I had an interesting experience some time ago. I took a buyer to a meeting with the seller of a sandwich shop.
When asked what his timetable was for selling he said, "Today. I don't want to own this business. I never wanted to own this business."
He certainly gave all the signals of a motivated seller.
The buyer made an offer and there was a counter offer...then the buyer made a better offer, which was, in my opinion, a very good offer.
The seller rejected the offer and the deal died.
This week the moving van came and hauled away the counters, chairs, refrigerators and other equipment.
It's a sad story that did not have to have to be sad. The seller could have walked away with a check and fewer headaches and stress...now he probably still has the headaches and stress, but he doesn't have the check.
Jon Hunt
Friday, April 1, 2011
19 Clay County Businesses Listed for Sale
Clay County Jon Hunt 904.823.7225
| Advertising |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703040 | Clay, Florida USA | Advertising/Promotion | 149,000 | 137,000 | 40,200 | 68,350 |
| Animals/Pets |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703014 | Clay, Florida USA | Pet Grooming | 70,000 | 50,000 | 33,840 | 218,000 |
| Automotive |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703134 | Clay, Florida USA | Auto General Repair | 10,000 | 10,000 | 0 | 0 |
| BBF-74702962 | *Lender Pre-Qualified* Clay, Florida USA | Auto Quick Lube | 425,000 | 50,000 | 101,318 | 335,663 |
| Beauty/Personal Care |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-73900329 | Clay, Florida USA | Tanning Salon | 75,000 | 40,000 | 46,322 | 133,693 |
| Cleaning |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703214 | Clay, Florida USA | Maid Service | 225,000 | 125,000 | 66,270 | 679,213 |
| Communications |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74702945 | Clay, Florida USA | Wireless Phone Store | 25,000 | 25,000 | 17,945 | 155,638 |
| Dental Related |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-75609090 | *Lender Pre-Qualified* Clay, Florida USA | Dental Lab | 110,000 | 14,500 | 56,892 | 221,697 |
| Electronics/Computer |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-75609047 | Clay, Florida USA | Electronic Equipment Sale | 280,000 | 224,000 | 74,557 | 558,075 |
| Ice Cream/Yogurt/Ice |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703183 | Clay, Florida USA | Ice Cream Store | 95,000 | 95,000 | 47,567 | 214,490 |
| Liquor Related Biz |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74306286 | Clay, Florida USA | Liquor Bar/Lounge | 660,000 | 660,000 | 58,215 | 293,035 |
| BBF-74703080 | Clay, Florida USA | Liquor Package Store | 125,000 | 125,000 | 52,376 | 330,246 |
| Manufacturing |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-73909279 | Clay, Florida USA | Mfg-Metal Products | 1,700,000 | 1,700,000 | 371,828 | 921,572 |
| Pack/Ship/Postal |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-75512011 | Clay, Florida USA | Postal/Mailbox/Misc | 125,000 | 125,000 | 30,438 | 200,576 |
| Personnel Services |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-72002127 | Clay, Florida USA | Children ID System | 33,500 | 33,500 | 79,030 | 104,000 |
| Recreation |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703222 | Clay, Florida USA | Billiard Parlor | 142,500 | 71,250 | 0 | 0 |
| Restaurants |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-73909329 | Clay, Florida USA | Mexican Restaurant | 195,000 | 195,000 | 120,861 | 398,000 |
| BBF-74702957 | Clay, Florida USA | Pizza Shop | 115,000 | 80,000 | 0 | 0 |
| BBF-74703159 | Clay, Florida USA | Seafood Restaurant | 140,000 | 140,000 | 94,156 | 361,313 |
47 St. Augustine Area Businesses for Sale
MLS REPORT
| Advertising |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-73909311 | Saint Johns, Florida USA | Advertising Agency | 600,000 | 125,000 | 89,107 | 1,093,557 |
| BBF-74703077 | Saint Johns, Florida USA | Advertising/Promotion | 285,000 | 285,000 | 91,041 | 105,875 |
| Animals/Pets |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-75609097 | Saint Johns, Florida USA | Pet Grooming | 62,000 | 49,600 | 23,297 | 34,191 |
| Beauty/Personal Care |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-73909324 | Saint Johns, Florida USA | Hair Salon | 85,000 | 60,000 | 71,479 | 190,014 |
| BBF-74703121 | Saint Johns, Florida USA | Nail Salon | 55,000 | 55,000 | 37,531 | 65,875 |
| Business Services |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703045 | Saint Johns, Florida USA | Speciality Services | 285,000 | 285,000 | 91,041 | 105,875 |
| Cards/Gifts/Books |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703120 | Saint Johns, Florida USA | Cigar Store | 185,000 | 185,000 | 85,237 | 242,157 |
| Cleaning/Clothing |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-73909310 | Saint Johns, Florida USA | Dry Cleaners | 175,000 | 175,000 | 119,234 | 340,616 |
| Cleaning |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703185 | Saint Johns, Florida USA | Janitorial Service | 140,000 | 50,000 | 69,961 | 197,600 |
| BBF-74703174 | Saint Johns, Florida USA | Water Damage/Restore | 175,000 | 100,000 | 120,000 | 250,000 |
| Clothing |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703220 | Saint Johns, Florida USA | Clothing Sportswear | 149,000 | 100,000 | 37,976 | 125,344 |
| BBF-75609071 | Saint Johns, Florida USA | Clothing Tee Shirts | 22,000 | 22,000 | 0 | 0 |
| BBF-74703115 | Saint Johns, Florida USA | Clothing Tee Shirts | 89,000 | 89,000 | 61,026 | 215,019 |
| BBF-75351053 | Saint Johns, Florida USA | Clothing Women | 48,500 | 48,500 | 20,960 | 69,664 |
| BBF-74702960 | Saint Johns, Florida USA | Clothing Women | 115,000 | 70,000 | 29,297 | 155,100 |
| Distribution |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703015 | Saint Johns, Florida USA | Dist-Building Products | 95,000 | 50,000 | 75,562 | 89,140 |
| Fitness |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703201 | *Lender Pre-Qualified* Saint Johns, Florida USA | Fitness Center | 249,000 | 45,000 | 102,316 | 301,857 |
| BBF-74703100 | Saint Johns, Florida USA | Fitness Health Club | 399,000 | 399,000 | 176,418 | 636,532 |
| Jewelry |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703146 | Saint Johns, Florida USA | Jewelry Retail | 595,000 | 595,000 | 287,069 | 703,214 |
| Liquor Related Biz |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703149 | Saint Johns, Florida USA | Bar/Restaurant | 395,000 | 275,000 | 221,711 | 895,478 |
| BBF-74703211 | Saint Johns, Florida USA | Beer/Wine Bar | 100,000 | 100,000 | 0 | 0 |
| BBF-74703044 | Saint Johns, Florida USA | Beer/Wine Bar | 495,000 | 275,000 | 218,922 | 415,877 |
| BBF-74703137 | Saint Johns, Florida USA | Liquor Package Store | 629,000 | 629,000 | 141,537 | 1,108,923 |
| BBF-75609089 | Saint Johns, Florida USA | Sports Bar | 150,000 | 150,000 | 70,046 | 380,000 |
| BBF-74703193 | Saint Johns, Florida USA | Sports Bar | 295,000 | 295,000 | 152,857 | 798,312 |
| BBF-74703224 | Saint Johns, Florida USA | Tavern | 99,000 | 99,000 | 77,089 | 168,000 |
| Medical Related Biz |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703145 | Saint Johns, Florida USA | Medical Clinic | 249,000 | 249,000 | 76,359 | 135,344 |
| BBF-74703039 | Saint Johns, Florida USA | Medical Equipment | 119,000 | 59,500 | 38,750 | 178,430 |
| BBF-75351040 | Saint Johns, Florida USA | Medical Speech Therapy | 350,000 | 350,000 | 137,000 | 435,000 |
| Photography |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703058 | Saint Johns, Florida USA | Camera Store | 39,000 | 39,000 | 44,839 | 124,116 |
| Printing/Typesetting |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-75351082 | Saint Johns, Florida USA | Printing Business | 225,000 | 225,000 | 56,328 | 240,000 |
| Real Property Rltd |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74702959 | Saint Johns, Florida USA | Bed & Breakfast | 2,999,000 | 314,650 | 308,211 | 850,433 |
| BBF-74703114 | Saint Johns, Florida USA | Mobile Home Park | 395,000 | 395,000 | 38,000 | 43,800 |
| Rental Business |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74702965 | Saint Johns, Florida USA | Rental Equipment | 125,000 | 125,000 | 79,343 | 145,475 |
| Restaurants |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703004 | Saint Johns, Florida USA | American Restaurant | 350,000 | 350,000 | 100,193 | 763,632 |
| BBF-74703005 | Saint Johns, Florida USA | American Restaurant | 495,000 | 495,000 | 0 | 0 |
| GABB-18000436 | Saint Johns, Florida USA | Cafe Type Eatery | 109,000 | 109,000 | 0 | 0 |
| BBF-74703156 | Saint Johns, Florida USA | Cafe Type Eatery | 450,000 | 250,000 | 216,735 | 629,690 |
| BBF-74703173 | Saint Johns, Florida USA | Coffee Shop/House | 275,000 | 205,000 | 91,310 | 288,411 |
| BBF-74703131 | Saint Johns, Florida USA | Fast Casual | 395,000 | 395,000 | 204,801 | 1,284,911 |
| BBF-74703195 | Saint Johns, Florida USA | Italian Restaurant | 150,000 | 150,000 | 110,314 | 477,196 |
| BBF-74702920 | Saint Johns, Florida USA | Mexican Restaurant | 195,000 | 150,000 | 161,992 | 350,577 |
| BBF-74703206 | Saint Johns, Florida USA | Pizza Shop | 180,000 | 100,000 | 122,002 | 484,654 |
| BBF-74703053 | Saint Johns, Florida USA | Pizza Shop | 220,000 | 220,000 | 83,895 | 550,000 |
| BBF-75609080 | Saint Johns, Florida USA | Sandwich Shop | 199,000 | 159,200 | 51,999 | 308,814 |
| Retail Miscellaneous |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703012 | Saint Johns, Florida USA | Retail Fashion Accessories | 84,000 | 84,000 | 49,979 | 111,244 |
| Sports Related Biz |
| Listing No. | Location | Category Detail | Price | Down | Adj Net | Sales |
| BBF-74703021 | Saint Johns, Florida USA | Golf Cart Sales/Service | 175,000 | 100,000 | 75,500 | 680,000 |
Friday, March 11, 2011
Inventory Prior to Closing
My seller and buyer conducted an inventory last night prior to our closing today and in large part it was a text book case of how to prepare for and conduct an inventory.
The seller had prepared a spreadsheet of all items with the costs from his vendors. Buyer and seller went through each item and agreed on the quantity. Obviously full cases were easy. It came down to a judgment call on partial cases, but they were generally in agreement. A third person entered the quantity and the spreadsheet was already set up to provide a total.
The seller put a label on each item to indicate it had been inventoried.
While it took almost three hours it is a necessary part of the sale of a business. A seller indicates an estimate of the inventory at the time the business is listed for sale, but the exact amount varies day by day.
After the final tally is taken both seller and buyer sign and date a form agreeing to the value and that is forwarded to the closing attorney.
The seller had prepared a spreadsheet of all items with the costs from his vendors. Buyer and seller went through each item and agreed on the quantity. Obviously full cases were easy. It came down to a judgment call on partial cases, but they were generally in agreement. A third person entered the quantity and the spreadsheet was already set up to provide a total.
The seller put a label on each item to indicate it had been inventoried.
While it took almost three hours it is a necessary part of the sale of a business. A seller indicates an estimate of the inventory at the time the business is listed for sale, but the exact amount varies day by day.
After the final tally is taken both seller and buyer sign and date a form agreeing to the value and that is forwarded to the closing attorney.
Thursday, February 24, 2011
Is your Business Broker a member of BBF?
Why is it important for my business broker to be a member
of the Business Brokers of Florida?
· Only members of the Business Brokers of Florida can post listings on the popular BBF Multiple Listing site, which is the primary source members use when searching for a business for a buyer.
· All BBF members cooperate with other member brokers.
· All BBF members will co-broker a transaction with a fellow member.
· Would you list your home with a broker who couldn’t post the listing to the multiple listing service? A non-BBF member can advertise your business in many different ways, but he can’t advertise on the primary site used by most Florida Business Brokers.
· There are more than 800 member brokers. Because we all cooperate the chances of finding the right buyer for a business or the right business for a buyer are multiplied.
Why a business broker may not be a member
of the Business Brokers of Florida:
· The broker may not be a ‘joiner’ and just wishes to go it alone.
· The broker may be more comfortable with residential real estate sales.
· The broker may not be willing to pay the fees required to belong.
· Because of a lack of experience, the broker may not have been accepted for membership. Many apply; not all are chosen.
· Because of past experiences with BBF members; his or her membership application may have been rejected.
Under the laws of the state of Florida, anyone with a real estate license can represent himself as a business broker. This includes agents who focus on residential or commercial real estate. Real estate agents who are not members of the Business Brokers of Florida may have high ethical standards and the best of intentions, but their ability to serve business buyers and sellers is severely hampered because they are not BBF members.
Jon Hunt
Senior Associate
Florida Business Exchange
www.jonhunt.biz
jonhhunt@bellsouth.net
904-823-7225
Wednesday, February 16, 2011
Why pay full price for a franchise?
Should I buy a franchise? Maybe, but weigh all the options and then, if you decide a franchise is right for you, talk to a business broker about buying an existing franchise business instead of starting a new location. Why? You may be able to buy a successful operation for half the cost of starting in a new location.
I’m familiar with one franchise in which the startup cost is $330,000. I have a franchise under contract for $185,000. And it’s very successful with a great track record and the potential to continue growing revenue and profits.
Consider that in starting a new location you have no customers. No customers means no revenue stream. How long will it take you to break even or become profitable and at what level?
When the day comes that you want to sell your business you chance of recovering the full start up cost is slim.
With an operating franchise you know what the revenue stream is. During due diligence you can answer all your questions and learn everything you need to know in order to determine if the business is right for you.
Some of the advantages of a franchise are: Brand name, marketing support, corporate support, buying power and a lower failure rate.
Some of the disadvantages of a franchise are: it’s their way or the highway, royalties on every dollar and if there is a big black eye you’ll feel the pain…think Denny’s.
If you would like assistance in purchasing a successful business please contact me.
Wednesday, February 9, 2011
Beware of Letter concerning Annual Report
I received an official looking letter and form from Compliance Services letting me know of the requirement to file an annual report. The fee is $125. The letter is from Compliance Services, 400 Capital Cir. SE, Tallahassee, Fl.
THIS IS NOT FROM THE STATE OF FLORIDA.
Here is the warning from the official state site:
CONSUMER ALERT! Please be aware that COMPLIANCE SERVICES (not to be confused with the Florida corporation, Compliance Services, Inc.) is mailing notices to business entities requesting that "Annual Minutes" and a fee of $125.00 be sent to them for filing. These notices are NOT from the Dept. of State, Division of Corporations. "Annual Minutes" are NOT required to be filed with any agency. They are to be kept by the business entity itself. Do NOT confuse these notices with the messages sent by the Division of Corporations reminding each business entity to file its 2011 Annual Report.
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