ��

Good local brokers often have listings that are not publicly posted, giving you a valuable head start.

This "hidden inventory" or "shadow market" is arguably one of the most significant advantages of partnering with an experienced local broker. Many successful business owners, particularly those in the local area, prefer to keep the sale of their company strictly confidential to avoid alarming employees, customers, suppliers, or competitors.

By working with a broker, you gain exclusive access to this crucial pool of potential acquisitions. This access means you are:

Bypassing Competition: You are often the only qualified buyer viewing the listing, eliminating bidding wars and pressure that characterize public portal listings.
Finding Better Fits: Off-market businesses are typically pre-qualified by the broker, meaning they are likely a closer match to your specific criteria defined in Step 1.
Securing a Fairer Deal: Less competition generally translates to a more stable and reasonable purchase price and more favorable terms than a premium in a competitive, public auction environment.

For a serious investor, having an entry point into the discreet network of a local business broker means gaining a massive strategic advantage over buyers relying solely on public websites.

How a Business Broker Makes a Difference

Local Market Insight and Valuation Expertise: Getting the Price Right ��

Business Brokers understand what businesses sell for, what types of buyers exist, and what buyers look for in the area.

Valuation is rarely a simple formula; it's heavily influenced by location and recent sales data. A dedicated local business broker has a deep, working knowledge of the county’s micro-economies—understanding, for example, that a small retail franchise valuation will differ significantly between White Plains and Scarsdale.

The broker's expertise provides crucial benefits:

Accurate Benchmarking: Brokers possess proprietary data on comparable businesses recently sold (not just listed) with County, ensuring you neither overpay nor undervalue an asset.
Identifying Buyer Types: They know the profile of buyers active in the area (e.g., strategic investors, private equity, or first-time owner-operators), which helps tailor the offer and deal structure for the highest chance of acceptance.
Economic Forecasts: They understand local trends, tax implications, and regulatory nuances (like local zoning or licensing requirements) that affect future profitability and, therefore, current market value. This insight helps you avoid investing in an industry or location poised for a downturn.

Acquisition Process Management and Confidentiality: Streamlining Complexity ⏱️

Acquiring a business for sale can involve many moving parts; your broker manages these elements and ensures everything moves smoothly.¹

Buying a business is like conducting a complicated orchestra involving bankers, accountants, lawyers, and the seller while maintaining secrecy. The broker is the central project manager to reduce stress and wasted time.

Their role in management includes:

Timeline Control: The broker creates and enforces a rigorous timeline, coordinating all due diligence meetings, document exchanges, and deadlines for financing commitment letters to prevent the deal from stalling.
Maintaining Confidentiality: For a confidential sale (as discussed earlier), the broker is the sole point of contact, screening potential buyers, handling all initial inquiries, and ensuring sensitive business information remains protected until a Letter of Intent (LOI) is signed.
Neutral Communication: By serving as a buffer, the broker prevents personality clashes between the buyer and seller, keeping negotiations professional and focused solely on the deal terms, which is vital during stressful review periods.

Structuring Deals and Mitigating Risk: Securing a Safe Investment ��️

Brokers help you avoid common pitfalls — hidden liabilities, unrealistic forecasts, or lease traps — so you secure a deal that works, not just one that looks good on paper.

A significant part of the broker's value is protecting the buyer from unseen risks that could destroy the investment after closing. They look beyond the profit-and-loss statement to the contractual and legal frameworks of the business.

Key aspects of risk mitigation include:

Financial Red Flags: They scrutinize the Quality of Earnings (QoE) report to identify aggressive accounting practices or one-time revenue spikes that make the business look more profitable than it sustainably is.
Lease/Real Estate Review: Brokers are experts at identifying "lease traps," such as unfavorable assignment clauses, looming rent increases, or the lack of transferrable lease options, which are critical for brick-and-mortar operation.
Creative Deal Structuring: They recommend advanced strategies, such as using seller financing, earn-outs (where part of the purchase price is based on the business meeting performance targets post-sale), or escrow holdbacks to provide the buyer with post-closing protection against undisclosed liabilities.

Frequently Asked Questions

Conclusion

Finding the right business for sale doesn’t happen by chance — it results from planning, disciplined searching, and professional support.

By following these seven steps and engaging a trusted local business broker early in the process, you position yourself for a successful purchase and long-term success.

Discuss your acquisition goals. Book a Free Consultation

First Choice Business Brokers

(914) 281-1960

Disclaimer : The content of this blog post, "7 Steps to Finding the Right Business for Sale," is provided for informational purposes only and should be considered as general guidance. It is not intended to be, and should not be construed as, legal, financial, tax, or accounting advice.

The process of buying a business is complex and involves significant financial risk. Readers are strongly advised to seek the counsel of qualified, independent professionals—including a licensed business broker, an attorney specializing in business transactions, and a Certified Public Accountant (CPA)—before deciding or entering into any agreement to purchase a business.

How to Prepare Your Business for Sale: Expert Steps and Why a Business Broker Can Maximize Your Success

Tue, 12 Aug 2025 01:30:54 GMT

Selling a business is a significant milestone. Whether you’re preparing for retirement, ready to pursue new ventures, or responding to market changes, planning the sale of your business should never be rushed. A well-prepared exit not only helps you secure a better sale price, but it also ensures a smoother transition for all involved.

In this guide, we’ll walk through the expert steps you should take to prepare your business for sale — and explain why working with an experienced business broker can help you maximize value, avoid common pitfalls, and find the right buyer.

1. Start with a Professional Valuation

Before listing your business, it’s essential to understand what it’s worth. Many factors influence business value, including revenue, profits, customer base, operational systems, and industry trends.

If you're exploring a business for sale in Westchester , keep in mind that local economic factors and regional demand can play a key role in valuation. A professional can provide a clear, market-based assessment of what your business is truly worth — not just what you hope to get.

2. Organize Your Financial Records

Serious buyers will expect clean and transparent financial documentation. This includes:

Profit and Loss Statements
Tax returns (3–5 years)
Balance sheets
Accounts payable and receivable
Inventory reports

Preparing these ahead of time builds trust and speeds up the due diligence process. In some cases, working with an accountant or bookkeeper can help ensure your records are accurate and presentation-ready.

3. Streamline Operations and Reduce Owner Dependency

Buyers are attracted to businesses that are efficient, well-documented, and not overly reliant on the owner. If your daily operations depend on your personal involvement, now is the time to train staff, delegate responsibilities, and create written procedures.

For those considering selling in high-demand markets like Westchester, businesses that demonstrate strong operational systems and capable teams tend to command higher interest and better offers.

4. Prepare Legal and Corporate Documents

In addition to financials, buyers will want to review:

Corporate bylaws or operating agreements
Employee contracts
Leases or property documents
Licenses, permits, and insurance
Intellectual property rights

Having these documents well-organized and accessible makes the due diligence process smoother and increases buyer confidence.

5. Improve Business Value Before Selling

If you have some time before going to market, look for ways to increase the value of your business. This might include:

Cutting unnecessary expenses
Strengthening customer retention
Improving digital presence and marketing
Exploring new revenue channels

Even small improvements can make your business more attractive and profitable — two key factors that impact the final sale price.

6. Maintain Confidentiality

Selling a business requires discretion. News of a pending sale can unsettle employees, customers, or suppliers. That’s why confidentiality is critical throughout the process.

A business broker can handle inquiries, screen potential buyers, and ensure your business is marketed discreetly — allowing you to continue operating normally while preparing for the sale behind the scenes.

7. Market Your Business Strategically

It’s not just about listing your business for sale — it’s about telling the right story to the right buyers. This includes creating a compelling business profile, showcasing financial strength, and highlighting opportunities for growth.

If you’re preparing a business for sale in Westchester , working with someone who understands the local market can give you an edge. Qualified business brokers in Westchester often have established networks and can connect your listing with serious, pre-screened buyers.

8. Navigate Negotiations and Due Diligence Smoothly

Once a buyer expresses interest, the negotiation and due diligence process begins. This stage includes financial audits, legal reviews, and sometimes even site visits or customer interviews.

It can be stressful, but with the right guidance — especially from a skilled broker — you’ll be better prepared to answer questions, negotiate terms, and avoid common stumbling blocks.

9. Plan for a Smooth Transition

Many deals include a transition period where the seller helps onboard the new owner. Planning ahead can make this phase easier and more effective. Prepare:

Employee training plans
Documentation of processes
Introductions to vendors or key clients
Ongoing support agreements if needed

A clear, thoughtful transition plan helps preserve the value of your business post-sale and reassures the buyer that they’re set up for success.

Why Working with a Business Broker Makes a Difference

While it’s possible to sell a business on your own, doing so can be overwhelming — especially if you’re navigating it for the first time. That’s where a professional business broker can make a huge difference.

Here’s how they add value:

Accurate pricing based on market conditions
Confidential marketing to protect your business
Access to qualified buyers who are ready to move
Expert negotiation support to help close better deals
Efficient management of the process from listing to closing

If you’re navigating the sale of a business in Westchester , working with experienced business brokers in Westchester gives you localized insight, buyer connections, and a smoother path to a successful exit.

Final Thoughts

Selling your business is both an emotional and financial decision — and it should be handled with care. The more you prepare in advance, the better your outcome will be. From cleaning up your financials to working with professionals who know your market, every step matters.

Whether you're just exploring your options or ready to list your business for sale in Westchester, the best time to start planning is now. And with the right guidance, the next chapter of your journey can be just as successful as the last.

Disclaimer The information provided in this article is for general informational purposes only and does not constitute legal, financial, or business advice. Every business sale is unique, and specific outcomes may vary based on individual circumstances, market conditions, and professional guidance. Before making any decisions related to the sale of your business, you should consult with qualified professionals, including legal, financial, and tax advisors, as well as licensed business brokers. The mention of business for sale in Westchester or business brokers in Westchester is intended for illustrative purposes and does not imply endorsement or guarantee of services.

¿Por qué una vendedora vendería un negocio rentable?

duda@fcbb.com — Thu, 20 Jul 2023 05:15:09 GMT

Estrategias de planificación de salida de vendedor inteligente

Descubra las razones por las que un vendedor vendería lo que parece ser un gran negocio rentable.

Muchos empresarios exitosos también hacen algo más que la mayoría de los dueños de negocios no hacen: planean una estrategia de salida.

Entonces, la pregunta es por qué la persona que está operando un negocio que funciona con éxito y gana dinero buscaría una estrategia de salida.

Las razones típicas para planificar una estrategia de salida o considerar la venta son (y no en ningún orden de importancia): 1. El propietario ha alcanzado la meta que quería lograr; 2. El propietario ha encontrado otra idea que quería seguir; 3. Aburrimiento o agotamiento; 4. No gratificante financieramente; o 5. No te satisface emocionalmente. 6. Necesidad de un nuevo desafío.

Por lo tanto, es bueno saber que muchos empresarios que están ocupados construyendo su negocio también están considerando su estrategia de salida.

Como dueño de un negocio, ¿conoce su estrategia de salida y estará preparado?

Los compradores buscan empresas que puedan proporcionar dos componentes principales, uno son los ingresos sostenibles y el segundo es el potencial de crecimiento. Después de veinticuatro años de reunir a compradores y vendedores, descubrimos que si estos dos ingredientes están en el negocio que un comprador está investigando, las posibilidades de que el comprador haga una oferta son muy altas.

Si está considerando vender su negocio en el futuro, asegúrese de que un comprador pueda verificar sus ingresos. La mayoría de los compradores abandonarán una transacción si no se puede verificar el ingreso. Su corredor de First Choice Business puede asesorarlo con más detalle sobre lo que un comprador necesitará de usted cuando esté listo para vender.

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Why Would A Seller Sell A Profitable Business?

duda@fcbb.com — Thu, 20 Jul 2023 05:13:12 GMT

Smart Seller Exit Planning Strategies

Discover the reasons that a seller would sell what appears to be a great profitable business.

Many successful entrepreneurs also do something else that most business owners don’t do, they plan an exit strategy.

So the question is why would the person who is operating a business that is running successfully and making money look for an exit strategy.

The typical reasons are for either planning an exit strategy or considering selling are (and not in any order of importance): 1. The owner has reached the goal that they wanted to achieve; 2. The owner has found another idea that they wanted to pursue; 3. Boredom or burn out; 4. Not financially rewarding; or 5. Not emotionally fulfilling. 6. Need of a new challenge.

So it is good to know that many entrepreneurs who are busy building their business are also considering their exit strategy.

As a business owner, do you know your exit strategy and will you be prepared?

Buyers look for businesses that can provide two major components, one is sustainable income and the second is growth potential. After twenty four years of bringing buyers and sellers together we found that if these two ingredients are in the business that a buyer is investigating, the chances that the buyer will make an offer are very high.

If you are considering selling your business in the future make certain that a buyer can verify your income. Most buyers will walk away from a transaction if the income cannot be verified. Your First Choice Business broker can advise you in more detail as to what a buyer will need from you when you are ready to sell.

¿Cuánto vale su negocio?

duda@fcbb.com — Thu, 20 Jul 2023 04:49:06 GMT

Descubra cómo un Business Broker valorará su negocio.

Trabajar con un corredor de negocios profesional puede ayudarlo a establecer un precio realista para la venta de su negocio.

Muchos vendedores, antes de reunirse con un corredor comercial, tienen una idea en mente de cuánto deben pedir por su negocio.

Su CPA o su amigo o su agente de bienes raíces pueden haber ofrecido sugerencias. Entonces, en el momento en que se encuentran con su corredor comercial y el corredor ofrece un precio de venta sugerido, los vendedores a veces responden con la cifra en dólares por la que su CPA, amigo o agente inmobiliario pensó que deberían vender.

El dilema de los corredores de negocios es cómo y le dirán al vendedor que el precio será demasiado alto para su negocio.

La mayoría de los corredores comerciales profesionales explicarán la realidad de un negocio sobrevaluado, incluido el hecho de que los negocios sobrevaluados ayudan a los negocios con precios razonables del mismo tipo a vender.

El propietario de un negocio debe comprender que un corredor de negocios está valorando el negocio de manera lógica y realista en función de las ventas y la experiencia pasadas, mientras que un vendedor mira el negocio emocionalmente.

El arte de valuar un negocio es solo eso, es un arte y no una ciencia. Un negocio vende por lo que pagará un comprador dispuesto y lo que aceptará un vendedor dispuesto.

Otra opción es obtener un avalúo externo por un costo aproximado de $3,000.00. A veces, estas valoraciones externas son teóricas y no un análisis de precios de mercado y pueden no valer la pena.

Para obtener más información sobre cómo se valora un negocio, comuníquese con su profesional First Choice Business Broker, cuyo único puesto es cotizar y vender negocios a tiempo completo.

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What Is Your Business Worth?

duda@fcbb.com — Thu, 20 Jul 2023 04:44:49 GMT

Discover how a Business Broker will value your business.

Working with a professional Business Broker can help to realistically price your business for sale.

Many Sellers, before meeting with a Business broker have an idea in their mind as to how much they should ask for their business.

Their CPA or their friend or their realtor may have offered suggestions. So at the time when they do meet their Business Broker and the Broker offer a suggested selling price, sellers will sometimes respond with the dollar figure that their CPA, friend or realtor thought that they should sell for.

The predicament of the business Brokers is how to and will they tell the seller that the price will be too high for their business.

Most professional business brokers will explain the reality of an overpriced business including the fact that overpriced businesses help reasonably priced businesses of the same to type to actually sell.

A business owner needs to understand that a Business Broker is valuing the business logically and realistically based upon past sales and experience whereas a seller looks at the business emotionally.

The art of valuing a business is just that, it is an art and not a science. A business sells for what a willing buyer will pay and what a willing seller will accept.

Another option is to obtain an outside valuation for a cost of about $3,000.00. Sometimes these outside valuations are theoretical and not a Market Price Analysis and may not be worth the cost.

For more information on how a business is valued, contact your First Choice Business Broker professional whose only position is listing and selling businesses full time.

¿Qué es la parálisis por análisis?

duda@fcbb.com — Thu, 20 Jul 2023 02:36:44 GMT

Cómo puede perderse una oferta "excelente" al analizar en exceso.

Aprende por qué deberías arriesgarte y tomar una decisión.

En el corretaje de negocios, vemos muchos compradores potenciales que han decidido que quieren seguir su sueño de ser dueños de su propio negocio. Estos compradores potenciales le pedirán a su agente que los contacte rápidamente cuando surja una "oferta especial" cuando estén listos para comprar.

Sorprendentemente, vemos que pasan seis o incluso nueve meses con docenas de presentaciones de oportunidades comerciales realizadas y avisos de "ofertas especiales" enviadas al comprador para descubrir que este comprador ansioso está afectado por una "parálisis de análisis". Este comprador ha perdido las "ofertas interesantes" potenciales frente a otros compradores que han aprovechado estas oportunidades.

¿Qué es la “parálisis por análisis”? En pocas palabras, la incapacidad de tomar una decisión. Los compradores quedan tan absortos en la revisión y el análisis de tantos negocios que el proceso en sí mismo se convierte en su negocio, siempre preguntándose si la próxima oportunidad será una mejor opción o un negocio más sólido, etc. Algunos compradores ejercen una presión extraordinariamente grande sobre sí mismos para comprar el negocio "correcto" que pierden la oportunidad correcta debido a la parálisis del análisis. De hecho, hemos escuchado a los compradores decir: "¿Puedo hacer este negocio todos los días por el resto de mi vida"? Por supuesto, es una pregunta razonable, sin embargo, esta pregunta también puede hacer que todos los negocios parezcan abrumadores y genera una gran tensión indebida en el comprador. Sí, por supuesto que desea que la compra del negocio sea lo más adecuada posible; sin embargo, también recuerde que si no es la opción adecuada, tiene la oportunidad de vender ese negocio y mudarse a otras empresas.

Nuestro consejo de muchos años de experiencia es que los compradores mantengan una mente abierta a diferentes oportunidades, es posible que se sorprenda de cuál es el negocio adecuado para usted. También es importante que los compradores obviamente hagan su diligencia debida; sin embargo, esos mismos compradores también deben darse cuenta de que otros compradores comerciales también están buscando las oportunidades que surgen y es posible que esos compradores no se vean afectados por la "parálisis de análisis". ¡Prepárese para participar cuando surja el negocio adecuado!

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What Is Analysis Paralysis?

duda@fcbb.com — Thu, 20 Jul 2023 02:03:11 GMT

How you can miss out on a “great” offering by over analyzing.

Learn why you should take a chance and make a decision.

In business brokerage, we see many potential buyers who have decided that they want to follow their dream of owning their own business. These potential buyers will ask their agent to quickly contact them when a “hot deal” comes up as they are ready to buy.

Amazingly we see six or even nine months pass with dozens of business opportunity introductions made and “hot deal” notices sent to the buyer to find this anxious buyer is stricken with “analysis paralysis”. This buyer has lost out on the potential “hot deals” to other buyers who have taken advantage of these opportunities.

What is “analysis paralysis?” Simply put, the inability to make a decision. Buyers get so caught up in the review and analysis of so many businesses that the process itself becomes their business, always wondering if the next opportunity will be a better fit or stronger business etc. Some buyers put an extraordinarily large amount of pressure on themselves to buy the “right” business that they miss out on the right opportunity due to analysis paralysis. We’ve actually heard buyers say, “Can I do this business every day for the rest of my life”? It is of course a reasonable question however this question can also make every business seem overwhelming and puts a lot of undue stress on the buyer. Yes of course you want the business buy to be as a good fit as possible however also remember if it is not the right fit you have the opportunity to sell that business and move into other ventures.

Our advice from many years of experience is for buyers to keep an open mind to different opportunities, you might be surprised about what the right business fit for you actually ends up being. Also it is important for buyers to obviously do their due diligence however those same buyers must also realize that other business buyers are also looking at the opportunities that come up and those buyers may not be stricken with “analysis paralysis”. Be ready to jump in when the right business comes along!

Vender o no vender, ¿esa es la cuestión?

duda@fcbb.com — Thu, 20 Jul 2023 01:55:33 GMT

¡No esperes a que sea demasiado tarde!

Los dueños de negocios se enfrentan al dilema de si deben vender y, de ser así, ¿cuándo es un buen momento?

¿Deberían los dueños de negocios vender cuando su negocio está en auge, cuando el negocio está en declive o cuando están cansados y agotados?

Después de 24 años vendiendo negocios, definitivamente podemos afirmar que el mejor momento para vender es cuando el negocio está en una tendencia alcista. Este es el momento en que los compradores están dispuestos a pagar el precio más alto. Desafortunadamente, muchos dueños de negocios esperan hasta que su negocio esté en declive cuando deciden que ya es suficiente y quieren poner su negocio en venta. Los compradores generalmente no pagarán mucho dinero si ven que el negocio está decayendo durante un período de tiempo. Los vendedores quieren vender el potencial, sin embargo, los compradores solo pagarán por lo que puedan ver como ingresos y la tendencia de los ingresos en el momento en que el negocio esté disponible.

Su First Choice Business Broker puede ofrecerle las experiencias de nuestros 24 años de venta de negocios. Cuando llegue el momento de considerar la venta, estaremos aquí para usted. Mientras tanto, mantenga su negocio funcionando con fuerza para que la "tendencia" de su negocio a los ojos de un comprador sea estable o tenga una tendencia al alza. Durante el proceso de venta, nos ocuparemos de los compradores entrantes y usted se encargará de su negocio para que pueda capturar el precio más alto por sus esfuerzos ganados con tanto esfuerzo.

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To Sell Or Not To Sell, That Is The Question?

duda@fcbb.com — Thu, 20 Jul 2023 01:54:16 GMT

Don’t wait until it’s too late!

Business owners are faced with a dilemma of whether they should sell and if so when is a good time?

Should business owners sell when their business is booming, when the business is declining or when they are tired and burned out?

After 24 years of selling businesses we can definitely state that the best time to sell is when the business is on an upward trend. This is the time that buyers are willing to pay the highest price. Unfortunately many business owners wait until their business is declining when they decide enough is enough and want to put their business up for sale. Buyers will not usually pay top dollar if they see the business is declining over a period of time. Sellers want to sell on potential however buyers will only pay for what they can see for income and the income trend at the time the business is available.

Your First Choice Business Broker can offer you the experiences of our 24 years of selling businesses. When the time comes to consider selling we’ll be here for you. In the meantime, keep your business running strong so the “trend” of your business in the eyes of a buyer is stable or on an upward trend. During the sale process we’ll take care of the incoming buyers and you take care of your business so you can capture the highest price for your hard earned efforts.

¿Lista para dejar tu trabajo?

duda@fcbb.com — Thu, 20 Jul 2023 01:49:59 GMT

¿Es ahora el momento adecuado para comprar un negocio?

Use su plan 401k de impuestos diferidos para comprar un negocio, obtenga más información.

¿Cuándo tiene sentido renunciar a su trabajo y utilizar los fondos de su plan de jubilación para comprar un negocio?

Esta es una pregunta que muchos empleados se hacen a menudo.

¡Estas son algunas de las señales de que es hora!

Estás aburrido con lo que estás haciendo porque no hay desafío en tu trabajo.
Tus ingresos no están en la cantidad que crees que deberían estar.
Su empleador es propiedad de una familia, por lo que no puede ascender demasiado en la escalera.
Está cansado de mudarse y quiere estabilizarse a usted y a su familia.
Temes los lunes por la mañana.

Estas son solo algunas de las razones para considerar "retirarse" y tomar su 401K (libre de impuestos y multas) y usar el dinero para comprar un negocio existente.

First Choice Business Brokers recibe muchas llamadas de personas que posiblemente estén en su puesto, sin embargo, lo que no nos sorprende es que el negocio que están considerando comprar no está relacionado con su puesto de trabajo actual.

Muchas veces una persona quiere un negocio que haga algo que sienta que disfrutará y le dará el estilo de vida que desea.

¿Estás listo para el desafío?

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Ready To Quit Your Job?

duda@fcbb.com — Thu, 20 Jul 2023 01:46:08 GMT

Is now the right time for you to buy a business?

Use your 401k tax deferred plan to buy a business, learn more.

When does it make good sense to quit your job and use your retirement plan fund to buy a business?

This is a question that many employees ask themselves on a regular basis.

Here are some of the signs that it is time!

You are bored with what you are doing as there is no challenge in your work.
Your income is not at the amount you think that it should be.
Your employer is family owned so you can’t go too high up the ladder.
You are tired of relocating and want to stabilize you and your family.
You dread Monday mornings.

These are just some of the reasons to consider “retiring” and taking your 401K (tax free and penalty free) and using the money to buy an existing business.

First Choice Business Brokers receives many calls from people possibly in your position, however what does not surprise us is that the business they are considering purchasing is not related to their current work position.

Many times a person wants a business doing something that they feel they will enjoy and give them the lifestyle they desire.

Are you ready for the challenge?

Preparación para la condonación de préstamos PPP

duda@fcbb.com — Thu, 20 Jul 2023 01:17:18 GMT

Ahora que tiene su préstamo PPP, es hora de prepararse para su "perdón de préstamo".

Algunos pueden pensar en su préstamo PPP como "dinero gratis", sin embargo, hay pautas que deben seguirse para recibir la condonación total del préstamo.

El 15 de mayo, la SBA publicó la solicitud de condonación de préstamos, lo que dejó confundidos a los bancos y a los propietarios de pequeñas empresas. Una semana después, la SBA preparó comentarios adicionales para su publicación en un intento de brindar orientación adicional; sin embargo, aún quedaban muchas preguntas sin respuesta para algunos prestatarios. Con más de $ 511 mil millones en préstamos PPP y el 79% de los cuales son préstamos de menos de $ 100,000, seguramente habrá muchas preguntas para los trabajadores estadounidenses que intentan mantener abiertas sus pequeñas empresas.

Realmente apreciamos el resumen de Kyle Westaway de la guía más reciente sobre la condonación de préstamos PPP y creemos que usted también lo hará. Este artículo proporciona información sobre lo que el banco revisará en una solicitud de condonación y el plazo para la decisión del prestamista sobre su condonación.

Una pregunta que ha surgido una y otra vez es ¿qué costos son elegibles para la condonación? A continuación se encuentran las pautas de elegibilidad directamente de la solicitud de perdón de la SBA.

Resumen de los costos elegibles para la condonación: los prestatarios son elegibles para la condonación de préstamos por los siguientes costos:

1. Costos de nómina elegibles. Los prestatarios generalmente son elegibles para la condonación de los costos de nómina pagados y los costos de nómina incurridos durante el Período Cubierto de ocho semanas (56 días) (o Período Cubierto de Nómina Alternativo) ("costos de nómina"). Los costos de nómina se consideran pagados el día en que se distribuyen los cheques de pago o el Prestatario origina una transacción de crédito ACH. Los costos de nómina se consideran incurridos el día en que se gana el salario del empleado. Los costos de nómina incurridos pero no pagados durante el último período de pago del Prestatario del Período cubierto (o Período cubierto de nómina alternativo) son elegibles para la condonación si se pagan en o antes de la próxima fecha de nómina regular. De lo contrario, los costos de nómina deben pagarse durante el Período cubierto (o Período cubierto de nómina alternativo). Para cada empleado individual, la cantidad total de compensación en efectivo elegible para la condonación no puede exceder un salario anual de $100,000, prorrateado para el período cubierto. Cuente los costos de nómina que se pagaron y se incurrieron solo una vez. Para obtener información sobre lo que califica como costos de nómina, consulte la Norma final provisional sobre el Programa de protección de cheques de pago publicada el 2 de abril de 2020 (85 FR 20811).

2. Costos elegibles no relacionados con la nómina. Los costos que no son de nómina elegibles para la condonación consisten en: (a) obligaciones hipotecarias cubiertas: pagos de intereses (sin incluir ningún pago anticipado o pago de capital) sobre cualquier obligación hipotecaria comercial sobre bienes muebles o inmuebles incurridos antes del 15 de febrero de 2020 ("pagos de intereses hipotecarios comerciales ”); (b) obligaciones de alquiler cubiertas: pagos de alquiler o arrendamiento comercial de conformidad con contratos de arrendamiento de bienes muebles o inmuebles vigentes antes del 15 de febrero de 2020 ("pagos de alquiler o arrendamiento comercial"); y (c) pagos de servicios públicos cubiertos: pagos comerciales por un servicio de distribución de electricidad, gas, agua, transporte, teléfono o acceso a Internet cuyo servicio comenzó antes del 15 de febrero de 2020 ("pagos comerciales de servicios públicos"). Un costo elegible no relacionado con la nómina debe pagarse durante el Período cubierto o incurrirse durante el Período cubierto y pagarse en la siguiente fecha de facturación regular o antes, incluso si la fecha de facturación es posterior al Período cubierto. Los costos elegibles no relacionados con la nómina no pueden exceder el 25 % del monto total de la condonación. Cuente los costos no relacionados con la nómina que se pagaron y se incurrieron solo una vez. El monto de la condonación del préstamo que solicita el Prestatario puede estar sujeto a reducciones, como se explica en el Anexo A del PPP.

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Preparing For PPP Loan Forgiveness

duda@fcbb.com — Thu, 20 Jul 2023 01:07:06 GMT

Now that you have your PPP loan it's time to look at preparing for your "loan forgiveness".

Some may think of their PPP loan as "free money" however there are guidelines that must be followed in order to receive full loan forgiveness.

On May 15, the SBA released the loan forgiveness application , which left banks and small business owners confused. A week later the SBA prepared additional comments for release in an attempt to provide additional guidance however there were still many unanswered questions for some borrowers. With over $511 billion out in PPP loans and 79% of those being loans under $100,000 there are bound to be a lot of questions for hard working American's trying to keep their small businesses open.

We really appreciated Kyle Westaway's summary of the latest guidance on PPP loan forgiveness and think you will as well. This article provides information on what the bank will review in a forgiveness application and the timeline for the lender's decision on your forgiveness.

One question that has come up time and time again, is what costs are eligible for forgiveness? Below are eligibility guidelines directly from the SBA forgiveness application.

Summary of Costs Eligible for Forgiveness: Borrowers are eligible for loan forgiveness for the following costs:

1. Eligible payroll costs. Borrowers are generally eligible for forgiveness for the payroll costs paid and payroll costs incurred during the eight-week (56-day) Covered Period (or Alternative Payroll Covered Period) (“payroll costs”). Payroll costs are considered paid on the day that paychecks are distributed or the Borrower originates an ACH credit transaction. Payroll costs are considered incurred on the day that the employee’s pay is earned. Payroll costs incurred but not paid during the Borrower’s last pay period of the Covered Period (or Alternative Payroll Covered Period) are eligible for forgiveness if paid on or before the next regular payroll date. Otherwise, payroll costs must be paid during the Covered Period (or Alternative Payroll Covered Period). For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the covered period. Count payroll costs that were both paid and incurred only once. For information on what qualifies as payroll costs, see Interim Final Rule on Paycheck Protection Program posted on April 2, 2020 (85 FR 20811).

2. Eligible nonpayroll costs. Nonpayroll costs eligible for forgiveness consist of: (a) covered mortgage obligations: payments of interest (not including any prepayment or payment of principal) on any business mortgage obligation on real or personal property incurred before February 15, 2020 (“business mortgage interest payments”); (b) covered rent obligations: business rent or lease payments pursuant to lease agreements for real or personal property in force before February 15, 2020 (“business rent or lease payments”); and (c) covered utility payments: business payments for a service for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020 (“business utility payments”). An eligible nonpayroll cost must be paid during the Covered Period or incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period. Eligible nonpayroll costs cannot exceed 25% of the total forgiveness amount. Count nonpayroll costs that were both paid and incurred only once. The amount of loan forgiveness the Borrower applies for may be subject to reductions as explained in PPP Schedule A.

De lo malo sale lo bueno

duda@fcbb.com — Thu, 20 Jul 2023 00:59:16 GMT

¡Grandes cadenas fuera, pequeñas empresas adentro!

Un estudio reciente de la Asociación Nacional de Agentes Inmobiliarios cita datos interesantes sobre la reutilización de centros comerciales vacíos.

Las grandes cadenas se han mudado de sus tiendas físicas, dejando enormes vacantes y dolores de cabeza para los propietarios de centros comerciales y negocios independientes en esos centros comerciales que basaron su negocio en el tráfico peatonal de los ahora desaparecidos inquilinos ancla. Nombres como J Crew, Sears, Foot Locker, Nordstrom, Payless Shoes y muchos otros han desaparecido y con ellos, la pérdida de puestos de trabajo. Con estas enormes cantidades de espacio vacante, los centros comerciales han estado vendiendo a grupos de inversión a precios increíblemente reducidos, incluso tan bajos como $1 por pie cuadrado. Como ejemplo de un centro comercial remodelado está el Cloverleaf Mall en Richmond Virginia. En 2006, el centro comercial fue remodelado para un desarrollo de uso mixto de varias fases anclado en un Kroger Marketplace de 123,600 pies cuadrados que incluye espacio para oficinas, restaurantes, tiendas minoristas y un componente residencial llamado Chippenham Place. Algunos centros comerciales incluso se han convertido en centros logísticos de Amazon y otros en edificios de oficinas.

Hay muchos otros centros comerciales vacantes que han reutilizado sus centros para atraer a las pequeñas empresas independientes. Sí, estamos hablando de las mismas empresas que lucharon y perdieron negocios debido a las cadenas ahora desaparecidas.

NAR informa que las ciudades locales de todo el país se han sumado a la remodelación de estos centros comerciales no operativos con incentivos fiscales para atraer nuevos inquilinos. Algunos centros comerciales se han remodelado para incluir apartamentos e incluso senderos y parques para caminar o pasear.

Entonces, de todas las malas noticias de hoy, ¿cuál es la buena noticia? La buena noticia es que el propietario de la pequeña empresa ha regresado a estos centros comerciales reconstruidos ahora no anclados y también los trabajos. Las pequeñas empresas en los EE. UU. proporcionan más del 60% de todo el empleo según la Administración de Pequeñas Empresas y crean más de 1,5 millones de puestos de trabajo al año. BusinessInsider.com confirmó que al menos 3300 cadenas de tiendas cerrarán en 2020. Las malas noticias del cierre de las grandes cadenas brindan una oportunidad muy necesaria para los empresarios comerciales de "mamá y papá" en los EE. UU.

Desde 1994, First Choice Business Brokers ha ayudado a compradores y vendedores de pequeñas empresas. Ahora vemos el resurgimiento de los propietarios de pequeñas empresas que anteriormente pueden haber perdido negocios debido a la llegada de los centros comerciales y las grandes cadenas. Como decíamos, de lo malo sale lo bueno.

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Out Of The Bad Comes The Good

duda@fcbb.com — Thu, 20 Jul 2023 00:58:07 GMT

Big Chains Out, Small Business In!

National Association of Realtors recent study cites interesting facts regarding the re-purposing of vacant malls.

The big chains have moved from their brick and mortar stores leaving huge vacancies and headaches for mall owners and independent businesses in those malls who based their business on the foot traffic from the now gone anchor tenants. Names such as J Crew, Sears, Foot Locker, Nordstrom, Payless Shoes and many others have disappeared and with them, the loss of jobs. With these huge amounts of vacant space the malls have been selling to investment groups at unbelievably discounted prices even as low as $1 per square foot. As an example of a redeveloped mall is the Cloverleaf Mall in Richmond Virginia. In 2006 the mall was redeveloped for a multi-phased, mixed-use development anchored by a 123,600 square foot Kroger Marketplace which includes office space, restaurants, retail stores and a residential component called Chippenham Place. Some malls have even been converted to Amazon fulfillment centers and others to office buildings.

There are many other vacant malls that have repurposed their centers to bring in the small independent businesses. Yes, we are talking about the same businesses that struggled and lost business due to the now defunct chains.

NAR Reports that across the country local cities have joined in redeveloping these non-operational malls with tax incentives to bring in new tenants. Some malls have been redeveloped to include apartments and even walking/strolling paths and parks.

So, from all of today’s bad news, what is the good news? The good news is that the small business owner has returned to these now non anchored redeveloped malls and so have the jobs. Small businesses in the US provide over 60% of all employment per the Small Business Administration and create over 1.5 million jobs annually. BusinessInsider.com confirmed that at least 3,300 chain stores are closing in 2020. The bad news of the big chains closing provides a much-needed opportunity for the “mom and pop” business entrepreneurs in the US.

Since 1994, First Choice Business Brokers has been assisting buyers and sellers of small businesses. Now we see the resurgence for small business owners who may have previously lost business due to the advent of shopping malls and big chains. As we said, from the bad comes the good.

Due Diligence ¿Qué significa para la vendedora?

duda@fcbb.com — Thu, 20 Jul 2023 00:52:27 GMT

La preparación del vendedor facilita la debida diligencia

Pasos para que los vendedores se preparen para el eventual proceso de diligencia debida.

El Comprador ha hecho una oferta sobre su negocio y en el Acuerdo de Compra establece que necesita diez días para completar su diligencia debida sobre su negocio, ¿qué debe hacer usted como vendedor?

El comprador querrá ver sus estados financieros y declaraciones de impuestos si aún no se han proporcionado.

Sugerencia # 1 cuando le entrega la lista de negocios a su corredor; trate de dar los últimos 3 años de sus pérdidas y ganancias, balances y declaraciones de impuestos. Esto no solo le ahorrará mucho tiempo y le mostrará al Comprador que usted es franco con sus documentos.

El Comprador querrá validar los ingresos y los gastos que ha mostrado en sus P&L para que comprenda completamente los ingresos reclamados en el negocio.

Consejo # 2 es una gran idea dar una explicación por escrito a su agente de cualquier "agregación posterior" para que el Comprador no esté tratando de adivinar cómo llegó a sus cifras.

A menos que el Comprador comprenda cómo llegó a sus cifras de ingresos, seguirá solicitando más pruebas de ingresos.

Consejo # 3 Cuanta más información (mantenimiento de registros) proporcione a su corredor por adelantado, menos información tendrá que seguir solicitando el comprador. Trate de proporcionar la mayor cantidad de documentación (informe de impuestos sobre las ventas, etc.) a su corredor. Recuerde que dependiendo de la época del año, el Comprador querrá información financiera actualizada.

Consejo # 4 Trate de mantener su grabación al día. Se han perdido muchas ofertas debido a que el Vendedor no le informó al Comprador sobre cambios importantes en los ingresos brutos o netos.

Due Diligence ¿Qué significa para el Comprador?

Muchos compradores solicitan la debida diligencia en un negocio cuando hacen una oferta, pero no están seguros de lo que esto abarca.

El Vendedor debe proporcionarle al Comprador sus declaraciones de ingresos y posiblemente sus declaraciones de impuestos.

La diligencia debida generalmente no incluye contingencias que deban completarse, como licencias, acuerdos de empleados u otros elementos similares.

Trate de armar una lista de los elementos que desea revisar para que no esté constantemente pidiendo elementos adicionales. El Vendedor habrá sido informado por el Corredor de que necesitará proporcionar ciertos artículos a un comprador.

Como Comprador, tiene la obligación de revisar los documentos proporcionados por el Vendedor o hacer que su asesor profesional los revise. Desafortunadamente, no puede pedir ni confiar en su corredor para que complete su diligencia debida por usted.

Una vez que reciba los documentos solicitados, deberá tomar una decisión dentro del plazo establecido en el Acuerdo de Compra.

Si decide que necesita más documentación para respaldar los ingresos que reclama el Vendedor, intente hacerlo lo antes posible, ya que tiene ciertas limitaciones de tiempo para obtener estos documentos. Está bien pedirle al vendedor que explique ciertos gastos o cambios en los ingresos netos del vendedor.

Finalmente, asegúrese de comprender completamente los ingresos y gastos del negocio antes de seguir adelante.

Una vez que libere su Diligencia debida, declara que está satisfecho de que las cifras que le proporcionó el Vendedor parecen ser correctas y está avanzando en la transacción.

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Due Diligence What Does It Mean To The Seller?

duda@fcbb.com — Thu, 20 Jul 2023 00:50:00 GMT

Seller’s preparation makes smooth due diligence

Steps for sellers to prepare for the eventual due diligence process.

The Buyer has made an offer on your business and in the Purchase Agreement it states that he needs ten days to complete his due diligence on your business, what should you as the seller do?

The buyer will want to see your financial statements and tax returns if they have not already been supplied.

Tip # 1 when you give the business listing to your Broker; try to give the last 3 years of your P&L’s, Balance Sheets and tax returns. This will not only save a lot of time and will show the Buyer that you are forthright with your documents.

The Buyer will want to validate the income and expenses that you have shown on your P&L’s so that they fully understand the income claimed on the business.

Tip # 2 it is a great idea to give a written explanation to your agent of any “add backs” so that the Buyer is not trying to guess how you arrived at your figures.

Unless the Buyer understands how you arrived at your income figures he or she will keep asking for more proof of income

Tip # 3 The more information (record keeping), that you supply to your Broker up front, the less information the Buyer will have to keep asking for. Try to provide as much documentation (Sales tax reports etc.), to your Broker. Remember depending upon the time of the year, the Buyer will want up to date financials.

Tip # 4 Try to keep your recording keeping up to date. Many deals have been lost due to the Seller not letting the Buyer know of any major changes to the Gross or Net income.

Due Diligence what does it mean to the Buyer?

Many Buyers ask for Due diligence on a business when making an offer but are not sure what this encompasses.

The Seller should be supplying the Buyer, with their income statements and possibly their tax returns.

Due diligence usually does not include any contingencies that need to be completed such as licensing, employee agreements or other such items.

Try to put a list together of the items that you want to review so that you are not constantly asking for additional items. The Seller will have been advised by the Broker that he will need to supply a buyer with certain items.

As a Buyer you do have an obligation to either review those documents supplied by the Seller or have your professional advisor review the documents. Unfortunately you cannot ask or rely on your Broker to complete your Due diligence for you.

Once you receive the documents requested, you will need to make a decision within the time period set up in the Purchase Agreement.

If you decide that you need more documentation to support the income that the Seller is claiming, try to do this as soon as possible since you have certain time constraints to obtain these documents. It is OK to ask the Seller to explain certain expenses or changes to the Sellers net income.

Finally, make certain that you fully understand the income and expenses of the business before going forward.

Once you release your Due Diligence, you are stating that you are satisfied that the figures given to you by the Seller appear to be correct and you are moving forward in the transaction.

Últimas noticias sobre sus fondos de jubilación

duda@fcbb.com — Thu, 20 Jul 2023 00:40:09 GMT

La SBA anuncia un acceso más rápido a los fondos de jubilación para compras comerciales

Últimas noticias sobre la compra de un negocio con fondos de jubilación.

Si planeaba usar sus fondos de jubilación para el pago inicial o el precio total de compra de un negocio, pero se desanimó por la cantidad de tiempo adicional que tomaría, ¡tenemos EXCELENTES NOTICIAS!

El jueves 7 de mayo de 2020, la SBA anunció que los socios prestamistas preferidos, conocidos como PLP, ahora pueden aprobar estas transacciones internamente.

¿Qué significa esto para usted? No más largos tiempos de espera de la SBA.

Puede utilizar sus fondos de jubilación libres de impuestos y multas.

Ahora puede utilizar sus fondos de jubilación rápidamente y, por qué no, ¡es su dinero!

Obtenga más información sobre cómo usar sus fondos de jubilación libres de impuestos.

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Breaking News On Your Retirement Funds

duda@fcbb.com — Thu, 20 Jul 2023 00:36:29 GMT

SBA announces faster access to retirement funds for business purchases

Breaking News on purchasing a business with retirement funds.

If you planned on using your retirement funds for the down payment or total purchase price of a business but were put off by the extra amount of time it would take we've got GREAT NEWS!

Thursday, May 7th 2020 the SBA announced that preferred lending partners, known as PLPs, are now able to approve these transactions in-house.

What does this mean to you? No more extensive SBA wait time.

You can use your retirement funds free of taxes and penalties.
You can now utilize your retirement funds quickly and why not, it's your money!

Learn more about using your retirement funds tax free.

Añadir Espaldas: ¿Qué Son?

duda@fcbb.com — Thu, 15 Jun 2023 03:59:49 GMT

Comprender el verdadero ingreso neto del vendedor

Una comprensión más profunda de qué gastos del vendedor se pueden agregar de nuevo a la línea de fondo de manera realista.

El posible comprador de un taller de reparación de automóviles en venta en California notó, mientras realizaba due diligence, que un asistente de oficina figuraba en la nómina. Pero había visitado el negocio como cliente y nunca había visto a nadie trabajando en la oficina.

Al preguntar sobre esto, se enteró de que se estaba pagando un "salario" de $ 1,500 por mes a la cuñada del vendedor, y que ella figuraba como asistente de oficina, pero en realidad no trabajaba en la compañía.

Eso es un "add-back" y debe incluirse con los ingresos netos que dijo el vendedor.

El comprador estaba preocupado por este descubrimiento. También fue confusa la afirmación del vendedor de que los gastos de automóviles, como la gasolina y el seguro cobrados como costos comerciales, deberían agregarse nuevamente a las ganancias.

Estos son solo dos ejemplos de las muchas preguntas y fuentes de confusiones que pueden surgir al tratar de comprender los costos reales involucrados con la operación de un negocio. La confusión se produce porque muchos, si no la mayoría de los vendedores, intentan mostrar la menor cantidad de ingresos posible para reducir los impuestos que deben pagarse. Luego, cuando llega el momento de vender, el propietario del negocio tiene el objetivo opuesto, querer mostrar la mayor cantidad de ganancias posible para justificar el precio que se pide para el negocio.

La forma típica de resolver este dilema es que el vendedor señale los costos cobrados a la empresa pero que no son realmente necesarios para operar.

Buenos ejemplos de estos gastos son los gastos personales del propietario pagados a través del negocio, entre otros artículos.

Estas explicaciones, sin embargo, a veces plantean más preguntas de las que responden.

Cuando el comprador que estaba investigando el negocio Investigó lo que decía el vendedor, se enteró de que aunque no había nadie físicamente presente en la oficina durante el horario comercial, era necesario tener a alguien que se encargaba del trabajo de oficina. La cuñada venía por las tardes o los fines de semana para equilibrar la chequera de la compañía, verificar que todas las piezas ordenadas se cargaran contra las órdenes de reparación, comparar los estados de cuenta de los proveedores con las facturas individuales, manejar las responsabilidades de nómina e impuestos sobre las ventas y encargarse de las tareas relacionadas.

Y si bien era cierto que el vendedor estaba cobrando al negocio por sus gastos personales de automóvil, también era el hecho de que el automóvil se usaba para actividades comerciales necesarias, como recoger piezas y llevar a los clientes a su hogar u oficina.

Un estado de pérdidas y ganancias ajustado bien preparado anticipa las preguntas del comprador y define claramente qué gastos en el estado operativo son y cuáles no son necesarios para una gestión eficiente del negocio.

Pero no todos los vendedores saben cómo proporcionar esa información de una manera que sea fácil de entender. Y no todos están dispuestos a participar en una divulgación completa y completa.

Depende del comprador cuidadoso cuestionar cada elemento en el estado de ingresos y gastos. Y para hacer preguntas como:

- ¿Es necesario cada gasto detallado para operar el negocio correctamente?

- ¿El total listado para cada artículo es el gasto real, o es el costo real más bajo o más alto que lo que se ha ingresado en los libros?

El comprador de negocios inteligentes no acepta, sin lugar a dudas, las cifras enumeradas en el P&L y las finanzas de una empresa que se está considerando, pero investiga un poco para saber qué representan realmente las cifras.
Parte del trabajo de Business Brokers es interrogar al vendedor sobre cada artículo para determinar si el gasto es un "verdadero gasto comercial" o es un gasto que es necesario para administrar el negocio.

Un Business Broker competente revisará los P & L del vendedor y "refundirá" los números agregando los "gastos no esenciales" que se pagaron a través del negocio para llegar a un ingreso neto ajustado para el negocio.

Los compradores encontrarán que el 98% de los propietarios de pequeñas empresas tienen algún tipo de adición y no deben alejarse del negocio si están satisfechos con las explicaciones del vendedor de las "adición".

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Add Backs: What Are They?

duda@fcbb.com — Thu, 15 Jun 2023 03:56:15 GMT

Understanding the seller’s true Net income

A deeper understanding of which seller expenses can be added back to the bottom line realistically.

The prospective buyer of an auto repair shop for sale in California noticed, while conducting Due Diligence noticed that an office assistant was listed on the payroll. But he'd visited the business as a customer and had never seen anyone working in the office.

When inquiring about this, he learned that a "salary" of $1,500 per month was being paid to the seller's sister-in-law, and that she was listed as an office assistant, but didn't actually work at the company.

That's an "add-back" and it should be included with net income the seller said.

The buyer was troubled by this discovery. Also confusing was the seller's assertion that auto expenses, such as gas and insurance charged off as business costs, should be added back to profits.

These are just two examples of the many questions and sources of confusions that can surface when trying to understand the actual costs involved with operation of a business. The confusion comes about because many, if not most sellers attempt to show as little income as possible to reduce the taxes that have to be paid. Then, when it's time to sell, the business owner has the opposite objective, wanting to show as much earnings as possible to justify the price being asked for the business.

The typical way of resolving this dilemma is for the seller to point out the costs charged to the business but not really necessary to operate.

Good examples of these expenses are the owner’s personal expenses paid through the business amongst other items.

These explanations, however, sometimes raise more questions than they answer.

When the buyer who was investigating the business looked into what the seller was saying, he learned that although there was no one physically present in the office during business hours, it was necessary to have someone handling office work. The sister in law came in on evenings or weekends to balance the company check book, verify that all parts ordered were charged against repair orders, to compare vendor statements with individual invoices, handle payroll and sales tax responsibilities and take care of related duties.

And while it was true that the seller was charging the business for his personal auto expenses, it also was the fact that the car was used for needed business activities such as picking up parts and taking customers to their home or office.

A well prepared adjusted profit and loss statement anticipates buyer questions and clearly defines what expenses on the operating statement are, and what are not necessary for efficient management of the business.

But not every seller knows how to provide that information in a way that's easy to understand. And not everyone is willing to engage in full and complete disclosure.

It's up to the careful buyer to question every item on the income and expense statement. And to ask questions such as:

- Is each itemized expense necessary in order to operate the business properly?

- Is the listed total for each item the actual expense, or is the real cost lower, or higher than what has been entered in the books?

The smart business buyer does not accept, without question, the figures listed in the P&L and financials of a company being considered, but does some investigating to learn what the figures actually represent.
Part of the Business Brokers job is to question the seller about each items to determine if the expense is a “true business expense” or is it an expense that is necessary to run the business.

A competent Business Broker will review the seller’s P & L’s and “recast” the numbers by adding back the “non-essential expenses” that were paid through the business in order to arrive at an Adjusted net income for the business.

Buyers will find that 98% of small business owners have some type of add back and should not walk away from the business if they are satisfied with the seller’s explanations of the “add backs”.

¿Su negocio se trata solo de usted?

duda@fcbb.com — Thu, 15 Jun 2023 03:46:35 GMT

Mirando su negocio a través de los ojos del Comprador

Ideas para despersonalizar su negocio y hacerlo más deseable para los compradores.

Muchos vendedores sienten que su negocio debe reflejar su propio toque personal y, de alguna manera, eso puede ser bueno, SIN EMBARGO, no cuando está vendiendo su negocio.

Hay muchos vendedores que "personalizan" demasiado su negocio y hacen que sea demasiado sobre ellos como propietarios de negocios para que un comprador se vea a sí mismo en el negocio. Los compradores a menudo se preocupan de que el negocio dependa del vendedor y cuando esté tratando de vender su negocio, esto funcionará en su contra.

Incluso hemos visto a lo largo de los años muchos escenarios diferentes que con pequeños ajustes podrían haberse evitado. Por ejemplo, teníamos un restaurante exclusivo donde los propietarios etiquetaban cada elemento del menú con sus propios nombres, por ejemplo, Mary's Meat Loaf o Ricky's Ribs. ¿Qué sucede cuando un comprador se hace cargo de ese negocio? ¿Mantienen los elementos del menú como Mary's Meat Loaf a pesar de que su nombre es Sue? Si cambian los nombres de los elementos del menú, la reimpresión de los menús tiene un costo y, lo que es más importante, los clientes pensarán que las recetas ahora son diferentes y que no pueden pedir su comida favorita. Incluso es una buena idea mirar alrededor de su negocio con nuevos ojos. ¿Su negocio está cubierto con artículos personales como fotos familiares o fotos de su último viaje de pesca, o incluso recuerdos de logros? Los premios para un restaurante o servicios comerciales son excelentes, pero demasiados artículos personales pueden restar valor a la hora de vender.

Mire su negocio a través de los ojos de un comprador. Podría tener un negocio muy exitoso que sea propiedad de una familia con demasiada personalización. Cuando llegue el momento de vender, esto asustará a los compradores potenciales porque creen que los propietarios están tan atados a sus clientes que la empresa perderá ingresos una vez que la empresa cambie de manos.

Los vendedores de este restaurante en particular habían intentado anteriormente vender su negocio sin éxito. Cuando tomamos la lista, nos dimos cuenta de que nos estaban contratando por nuestra experiencia y, a menudo, por consejos de sentido común. Inmediatamente sugerimos que los vendedores hicieran cambios en su menú para eliminar sus nombres de cada artículo. El resultado fue que vendimos el negocio en un período de tiempo muy corto. Su negocio fue realmente exitoso, pero los compradores no pudieron ver más allá de toda la personalización con este pequeño cambio, su negocio se volvió mucho más vendible, lo que por supuesto resultó en compradores y vendedores felices.

Un comprador potencial debe creer que el negocio que se ofrece es transferible sin una pérdida importante de negocio debido a la relación de los vendedores después de que se complete la transacción.

Como Business Brokers, siempre aconsejamos a los dueños de negocios que están considerando vender que despersonalicen su negocio antes de comercializarlo. Entonces, ¿cómo elimina el propietario de la empresa la personalización, como una gran cantidad de fotos familiares, etc., sin alertar a todos de que está considerando vender? Un método del que hemos sido testigos es que el dueño del negocio considera alguna remodelación o pintura "pequeña" donde necesita quitar artículos.

La conclusión es que si está considerando vender su negocio, hable con su profesional de First Choice para revisar si su negocio no solo es vendible y deseable, sino también si su negocio está listo para venderse según la forma en que el comprador lo verá. Asegúrese de que el comprador no sienta que su negocio es "todo sobre usted".

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Is Your Business All About You?

duda@fcbb.com — Thu, 15 Jun 2023 03:35:20 GMT

Looking at your business through the eyes of the Buyer

Ideas to de-personalize your business and make it more desirable to Buyers.

Many sellers feel that their business should reflect their own personal touch and in some ways that may be good HOWEVER not when you are selling your business.

There are many sellers who over “customize” their business making it too much about them as business owners for a buyer to see themselves in the business. Buyers often have concern that the business is dependent on the seller and when you are trying to sell your business this will work against you.

We have even seen over the years many different scenarios that with small tweaks issues could have been avoided. For instance we had an upscale restaurant where the owners labelled each menu item with their own names, for example Mary’s Meat Loaf or Ricky’s Ribs. What happens when a buyer takes over that business? Do they keep the menu items as Mary’s Meat Loaf even though their name is Sue? If they do change the names of the menu items there is a cost for menus to be re-printed and more importantly will the customers think that the recipes are now different and they can’t order their favorite meal. It’s even a good idea to look around your business with fresh eyes. Is your business covered with personal items such as family photos or photos of your last fishing trip, or even mementos of achievements? Awards for a restaurant or business services are great but too many personal items can detract when selling.

Take a look at your business through the eyes of a buyer. You could have a very successful business that is family owned with too much personal customization. When it comes time to sell, this will scare off potential buyers because they believe that the owners are so tied in with their customers or clients that the business will lose revenue once the business changes hands.

The sellers of this particular restaurant had previously attempted to sell their business with no success. We realized when we took the listing that they were hiring us for our experience and often common sense advice. We immediately suggested that the sellers make changes to their menu to remove their names from each item. The result was that we sold the business within a very short time period. Their business was truly successful but buyers couldn’t see past all the personalization with this small change their business became much more saleable which of course resulted in happy sellers and buyers.

A potential buyer must believe that the business that is being offered is transferable without a major loss of business because of the relationship of the sellers after the transaction is completed.

As Business Brokers, we always advise business owners who are considering selling to de-personalize their business prior to the business being marketed. So how does the business owner remove personalization such as an abundance of family photos etc. without alerting everyone that they are considering selling? One method we have witnessed is that the business owner considers some “small” remodeling or painting where he or she needs to remove items.

The bottom line is that if you are considering selling your business, talk to your First Choice professional to review whether your business is not only saleable and desirable but also if your business is ready to sell from how the buyer will view it. Make sure that the buyer will not feel that your business is “All about you”.

¡El CALIENTE mercado de ventas de pequeñas empresas de hoy!

duda@fcbb.com — Thu, 15 Jun 2023 02:02:06 GMT

La economía hace que comprar sea una realidad

Ventas récord reportadas por el sitio web nacional BizBuySell

El mercado está caliente: los baby boomers que se jubilan y los ingresos en aumento impulsan las ventas récord de las pequeñas empresas

El informe Insight del segundo trimestre de 2018 de BizBuySell.com examina las transacciones y la demografía detrás de los niveles récord de pequeñas empresas que cambian de manos

San Francisco, CA - BizBuySell.com, el mercado de negocios para la venta más grande de Internet, informó hoy un número récord de pequeñas empresas que cambiaron de manos en la primera mitad de 2018. El crecimiento se puede atribuir en gran medida a un número creciente de Baby Boomers que salen su negocio, así como mejorar las finanzas del negocio. Los resultados completos se incluyen en el informe Insight Q2 2018 de BizBuySell, que agrega estadísticas de transacciones comerciales para la venta informadas por los corredores comerciales participantes en todo el país.

Se informó la venta de un total de 5,383 negocios en los dos primeros trimestres de 2018, lo que pone el año en camino de superar el récord de 2017 de 9,919 transacciones. Solo en el segundo trimestre, 2.705 empresas cambiaron de manos, un aumento del 6,7 por ciento con respecto al mismo período del año pasado y la mayor parte de cualquier trimestre desde que BizBuySell comenzó a rastrear datos en 2007.

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¿Cómo puedo reducir los gastos comerciales durante Covid?

duda@fcbb.com — Thu, 15 Jun 2023 01:59:34 GMT

Reducir los costos mediante la revisión de los gastos puede ayudarlo a superar estos tiempos difíciles.

Todos sabemos que cada dólar cuenta especialmente durante esta crisis.

Mientras que algunos dueños de negocios están solicitando préstamos PPP, los dueños de negocios inteligentes también están evaluando dónde se gasta cada $.

Ahora es un buen momento para examinar todos los gastos de su negocio. Uno de esos gastos son las tasas y tarifas de procesamiento de su tarjeta de crédito.

Ahora más que nunca, todos los dueños de negocios están tomando tarjetas de crédito como su principal forma de pago para un servicio sin contacto y sin contacto. Encontramos un banco de procesamiento de tarjetas de crédito que ofrece revisiones gratuitas de las tasas y tarifas de procesamiento de tarjetas de crédito. Si no pueden superar sus tarifas y cargos actuales, le pagarán $1,000*. ¿Quién no podría usar $ 1,000 adicionales en este momento? U.S. Bank Payment Solutions dice que confían en que pueden superar la mayoría de las tasas porque son un administrador directo, sin intermediarios para pagar. También descubrimos que ni siquiera requieren que tengas una cuenta bancaria en su banco.

Algunos otros gastos a considerar revisar son las primas de seguros, servicios de seguridad y servicios de nómina. Muchos proveedores de servicios comerciales ofrecen algunos de sus servicios a precios regulares sin costo alguno o con grandes descuentos, solo tiene que preguntar.

First Choice Business Brokers está ayudando a los dueños de negocios a organizar su tasa de procesamiento de tarjetas de crédito y revisiones de tarifas sin costo alguno.

¡Queremos ayudarte a ahorrar cada $ que puedas!

*Se pueden aplicar los términos y condiciones de Cumplir o Superar.

No hay ninguna obligación, no tiene nada que perder al tener una revisión de las tasas y tarifas actuales del servicio de procesamiento de tarjetas de crédito.

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Vender un negocio durante un divorcio

duda@fcbb.com — Thu, 15 Jun 2023 01:33:03 GMT

Información sobre el proceso de venta de un negocio durante un divorcio de un experto.

El Sr. Smith es dueño de algunas lavanderías. Los ha tenido durante 15 años. Ha estado casado durante 19 años. Desde hace algunos años, el Sr. Smith ha pensado en venderlos. Se puso en contacto con un par de corredores de negocios y decidió que First Choice sería su elección si decidiera vender.

Su esposa ha solicitado el divorcio, lo que fuerza la mano del Sr. Smith. Ahora debe decidir vender las lavanderías o tasarlas y comprárselas a su cónyuge pagando la mitad del valor.

Le pedimos al abogado de divorcios de Las Vegas, Rock Rocheleau, que nos ayudara a nosotros y al Sr. Smith a comprender las opciones del Sr. Smith.

Nevada es un estado de propiedad comunitaria. Lo que significa que durante un divorcio todas las propiedades y bienes adquiridos durante el matrimonio se valoran y se dividen en partes iguales. Con un negocio, como una casa, el valor puede basarse en una tasación o permitir que la casa se venda. Al permitir que un corredor comercial venda el negocio, el Sr. Smith afirma que el valor debe ser el que pagará el mercado. Esto lo convierte en la solución más fácil. Pero, ¿y si el Sr. Smith quisiera quedarse con las lavanderías?

¿Cómo se determina el valor de un negocio?

Se utilizan tres enfoques principales para determinar el valor de una empresa: Estos tres enfoques se utilizan cuando la empresa no se vende realmente en el mercado abierto.

Enfoque basado en el mercado . Compara el negocio con otros negocios similares que han vendido. Con estos datos, se asigna un valor. Similar a cómo se tasa o valora una casa.
Enfoque basado en activos . A los activos tangibles del negocio se les da un valor justo de mercado y se suman. Esto es similar a la venta de activos de una empresa, excepto que no se considera la buena voluntad de la empresa o la base de clientes.
Income-Based Approach . Evalúa el valor presente de las ganancias futuras basadas en el negocio. Este es el enfoque más común.

Mi primera impresión es que sería mejor para el Sr. Smith contratar a First Choice Business Brokers para vender el negocio. De esta manera, no hay que adivinar cuál es el valor adecuado. Pero el Sr. Smith puede querer que un negocio continúe funcionando después del divorcio. En ese caso, se deben revisar los enfoques de valoración comunes y elegir el mejor.

Market Approach to Valuing a Business

El enfoque de mercado utiliza métodos similares a los que utilizan los agentes inmobiliarios cuando determinan el valor de una propiedad. Se compara el precio de venta de otros negocios similares que han sido vendidos recientemente. El evaluador luego asigna un valor justo de mercado del negocio de propiedad comunitaria basado en el rango de precios de negocios similares.

El problema está en encontrar negocios que hayan vendido que sean verdaderamente comparables. El precio de venta de estos negocios puede haber sido influenciado por factores desconocidos, tales como:

La motivación para la venta.
Las tendencias del mercado
El negocio vendido puede haber sido descontado por alguna razón no revelada, por lo que la venta no es realmente comparable.
Es posible que otras comparaciones no sean precisas, como el tamaño de la empresa, la cantidad de empleados y las ganancias anuales.
Los activos intangibles, o la falta de ellos, pueden haber afectado la venta
Es posible que no se hayan vendido negocios similares, lo que obligó al evaluador a buscar un nicho comercial más amplio. Por ejemplo, una empresa que vende específicamente silenciadores personalizados para vehículos ecológicos puede tener que valorarse con un mercado de piezas de vehículos más amplio. Como resultado, estas valoraciones podrían inflar o devaluar considerablemente el valor real de las empresas.

Debido a todos estos factores, el enfoque de mercado dista mucho de ser preciso al dividir el negocio de bienes gananciales entre los dos cónyuges durante un divorcio.

Enfoque de activos para valorar un negocio

El método de enfoque de activos puede funcionar bien para empresas que tienen un valor basado en activos tangibles como bienes inmuebles, equipos, inventario y cuentas por cobrar. En el enfoque de activos, un tasador suma todos los activos y resta los pasivos.

Desafortunadamente, esto no es tan fácil como parece. La mayoría de las empresas tienen activos tangibles e intangibles. Un activo intangible se refiere a cosas como propiedad intelectual, contratos comerciales y buena voluntad. El enfoque de activos no tiene en cuenta estos factores al asignar un valor.

Para las prácticas profesionales cuyo valor se basa en estos activos intangibles, el enfoque de activos no suele ser el mejor método de valoración.

Enfoque de ingresos para valorar un negocio

El enfoque de ingresos utiliza diferentes enfoques matemáticos basados en el flujo de caja. El evaluador revisa la historia del negocio específico y compara sus ganancias con otros negocios similares. También se consideran los riesgos de falla. Todos estos enfoques matemáticos convierten las ganancias futuras esperadas en un valor actual.

La desventaja es que el valor se basa en una predicción en lugar del valor actual. No puede garantizar que el valor asignado coincidirá con el valor futuro de las empresas. Esto puede dejar a uno o ambos socios en corto a largo plazo.

Para el Sr. Smith, debe contratar a un experto para que valore el negocio en función del enfoque de ingresos y, al mismo tiempo, contratar a un corredor de negocios para ver a cuánto se venderían las lavanderías en el mercado abierto. De esta manera, el Sr. Smith puede elegir qué vía produce la mayor cantidad de dinero para que él y su esposa se dividan.

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¿Listo para la jubilación pero no la mecedora?

duda@fcbb.com — Thu, 15 Jun 2023 01:13:43 GMT

Ideas para mantener tu cerebro activo después de la jubilación

Por qué la vida no termina con la jubilación laboral

Como corredores de negocios durante más de 24 años, escuchamos una y otra vez a personas que desean retirarse de sus trabajos corporativos y tomar una nueva oportunidad en la vida como propietarios de negocios. Orgullosamente hemos sido parte de estos eventos que cambian la vida y estamos aquí para ayudarlo a encontrar el "negocio del próximo capítulo" perfecto.

Después de pasar años trabajando en un empleo, por fin llega el día de la jubilación. ¡Excelente!

Muchos médicos creen que una persona que deja de usar su poder mental es un gran candidato para la enfermedad de Alzheimer. La solución es muy simple. El jubilado debe dedicarse a un pasatiempo que requiera capacidad mental o considerar la posibilidad de iniciar un negocio. Muchas de las personas que contactan con nuestras oficinas son jubilados que aún son jóvenes y activos y quieren controlar su futuro.

Hoy, muy afortunadamente, vivimos en un mundo donde los 65 años todavía se consideran jóvenes. La esperanza de vida de un hombre en 1958 se consideraba de 72 años. Hoy, según la Tabla uniforme de esperanza de vida de 2013, un hombre de 70 años tiene una esperanza de vida de 27 años más.

¿Qué quiere decir esto? Significa que nunca es demasiado tarde para trabajar por cuenta propia siendo dueño de su propio negocio. Esto puede brindarle la oportunidad de disfrutar de su retiro posterior al trabajo en una nueva carrera en la que usted determina su éxito. First Choice Business Brokers tiene una gran selección de muchos negocios en venta y uno de estos podría satisfacer sus necesidades.

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Ready For Retirement But Not The Rocking Chair?

duda@fcbb.com — Wed, 14 Jun 2023 02:07:49 GMT

Ideas to keep your brain active after retirement

Why Life does not end with Job Retirement

As business brokers for over 24 years, we hear time and time again people wanting to retire from their corporate jobs and take on a new lease in life with business ownership. We’ve proudly been part of these life changing events and are here to help you find the perfect “next chapter business”.

After spending years working in a job, the day for retirement finally comes. Great!

Many doctors believe that a person who stops using their brain power is a great candidate for Alzheimer’s disease. The solution is very simple. The retiree should take up a hobby that requires brain power or consider owing a business. Many of the people who contact our offices are retirees who are still young and active and want to control their future.

Today, very luckily, we are living in a world where age 65 is still considered young. The life expectancy of a male in 1958 was considered to be 72. Today according to the Uniform Life Expectancy Table 2013 a 70 year old man has a life expectancy of an additional 27 years.

What does this mean? It means that it is never too late to become self-employed by owning your own business. This can give you the opportunity to look forward to enjoying your post job retirement in a new career where you dictate your success. First Choice Business Brokers has a large selection of many businesses for sale and one of these just might fit your needs.

Selling A Business During A Divorce

duda@fcbb.com — Fri, 09 Jun 2023 04:53:33 GMT

Information on the process of selling a business during a divorce from an expert.

Mr. Smith owns a few laundromats. He’s owned them for 15 years. He’s been married for 19 years. For a few years now Mr. Smith has thought about selling them. He’s contacted a couple of business brokers and decided First Choice would be his choice if he decided to sell.

His wife has filed for a divorce, which forces Mr. Smith’s hand. He now must decide to sell the laundromats or value them and purchase them from his spouse by pay for half of the value.

We asked Las Vegas divorce attorney Rock Rocheleau to help us and Mr. smith understand Mr. Smith’s options.

Nevada is a community property state. Which means during a divorce all the property and assets acquired during the marriage are valued and divided evenly. With a business, like a home, the value can be based on an appraisal or allow the home to be sold. By allowing the business to be sold by a business broker, Mr. Smith is stating the value should be what the market will pay. This makes for the easiest solution. But what if Mr. Smith wanted to keep the laundromats?

How Do You Determine the Value of a Business?

There are three main approaches used in determining the value of a business: These three approaches are used when the business is not actually being sold in the open market.

Market-Based Approach . Compares the business to other similar businesses that have sold. Using this data, a value is assigned. Similar to how a home is appraised or valued.
Asset-Based Approach . The tangible assets of the business are given a fair market value and added up. This is similar to an asset sell of a business except the goodwill of the business or customer base is not considered.
Income-Based Approach . Assesses the present value of the business based future earnings. This is the most common approach.

My first impression is it would be best for Mr. Smith to hire First Choice Business Brokers to sell the business. This way there is no guessing at what the proper value is. But Mr. Smith may want a business to continue running after the divorce. In that case, the common valuation approaches should be reviewed and the best one chosen.

Market Approach to Valuing a Business

The Market Approach uses similar methods that are used by real estate agents when they determine the value of a property. The sale price of other similar businesses that have been recently sold is compared. The evaluator then assigns a fair market value of the community property business based on the price range of similar businesses.

The problem is in finding businesses that have sold that are truly comparable. The selling price for these businesses may have been influenced by unknown factors, such as:

The motivation for the sale
Market trends
The business sold may have been discounted for some unrevealed reason, so the sale is not truly comparable.
Other comparisons may not be accurate, such as the size of the business, the number of employees, and annual profits.
Intangible assets, or the lack thereof, may have affected the sale
There may have been no such similar businesses sold, forcing the evaluator to look for a broader business niche. For example, a business that specifically sells custom mufflers for eco-friendly vehicles may have to be valuated with a broader vehicle parts market. As a result, these valuations could considerably inflate or devalue the businesses’ actual worth.

Because of all these factors, the Market Approach is far from accurate in dividing the community property business between the two spouses during a divorce.

Asset Approach to Valuing a Business

The asset approach method may work well for businesses that have value based on tangible assets like real estate, equipment, inventory, and accounts receivable. In the asset approach, an appraiser adds up all the assets and subtracts the liabilities.

Unfortunately, this is not as easy as it sounds. Most businesses have both tangible and intangible assets. An intangible asset refers to things like intellectual property, business contracts, and goodwill. The Asset Approach does not take these factors into account when assigning a value.

For professional practices whose value relies on these intangible assets, the asset approach is usually not the best valuation method.

Income Approach to Valuing a Business

The Income Approach uses different mathematical approaches based on cash flow. The evaluator reviews the history of the specific business and compares its profits to other similar businesses. Risks of failure are also considered. All these mathematical approaches convert expected future profits into a present-day value.

The downside is that the value is based on a prediction rather than the current standing value. It cannot guarantee the assigned value will match the businesses’ future value. This can leave one or both partners shorted in the long term.

For Mr. Smith he should hire an expert to value the business based on the income approach, while at the same time hiring a business broker to look at what the laundromats would sell for on the open market. This way Mr. Smith can choose which avenue produces the most money for him and his wife to split.

How Do I Cut Business Expenses During Covid?

duda@fcbb.com — Fri, 09 Jun 2023 04:53:32 GMT

Cutting costs by reviewing expenses can help you through these tough times.

We all know that every dollar counts especially during this crisis.

While some business owners are applying for PPP loans savvy business owners are also evaluating where every $ is spent.

Now is a great time to examine all your business expenses. One of those expenses is your credit card processing rates and fees.

Now more than ever, every business owner is taking credit cards as their main form of payment for touch-less, non-contact service. We found a credit card processing bank that is offering free reviews of credit card processing rates and fees. If they can't beat your current rates and fees, they will pay you $1,000*. Who couldn't use an extra $1,000 right now? U.S. Bank Payment Solutions says they are confident that they can beat most rates because they are a direct servicer, no middleman to pay. We also found they don't even require you to have a bank account with their bank.

Some other expenses to consider reviewing are insurance premiums, security services and payroll services. Many business service providers are offering some of their regularly priced services at no cost or deeply discounted, you just need to ask.

First Choice Business Brokers is helping business owners arrange for their credit card processing rate and fee reviews at no cost.

We want to help you save every $ you can!

*Meet or Beat terms and conditions may apply.

There is no obligation, you have nothing to lose by having a review of your current credit card processing service rates and fees.

Today’s HOT Small Business Sales Market!

duda@fcbb.com — Fri, 09 Jun 2023 04:53:32 GMT

Economy makes buying a reality

Record high sales reported by BizBuySell national website

The Market is Hot: Retiring Baby Boomers and Rising Revenues Fuel Record Small Business Sales

BizBuySell Second Quarter 2018 Insight Report examines the transactions and demographics behind the record levels of small businesses changing hands

San Francisco, CA - BizBuySell , the Internet's largest business-for-sale marketplace, reported today a record number of small businesses changing hands in the first half of 2018. The growth can largely be attributed to a growing number of Baby Boomers exiting their business as well as improving business financials. The full results are included in BizBuySell's Q2 2018 Insight Report, which aggregates statistics from business-for-sale transactions reported by participating business brokers nationwide.

A total of 5,383 businesses were reported sold in the first two quarters of 2018, putting the year on pace to surpass 2017's record-high of 9,919 transactions. In Q2 alone, 2,705 businesses changed hands, an increase of 6.7 percent over the same time last year and the most of any quarter since BizBuySell began tracking data in 2007.