Author: Steve

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The #1 Article You Must Read Before You Buy a Franchise

If you a thinking about buying a franchise you must read this article and the links below. There is no more important piece of information that can help you compare franchise opportunities then the SBA’s elusive list of franchise default rates.

Let me explain. If you knew that seven out of ten  people who bought a franchise from a particular franchisor that you were considering, defaulted on their SBA bank loan would you reconsider? Conversely, if only one out of thirty people who bought a franchise from a particular franchisor defaulted on their SBA loan would you feel better about your chances? Of course you would.

Well, that information is available online and the results may shock you. Many well known franchise brands regularly show that more than 50% of the franchises they sold to franchisees defaulted on their SBA loans- and probably went out of business.

Does that mean that every franchisee that bought one of those poor performing franchises failed? No, but it shows a trend and raised a red flag that needs to be thoroughly investigated by any potential buyer.

My advice to a anyone considering buying a new or resale franchise offering? Check out these default rate lists below or several others that you can google online.  Then consider playing the odds. It’s your hard earn money. If it were mine, I’d play the odds and go for the franchises with the lowest default rates and instead focus on those with the best odds.

http://fitsmallbusiness.com/best-franchises-sba-default-rates/

http://www.unhappyfranchisee.com/worst-franchises-in-america/

by Steve Steve No Comments

Is Your Business Broker Invisible?

The decision to hire a merger & acquisition adviser requires interviewing advisers and brokers the same way you would approach the hiring of a new employee.You need to ask the right questions upfront.

But one question that business owners must ask is one that will surprise you. Not because its an odd question, but rather that most business owners would assume it need not even be asked.

In the last few weeks I have represented a Buyer that was interested in two different businesses that we visited – one  in person and one via a conference call. In both instances the business owner was represented by an invisible broker.

Both times the business owner was left to fend for himself. In other words the owner’s broker never showed up.  In one instance the owner’s broker simply said to the client – “Let me know how it goes”.

In all the years I’ve been representing sellers or buyers I’ve been at every single showing of a business – whether I represent a Buyer or a Seller.On those very rare occasions when i had an emergency or I was out of town, my colleague at The Wheatley Group was there.

Put simply, I believe that being there for a client is one of the key responsibilities of a broker.They are there to protect your interests.They cannot do that sitting at home in front of their TV.

When you hire a merger & acquisition or business broker firm you should ask right up front if the broker will be at EVERY meeting. If the answer is no then you’ve got the wrong broker.

 

by Steve Steve No Comments

Strategic Buyer Seeking Home Health Care Company in Arizona

Strategic Buyer Seeking Home Health Care Company in Arizona, preferably in Maricopa County. Medical preferred over non-medical but both will be considered. If you are considering selling your home health care company, or you are a broker with a listing for a company of this type please contact Steve Ferber PC steve@thewheatleygroup.com or call 480-477-6305

by Steve Steve No Comments

Maricopa County Named Fastest Growing County in U.S.

Adding 222 people per day last year, Maricopa County, AZ has replaced Harris County, TX as the county with the nation’s highest annual population growth, according to new population estimates from the U.S. Census Bureau.

After eight years at the top of the list, Maricopa County, AZ has replaced Harris County, TX as the county with the nation’s highest annual population growth, according to new population estimates from the U.S. Census Bureau. Maricopa County gained 81,360 people between July 1, 2015 and July 1, 2016, or about 222 people per day, while the nation’s second-largest population gainer, Harris County, gained 56,587 people, or about 155 people per day on average.

<read the entire story at Businessfacilities.com>

by Steve Steve No Comments

Better With A Business Broker: IBBA Launches National Education Campaign

March 8, 2017 – INDEPENDENCE, OH – So you’re going to sell your business. How are you going to keep your focus while undertaking what might be the biggest financial transaction of your life? And how are you going to make sure you maximize your selling price or get a fair deal on what you’re buying? There’s so much that goes into selling or buying a business. That’s why the International Business Brokers Association (IBBA) is launching a campaign called, “Better with a Business Broker.”

“We want to raise awareness among business owners of the value and expertise that business brokers provide,” explained Kylene Golubski, Executive Director of the IBBA. “All too often business sellers think they can do it alone, or that having an accountant or attorney handle the paperwork is good enough. But there is so much more than paperwork involved; especially if the owner is selling a business that has been his or her life’s work; emotions can run high. You need someone by your side that has the expertise to guide you through a complex process and maximize the sales price. That’s why business brokers are such a valuable component of the process.” The education and outreach plan includes media outreach, presentations, community outreach and an increased social media presence.

In addition to educating the public about the role of a business broker, IBBA is also providing its members with valuable tools to use on a local level. “We will be expanding resources for our members to use so that they can also carry the message to their marketplaces about the critical role of a professional business broker and why using a broker leads to a better outcome for the seller. It really is better with a broker.”

About the International Business Brokers Association
The IBBA provides business brokers with education, conferences, professional designations and networking opportunities. The IBBA also strives to create professional relationships with successful business transaction advisors to increase the value of the IBBA to its members and to be a leader in the exchange of business referrals.

by Steve Steve No Comments

Products for the Hospitality Industry

A long established company that provides products and services to the hospitality industry seeks manufacturing or distribution industry that provides products to the hospitality, restaurant and catering industries. If you have been considering the sale of your business please call Steve Ferber PC today for a confidential conversation at 480-477-6305 or steve@thewheatleygroup.com

by Steve Steve No Comments

Well Funded Buyer Seeks Manufacturing or Distribution Business

We are representing a group of buyers who are seeking to acquire a business with EBITDA in the $1 million to $2 million range. The ideal business would be well established and in the manufacturing, distribution or medical fields and located in the State of Arizona, Texas, New Mexico or Nevada. The buyers are well funded and ready to move quickly. If you have considered selling your business please contact Steve Ferber PC at 480-477-6305 or email steve@steveferber.com

by Steve Steve No Comments

Buyer Seeking To Acquire Food Processing Equipment Manufacturer

This is a strategic buyer seeking to acquire a business anywhere in the continental United States that manufactures equipment used in restaurants, cafeterias and other food establishments. Please note, the buyer is not seeking businesses that serve food, they are looking for manufacturers of the equipment used in such facilities. If your company is currently for sale, or you have considered selling your business, please contact Steve Ferber PC at 480-477-6305 or steve@thewheatleygroup.com for a free confidential conversation.

by Steve Steve No Comments

Record Number of Small Business Sales in 2016

Record Number of Small Businesses Were Bought & Sold in America in 2016; Trump’s Election Spurs Optimism Among Small Business Owners According to BizBuySell.com Report

BizBuySell.com’s Fourth Quarter 2016 Insight Report shows small business transactions continue to reach new highs as growing financials make for a hot market

San Francisco, CA – Bizbuysell, the Internet’s largest business for sale marketplace, reported today that annual small business transactions reached record levels in 2016, topping 2015’s totals by 8.6 percent and 2014’s previous high by 4.6 percent. The full results are included in BizBuySell’s annual and Q4 2016 Insight Report, which aggregates statistics from business-for-sale transactions reported by participating business brokers nationwide.

A total of 7,842 closed transactions were reported in 2016, the highest yearly total of small business sales since BizBuySell first started tracking data in 2007. This total confirms the positive assessment of the 2016 small business market by business brokers as recorded in BizBuySell’s December survey. According to the survey, 63 percent of respondents experienced more deals in 2016 than in 2015. Primary factors for the reported growth include an improving small business environment, more owners looking to sell, more qualified buyers on the market and better financing options.

by Steve Steve No Comments

Do You Have Buyer-itis?

Every week someone calls my office with the same story. They’ve been searching for a business to buy for nearly a year with no luck. As one Buyer said to me recently “I’m a smart guy, I don’t know why I’m having so much trouble buying a business”.

The answer is simple. You’re approaching it the wrong way. You’re calling around to different business brokers and asking them about a listing they have on the internet somewhere. I call it “Buyeritis”.

Here’s the top 10 signs of Buyeritis:

  • Do you feel like finding a business to buy is like knocking your head against a brick wall? *
  • Have you been looking for months for a business to buy and found nothing?
  • Does it seem like the only businesses for sale are restaurants, laundromats and nail salons?
  • Do you call the listing agent and forget that they represent the seller and not YOU?
  • Does it take a week – or not at all – for the Seller’s broker to get back to you ?
  • Are you expecting 3 years of Profit & Loss Statements & Balance Sheets and a prospectus but receive only a couple of pages of unprofessionalcrap?
  • Are you frustrated when the financials show a loss of $14,000 and crazy addbacks of $450,000?
  • Did you waste a month of your time in due diligence only discover that the seller lied?
  • Do you feel like you’re spinning your wheels and getting nowhere?
  • Do you keep thinking there must be a better way?
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