Buying a law firm is a common way for attorneys to expand their existing practice or for young lawyers to hit the ground running, but it’s not as straightforward a process as buying another type of business. There are practical and ethical considerations that anyone who wants to buy law firms for sale needs to know about.

5 Things to Know About Buying a Law Firm

1. The sale will be governed by the American Bar Association and the State Bar Association Rules of Professional Conduct. Selling a law practice used to be highly unethical. Today, those concerns have eased somewhat, but strong ethical protections remain in place. According to the ABA, any sale of a law practice must be in compliance with the governing jurisdiction’s Rules of Professional Conduct. Buyers and sellers in Florida must follow and comply with certain requirements set by the Florida Bar Association in order for the sale to be valid. For example, the sale must include the entirety of the practice or an area of the practice; the seller’s clients must be given written notice of the proposed sale; and the fees charged to clients cannot be increased as a result of the sale.

2. Due Diligence is more difficult. Due diligence is an important part of any sale, helping buyers determine the suitability of the sale and the viability of the business. Due to the nature of the legal business and client confidentiality, it’s very hard for buyers to verify the business’ income ahead of time and even the number of clients the firm has. Buyers do still have some options for due diligence. They can look at past income tax returns, financial statements, and bank statements to get a broad overview of the firm’s financial state, as well as any property lease agreements related to the firm. Liens and malpractice suits can be researched and inquiries to the state bar can unveil disciplinary complaints and concerns.

3. Timing of the sale may be affected. The settlement date is impacted by a firm’s pending cases. In cases where litigation is involved and the selling attorney plans to leave the profession, the sale may be delayed until the case is settled. This is because the selling attorney may not be able to withdraw as counsel from the pending case once a jury has been selected.

4. Clients are not for sale. Just because you are buying a successful law practice does not mean you will get to keep all of the firm’s current clients. The practice of law is a profession in addition to being a business, which means there are a lot of intangibles that impact the success of a firm, such as the lawyer’s experience and reputation. Clients are always informed of the pending sale and have the option of taking their business elsewhere.

5. A court order may be involved. In cases where clients cannot be served with notice of the sale, it may be necessary to obtain court authorization. In lieu of the client okaying the change in counsel, an order from the court is needed to make the substitution. The court will determine whether or not reasonable efforts to find the client have been made and whether the client’s interests will be served by the substitution of counsel. Lack of a court okay, does not necessarily halt the sale, however.

Find Law Firms For Sale and Navigate the Sale Process With Help From Crowne Atlantic Properties

The business brokers at Crowne Atlantic Properties can help you navigate the realities of buying a law firm in Florida. We can match buyers and sellers, help you conduct due diligence, and advise you through the entire transaction. Learn more about buying an Orlando law firm for sale by contacting us at 407-478-4101.

Most new business owners hear the word “accountant” and they think “taxes”. But the truth of the matter is accountants do much more than prepare tax returns for business owners. They can provide incredibly valuable service at every stage of the business life cycle from the start-up and growth phases to advice on selling a business when that time comes.

Here are our top 5 reasons every business owner should to hire a good accountant.

5 Reasons To Hire An Accountant

1. You’re Buying a Business. Buying a business is a huge financial commitment. An accountant will be able to not only evaluate your own financial health and ability to purchase and run a business, but they will be able to evaluate the business’ finances too – before you sign on the dotted line. This is hugely important if you are buying an existing business. A professional accountant will be able to look deep into the financial records and let you know if anything looks wrong or worrisome. You will have a better idea of what you’re getting in to. Having an accountant also improves your chances for a business loan. The simple fact that you are serious enough about the business finances to hire a professional, will help you gain favor with the bank, not to mention the facts and figures the accountant can provide the lender when needed. An accountant can help you evaluate your loan options and choose the best one for your needs too.

1. Professional Tax Assistance. We can’t have an accounting top 5 list without including taxes. Tax assistance is more than just preparing and filing yearly taxes. An accountant will be able to:
   • Complete and file the required legal documents for the business, even helping you choose the right legal structure for the business.
   • Advise you on changes in the tax law that may affect you,
   • Prepare annual statements and maintain financial and business formation records,
   • Represent and advise you during an audit.
   • Evaluate your income, expense and cash flow to help you maximize resources.

1. Business Plan Development. Business plans are simple when you’re a sole proprietor, but operations get rapidly more complex once you start expanding your services, adding employees, or take on more clients. An accountant will be able to develop and evaluate financial projections to help guide your business decisions. You’re more likely to succeed when you base your decisions on hard data that has been professionally evaluated.

1. Finance and Payroll. Did you know accountants can be hired to manage your finance and payroll functions? If this is not your area of expertise or you don’t have staff to handle the process for you, delegating this function will make your life immeasurably easier. Thanks to cloud-based software, you and your accountant can have access to the same files and data in real time and make financial decisions together, the same way you’d do with an internal payroll specialist.

1. You’re Selling A Business. Just like when you bought your business, an accountant’s insights and analysis during a sale will only help you. An accountant will make sure your financial records are in order and produce the statements and documents requested by the buyer. Again, having professionally prepared documents like this will only work in your favor. Your business will be more attractive to buyers for having these documents in order.

If you’re concerned about the cost of hiring an accountant, keep in mind that he or she does not have to be hired as a full-time employee. You can hire one on retainer or just for the services you need. This makes it much more affordable for small business owners to obtain the financial expertise they need to succeed.

Get More Business Advice From The Business Brokers At Crowne Atlantic Properties

If you are getting ready to buy or sell a business in Florida, contact Crowne Atlantic Properties at 407-478-4101.

So you’ve made the decision to sell your business. You’re financially and emotionally ready for the change this will bring to your life. The market is good and you have a compelling reason to sell. Now what?

Now you need to get your business in listing shape. Here’s how:

1. Get the expert help you need. Selling a business is complex and can be even more so if you desire anonymity or want to keep the sale a secret from your employees and customers. It’s also time-consuming and there are many legal requirements to follow. This is where the services of professionals become invaluable. At a minimum, you’ll need a business broker, an accountant, and an attorney. These experts can help manage the process, handle negotiations on your behalf, provide advice on setting a sale price, determine a business valuation, and manage any profits you earn from the sale.
2. Become comfortable talking about your reasons for selling. Expect to be asked why you are selling your business. Buyers will want to know if they are getting into a potential problem and what your motivations are for selling. Develop a list of attributes that will make the business attractive to buyers such as: steady or increasing sales figures, increasing profits, loyal customers, or growth potential. Be honest, but highlight the positives.
3. Get your financial records in order. Hopefully, you and your accountant have been maintaining accurate financial records all along, but if you haven’t you must get them in order before you list the business for sale. Potential buyers will want to see financial statements, budgets, cash flow, accounts receivables and payables, recent tax returns, franchising fees, if applicable, and your current lease agreement. These are just a few of the financial records you’ll need to produce during a buyers’ due diligence period and are a prime example of why you need an accountant to help you with the sale. You should also prepare a list of equipment that is included with the sale and whether or not there are any lease, financing, or rental costs associated with it.
4. Fix it up. Make sure the business is in good shape before you list it. Curb appeal applies to businesses just as much as it applies to houses. Fix or replace broken equipment, keep it clean and presentable at all times.
5. Create an information packet. Buyers will appreciate this extra step. In your information packet you can include a brief letter, explaining your reasons for the sale, what you love about the business, what is a challenge, and what your hopes are for the sale. Include in the packet, a contact list of key employees, suppliers, and contractors. You should also include a copy of the business structure and any current operating manuals or employee handbooks.

Listing A Business For Sale Takes Time

Don’t expect to wake up one day and decide today is the day you put your business up for sale. Listing a business for sale takes time, especially if you have to get records in order. It’s not unusual for business owners to need several months to a year or more to fully prepare for listing, particularly if they’ve been lax about record-keeping. Then, once the business is listed, expect to spend even more time waiting for the right buyer to come along and even more time finalizing the details and actually closing on the sale.

Let Crowne Atlantic Properties Help You List Your Business

Selling a business is extremely time-consuming and will take away from your day-to-day running of the business if you decide to sell it without help. The business brokers at Crowne Atlantic Properties will save you time, keep the sale confidential, reach the broadest market, and get the best offer in addition to providing advice and guidance throughout the listing, negotiation, and sale process.

For more advice about listing a business in Florida, contact at 407-478-4101.

Buying a business is stressful enough. The thought of adding negotiation to the process is enough to make some buyers run for the hills. But negotiation isn’t a bad thing, sometimes it is even expected, and it can get you a better business deal.

What Can Be Negotiated When Buying A Business

Good negotiation skills are necessary to get the best deal when buying a business, but anything can be negotiated if it is of importance to you. The most common areas of negotiation when buying or selling a business come down to a few select points.

• Price. The sales price is the negotiation point that always jumps first to mind. This is definitely open for negotiation. You should examine the company with a fine-toothed comb before making an offer. Your offer should be fair, but also take into account any additional costs you may incur after the sale. One common cost is upgrading obsolete equipment. If you know you will have to do this, you can try to negotiate a lower sales price to help cover these additional costs.
• Financing. How will you pay for the business purchase? If you need financing, shop around for the best terms for your specific situation. Business loans are hard to come by so you may find yourself talking to private lenders. Always negotiate a loan that you can afford to pay and still make a profit on the business. You may even be able to negotiate with the seller to retain a financial stake in the company until you get on your feet.
• Contracts. Sales contracts are always open to negotiation. Under the advice of an attorney, you may want to change things as simple as the closing date to as complex as a non-compete clause. One important note: always negotiate these changes before you sign the contract.
• Inclusions and Assets. Do you want to keep certain equipment? Negotiate it into the sales contract. Equipment, storage space, vehicles, etc. may or may not be part of the deal. If you want it, ask for it. Likewise, if you want something gone, make that part of the deal.
• Staffing or Seller Assistance. Do you want the seller or certain key staff members to stay on to help you transition? Make sure you put that into a contract. Negotiate how long the seller/staff will remain to assist you and a salary or compensation for their time.

Business Brokers Are Expert Negotiators

If you loathe the idea of negotiating, ask your business broker to do it for you. A business broker will be incredibly helpful if you want to negotiate anything related to the sale. Not only will the broker be able to give you advice on what to negotiate or what to offer for the sale, they can do it on your behalf. That’s right. You don’t even have to be the one to face the seller and negotiate the terms. Your broker can do it for you.

The business brokers at Crowne Atlantic Properties have worked with hundreds of Florida business buyers and sellers, negotiating terms that are favorable to all and make the sale happen. If you need help negotiating the purchase or sale of a business contact Crowne Atlantic Properties at 407-478-4101.

When purchasing a business for “all cash” is not possible, sometimes there are other options buyers can consider.

Making An Offer

When you’ve found the perfect business it’s time to make an offer. Offers are typically structured with the buyer providing a certain amount down and financing the remainder. The remaining amount due is financed in one of three ways: by the seller, through a bank, or with help from personal resources.

Obviously sellers prefer to get all cash at closing, but buyers can purchase a larger or more expensive business if they are willing and able to finance a portion of it. Low or no-money down offers are exceedingly rare. First of all, it’s very hard for the owner to make any income when they have high debt payments. Secondly, banks and lenders are reluctant to provide funds for a business that the buyer doesn’t show a vested financial interest in. A down payment will lower the amount of debt financed and make you a more attractive borrower in the eyes of the lender.

Financing Options

Business owners have a few different ways of paying for their new business. Which one is right for you will depend on your financial situation, the sales price of the business, and how willing the seller is to work with you.

• Seller Financed. Seller financing is not as uncommon as you’d think. In addition to being the least expensive, it is also the easiest type of financing to obtain. Under this option, the buyer provides the seller with a percentage of the sale price upfront. The seller takes the remainder in the form of a promissory note, which the buyer pays back with interest. Interest rates are often lower than a bank’s rates, but the payback term can be shorter too. 3-5 years is typical. If you can find a seller who is willing to finance you, take that as a good sign that if you purchase the business and run into issues or need some short-term guidance that they will come back and help you. The sellers are interested in making sure the business is successful so that the Buyer can finish paying off their note. It means the seller has high confidence in the success of the business, even after he or she hands over the reins.
• Lender Financed. Lender financing, or debt financing, is a typical bank loan. You will provide some amount of money down and the bank or lending institution will finance the rest at a certain interest rate and for a certain period of time. Business loans are not like home loans, though, so don’t expect to find lenders willing to provide a long-term loan. The lender will want proof that the business is viable so you’ll need to provide an earnings history in addition to your down payment. Many bank loans are guaranteed by the Small Business Administration to encourage lending.
• Personal Financing. Another form of debt financing is to obtain loans from friends, family, acquaintances, or peer-to-peer lending networks. You would work out the terms of the loan (amount loaned, payback period, whether or not interest will be charged, etc.) on your own for each debt taken on. If you go this route, make sure you can uphold your end of the deal and that your financier can afford to loan you the money. That will ease any stress that may arise from personal financing.
• Other Options. There is always the option to cash in any retirement accounts or sell any equity shares you will have in the business as a way to finance it. Factoring companies are another option. These companies will upfront you cash for the amount of accounts receivables that are outstanding. You may not be able to do this to buy a business, but you can do it afterwards as a way to gain cash.

Learn More About Buying A Business And Your Finance Options From Crowne Atlantic Properties

Financing a business will be different for everyone. So much of it depends on the business for sale, the seller’s interests, and the buyer’s capabilities. For help finding the right business to buy in Florida, contact Crowne Atlantic Properties at 407-478-4101. We can help you with all steps of the business buying process from sourcing a business, negotiating the sale, and identifying finance options.

Selling a business is as serious a step in your career as buying it was. You’ve likely devoted years of your life, and plenty of your finances, to the business. Saying goodbye isn’t easy, nor is it simple. Business brokers can help you negotiate the practical and the emotional aspects of selling your business while making sure you get the best deal possible.

5 Ways Business Brokers Can Help In Selling Your Business

1. Representation. A business broker represents you to buyers. They are the first point of contact for buyers who are interested in your business and can negotiate on your behalf. They can save you from wasting time with unacceptable buyers, sending only the most serious and qualified buyers your way. Representation during negotiations can also help when things get tense and you need to maintain a good relationship with the buyer for transition purposes.
2. Setting The Right Price. Setting the right price from Day One is essential to selling your business. Too high of a price will turn off buyers. Too low of a price will hurt you. And in either situation, you may find yourself performing more negotiations than you’d care to. Business brokers have the tools and experience needed to set the right price for your business in your market. This moves the sale process along smoothly and reduces the amount of back and forth time spent negotiating.
3. Reduce Your Stress Level. Even if you are selling your business, you still have to run it in the meantime. Both selling a business and running it are full time jobs. A business broker can handle what they do best – selling a business, while you handle what you do best – running the business. When you list your business with a business broker, you’ll benefit from 100% attention on selling the business while you keep it up and running. Your stress level will thank you.
4. Finding The Right Buyer. Finding a buyer isn’t the same thing as finding the right buyer. The wrong buyer can draw out the process, be a poor fit for the company culture, have plans for the business that you would not want to see come to fruition, or may require a much longer transition period than you want to provide. Business brokers can help you set up parameters for the sale and evaluate potential buyers based on those parameters as well as what the buyer brings to the table.
5. Independent Analysis. It’s rare to see a sale where the buyer and seller agree on everything right away. It’s much more common to be faced with options, changes, and requests that all need to be evaluated. A business broker provides independent analysis of offers and requests and can advise you on solutions.

Selling Your Business With Crowne Atlantic Properties

These are just a few of the many benefits a business broker provides. To learn more about selling your business or to list your business for sale, contact Crowne Atlantic Properties at 407-478-4101.

Understanding and managing cash flow is a challenge for many business owners, particularly new business owners. While we all know that cash is necessary to getting a business started and keeping it going, it can be difficult to determine just how much cash you actually have on hand at any given time.

But knowing how much money is moving through the business is critical to knowing whether or not your income is enough to cover your expenses and will provide you with a solid number for your gross business income. This is where a business cash flow analysis comes in.

What Is Cash Flow?

Cash flow refers to the movement of money in and out of the business. Money that comes into the business as the result of sales, investing, loans, etc. is referred to as “Inflow”. Money that goes out of the business for expenditures, purchases, or debt repayment, for example, is “Outflow”.

A business’ cash flow is how money balances between these two numbers. Ideally, you want to maintain enough funds on hand to cover your operating expenses and bills with a cushion for unexpected costs that inevitably arise.

Business Cash Flow Analysis

Periodic business cash flow analysis and reporting are used to check on the financial health of the business. These reports can help project anticipated cash flow for the next several months or even years. Armed with this information, business owners can make sound business decisions, having a better idea of what they can and cannot afford, and even analyzing trends in the business.

A business cash flow analysis doesn’t look solely at what is coming in and what is going out. It also takes into account non-cash assets as well as expenditures to arrive at a profit figure. The cash flow statements will typically include three parts:

• Operating activities. This covers basic income and losses or expenditures.
• Investment activities. Here you will find the inflows and outflows that result from purchases and sales of business investments. This may include the purchase or sale of property, assets, equipment, and securities.
• Financing activities. Any activities that have been financed will be reflected here such as receiving a loan and the loan repayments.

Understanding cash flow and making projections is a confusing endeavor for most new business owners. Until you get a firm understanding of inflows and outflows, a CPA cash flow review is money well spent to ensure the financial health of your company.

For more information about buying or selling a business in Florida, contact Crowne Atlantic Properties at 407-478-4101.

Starting a new business is an exciting time, full of ideas and promise. It’s also incredibly hard; filled with long hours and seemingly endless financial investment and time commitment. This is particularly true if the business is brand new. One way to reduce some of the costs and risks associated with starting up a new business is to buy an existing business.

5 Primary Benefits Of Buying An Existing Business

When you purchase an existing business you’re buying more than just the physical site, some equipment and a client list. You gain a successful cash flow system, one that is currently in place, proven, and is making money. In addition to jump-starting a Buyer’s success, buying a business can enable a business buyer to leap for greater success and empower them to do it much quicker. Here’s a look at our top 5 reasons to buy a business that’s already up and running.

1. Operational business. An existing business is an operational business. While some business buyers may fear that a Seller only would sell businesses because they are failing, most business owners are selling their businesses for personal reasons including: poor health, retirement, divorce, lack of interest, and relocation. If it’s still hard to believe, take a look at large companies like Google that make buy businesses all the time. Google certainly does not purchase failing businesses, they purchase them get further ahead in a faster manor. We recommend the typical business buyer to do the same. Buying an existing business works to your advantage. There’s no downtime needed to invest in equipment, build a customer base, find suppliers, or train employees. Every process and procedure is in place. Everything is in order for you to walk in and start making money from Day 1.
2. Fewer upfront costs. Established businesses are already perfectly outfitted. There are no build-out or equipment costs unless you’re changing the business entirely. You’ll spend less on marketing, finding employees, and getting permits for building changes. In a way, buying an existing business is like getting an “all-in-one” package deal. It also helps the buyer avoid costly spending mistakes that many new business owners are prone to.
3. Existing employees. When purchasing any new business, most new business owners are able to retain existing employees when they buy a business. This is a huge help to new owners who may not be familiar with running that particular business day-to-day. Existing employees can fill in these gaps, smooth the transition to new management, keep customers happy, and end up being your greatest asset.
4. Existing reputation. Building a reputation takes time and money. Marketing campaigns can be expensive and may not produce results right away. An existing business has a built-in customer base, an existing reputation, and an existing brand with logs, websites, signage, and designs already in place. If you’re savvy, you can search for businesses with a good existing reputation during your business search. This will save you from having to build your reputation from scratch or repair the existing reputation once you become the owner.
5. Less Risk. In business there are no guarantees even though Buyers tend to expect them. Successful business people become successful by taking risks, but you don’t have to risk everything or even a lot in order to be successful. The main thing a business buyer is after when they search for a business is “less risk.” It would be less risk for them to purchase a business than to start one from scratch. All of the above-mentioned benefits lead to “less risk.” A lesser risk with an existing business and proven cash flow system provides more of a guarantee than any start up venture could. You’ll reach your dreams faster with less financial investment, and your chances of success will be far greater than they would be starting from scratch.

To learn more about buying an established business in Florida, contact Crowne Atlantic Properties at 407-478-4101.

Selling or buying a business in Orlando can be exhausting if attempted on your own. Many business owners and buyers opt to work with a business broker in Orlando to help them manage the process and obtain the best results. But not all brokers are created equal. In many cases, finding the right broker to work with you can be even more important than hiring a broker at all.

Finding the best Orlando broker to sell a business or help you buy a business takes a little bit of upfront work on you part, but that work will definitely pay off. Here are three tips to help you get started with choosing a business broker in Orlando.

Choosing Your Business Broker In Orlando

1. Experience. Of course you’ll want to work with a broker who is experienced in helping put buyers and sellers together, but dig a little deeper to find out exactly what that experience entails. The right broker will understand your business and have experience buying and selling properties of equal size. You may even want to find a broker who has been a business owner him or herself to gain that extra insight and understanding they can bring to the process.

2. Resources. Always ask about the broker’s resources to make sure they can handle the additional workload your listing or search will bring. Don’t be afraid to ask how many businesses they’ve sold in the last year. When you do, be sure to find out how many were their own listings as opposed to other brokers’ listings. A good broker will be open to selling their own listings and others equally. This is good news for you since it means they’re more concerned about finding the right match for you than they are about moving their own listings.

3. Services. Find out what services the broker provides and determine whether or not they meet your needs. Some business owners are content to do a lot of the legwork themselves, others want to hand off the listing to the broker so they can concentrate on running the business while it’s listed. Ask about how and where they plan to advertise the business and if they will handle getting all of the paperwork and documentation in order. Pay attention to how responsive the broker is to you. Things can move quickly in business sales, you want timely responses so you don’t miss out on a great opportunity.

Contact Crowne Atlantic Properties For Help Selling Or Buying A Business In Florida

Crowne Atlantic Properties works with business buyers and sellers across the State of Florida. Contact us at 407-478-4101 to speak to one of our expert business brokers about buying or selling your business.