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When buyers are looking for businesses for sale in the Orlando here are some key items that bring value to the business you’re selling.  area there are key factors that buyers are searching for.

These factors include:

1) Clear financials detailing all of the expenses, costs and profits

Business owners love hiding personal expenses and cash to avoid paying more in taxes, but the more income that is hidden, the less income that potential buyers can see. Ultimately the better your record keeping, the more you can sell your business for in Orlando.  

2) Local Branding

Local branding is important for all businesses both large and small.  While the Central Florida area continues to grow it is still a small community where many people know one another.  Excellent branding displaying a company that is well-known sets a business apart from other businesses looking to sell.  The fact that a brand is known or memorable can be a main driver to a sale.  As Orlando business brokers we love disclosing a buyer on a business for sale and hearing from buyers: “I’ve ordered from this company before, I’ve seen their signs before, I get mailed advertisements from them or they’re trucks are always driving around town.”  We know that familiarization with a local brand can easily help close a business sale.

3) A Sales Portal

A business that clearly can show potential business buyers how the business finds, receives and obtains customers is always a winner.  Orlando Business buyers like specifics when possible and if it’s not confidential knowledge that could put the business at risk, even better.  For example, if a business owner tells a potential buyer that customers come to them because they have good service, it’s an okay response. However, if a business owner tells a potential business buyer that customers come to them because their business has a strict follow up process where customers are called every 30 days for 6 months after a purchase than the business is a lot more attractive.

The more a business for sale in the Orlando and Central Florida area has it’s own branding and exclusive contracts and customers the more potential buyers will value the business.

4. Exclusive Contracts

Does your business have exclusive industry contracts that no one else in your industry is privy to?  If so, that is a large driver for business value.  In fact, there are companies in the same industry that will buy out a friendly competitor simply to obtain exclusive contracts from customers. 


5. Location 

Location is a bigger deal for some businesses than others, but if an Orlando-based business happens to have a great location, it is always a great idea to play that up.  Good locations can be considered good because they are in nice areas, in heavy traffic areas, populated areas, or they are positioned well geographically. 

For Similar Articles You May Be Interested In Click The Links Below:

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Selling A Business in Orlando

Keeping It Quiet: 4 Tips To Maintaining Confidentiality When Selling A Business in Orlando

When selling a business in the Orlando and Central Florida area it is important to have your financial figures in the best shape possible. At Crowne Atlantic, our Orlando Business Brokers work with potential business sellers and make recommendations on how a seller’s financials can look the most attractive. One of the benefits of being a business owner is having the ability to make personal deductions, one that a person who works a job might not be able to take advantage. Sometimes however business owners can get carried away with what they deduct and it is these questionable deductions that can cost a seller a higher offer from buyers when looking to sell their businesses. Tax records and financials all around are extremely important when selling businesses in the Orlando area because often times the buyer and seller do not know one another and the buyer might be new in town so they may have nothing to go off of but the tax records. Businesses with the cleanest numbers and the most easy understand business deductions typically sell for the most amount of money.

Marked below on the sample tax form is what most buyers and what most SBA lenders will first look at when evaluating earnings and potential deductions on a tax record. We circled them in red below. The three most popular business deductions the officer’s salary, depreciation, and interest expense columns. Buyers, accountants, lenders, and even attorneys will look at those three columns and add those numbers to the taxable income column first and foremost. These are what we call good deductions. See below:

Other examples of good deductions include amortization and owner’s health insurance because these are good and traceable deductions.

Here’s a list of other deductions that business owners often make that are not as good. Both Business brokers and Business Owners will factor them into the earnings when they show the seller’s discretionary income but they are not as accepted by buyers.

This list includes:
Auto gas (for personal use), Company Car (for personal use), Cell Phones (owner’s phone, spouse’s phone, kid’s phone, dog’s phone), Meals and Entertainment, Bad Debt, Advertising, Legal Expenses, Accounting Expenses and there are many more.

When evaluating businesses for sale in Orlando, there are good personal deductions that buyers can factor in and then there are deductions that are not as good.

None of these business deductions are bad, but they simply are not as good as they could be. A few thousand in deductions here and there is not a bad thing either, however deals become more difficult to pass through due diligence when these personal deductions become more sizeable. For example, using half the company’s earnings to pay for a Range Rover for personal use might create more issues than it’s worth. Another example poor deduction usage is putting expenses through the Cost of Goods section because it makes deductions much harder to add back.

As business brokers working in the Orlando area since before 2004, we work with business owners to position their financials and show buyers a true reflection of what the income of a business truly is. We provide this service on a regular basis and we sell businesses that have plenty of deductions all the time. Having fewer business deductions and having easier to trace deductions simply increases the chances of a business owner selling their business for the highest price.

If you have questions or need clarifications on how to better position your tax records and financials for an upcoming business sale please feel free to reach the Orlando Business Brokers at Crowne Atlantic Properties at 407-478-4101.

For Similar Articles You May Be Interested In Click The Links Below:

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Keeping It Quiet: 4 Tips To Maintaining Confidentiality When Selling A Business in Orlando

Case Study in Confidentiality. 

When selling businesses in Orlando it is typically vital that owners work to make sure their potential business sales are kept confidential.  The easiest way to do this is to tell only those who need to be told about a potential sale. 

This is one case study as to why confidentiality in Central Florida business is important:

Years ago, Crowne Atlantic had just gotten a deal signed for several million dollars for a construction company with a very qualified buyer.  The seller unfortunately had not adequately prepared their financial documents.  When they found themselves needing to provide updated financial information to the buyer, they had to approach their manager for the information.  For some reason the manager was the only person in the company that had access to these financial files.  They had had no idea that a potential sale was about to occur and that a purchase contract for the business had already been signed.  Against our firm’s advice, the seller told their manager the situation. What followed was no short of epic but it also caused a massive backlash. 

Upon hearing that a potential business sale was in the works the company’s manager proceeded to cry.  They expressed that they had been a part of a business that was taken over in a mergers and acquisitions deal years before and they along with many of their work friends ended up losing their jobs.  While that is not typical for main street business broker deals, this manager deemed this future to be true.  They stated that they would tell everyone in the firm what was going on.  They said that they would do whatever they could to prevent a sale and try to encourage employees to leave.  Here the seller was just looking to sell their business and provide the buyer some financial numbers.  Essentially the seller was held hostage by their manager who ultimately through their antics blocked the sale.  That manager cost their boss several million dollars. 

To prevent antics like this business sellers in the Orlando area need to be very clear about what they are expecting when putting their business on the market.  If they suspect employees or customers will be upset about a sale it is often better to not alert them unless absolutely necessary.  Typically, when business buyers purchase businesses, they typically do not make any immediate changes with employees, customers or vendors.  Everything typically stays the same so there really is no reason for employees or customers to be concerned about a business being sold. 

When the Orlando Business Brokers at Crowne Atlantic meet with potential business sellers we always make sure to go over how confidential a sale needs to be for that particular owner and that particular business.  We find out where the potential business sale needs to be sensitive.  If you or someone you know is looking to sell a business confidentially in the Orlando or Central Florida area call the best business brokers of Orlando at Crowne Atlantic at 407-478-4101 or check out our website at www.crowneatlantic.com.

Roadway Electrical Business W/ Contracted Projects For Sale in Orlando

Roadway Electrical Business W/ Contracted Projects For Sale in Orlando

Orlando, FL (Orange County)

Seller Financing Available

Asking Price: $3,000,000

Cash Flow: $1,688,563

Gross Revenue: $3,806,172

EBITDA: N/A

FF&E: $180,000

Inventory: $2,000

Established: 2015

Business Description

Electrical Business with $14 Million in contracted work for the next 2 years! Electrical contracting business for sale in Orlando, Florida. Business the handles highways and roadway electrical installation and maintenance for large-scale lighting projects, utility installations and infrastructure designs. Most of their work includes street lighting for roadways, conductors, underground utility installations, fiber optics and electrical service points. Business has contracts and a backlog for over $14 Million in business to be completed within the next 2.5 years. For more information please call 407-478-4101.

Detailed Information

Location: Orlando, FL Inventory: Included in asking price Employees: 11 Furniture, Fixtures, & Equipment (FF&E): Included in asking price Facilities: Office warehouse facility. Competition: Few companies exist in the industry so a new owner can easily stand out and bid for additional work. Growth & Expansion: Business is already contracted to expand for 2020 and 2021 with another $14 million in backlog contracted work. Support & Training: Owner will work with the buyer to make for a smooth and easy transition into the business. Reason for Selling: Relocation

If you or someone you know is wondering, how do I sell my business in the Orlando area, contact the business brokers of Orlando at Crowne Atlantic at 407-478-4101 or check out our website at www.crowneatlantic.com.


Detailed Information

Millwork & Finished Carpentry Business For Sale in Orlando
Orlando, FL (Orange County)
Seller Financing Available

Asking Price: $1,999,000

Cash Flow: $956,262

Gross Revenue: $7,221,483

FF&E: $200,000

Inventory: $10,000

Established:
1989
Business Description

This business for sale handles commercial customers and does millwork and finished carpentry for business.

Millwork & Finnished Carpentry Business For Sale in Orlando – Over $7 Million in
Millwork and Custom Carpentry business for sale in the Orlando area. Business performs services for commercial customers in Florida, Georgia, Alabama, and South Carolina. Business has a full management team along with dozens of talented crews that have been working with the some of the same customers for decades. The millwork side of the business processes and forms all kinds of wood paneling, cabinetry, fixtures, and structures and the carpentry side helps install the finished product. Business continues to grow and expand because its well-known customer base continues to grow their operations and require additional locations and build outs. Currently the business is headquartered in a large Office Warehouse building which a buyer has the option to purchase. For more information call 407-478-4101.
Detailed Information

Location: Orlando, FL
Inventory: Included in asking price
Employees: 75
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities: Large office space and warehouse spaces allow for the business to do more of their production in house which yields them a much higher margin on their product.
Competition: Few businesses have the capability of both production and on site installation and cover as much ground as this company. They have extremely well known customers that they have grown along side with for 3 decades and it would be difficult to break up that relationship.
Growth & Expansion: The business continues to grow organically as it’s current customer base of commercial customers continues to grow.
Financing: Owner is open to financing a portion of the sale for a qualified buyer.
Support & Training: Owner will work with the owner and even agree to stay on as an employee for 1 to 3 years depending on how the deal is structured and what the buyer would require for familiarization.
Reason for Selling: After 30 years in business the seller is looking to retire from the industry.

If you or someone you know is asking yourselves, how can I sell my business in Orlando, call the business brokers at Crowne Atlantic at 407-478-4101.

5 Mistakes To Avoid When Selling A Business In Orlando

When selling a business in the Orlando and Central Florida area there are some obvious items for business sellers to put into action, such as updating their financials. At the same time hiring a well-known business broker in Orlando with a track record and great reviews is always a plus. Even with those advantages however, there are many business opportunities that are marketed for sale throughout the state of Florida that do not get sold. This might leave yourself asking, “how can I sell my business in Orlando without making any major mistakes?” We want to display some of these mistakes in hopes that business sellers can avoid them in the near future. Below are some of the major mistakes potential business sellers can avoid when selling a business in the Orlando area.

Know What Brings Value To Your Business.


1) Not Knowing What Brings Value To Your Business.

When buyers are looking for businesses for sale in the Orlando area there are key factors that buyers are searching for.
These factors include:

a) clear financials detailing all of the expenses, costs and profits
b) a sales portal that clearly shows how the business finds, receives and obtains customers
c) contracts, elite customers, locations, copyrights or anything else that puts the business on top of their competitors

Business owners should work hard to cater to these desires and position their businesses to show why their business should be purchased. Some business sellers in Orlando place too high of a value on items that are not high selling points for buyers. For example, many business owners place high values on their engagement on social media boasting they have thousands of followers. While large social media followings can be a benefit, buyers only see it as beneficial if the social media shows a direct correlation to great earnings. Another example is putting too much value in a brand name, a website, or a trademark. Often times owners are quick to point out the value of their brand or their website name, however when buyers are looking to buy a business the branding is only as valuable as the earnings of the business and its customer base. Without good earnings and good customers, branding and social media will not hold much value for buyers. Sellers need to focus on where buyers prioritize their value.

Always put tools in place to help transfer a business to a new owner.

2) Not Taking Any Steps To Help The Transfer

There are steps that business owners should take when they are about to sell a business. The business should be organized and processes and procedures should be in place. All of the employees should have clearly defined roles in the business and buyers should be able to see a clear path for them to fit in. Not all business owners have that vision unfortunately. One example is when business owners do not want to leave enough time for a familiarization and training period after a sale. Other business owners have mentioned that they do not have a current lease in place for their business and just pay a landlord month to month and have no idea if a landlord is even open to hosting a long-term tenant in that space. There are some business owners that do not have any agreements with any of their vendors or suppliers and if they have agreements they have not inquired as to whether or not a new owner could work under those same agreements. The bottom line is that business owners need to make sure that everything can fall into place for a new owner and that the new owner has all of the tools necessary to operate the business after the purchase.

Business buyers want to hear legitimate reasons as to why a business in Orlando is for sale.


3) Having An Unconvincing Reason For Selling The Business

There are times when selling a business is unavoidable. Business owners have health issues, their spouse might have a job transfer that requires them to leave or even a divorce can cause a business to go on the market for sale. As unfortunately as the personal situations for the sellers may be, these are good reasons for an owner wanting to sell their business. Retirement is always the best answer, but that is not always a valid reason for a seller to give. Some business owners are simply burnt out and are looking to do something different. Business buyers typically ask business owners why their business is for sale so a business seller needs to be prepared to answer this question. No matter what the answer is, business sellers need to address two important items in their answer:

a) why the seller will not need to come back into the business and compete with the buyer (mentioning other work options such as a job, a new venture, or relocating out of the area are always a good idea)

and

b) the seller’s assurance that the business is still going strong and the seller is not leaving because the business is weak and cannot recover.

Buyers want to feel comfortable with these answers. They do not want to feel like a seller may come back and compete with them in the near future and they want to feel as though they are taking over a thriving business with lots of potential. Telling a buyer that a business is up for sale simply to see if potential purchase offers are attractive is not a great reason to mention why a business is for sale.

It is always best to plan in advance when looking to Sell a Business in the Central Florida area.

4) Needing A Quick Sale

Sometimes needing a quick sale is unavoidable. Often times the reason for sale is a serious health issue, but the reality is that needing a needing a quick sale can make a business owner vulnerable in the sale of their business. Often it leads to mistakes or leaving money on the table. For example, there was a business broker in our office that met with an owner that wanted to sell a large restaurant and bar. However, their lease was up in one month and the owner had no plans on renewing their lease so they needed a quick sale. Unfortunately, one month is not a great deal of time to sell a business. The process of transferring a lease to a new owner by itself before closing could take a few weeks. Realistically that seller would have been better off contacting a business broker in Orlando 8 to 10 months earlier. Some quick sales are unavoidable, but if you want to sell a business for a good price, the more time you have available the better.

Market your business the right way, use confidentiality, good sense and when in doubt contact a Central business broker with a great reputation.

5) Picking The Wrong Ways To Market The Business

If you’re wondering how can I sell my business in Orlando and add value there are right and wrong ways to market a business for sale in the Central Florida area. When selling a business in Orlando it is important to remember that selling a business is not the same as selling a house or a piece of property. Confidentiality is typically a key factor. For example, putting a “For Sale” sign in the front window of a business does not help build the perception of value in a business. In fact, it may send a signal to your customers and competitors that the business is in trouble or that a new owner might be coming into the picture soon and change how business is done. Yet, business owners tend to take this action or go public about wanting to sell their company all the time. If this occurs, the publicity often tends to be unfavorable towards the business because rumors rarely include the whole story, so the story becomes filled with questions and concerns. It is for those reasons among others that keeping a potential sale confidential from employees, customers and the general public can be a benefit both for the buyer and the seller. Finding a talented business broker in Orlando or Central Florida area, one with great reviews and a great track record often times is one of the best ways to market and help an owner sell their business.

For more information on business brokers in the Orlando area or if you are looking to sell your business in the Greater Orlando or Central Florida area call Crowne Atlantic Properties at 407-478-4101 or check out our website at www.crowneatlantic.com.

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Selling A Business in Orlando

Keeping It Quiet: 4 Tips To Maintaining Confidentiality When Selling A Business in Orlando

If you currently own a business in the Orlando or Central Florida area and you’re asking yourself, how can I sell my business in Orlando. We can help!

Business Brokers at Crowne Atlantic Properties service the entire Central Florida area helping business owners sell their businesses every day. After selling hundreds and hundreds of businesses in the Central Florida area our firm has noticed buyer patterns over the years and while every business is different, most business buyers follow the same patterns when they look at buying a business in Orlando and Florida in general.

Selling My Business in Central Florida

Below are FOUR key items that business buyers in Orlando pay close attention to when looking to buy a business:

1) Business Financial Records
2) Business Lease and/or Real Estate
3) Equipment and Assets Included
4) Future Potential of the Business

Lets look at each of these items a bit closer:


1) Business Financial Records

Business buyers want to feel as comfortable as possible when they are looking at businesses to purchase. The more honest and complete the financial records are, the more honest and complete the business looks. The financials are similar to a student’s report card or an automobile’s diagnostic test. Bad financials does not equal a bad business, however if you think “what will help me sell my business in Orlando” good financials will help. This means that if you take cash jobs and do not report them on your financials…….. you will need to start doing that if you want buyers to believe how well your business performs.  Buyers will not want take your word for it even if the purchase price is lowered. It will also help if you keep track of all of your expenses in addition to your sales. This tells the working story of the business so that you the owner do not have to. Good books and records for a period of years prior to the sale of your business will help you sell your business quicker and for more money in the Greater Orlando area. This means you will want to have several years of tax records available, balance sheets, profit and loss statements and bank statements to back up these records.


2) Business Lease and/or Real Estate

Another key item buyers look at when buying a business in Orlando is the lease of the business premises for sale or the real estate that comes along with the business. How long is the lease? What are the restrictions? Is there a chance the landlord wants to sell or demolish the building the business is housed in and is the business protected if that happens? What about the real estate? Is the current value of the real estate worth way more than what the current business can support? Can a buyer get financing for the real estate? Does the real estate have any environmental issues that could prevent a sale or a buyer from getting financing?  If you’re thinking, “What else can help me sell my business in Orlando,” find out the issues surrounding your lease or real estate prior to marketing your business for sale.

It is always best to have a clean business working area and updated equipment when selling a business in Orlando.

3) Equipment and Assets Included

While business is business and some buyers claim financials are everything, there is more to a business than just having profitable financials. Buyers pay close attention to the condition of the business premises they are about to take over. This is especially the case where the business has premises or equipment that is regularly visited and seen by customers such as restaurants, bars, schools, rental facilities, manufacturing facilities, distribution facilities, and recreation businesses. If you want to do what you can to sell your business, make sure the equipment used in your business is updated. Make sure your equipment and your business premises are clean. When you think, “sell my business” think “sell my house.” If you were selling your house you would probably vacuum all the rooms, paint the walls, redo the floors and possibly upgrade some appliances and equipment. The same principle goes for businesses. Make sure your business looks its best. Make your business look like a business a buyer would want to buy.

4) Future Potential of the Business

This one is surprisingly overlooked often by potential business sellers. Often times business owners looking to sell are often selling due to lost interest or energy and sales are starting to suffer. While business buyers are open to taking over businesses that are showing declining sales and profits it is not the most ideal position for a business seller to be in. If you think, what more advantages will help me sell my business in Orlando…….. make sure to have a business that is showing viability and future potential. Business buyers want more than a business seller who claims they can earn more money by working harder. Ideally, Orlando Business buyers want a business that already is working harder and they want that hard work to be reflected in stable or increasing sales, profits and opportunities.

If you would like more information on selling your business in the Orlando or Central Florida area please call the Business Brokers at Crowne Atlantic Properties at 407-478-4101 or check out our website at www.crowneatlantic.com.

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Selling A Business in Orlando

Keeping It Quiet: 4 Tips To Maintaining Confidentiality When Selling A Business in Orlando

Painting & Drywall Business For Sale in Orlando
Orlando, FL (Orange County)
Seller Financing Available

Asking Price: $599,000

Cash Flow: $257,204

Gross Revenue:
$882,466

FF&E: $20,000

Inventory: $1,000*

Established: 2011

*not included in asking price.
Business Description

SBA Prequalified – Painting & Drywall Business For Sale in Orlando
Drywall Repair, Ceiling Popcorn Removal and Painting Business for sale in the Orlando, Florida. Business services the Central Florida area and fuels their business mostly from customer referrals. To bring in brand new business this company has multiple websites along with an amazing online marketing with 5-star online reviews. Business works with both residential and commercial accounts and the owner is open to staying on as a subcontractor if the new owner wants additional assistance to grow. No construction/ contractor licensing necessary, business is SBA Prequalified for a buyer that qualifies. For more information please call 407-478-4101.

Inventory: Not included in asking price

Employees: 6

Furniture, Fixtures, & Equipment (FF&E): Included in asking price

Facilities: Owner operates as a home-based business and can use a storage facility for storage if they require it.

Competition: Business does a quality job and has amazing online reviews which only help additional referral business.

Growth & Expansion: Lots of opportunities for additional customers through marketing and advertising. Business can easily handle additional business by hiring additional staffers or using other subcontractors.

Financing: Qualified buyers should be able to qualify for SBA Bank Financing.

Support & Training: Owner will work with the buyer to make for a smooth and easy transition into the business.

Reason for Selling: Partnership Dissolution.

The Pros And Cons of Selling Your Business To An Outside Business Buyer in Orlando

The Orlando Business brokers at Crowne Atlantic encounter a wide variety of businesses where their owners are looking to sell.  When analyzing a business for sale, business brokers in Orlando discuss different types of buyers that may have an interest.  There are industry buyers, those that are currently in the industry or have a great deal of experience in the industry, and there are also outside buyers which are buyers that are not currently in the industry of the business that they are looking at buying.  Often times outside buyers do not have any prior experience in industries they are looking into.  As always there are some Pros and Cons to working with an Industry Outside when selling your business in Orlando.  See below:

Pros:

1) Outside business buyers in the Orlando area typically offer business sellers in Orlando a higher price than industry business buyers.

While it is not 100% of the time Central Florida Business Brokers find that buyers that are industry outsiders pay more for businesses than industry buyers.  One main reason for this is that industry buyers may have the knowledge to start up a business from scratch using a fraction of the money needed to buy a business.  In contrast, an outside buyer might take years to accomplish the same start up and financially it might make more sense for them to purchase a business instead.

Selling A Business To An Outside Buyer in Orlando.

2) Everything is new to an outside buyer so they have to purchase the company to gain experience in an industry they are essentially buying into.

One of the reasons why outside buyers purchase businesses is because they lack the experience in the industry they are looking at entering. Often times buyers look at the seller with a bit of admiration of the great job they have done by growing their businesses into successful empires.  This buyer and seller relationship often makes for a friendlier transaction as outside buyers are likely to have more questions about the operations than criticisms.  This is because outside buyers will not have their own processes and procedures to compare to more likely to do what the business seller recommends.

3) Confidentially might be easier to maintain when marketing to Orlando business buyers outside of your industry.

Even when business brokers in Orlando have each buyer fill out and sign Confidential Nondisclosures and Buyer Profiles there are still confidentiality risks when selling a business.  If confidential information leaks out to outside buyers it is not as risky as when sharing sensitive information with a potential inside buyer who could potentially use that information for further competition.  Working with outside business buyers is a potential tactic business sellers can use to maintain confidentiality in Central Florida,

Branding Goes A Long Way When Selling A Business.

4) Outside Buyers can bring different sets of skills to the table. 

Outside buyers often have skill sets that can benefit the businesses they are purchasing.  Orlando and Central Florida business buyers are often experts in marketing, advertising, financing, management and communications.  At the same time many business brokers in Orlando will often meet with business sellers who feel their businesses could use more marketing, social media, and reaching out to customers in order to help grow their business.  With these issues in mind, an outside buyer bringing in a different take on everything could be just what an established business needs.

5) Outside business buyers in Orlando are more likely to keep the staff and the brand. 

There are a lot of business owners who have loyalty to their employees and feel that their company brands are superior to others.  They want a buyer who will continue the legacy, the name, the brand and continue to employ their employees who have been loyal to the business this whole time.  Many wish that their employees would be able to purchase the business, but their employees do not have the funds available. So the next best thing a business seller can do in Orlando is to find a buyer who will allow current employees and managers to stay on and keep the branding and the work environment the same.

Cons:

1) Sometimes it is tougher for a business seller to convey the true value of their business to an outside business buyer in Orlando who does not understand the industry.

 

This issue can often occur when a business buyer is more interested in cash flow than they are technique, quality customers, and company culture. For example, business owners that have patents for the products they sell can run into an issue on value.  Their patent may have some additional value to those in an industry but an outside buyer may feel a company’s value is reflected better by it’s cash flow.

Restaurant and Bar Business Brokers in Central Florida.

 

2) Depending on the business, obtaining financing, licensing, and the knowledge to operate the business might be too difficult for an outside buyer to accomplish.

Outside business buyers might have more difficulty following through on transactions without experience.  Banks and landlords are typically more accommodating with business buyers that have experience in the businesses they are buying.  Restaurant buyers without experience for example are likely to find more difficulty with landlords and SBA bank financing when looking to buy restaurants or bars.  This is more due to industry norms than the individual buyers.  Both landlords and banks typically have experienced more payment defaults in the past from businesses in these industries so they express there is a higher risk factor when working with these industries.

3) The process of training and familiarizing outside buyers with the processes and procedures of a business might be much more difficult and time consuming than familiarizing an industry buyer with the business.

 

This one might go without saying, but training someone from the ground up might take more time and effort. Business owners might feel that a higher purchase price makes the extra effort on familiarization worthwhile.

Sometimes it is the businesses that are slightly dirty that are the most profitable.

 

4) Outside business buyers in Orlando are less likely to overlook the drawbacks of a business.

Many industries have certain drawbacks that those in the industry just accept and they deal with them.  Buyers who have never worked in those industries before may not be able to glance over those drawbacks as easily. Potential industry drawbacks may include high-employee turnover, high insurance rates, the need for excess working capital or lack of customer contracts set in stone.  Some industries are just not physically clean or dangerous such as scrap metal yards, construction businesses or tree services.  For example, there are industries that are notorious for high employee turnover.  For example, businesses with rough working conditions can be vulnerable to high-employee turnover and it might be unavoidable.  Industry buyers are likely to accept these conditions and outside buyers may have a tougher time accepting them.

5) A business seller’s employees, customers, and vendors may not respond as well to an outside buyer verses an industry buyer.

While we do not see this happen in Orlando and the Central Florida area when buyers looking to purchase businesses, there is a possibility it could be an issue. Depending on an industry, outside buyers may have more difficulty relating to a business’s customers, employees, or vendors. To counter this, many sellers spend extra time with business buyers making introductions to everyone involved in the process. These measures are often a huge assist and advantage for the buyer and it is this familiarization that helps justify purchasing the business.

To check out our Orlando Business Selling Article on The Pros And Cons of Selling Your Business To An Industry Buyer in Orlando click on this link: The Pros And Cons of Selling Your Business To An Industry Buyer in Orlando.

If you are looking to buy or sell a business in Orlando you can reach us by clicking on the contact us button or phoning the Orlando Business Brokers at Crowne Atlantic at 407-478-4101.

Selling a Small Business In Orlando, Florida

As well-known business brokers in the Orlando area we get approached often by friends, friends of friends, and sometimes complete strangers asking us about selling businesses in Orlando. Many of the questions include, but are not limited to:

1) Do you think anyone would like to buy my business?

2) Do you think my Orlando business would be sellable?

3) Is there anyone in Orlando searching for businesses that are selling?

4) What do you think my business is worth if I wanted to sell my business in Orlando?

5) What are buyers looking for when they look at businesses for sale?

6) Do you have any businesses for sale in the Orlando area that we should be looking to buy?

Selling A Small Business In Orlando

The answers to all of these questions are very simple because the reality is there is typically a person for every seat! One of things that we as Orlando Business Brokers say all the time, “if the business makes money, it is worth taking a look at it.” Many small business buyers in the Central Florida area take the same approach.

Would Anyone Like to Buy Your Business?

Ultimately most buyers want a good business to purchase plain and simple. There are a number of reasons why people would prefer to buy a business in Orlando instead of starting from scratch. Many business buyers flat out do not have the time, confidence, patience, money or the know-how to build a business up from scratch. If business buyers in Orlando can find a good business to purchase that is already established, this can be a better play for them in the long and short-run.

Is Your Business Sellable?

Our answer to the business sellable questions are that most businesses we see are sellable for at least something. Amazingly we meet with potential business sellers all the time who do not realize their business can be sold, even though it is profitable. Bottom line, if the business is profitable and makes money, it is worth speaking to a business broker in Orlando about it. Most business brokers in Central Florida do not charge any upfront fees to speak or meet with potential business sellers and with the right information can sometimes give business owners an idea of the value of their business. If a broker does charge an upfront fee for a valuation in Central Florida, then perhaps you should meet with a business broker in Orlando who does not first. Some business brokers sell valuations for up to $40,000. Why spend the money when you can get the same information for little to no cost from a better, more qualified local Orlando Business Broker? Most business brokers in the Florida area work on a performance-based fee system with little to no upfront money.

Are there business buyers in Orlando searching for Orlando-based businesses for sale?

There are always buyers searching for businesses for sale on the Orlando Business For Sale Marketplace. If a deal is good and priced right, there are typically potential interested business buyers.

What is my business worth if I were to sell my small business in Orlando?

Valuations unfortunately are not as scientific as they can be when leasing or selling real estate. Valuing businesses always seems to be more of an art than a science. Most small businesses sell based on a factor of seller’s discretionary earnings or cash flow. Business Brokers in Florida call this cash flow number an owner’s benefit. Most small business buyers in Orlando and Central Florida are hoping a return on investment (ROI) that can justify that they are better off purchasing a business than starting from scratch. Valuations vary depending on the business, but most seasoned business brokers in Orlando can give business sellers an idea once they have some key information.

Selling A Small Business in Orlando, Florida

What are buyers looking for when searching businesses for sale in Orlando?

Most buyers want businesses with good books and records, a clear business structure that they can follow and feel they can manage and an ROI that makes financial sense to the point where buyers want to move forward with a purchase offer.

Do we have businesses that current business owners want to purchase?

All the time! In fact, many of our best customers are business buyers who own multiple businesses in the Orlando, Central Florida area and other areas.

For more information on selling a small business in the Orlando or Central Florida area call the Orlando Business Brokers at Crowne Atlantic at 407-478-4101 or check out our website at www.crowneatlantic.com.

We also sell businesses in Orange, Seminole, Osceola, Polk, Brevard, Marion, Volusia, and Lake Counties.

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When Is Best Time Of Year To Sell My Business In Orlando?

As business brokers working in the Orlando area for close to two decades, business owners ask us when is the best time during the year to sell their business.  It’s an excellent question.  When should a business owner looking to sell put their business on the business for sale market?  While there are some periods that are busier than others, the reality is that if a deal is good it could find an interested buyer at just about any time of year.

In the past it was generally thought that the busy times of the year for the business brokerage industry in the Orlando area was January through March or January through May and then in the fall things would pick up in late September and October and November before Thanksgiving.  Historically transactions and business brokerage interaction slow down during the summer months June through August or before school sessions start and after the Thanksgiving holiday to December.

Things have changed however ever since people have better communications through email, phones and computers and are able to receive information whether they are.  Whether people are on a vacation in China or they are taking a week off from work, they can receive information on businesses for sale in the Orlando area.  Besides the Orlando area and the Central Florida area is located in warm climate where business for sale deals are transacted year-round.  We never have cold hibernation periods so business deals and real estate deals occur year-round in Florida.

The schematics of how a business is put together however still applies. The business brokers at Crowne Atlantic can sell businesses in Orlando at any time of year, but business sellers have to be ready with their most up to date information in order to get the best price.  Having all of the up to date information from the current year available and from previous years will help a business seller get an offer on a business during just about any time of year.

This information includes:

1) Financial records from the current year (year to date)
2) Financial records from the previous three years in business, or any previous years that apply
3) Information on the lease for the business premises or property for sale
4) An Equipment and Asset list

Financial records help buyers understand businesses and add to their confidence in purchasing.

The financial records that buyers ask for typically include tax records, profit and loss statements, and balance sheets.  When a business owner has these financial records available it makes selling a business easier, quicker, and less dramatic because buyers feel much more comfortable that the business is a smooth-running system and they feel that running system of business will continue after the transaction occurs.

Business buyers ultimately want to purchase good businesses.  No matter what time of year it is in Orlando, business buyers are typically up for a transaction if the deal is right.  Business sellers just have to make sure they have everything ready if they want a deal to go quick and smooth.

If you or someone you know is looking to sell a business in the Orlando area at any time of year, have them call the Orlando Business Brokers at Crowne Atlantic at 407-478-4101 or check out our website at www.crowneatlantic.com.

If you would like more information on selling your business in Orlando or in the Central Florida region, call the Business Brokers at Crowne Atlantic serving the Greater Orlando area at 407-478-4101.

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