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1.    Make sure you have a valid reason for selling your business.  The first thing a prospective buyer will want to know is the reason you are selling.  The more valid the reason you offer, the more serious the buyer will be.

2.    Don't wait until you have to sell, for either economic or emotional reasons.  You don't want anxiety to force you into accepting a deal that's not good for you or for the buyer.

3.    Once you have made the decision to sell--and before talking to your business broker--you should gather the information needed to market and subsequently sell your business.     Here's the list of key items:
- Three years profit and loss statements
- Federal income tax returns for the business
- List of fixtures and equipment
- The lease and any lease-related documents
- Copy of the franchise agreements (if applicable)
- List of loans against the business with amounts and payment schedule
- Copies of any equipment leases
- An approximate amount of the inventory on hand
- Names of outside advisors

4.    Remember that you are part of the marketing team.  Your business broker can't do it all--and might even ask you to come to an office meeting to tell the rest of the staff about your business.  Follow your broker's advice about dealing with prospective buyers--there's a right and a wrong time to meet them.

5.    Confidentiality works both ways.  The broker will constantly stress confidentiality to the customers to whom he or she shows your business.  However, as the seller, you must maintain confidentiality about a pending sale in your day-to-day business activities.

6.    You, as the seller, should put yourself in a prospective buyer's position.  The next time you go to your place of business, pretend you are a buyer looking at it for the first time.  How impressed are you?

7.    Just because you are selling, now is not the time to let the business slip.  It's important that prospective buyers see your business at its best; bustling, and showing no signs of neglect.

8.    Engage an outside professional who understands the sales process.   If you are going to use a lawyer, use one who is seasoned in the business sale process.

9.    Be flexible!  You need to keep the ball rolling once an offer has been presented.  Study it closely.  Just because you didn't get your asking price, the offer may have other points that will offset it, such as higher payments or interest, a consulting agreement, more cash than you anticipated or a buyer that you are comfortable with.

10.    Remember that most successful transactions are successful because they create a win-win situation for everyone involved.
 

 By: Art Lennig, CBI, BCI  Murphy Business & Financial Corporation – Georgia, Inc.

Part I:  The Advisory Team
How do I sell my business? This is a question that many business owners ask themselves.  What do I do? Where do I start? What do I need? What is my business worth?  How do I compete against the many businesses for sale?  Great questions, but where do I get the answers? I wish I could say there are simple solutions but there are none.  Selling a business is an art not an exact science.  It takes time and patience. Pricing is critical – too high and nobody will look at it, too low and everyone will wonder – “What’s wrong?”.  The goal is to maximize the value of the business yet sell the business for a fair price that works for both the seller and the buyer.

There are many things that a business owner should be concerned with when they have a business to sell: 
 Confidentiality
 Tax liability
 Sharing of information
 Liabilities
 and on and on.

How do we protect ourselves against these concerns?
Whenever a business owner wants to sell their business, they should assemble an advisory team.  This team should consist of:  The Owner,  The Spouse,  Business Broker,  CPA,  Attorney, Financial Planner.  Let’s take and discuss each one and the purpose and experience each needs to bring.
The Owner, Spouse and other family members – These should be obvious, however many times the owner does not include the spouse and family members in the decision making process until the end only to find out that  not all are  agreeable to the sale.

Business Broker – This is the most critical member of the advisory team.  The business broker is the quarterback, the general contractor, the facilitator, etc.  Their role is multifaceted: Consistently communicate with the owner and spouse as to what is happening with the listing and also what is happening in the market.  The Broker should gather all the documents that will be presented to the Buyer.  These documents will vary by each business but in most cases will include; Tax Returns, Financial Statements, Lease, List of Assets included in the business sale, List of Assets NOT included in the Business Sale, and more.  A professional Broker will want all the information at the beginning of the conversation to make an assessment of your business.
Many Brokers recommend or require a third party business valuation.  This is done to determine the fair market value of the business, give you a planning tool to discuss with your CPA and Financial Planner, and also a tool for the Broker to use with those Buyers who want to buy a business during the negotiations. The Broker will (or should) put together a “Package” about the business which at some point will be presented to the Buyer. Professional Brokers prepare these packages and include all the information the Buyer will need to know.  Unfortunately the less than professional Brokers do not prepare much more than a cover sheet (with little information) and a tax return.  There are two different approaches here: The professional approach is to thoroughly educate the Buyer before bringing the Buyer to the business. The less than Professional Broker uses the “spaghetti theory” – keep parading people through the business in the hope that something will happen. The Professional Broker only brings qualified serious buyers to the business.  They do not want to waste the owner’s time with buyers that are not ready to buy. Yes, the better Brokers do require some money before listing the business.  This money is usually required to cover the costs of the valuations and other expenses the Broker incurs upfront.

The CPA – This person is critical to the advisory team.  This is not always the owner’s  CPA as they must be knowledgeable in Business Sales.  You want someone that understands the business transfer process, can look at your financial information and provide you with the necessary advice in order to accomplish the sale.  Many times the CPA will advise against the sale because it is the “safest” advice he can give.  You must use a CPA that has experience in Business Transfers. Once you have the Business Valuation done, you will want to discuss it with the CPA.  You want to know where you will be (How much money you will receive) after taxes.

The Attorney – Similar to the CPA, this advisor must have experience in Business Transfers.  You do not want the attorney that drew up your will or handled your divorce. An experienced business attorney will protect you through the closing process yet get the deal done.

Financial Planner – This is your Financial Planner. After you have discussed the tax liability with the CPA, you now want to meet with your Financial Planner to discuss the possibility of your being able to live the life style you desire after the business sale.  It is most critical that you know this before you ever list your business for sale.

If you would like us to contact you about selling your business, click here: http://www.murphybusiness.com/georgia/contact-us
 

Have you ever wanted to own your own business? Is your company downsizing? Do you dread Monday morning and going to work at a job you are less than happy with?

If you answered yes to any of these questions, it may be time to consider starting your own business. Franchising might be the easiest way for you to do that.

Franchising can offer you training, on - going support and a proven, successful way to manage your business. Those are the top two reasons the lending institutions are more likely to loan you money to start a new franchise business as opposed to buying an existing business. With franchising you do not need to have a 10 - 15 year background in whatever category you decide to pursue. In fact, most franchisors prefer that you have no background in their industry because you are easier to train “their” way.

If you look around while driving, you will see nearly every strip mall is filled with new franchises. There are plenty of opportunities to get started. As National Director of Franchising for Murphy Business and Financial, we have over 100 preferred franchises, most of which the franchise fee is below $50,000, plus many more opportunities for service-based franchises.

Here are some franchise facts for you to consider. It just might be the right time to change your life and work for yourself Monday morning.

Franchise Facts
o Franchising is responsible for more than $800 Billion in U.S. sales annually
o 1 in 12 business establishments is a franchise
o A new franchise opens every 8 minutes of every business day
o More than 8 Million people are employed by franchise businesses
o According to the U.S. Commerce Department fewer than 5% of Franchises were terminated on an annual basis
o In a study conducted by Arthur Anderson & Company of 366 franchised companies, nearly 97% were still in business
o In contrast, a study by the U.S. Small Business Administration revealed that 62.2% of all new businesses failed within their first 6 years of operation

Who Buys Franchises?
o Cash Available: Under $120,000
o Average Income: $65K - $150K
o Average Age: 35 – 50 Years Old
o Gender/Couple: Males, Couples, Females in that order
o Owned a Business?: No, most have not
o Work Experience: Corporate

If you are interested in doing your own due diligence regarding specific franchise opportunities in franchising, go here.  Our national network of brokers can assist you in your investigation.

This franchise is your entrance into a rock-solid industry that has exploding consumer demand.  Its services provide customers with a complete, convenient, preventative fluid maintenance program for their motor vehicles.  Their range of services have increased and changed over time as they have adapted not only to the changes in today's cars and trucks, but also to their customers changing needs and desires.

Every car owner needs their oil changed and with more demands on Americans' time, the increase in population growth and stringent government regulations on used oil disposal, the demand for do-it-for-me quick oil changes has increased significantly.  Each home has between 1 to 4 or more drivers with vehicles and each of these cars needs its oil changed an average of 3.7 times a year.

You don't need to be an automobile mechanic to own and operate an oil change franchise.  And...you don't need to change your customers' oil either.  Your success will be in properly managing your business and you are taught everything you need to know in order to run a successful location or locations.  This is the beauty of a franchise...we teach you how to grow your business and to recruit, train, motivate and manage your employees.  The initial investment is small and just may be the perfect business for you.  Consumer demand is high.  We have a non-perishable inventory and everyone needs automotive maintenance.  We have developed a proven system, producing successful quick oil change franchises for over 25 years!

All products are purchased directly from suppliers with no added cost.  We negotiate prices and pass them directly to franchisees to reduce cost of goods and our labor costs are the lowest in the industry.

Our business succeeds because an owner can train and motivate young technicians and can demonstrate excellent customers services skills day in and day out.  A recent survey shows that 'customer service skills' is by far the number one attribute of a great store.  Normal business skills combined with a passion for excellence is necessary for success.

If this opportunity intrigues you and you feel your skill set matches this great opportunity, go here to check us out as an Automotive, Auto Quick Lube franchise!
 

Whether you are buying or selling a business, your legal counsel can make or break the deal. It is important that you emphasize to your attorney that you want the sale to go through. In many instances, the sale of the business fails to close because the attorney for one side or the other makes too many demands of the other side.  Certainly, you want your attorney to protect your interests, but not to the point where the demands are so strenuous that the other party or his or her counsel balks.  If your attorney understands that you really want to buy--or sell, as the case may be--he or she will be less apt to make outrageous requirements or demands.  Below are some things to consider when dealing with your attorney in the buying or selling process.

•    The Both Parties should understand just what is being sold--and purchased.
•    The corporate records should be current and complete.
•    The seller should have available the current insurance policies and the names of the insurance agents involved. 

If there is more than one owner, there should be a designated spokesperson representing the group.  This authorization for one of the owners (or stockholders) to represent the business should be in writing and signed by all of the owners.

•    The buyer and the seller must both have the same understanding of the sale and its terms.  Too often, they each have their own perception of the deal.  Each party to the sale must understand just what the deal is and who is getting what, or the sale may be doomed before it starts.

To help prevent wrecked deals, good communication between all of the parties involved is a priority. Unless they are told, outside advisors may not realize how much the buyer and the seller want to consummate the sale.  The attorney needs to know from the client that this is a serious-minded transaction and that, unless something completely unanticipated is discovered, his or her job is to pull the deal together.  Too often what happens is that after the offer is signed and everyone appears to be in agreement, the ball gets dropped.  Everybody assumes that everybody else is following through and that all is fine.  The attorney for one side or the other attempts to push on an issue that is, normally, not particularly important--and suddenly, what was once a simple transaction now falls apart.  Unfortunately, the attorney thinks he or she knows what is best for the client and draws paperwork or demands something without even discussing it with their client.  The damage is done, the other side gets angry, and another sale "bites the dust."

The use of a professional business broker can, in many cases, alleviate this problem.  The business broker--having been through the process many times, usually much more often than any of the attorney's involved--knows the pitfalls.  However, it is important that the parties to sale are operating on the same wave length and have the same understanding of the sale.