TRYING TO GET IN ON MERGERS & ACQUISITIONS? Eleven Questions to Make Your Business Stand Out Restoration Brokers of America (RBA) works with businesses to navigate successful sale. You may be wondering, is this really the right time to sell? Who’s buying, and what can you do to optimize offers? In the autumn issue of R&R Magazine, RBA broker and owner, Gokul Padmanabhan, walks through the solutions to eleven questions that will elevate your business sale potential and posit …
It’s getting harder and harder for you to feel enthusiastic about your restoration business, anymore. Most mornings, you feel a sense of dread as you drive to work. You’ve grown tired of managing your people, dealing with your customers. You’re overwhelmed by all your workload and feel burdened by what it takes to run your business, day to day. To put it simply – the thrill of being the boss is gone. If any of the above hits close to home, there’s a good chance you’re developing a bad case of B. …
Have you heard that many small businesses go without a salary for the first three years they are in business? Did you know that most small businesses stay in the red for the first three years and often close? I don’t think this has to be the case. A small business owner doesn’t have to go without a salary and they can thrive in their business instead of surviving. From my experience, I honestly believe that paying yourself is crucial to your restoration business. When an owner does this, success …
As a business owner you know that you need to be organized to get the best results in running your restoration business. A database at its basic form is a structured set of information that is stored on a computer or in the cloud, yet organized so that it can be easily be accessed, managed, and updated. By some, it is described as an ‘electronic filing system’. So why continue to hassle with lots of inefficient paper files that can easily become disorganized, lost and damaged? The short answer i …
Giving back and being involved in your community is a win-win for everyone. The word community evokes ideas of togetherness, support, and even family. Letting the people in your community know that you care creates a sense of trust. Giving back shows that you value your community. Here is how giving back to your community is a win for you restoration business: Brand Awareness. Once you begin giving back to your community, more people will begin to recognize your brand, thus creating brand awaren …
1. Stay above the competition: A great online campaign will help you gain the coveted top spot on Google Search, but only when keeping tabs, (no pun intended), on your competition. By using those search engines to your advantage you can research your competitors to see what their customers are saying about them, how they’re being rated, or what kinds of articles they might be featured in. Constantly refining and testing your strategy will help you come out on top (pun intended), as long as you o …
SDI is a big fancy way of saying discretionary cash flow. Basically, SDI are the pretax and pre-interest profits before you take out non-cash expenses, one owner’s benefits, one-time investments and other non-related income or expenses. Now, that’s a lot so let’s walk through exactly what that means. The first bit of that is all of the money you earn before you consider any interest or amortization that’s due to you, any taxes you need to pay, and any depreciation of your assets like equipment a …
Last time, I wrote about the important role that SDI – or Seller Discretionary Income – plays in a happy, lucrative exit from your restoration business. In short, SDI takes a number of factors and calculates, reasonably accurately, projected income for your business over a certain time period. This is good for the you, the seller, because it gives you a very good idea of how to price your business and allows you to make strategic decisions on how you invest in it while you prep for sale. SDI is …
We all strive to have a happy, healthy family and work we find fulfilling. You’ve done your best to build this for yourself and your company reflects your work ethic. You’ve got a stable group of clients serviced by expert technicians that know they’re way around their equipment. You go to work every day and enjoy it. Helping your staff grow in their roles and feed their families. More importantly for your business, you help your consumers recover after disaster, whether it is man-made or natura …
You have probably seen vision or mood boards in design studios or advertising agencies. Basically, a vision board can be anything you want it to be. If you’re looking to redesign your home, you may turn to a vision board to layout the kind of styles you like or the color pallet you’re going for. If you’re looking to write a book, you might put together a number of words, scenes or even photos of the types of settings you’re looking into. It might even include a timeline of events. The poi …
I use the poker analogy a lot. I’m not actually big for table games, it’s just so apt every time I sit down to write one of these blog posts. Any kind of poker is a game of odds. The question is, are you willing to invest more in your hand then the other people around the table are in theirs. Do you believe that your hand is worth paying for? You’ve worked hard to develop your business and you’ve invested a lot – monetary and otherwise – into it. Are you willing to continue to invest in your bus …
So you’ve decided to sell your business. Good for you! It’s the right move for a lot of people especially if they’re getting burned out on the day to day bustle of running the shop. It’s time to reap what you’ve sown and enjoy your friends, family and sleeping in a bit. Maybe you’ve started shopping around for a business broker to help you sell your business. Selecting the right broker for you is no easy task. You want to ensure your broker is knowledgeable, considers your feelings, and works ti …
A lot of people think that starting your own business is a risky venture. In one way, it is. You’re committing a whole heck of a lot of capital into something that isn’t completely fleshed out. It’s all relying on your expertise and hard work to get the business off the ground. However, when you really think about it, you’re not really risking much more than your time and effort. Unless you’re dumping your entire net worth into a startup venture, you’re not going out on a terribly shaky limb. Be …
When you’re on the ground, in the thick of running your business every day, you probably don’t give a whole heck of a lot of thought about how much it’s actually worth. Why would you? You’re busy taking care of clients, cleaning up homes and businesses and ensuring you’ve got happy employees. You’ve got enough going on. But really, take a second and think about it. Do you know how much your restoration company is worth? If you were to put it up for sale today, what’s the practical number you’d b …
Selling your company is fraught with potential pitfalls. Understanding the value of your business and assets, reading the market and managing bids can be a difficult process, particularly for the unfamiliar. There is, however, one mistake that owners make when selling their business that accounts for the highest amount of lost sale proceeds; proprietary deals. Understanding how these deals work will help you avoid falling victim to them and get you the best value for your business. What is a pro …
As a business owner, you know that timing is everything. The faster you can get to a water damaged home or business, the easier your job will be and the better off your customer’s wallet will fair. Selling a business, however, can seem like a never ending up hill question. When is the right time? And how do you even tell? The short answer is the best time to sell your restoration is when you want to. Are you burned out? Tired? Want more time with friends and family? It might be the right time. F …
You’ve worked hard to build your business from the ground up. Whether it’s family owned or you built it on your own, your blood, sweat and tears are built into the fabric of your company. You’ve spent long hours making sure projects get done the right way. You’ve been up long nights finishing paperwork, figuring out how to make ends meet or working with that technician who needs a little extra guidance. You celebrate with your team and love your work – you’re proud of what you’ve made. That unqu …
The value of your business comes down to a single equation: what multiple of your profit is an acquirer willing to pay for your company? profit × multiple = value It’s a simplistic equation that is used to ballpark the value of a business for sale. Many business owners believe that in order to increase the value of their company, they need to become more profitable. Makes sense, right? Bring in more money, a high-quality buyer will be willing to pay more for your business. And after all, you lov …
Every business passes through five distinct lifecycle stages and each is a factor in how buyers value your company. Start-Up Stage: Because a start-up is difficult to value, buyers are rarely interested. It’s better to put off selling a start-up and take the time to grow sales. Early Growth Stage: The business is operating at a break-even rate or slightly better. This stage can attract buyers who want access a new market and/or need to add products or services to their own. Accelerated Developme …
Your top manager plans to retire in a couple of years. It won’t be easy to replace this key leader. In fact, many potential buyers consider the strength and performance of your staff when determining the amount of their offer. It’s far better to sell when your top managers are still in place. Health issues are cropping up – some may prove to be chronic. Nothing is more important than your health. Ignoring your health puts your life at risk and impacts the lives of your loved ones. It makes sense …
Far too many business owners assume a family member will take over the helm when they’re ready to retire. In fact, surveys show 88% of small business owners believe the same family will be running their business in five years. Yet, in reality, only 30% of family businesses survive into the second generation and only 12% operate into the third generation. It’s a good idea to keep these numbers in mind before you find yourself a year or two from retirement without a viable exit plan. Even if you h …
These days, technology becomes obsolete at a mind-blowing speed. To stay competitive you have to keep up with technological advances and continually train your team in its use. But you already know this. You may even have a pile of obsolete technology and equipment stacked away somewhere. Worse, you’re still making payments on some of it. Staying current with the newest technology requires a significant upfront cost. If your profits can’t cover it, you’ll have to borrow the money. Add to this ma …
What are the signs your market share has started to stagnate or, worse, on a slow decline? Bigger competitors are squeezing you out and customers have forgotten your name. You don’t have the money in your budget to “buy” a bigger market share through more expensive advertising. And you certainly can’t drop your prices any lower in order to compete. If any of this rings true, it’s a strong reason to sell before your competitors put you out of business. “But, wait,” you say, “I don’t have to sell. …
The thrill is gone. You feel a sense of dread on your way to your office. You’ve grown tired of managing your people, dealing with your customers, and handling the curve balls that come up when running a business. You’ve got a bad case of B.O.B. – Business Owner Burnout. B.O.B. is one of the top reasons businesses begin to falter and eventually fail: Exhausted and overwhelmed, you’re less likely to make solid business decisions or take advantage of market opportunities. Burnout damages your rel …
As with all types of legal agreements, contracts can vary from broker to broker. Some contracts include most of the following items while others don’t. Armed with this knowledge, you can request certain items be added into a contract before you sign with a broker: The length of time they will be representing you and your business – 12 months is typical. Specific details of their advertising and marketing plan, including the budget dedicated to advertising your business. Phone call schedule detai …
“How many years experience do you have?” You want a superstar with a proven track record they can back up with references. If a broker can’t provide a list of satisfied sellers, it’s a red flag. “How many business like mine have you sold?” A broker with experience in your industry is well positioned to successfully market your business. However, a long track record in your area and experience in related industries can make up for it. Ask them how they’ll compensate for their lack of experience w …
A talented broker brings the skills, knowledge, and time-tested techniques you need to get top dollar for your business. A Confidentiality Agreement. Without it, word will get out that your business is for sale and bad things happen: Key staff start looking for another job and your management structure weakens. Suppliers, vendors and creditors start tightening up terms which cuts into cash flow. Competitors start spreading the word to lure your customers away. Pre-Qualified Buyers. A skilled bro …
Your do-it-yourself spirit is the reason you launched your own business. When you’re ready to cash out, it’s natural to assume you have what it takes to sell it. Reality check: No, you don’t. Selling a business is a complex process with unexpected challenges and pitfalls when you go it alone. Unrealistic expectations – because you’re not entirely objective about the pros and cons of your business. That’s why many do-it-yourself listings sit on the market, too long, or never sell at all. F …
When it comes to establishing the value of your business, one factor buyers consider may not be obvious to you – a diversified customer base. Potential buyers are wary of a customer base that’s concentrated around one or two major customers. They see it as a sign of instability and, in many cases, it ends up being a deal breaker. When you diversify your customer base, it increases your ability to tap into new markets – this alone can greatly raise the value of your business when it’s time to se …
Potential buyers want to fully understand how you acquire customers and generate sales. They’ll want to see documentation of your marketing program along with samples of your marketing materials. If you’re confident you’ve got this covered – great! If not, take the time to amp up your marketing program and develop your sales goals. And make sure you document your progress – a record of achieving your sales goals is an excellent indicator of a company’s growth potential and serves as proof of cus …
It’s difficult to evaluate the value of your business when a number of the company’s assets aren’t essential to operation or, worse, obsolete. If you put yourself in the shoes of potential buyers, you can understand why they would be unwilling to pay for any asset that doesn’t contribute to the company’s profitability. That’s why it’s important to identify and sell any outdated machinery or equipment no longer used in your business – before you put your business up for sale. When you sell these …
Like many owners, you may charge personal perks to your business to reduce your company’s tax burden. These types of personal expenses are legitimate and usually include your health insurance, auto insurance, meals, entertainment like business golf outings, and other non-essential expenses. Unfortunately, when you sell your business, the same personal perks that lower your taxes end up having a negative impact on your cash flow numbers. Potential buyers and their lenders always look at what’s kn …
Working with family can be a great way to build a small business because you know you can count on them to have your best interests at heart. Unfortunately, when it’s time to sell, a company staffed with a number of family members raises several red flags for potential buyers. And this is especially true when family members hold key management positions. Buyers’ top concerns include: Will these family members be resistant to change once I take over? Are they the most qualified people for the pos …
When it comes to selling your business, the old saying is true: “Your people are your most valuable asset.” Buyers interested in your business always look closely at your employee and management infrastructure. They want to see a confident managers leading loyal, motivated employees. When you have a documented track record of solid management it will always increase the value of your business when it’s time to sell. Here are a few ways to quickly strengthen your management infrastructure: Set sa …
Tip #2: Remove Yourself. Can your business thrive without you at the helm? Or, will it stray off course? Buyers need to be confident your company can run profitably without you. They want to see employees, customers and suppliers who are loyal to the business, not you. If a buyer suspects a business is heavily dependent on its current owner, they’ll either pass on purchasing your business or make an offer far lower than you want. Take some work days off and allow your staff to make key decis …
Tip #1: Increase Cash Flow. Cash flow reflects the health of your business – now and into the future. If buyers believe they need to inject cash into a business after acquiring it, they’ll lower the amount of their offer. Or, worse, it can be a deal breaker. Positive cash flow indicates your company has more than enough to cover monthly costs and overhead. If you analyze obstacles to cash flow you may find most are within your power to fix: Increase Efficiency – a 1% increase in efficiency resul …
When selling your business, it’s important to understand there are two types of potential buyers – the Financial Buyer and the Strategic Buyer. How The Financial Buyer Thinks: Evaluates the worth of your business based on your profitability. Looking to pay today for a stream of profit in the years to come. For each year they must wait before realizing a profit, they discount profit projections by as much as 15%. How The Strategic Buyer Thinks: Develops an offer based on the value of your company …
There is a common misunderstanding about cash flow and what its role is within your business. Cash flow is often described as the lifeblood of any business. You can be profitable on paper but cash poor. It is important to know the difference between cash flow and profit and how to keep money going into the bank. To better understand cash flow you need to understand the problems associated with it. Here are 3 common problems with cash flow you need to keep in mind when you manage your cash flow. …
Strategy #1 Employ a plan to increase sales and cash flow Your cash flow and profitability are the strongest indicator of the total value of your business. If buyers believe they must inject cash into the business after acquiring it, they will lower any offer they make. Potential buyers want to see at least three years of financial information. If you sales history reflects a decline from year to year, they’ll expect to purchase your business at a deep discount. When you take the time to …
Strategy #2: Remove Yourself From Your Business. Think about it – can your business thrive without you at the helm? Or, will it stray off course and lose customers and suppliers? Before purchasing a business, buyers need to be confident the company will run profitably without you. They want to see employees and customers who are loyal to the company, not an individual. If a buyer suspects business or the employees will walk out the door when you do, they’ll either pass on purchasing your busines …
The reasons to sell a restoration business range from personal to financial. Problem is – when it comes to the business you’ve built with your own blood, sweat and tears, the thought of selling tends to generate very strong emotions. That’s why many owners tend to ignore, or outright deny, the signs it’s time to sell until it’s too late. Or, worse, they wait until they’re forced to sell. You’ve Run Out Of Ideas – Or The Money – To Grow Your Market Share. When you first opened your doors, you wer …
Strategy #3: Develop A Strong Management Team. The old saying, “Your people are your most valuable asset,” holds true when selling a business. Buyers interested in purchasing your business will look closely at your employee and management infrastructure. The quality of your staff is always a major factor when determining the value of your company. One of the strongest indicators is the quality of your management team. You can begin building a solid management infrastructure by offering incentive …
Strategy #4: Replace Family Members On Your Staff. Working with family can be a great way to build a business. You know you can rely on them to have your best interests at heart. Unfortunately, when it’s time to sell your small business, a company staffed with family members raises a number of red flags and questions in the minds of buyers. Are these family members the best-qualified people for the positions they hold? Are they earning salaries far higher than a non-family member would expect fo …
Strategy #5: Reduce The Amount Of Your Personal Perks. Many small business owners charge personal perks to their business to reduce their tax burden. These include health insurance, auto insurance, meals, entertainment and other non-essential expenses. As a result, personal perks can represent a large percentage of cash flow to owner. Although these are completely valid expenses, first-time buyers often have a difficult time understanding owner perks and may dismiss these numbers completely when …
Strategy #6: Sell All Unnecessary Assets. It is not unusual for restoration owners to accumulate more assets than is needed to conduct the volume they do. The number of airmovers and dehu’s can rapidly grow to plan for major weather events and peak seasons. When an owner decides to sell their business there is a great need to analyze the type and amount of equipment that will be sold with the business. When setting a price for a business, the price will include the equipment that will be part of …
As Baby Boomer business owners start thinking about retiring they must grapple with the fact that, on average, only one out of 100 small businesses are actually sellable. Even for those businesses that do sell, lack of succession planning results in a 30% to 40% loss in the overall value of their business. With so much at stake, you may be surprised to learn recent surveys indicate two-thirds of small business owners described their succession plans as “non-existent or poor.” If your rest …
You’re the proud owner of a family-run restoration business. You’ve worked hard for many years to build your business. And you intend to hand it off to the next generation when you retire. Since you won’t be selling your family business, you don’t need succession planning, right? Wrong. Although surveys show 88% of owners believe members of their family will be running their business in five years the cold hard numbers tell a different story: Only 30% of family-owned businesses survive in …
There’s no way to put this nicely – you don’t have what it takes to successfully sell your small business yourself. Selling your small business is a complex process loaded with unique challenges, frustrations, and pitfalls along the way. Choosing to go at it alone is the most risky decision an owner can make. Here are a just a few of the challenges you’ll face when you go at it alone. Unrealistic Expectations. You’ve nurtured this business from birth to what it is today. You’ve invested t …
Potential buyers usually fall into one of two categories: The Financial Buyer and The Strategic Buyer. When you understand the differences between them, you’re better able to position your business to attract the best type of buyer for your situation. The Strategic Buyer is likely to be one of your competitors, suppliers or even a long-time customer. They’re looking to buy businesses they can integrate with their own to expand their product or service offering or to access a new market. Since th …
Are you still considering the impact marketing your restoration business could truly have? It is arguable that marketing your restoration business is a very important piece of your ‘success’ puzzle. While I am sure you know there are many other pieces to the success of a restoration business, without marketing a piece of your puzzle you will be missing the big picture of your success. Marketing your restoration business can be beneficial to the success to your restoration business. Here is how: …
Now that we’ve discussed the differences between Strategic and Financial Buyers, it’s important to understand the five distinct lifecycle stages of a small business. The characteristics of each stage impacts how different types of potential buyers value your company, for better or worse. The Start-Up Stage: A small business in the Start-Up stage is highly dependent on the owner’s ability to turn his or her vision into a reality. For potential buyers, the business is an unknown quantity that’s di …
Believe it or not, rent is another area of your expenses that can be adjusted through renegotiation or by merely cutting down on the size of your office space and warehouse. So how exactly would you go about lowering the rent on your restoration facility? Option #1: Renegotiate. First assess the current rate you are paying to rent your current office or warehouse spaces. Checking listings of similar spaces to yours will give you a good idea if you are paying a fair price or not. If you feel like …
Let’s take a look at the pure definition of the word Productivity: the effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input. As you can see the word productivity is supposed to help you get more work done. But there is more to it. Productivity can be defined as: Manage for profits and cash flow. Manage your business like the profit generating business it is, not just merely as your job. This is your livelihood, so you need to st …
There comes a time in a business lifecycle that the owner decides they want to grow their business. The fastest way to grow your restoration business is through acquisition. Acquiring another business can be expensive, as you are purchasing another company. There are organizations like the Small Business Association that continues to provide government funding for acquisition financing. However, you can, as an owner finance an acquisition yourself, but this is rare. Acquisitions fall under the i …
Decisions. Decisions. Decisions. For a restoration business owner this is what your day to day life consists of. Within these decisions include the hard decisions that you probably rather not make, but you know are necessary to increase the productivity, profitability, and cash flow of your business. Most people don’t want to decide what or who to cut, but these are the hard decisions that are necessary to keep operations running smoothly. Here are the top 3 decisions restoration business owner …
As a business owner you know there are times your head hits the pillow and all your worries hit you. Yes, it is important to stay on top of things, but you also have to consider that some things just aren’t worth losing sleep over, especially those things that you cannot control. Here are 2 business woes you shouldn’t lose sleep over: The economy: Yes, the state of the economy does affect how you run your business, however you have no control over it. Just ensure you are confident that your day …
Even though the economy is now showing signs of stability, the wait-and-see approach of sellers further contributes to the decline in businesses-for-sale…which is good for those sellers that are selling, (high demand- low inventory-top dollar) …but these conditions won’t last forever as the average age of restoration business owners is around 58 years old ..no one can pinpoint exactly when this will happen …but we anticipate that at some point there will be an oversupply of restoration bu …
Many restoration business owners find themselves asking the golden question, “Why sell my business now?” Many think, “My business is thriving and growing by the quarter.” Believe it or not that last statement is the very reason you should want to sell your restoration business now rather than later. Buyers look for businesses that are thriving. They want the turn around on their investment to be short term. Very few buyers are looking for a business that is struggling, which is when most owners …
Many small business owners decide to sell their company themselves because they don’t understand what a good broker can do for them. They know why their lawyer and CPA is worth the fees they charge, but they’re not sure why a broker should be paid their commission. So what does a talented brother bring to the table? One key answer is they want to sell your small business and get the most money for you as possible. Here are some other factors a talented broker will bring to the table. A Confident …
For restoration businesses, lowering overhead is the quickest way to improve net profit and cash flow. Like the old saying goes, everything is negotiable. And this includes utilities. Did you know 32 states have deregulated their electricity or natural gas industry? This allows businesses in those states to shop around and negotiate more cost-effective utility rates. Companies looking to lower their utility bills often turn to independent energy consultants to help lock in lower rates. You can a …
You have been in business for quite a while and maybe you can remember what it was like to be the buyer. Perhaps, you were never the buyer as you started your business from the ground up. Much to your dismay buyers aren’t folks that just wake up and decide they want to own a business, it comes from a series of events and each buyer is unique in their own right. This is where the business broker comes in. There are key things to look for in a buyer, i.e., financial means and understanding the val …
Many factors go into valuing a business, but brokers find these two factors to add difficulties when valuing a small restoration business: Record Keeping and Owner’s Earning Power. It is not uncommon for many small business owners to give bills and receipts to their bookkeeper or accountant and let them sort it out. Not only are they to figure out the balancing of the books but they also have to prepare reports for reporting to the IRS and tax returns which is an ongoing task throughout the year …
As the owner of an independent restoration business, you need to properly position your business and boost its value before it’s time to sell. To help you, I’ve provided fresh content with industry best practices you need to know, even if you don’t plan on selling for several years. Factors Buyers Consider Before Making An Offer On Your Business Buyers usually fall into one of two categories: the Financial Buyer and the Strategic Buyer. The Financial Buyer evaluates the worth of your business ba …
To increase your cashflow, you need to see where you can save. Three of the top cost savers are either ignored or not thought about. The three areas you need to consider for cutting costs for your restoration business are: Smaller Office Space Rent Personnel How To Lower The Rent On Your Restoration Facility. These days, the downturn in real estate values can give you leverage in renegotiating your rent. But don’t wait until there’s only a few months left on your lease to start the process. Shop …
As discussed in The 5 Stages Of The Business Lifecycle, it’s clear that the Accelerated Development Stage is the ideal time to sell your small business. However, you also have to consider external factors when timing your sale or you may miss an opportunity to sell high. Case Study Of An Owner Who Missed The Boat.Of An Owner Who Missed The Boat. In late 2007, I had a meeting with a Florida business owner who was in his early sixties. At that time, his revenues were over 4-million. After conducti …
It’s getting harder and harder for you to feel enthusiastic about your business, anymore. Most mornings, you feel a sense of dread as you drive to work. You’ve grown tired of managing your people, dealing with your customers. You’re overwhelmed by all your workload and feel burdened by what it takes to run your business, day to day. To put it simply – the thrill of being the boss is gone. If any of the above hits close to home, there’s a good chance you’re developing a bad case of B.O.B. – Busin …
You know that your profits are increasing and they might be soaring, but you are hearing now is the time to sell. Many owners are asking themselves, “Why do I want to sell my restoration business now, when I’m doing so good?” Well, you just answered your own question. Currently there are more buyers than sellers, which means if your business is set up right and doing well then you could get top dollar for your restoration business. The seller has the upper-hand right now as we are experiencing …
In study after study, one fact remains consistent – lack of strategic succession planning results in a 30% loss in the value of your business at the time of sale. Even in the light of this harsh reality, two-thirds of small business owners recently surveyed described their succession plans as “non-existent or poor.” And what about family-owned businesses? Nearly 90% of these owners stated they believe members of their family will be running their company in five years. Yet, in reality, only 30% …
Did you know that 20 cents of every dollar your restoration business brings in should end up in your wallet? The best way to ensure you achieve this goal is to develop a 12-month business plan utilizing our “Pay yourself, first!” technique. First, project how much money you want to realistically earn 12 months from now. Calculate your sales then subtract your 20% profit. The difference is the amount you can spend – for everything. For example, let’s say your sales total 1-million, the profit you …
Increased market competition. Changes in the insurance industry. Homeowners who can’t afford to pay out of pocket. All of these challenges erode your net profits and lower the value of your business when you decide to sell it. Before you can stop the bleeding, you need to understand what are you’re up against. Insurance carriers continue to cut their own costs by underpaying or denying claims. At the same time, they’re demanding deeper discounts from vendors like you. On claims they do approve, …
I’ll take you step by step through the key areas that you should pay attention to as you work with these clients. Many of our most rewarding and enjoyable transactions involve first time buyers, as they usually are co-operative and open to our advice. And it’s especially rewarding for us, as we’re helping them transform their lives by providing them the opportunity to realize the dream of owning their own business. We hope you feel the same way as you work with first time business purchasers as …
When potential buyers consider purchasing your restoration business, the first thing they look at is your profitability. That’s why it’s vital to implement a strategic plan to increase your bottom line before it’s time to sell. Let’s take a look at the facts: Restoration vendors who utilize a strategic plan can become as much as 35% more profitable. Achieving a 1% increase in efficiency can result in a 5% increase in profits. Eliminating 5% of your overhead costs can double net profits. This is …
When you started your restoration business, you didn’t necessarily think about selling it. Now you have been in business for a while and the universe is telling you that you should think about selling. Unfortunately there have been times when I have had to give business owners the sad news that their business can’t be sold. This doesn’t mean “ever” it just means it can’t be sold right now. Here are five reasons your restoration business can’t be sold. It’s not profitable- This company needs to b …
Finding a talented business broker can make the difference between getting your sale price or not selling at all. Do keep in mind that choosing a business broker to sell your business will not be an easy task, but one that is worth taking your time with. Like any business relationship, it pays to do your homework and ask a lot of questions to ensure you’re partnering with the right broker for your needs. Take the time to talk with several brokers before you develop a short list of your top two c …