Blog

BUSINESS ACQUISITION LOANS

I’ve been in banking for over 40 years.  Over that time and then as a business broker, I’ve seen a lot of businesses change hands.  Most business sellers do not want to finance the transaction and risk getting the business back.  Most banks want to know that they can be paid back and have a plan to get whole if that does not happen.  Thus, whether your selling or buying, some important points are:

  • A good and positively trending business financial performance according to the business tax returns for the most recent few years is critical.
  • A selling price with an adequate down payment that shows that a buyer can pay himself and pay the bank back based on the historical performance of the business.
  • A existing business model that suggests after the sale that good financial performance will continue for many years.
  • A buyer that has the relative experience for that particular acquisition and a seller that will help in a smooth transition.

Thanks and give me a call if you’d like to talk about business selling or buying

 

Roger Kerndt

The Business Brokers, Inc.

rkerndt@tbbinc.com

515-707-6401

Posted in Uncategorized | Leave a comment

IT IS WHAT YOU KEEP

Some advice before you sell a business- “It’s not what you sell it for, it’s what you get to keep after the sale.”  When starting to think about selling, owners should take steps to “dress up” their business.

…Reduce unnecessary assets

…Address environmental issues

…Direct responsibilities to qualified employees

…Understand tax strategies

…Identify your weaknesses as well as your strengths

Both price and tax consequences can be crucial in maximizing the proceeds of a business sale.  For most owners, their business is their most valuable asset.  Having a valuation done if you are planning a sale in the future is the first step.  We can help with that.

Connie Mendrys

cmendrys@tbbinc.com

515-986-0741

Posted in Uncategorized | Leave a comment

SPECIALISTS

If you need a heart transplant, a brain surgeon is not the right specialist. The same can be said for running and transitioning a business.  The expert, the one that does the work regularly, is likely your best person.

As a business owner, there are lots of issues to consider as your business moves toward that successor. Some of those topics might be:

  • Who can best train that selected Assistant General Manager, soon to be the owner, especially on the most current management skills?
  • How can I save on taxes, especially considering that the business tax basis is low? What about the concepts floating around like Structured Sale, ESOP, Charitable Remainder Trust, and Charitable Lead Trust? Or, is it simply better to take the cash and pay the taxes? Do you need to make decisions before closing or can it be done in that taxable year?
  • Is a Stock Sale or an Asset Sale best? Should some be of the sale be financed by the Seller? And, how should the selling price be allocated?
  • What if there is no successor? What are the options?

Working “on” the business, in addition to working “in” the business is hard. Make sure you’re spending time preparing and the Specialists can help. And, when is a good time to start?  Now!

Mike Schoville

mschoville@tbbinc.com

515-306-8487

Posted in Uncategorized | Leave a comment

Benefits of Serving, Connecting and Networking

Recently, I had an opportunity to connect with three other local business professionals for the purpose of developing a new networking group.  The owner of a consulting firm, a banker, a business software advisor and I sat together at a local coffee shop and discussed ways we could help ourselves to grow our businesses and provide referrals to one another.  We discussed an organizational structure and developed our vision for future work together.  I made the initial contact with our business consultant partner through a connection via a local chamber of commerce activity.

Small business owners are incredibly busy with the daily grind of keeping the wheels turning and the doors open.  Very seldom do the majority of business owners take time to reach out and connect with other business owners.  Serving your community, connecting with colleagues in your field and networking with other business owners can be very important to generating new leads and expanding your business horizons.

At the Business Brokers, Inc. our agents and brokers are members of multiple chambers, service organizations and informal networking groups.  These connections have led to multiple referrals and ultimate business sales.  If you are a business owner looking to expand your territory or increase your sales, these connections and contacts are critical.  In addition, serving your communities through boards, chambers and service groups just makes you feel good by paying it forward.

Happy connecting!

Dan Meyer

Posted in Uncategorized | Leave a comment

Buy Smart

When  buying a business, there are many things to look for to make sure that it is a good fit for you.  Sometimes buyers tend to overlook obvious red flags in the excitement of business ownership.  Buyers need to make sure that the financials are carefully examined and that the business is or has the potential to be profitable.  You may want your accountant or a third party to look at the financials to ensure that you have left no stone unturned.  When purchasing an existing business, the inventory and equipment are included in the sale.  Do not assume that everything is accurate.  Ask for proof.  Are these things in good working order, or will they need to be replaced soon?

When thinking about buying a business, look carefully at everything.  By being thorough, you can find the perfect business to meet your needs.

This is just a small snapshot of things to consider when buying a business.  Please feel free to call me at The Business Brokers, Inc., 515-249-6053, for assistance in making this important decision.

Dave Hooper

Posted in Uncategorized | Leave a comment

Bank – Buying & Selling

 

Let me use my banking experience to help you buy or sell a bank.

I am familiar with:

  • The regulatory approval process
  • Iowa banks and the current banking environment
  • Bank values

Remember you pay no fees until the transaction closes

Roger Kerndt

The Business Brokers, Inc.

rkerndt@tbbinc.com

515-707-6401

Posted in Uncategorized | Leave a comment

Giving Back

The Business Brokers, Inc (TBBI) believes that giving back is what successful companies and its people should do.  This is a picture of two TBBI colleagues participating in an Urbandale Educational Foundation fund raiser…hard work!  TBBI was a Title Sponsor for this event.

Additionally, TBBI personnel have been active participants in the Johnston Rotary Club, Grimes, Johnston and Urbandale Chambers of Commerce, Youth for Christ fund raising sponsors, Johnston Educator’s Appreciation Banquet,  The Principal Charity Classic/Lutheran Services of Iowa, Youth Homes of Mid-America, All 4-Youth Golf Classic, Iowa Sister States (TOKA), Animal Rescue League, Humane Society, The Eisenhower Foundation, Courage League Sports and over a dozen Small Business Development Center (SBDC) presentations/workshops on business selling and buying.

“What is important is family, friends, giving back to your community and finding meaning in life.”   Adrian Grenier

 

Posted in Uncategorized | Leave a comment

What You Need to Know Before Buying a Business

Buying an existing business offers the opportunity to become an entrepreneur quickly.  With a staff in place, an established customer base, and existing relationships , you are a step ahead.

Before buying a business, you need answers to critical questions.

  • Why is the current owner selling? This is crucial.
  • Is it a profitable business?
  • Is the business trending up or down?
  • Will the business continue at the current levels with opportunities for growth?
  • Are there any outside impactors that could help or hurt the business?
  • Does the business have a good reputation?
  • What has made the business popular?
  • Are you getting everything you need to take over the business- customer lists, trademarks, patents, etc.?
  • Will key employees stay?
  • Who are the competitors in the area?

Answers to these questions are key to making the final decision to purchase an existing business.

Connie Mendrys

cmendrys@tbbinc.com

515-986-0741

Posted in Uncategorized | Leave a comment

Business Owners – The Yellow Pages are Dead!!

It’s a new day in the world of business!  Social Media is critical to your success.  If you are not on Facebook, Twitter, LinkedIn, and/or Google Plus, it is going to be difficult for your customers to find you.  Having an internet presence is essential because of how younger customers search for goods and services.

As a school principal 10-15 years ago, I remember telling my teaching staff that we needed to prepare our students for a world that did not yet exist. Times were rapidly changing, and teaching problem solving and analytical thinking skills were crucial. That was before apps and all the Social Media tools that exist today.

My words and predictions came home to me when our own son and daughter landed their jobs in the marketing field in social media.  Both are college graduates in their 20’s.

The Millennials operate in a digital world, and the next generation is even more reliant on their devices.  The Yellow Pages and the phone book are dead!  Small business owners need to jump on the social media bandwagon or risk being left behind.  Social Media Marketing consultants are springing up everywhere today, and finding a good one can make all the difference in the future health of your business.

Dan Meyer

dmeyer@tbbinc.com

515-313-1739

Posted in Uncategorized | Leave a comment

SHOULD YOU BUY A BUSINESS?

Before you consider buying a business, it is very important to consider all the options involved, both pro and con.  People tend to gravitate toward the positives of owning your own business—

  • Working for yourself
  • Being “the boss”
  • Having the ability to make decisions for growth
  • Being the central key figure, having all the dynamics flow around you

Some important things to consider before making the decision to buy a business—

  • Your age and how long do you want to run the business?
  • Will family be involved?
  • Do you have the right employees to keep the business running?  Will they stay?
  • Do you have the dedication and commitment to keep things running in both good and bad times?
  • Are you prepared for serious challenges?  The recession of 2008-2009 was stressful for many people, including me.  You are responsible for the recovery of the business or making the decision to call it quits.

Owning a business can be very rewarding.  If you have done things the right way, a business can be in your family for many years.  You just need to consider everything possible before making a decision.

Dave Hooper

dhooper@tbbinc.com

515-249-6053

Posted in Uncategorized | Leave a comment
© 2018, The Business Brokers, Inc. All Rights Reserved.
Privacy Policy  |  site by EDJE