The Deal Board

Andrew and Jessica are talking in this episode about "flippers." That is the name given to buyers that acquire multiple businesses knowing they could increase their value in a number of years and then sell them. In the near future, it is expected there will be more business opportunities. Prognosticators say that baby boomers will come to the market en masse to sell their businesses, but the predictions state there are not going to be enough skilled buyers, which would not only bring prices down but also give opportunities to small businesses to go out to buy other businesses. If after listening to this show you want to become a flipper, you will certainly need a business broker by your side, and Transworld Business Advisors can loyally assist you in the process of finding the best acquisition. Listing of the week: Robert Curtiss (Center City Philadelphia), niche retail store with a wonderful reputation and an online business. Asking price: $200,000. Down payment of $90,000, seller financing the rest for 3 years. Discretionary earning is $94,300 a year. Total sale $355,000. Call 267-335-7835 or email [email protected] Key takeaways: [8:40] Chris Warfel's background [10:38] What was the purpose of buying a new business? [14:10] Never the same business twice. [16:22] Tips for people interested in starting to do "fix and flips." [19:36] Deal of the week: Erin Bean. Furniture store in South Florida. In business for 14 years, selling due to retirement of the owner. SBA finance. Excellent Books and Records. SOLD for $450,000, including $100,000 in inventory. [21:33] Jason Share, entrepreneur and buyer of several businesses. [23:45] Being ready to take some risk. [24:40] Always have an exit strategy. [25:49] The quantity and quality of the earnings drive multiples. [26:01] Jason does not focus on the price; the ability to grow is most important to him. [27:48] Opportunity for millennials. [29:30] Listing of the week: Robert Curtiss, niche retail store. Price: $200,000. Down Payment $90,000, 3 years owner financing. [32:59] Tom Jones [33:42] How are flippers different from other buyers? [35:38] When buyers are looking for a business with a short term in mind they are not looking for any particular type or size of business. [36:41] How long do flippers hold on to the acquired business? [37:32] Flippers do not get emotionally attached to their businesses. [39:25] Opportunities in the next two to five years with baby boomers retiring. Mentioned in this Episode: United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — 888-711-9018 Email us [email protected] Contact Chris Warfel [email protected] or call 970-775-8671 Call Tom Jones 754-224-3111. Tweetables: "A flipper finds motivation in the challenge of buying something that was not doing so well and turning it into a success." #thedealboard #transworldbusinessadvisors #flippers "If you want to "fix and flip," find a business you are familiar with." #thedealboard #transworldbusinessadvisors #flippers #fixandflip #business "If you fail in business, you don't have to fear failure but rather learn from those mistakes." #thedealboard #transworldbusinessadvisors #learnfrommistakes #nofailure "Think in what you can do, not in what you are going to do." #thedealboard #transworldbusinessadvisors #business #buying "Flippers tend to have a shorter horizon than the typical buyer." #thedealboard #transworldbusinessadvisors #flippers

Andrew and Jessica will lay out all the details about buying a business. The process of acquiring a business can bring a lot of frustration since the market is currently dominated by sellers. The advice from the experts in this episode will help set you apart as a buyer competing for deals in the marketplace and, even if you already own a company, will assist you in making your business grow through acquisition Learn more about your ad choices. Visit megaphone.fm/adchoices

As a business owner, you may wonder what you should do to prepare your business for sale. In this episode, Andrew and Jessica bring three amazing guests who are experts in closing deals, such as Michael Shea, Mitra Sanai, and Jim Tatem; they are displaying the tools and advice you need to increase the value of your business while having it ready to sell Learn more about your ad choices. Visit megaphone.fm/adchoices

Andrew and Jessica welcome to the podcast two influencing and inspiring men: Jim Tatem who is the President of United Franchise Group, explaining the pros of goal setting, and Bob House president of BizBuySell, talking about what kind of business activity goes on during New Year and what can be expected for 2019 related to business sales. This episode is a great way to start the year, the aim is to help you to set your business goals for the next few months for a great and profitable beginning Learn more about your ad choices. Visit megaphone.fm/adchoices

Andrew and Jessica wish you Merry Christmas! Some of the businesses experience their biggest boost and revenue these last two months of the year. Did you know that this year it is expected for consumers to spend over a trillion dollars in these holidays? Listen to this episode and find two amazing business opportunities as well as knowledge about the aspects to have under consideration when selling or acquiring a business that makes its major revenue during the holiday season Learn more about your ad choices. Visit megaphone.fm/adchoices

Andrew and Jessica are diving deep into financing along with experts in this arena who will provide very useful information. If you are looking to reinvest in your business using your retirement funds to make a business transaction or if you are struggling in getting the requirements to get a loan, you will find this show perfect for you! Know your options and take advantage of this great time of the economy to make your business grow or acquire a new one. Listen to this episode and find out what goes on behind the deal. Listing of the week: Rob Cohen (Miami) Kite-selling business; fun and family-oriented business. Price: $199,500. Owner Benefit: $93,000. Not financing. Buy now. Key takeaways: [3:16] Using retirement funds for financing with Dallas Kerley. [3:45] Benetrends Financials. [4:20] How to use retirement funds to purchase a business. [5:05] Differences between self-directed IRA and Rollover for Business Startups (ROBS) programs. [6:05] How much can be used from retirement funds? [7:20] Advantages and disadvantages of Roth program. [9:18] What is the process to use this kind of financing? [10:59] Deal of the week: Marty Fishman, bus tour business, first listed at $850,000 making $200,000 a year and having a couple hundred thousand in equipment. Sellers books and records were messy and the business deteriorated, also losing the financing opportunity. Finally selling the equipment apart, the Seller got $58,000. [13:59] Kenny Proske from Main Street Funding Group. [14:55] Possibilities when financing with SBA. [15:45] Knowing which lenders will do what. [17:06] Misconceptions about seller financing and collateral. [18:40] Getting deals done when there are not perfect tax returns. [19:55] Get a recent business and turn it into a startup loan. [20:48] Working capital refinance loans. [22:53] Getting tough deals to happen. [24:52] Listing of the week: Rob Cohen (Miami) Kite-selling business. Price:$199,500. Owner Benefit: $93,000. [27:03] Paul Ihrig, a specialist in SBA loans. [28:30] SBA has recently lowered the bar, accepting 90% financing for business acquisitions. [28:53] SBA loans are now up to $5 million and longer terms. [29:43] The 7A program. [30:33] If you are a seller, get your books in order. [31:32] You should get an SBA in 60 days. [32:30] Some banks do better than others in acquisition loans. [33:32] What do buyers need to do to get an SBA loan? Get rid of personal debts! [34:10] Having transferable business skills. Mentioned in this Episode: Green Leaf Massage and Sports Recovery United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — 888-711-9018 Email us [email protected] Benetrends Financial Reach Dallas Kerley [email protected] or at 866-423-6387 Reach Kenny Proske 5612037325 [email protected] Tweetables: "When going shopping for a business, first know your available resources." #thedealboard #transworldbusinessadvisors #knowyourresources #businessacquisition "SBA is a cash-flow-driven model, you don't have to have a collateral." #thedealboard #transworldbusinessadvisors #nocollateral #SBAloan "Now the time is better than ever to get SBA loans." #thedealboard #transworldbusinessadvisors #SBAloans

Andrew and Jessica talk about franchising and about the opportunities that can be found in this kind of business as well as how to start one and expand it. This episode counts with the participation of amazing guests who have plenty of experience and knowledge in the franchising world, who know what makes franchising successful and what to look for in a successful franchise. Did you know that only 15% of businesses that start from scratch have success compare to 90% success for franchises? Learn more about your ad choices. Visit megaphone.fm/adchoices

Andrew and Jessica are diving deep into the topic of distressed businesses, which are the ones that will not be sold at their value; these businesses are in trouble or have a huge amount of assets that impact on their value. The key when selling a business in distress is finding the right buyers who are taking advantage of an opportunity to acquire assets at a lower price. Listen to real cases of businesses that were barely making or losing money and still were good acquisition deals for buyers Learn more about your ad choices. Visit megaphone.fm/adchoices

Sometimes the only way of expanding a business is franchising. Andy and Jessica explain in this episode the different aspects of this exciting endeavor, as it is the transition from owning a business to being a franchisor. Listen to real cases of successful business extending their boundaries, including the testimony of Andy with the franchise of Transworld Business Advisors. Is your business ready to be franchised? Are you interested in becoming a franchisor? Learn more about your ad choices. Visit megaphone.fm/adchoices

Andrew and Jessica present the reality of a lot of businesses that find Thanksgiving their most profitable part of the year; some business acquire many customers and owners find a great opportunity to capitalize from this income. If you are looking to sell or purchase a business there is a need to understand the seasonality of the business timing the acquisition is crucial. Listen to this episode to learn more about how to take advantage of the holiday season to increase the value of a business Learn more about your ad choices. Visit megaphone.fm/adchoices

Jessica and Andrew emphasize the importance of keeping neat books and records during this episode. Real cases are exposed in detail, in order to have a clear picture of the serious influence that good or poor books and records can have on a deal. Brokers from Colorado and Florida talk about how they overcome the challenges they encounter while selling a business with inconsistent or lack of information about their income and expenses Learn more about your ad choices. Visit megaphone.fm/adchoices

Andy and Jessica are bringing the experts in the SBA in the U.S., Live Oak and Stearns Bank, specialists in these kinds of loans. They explain in detail what are the crucial requirements in order to ease the process, and why getting an SBA loan is a great idea in the current market. Listen to this episode and find out not only the benefits of an SBA loan but also what to have and what to avoid in order to facilitate the course of acquiring a business with this incredible financing program. Listing of the week: Patrick Bombardiere (Denver). Custom stone countertop and flooring fabricator and installer. Revenue $8 million per year. STD $630,000. Price: $1.8 million. Great management team! Listing Number 0873-283800. Email [email protected]. Ph.(720) 259-5099 ext 126. Key takeaways: [:40] What are the SBA programs? [:51] The 7A and 504 programs, similarities and differences. [4:10] Low interest in SBA loans. [5:22] Repayment terms. [6:45] Buyers love SBA programs. [8:01] Have great books and records! [9:35] Stearns Bank: Tom Ethen presenting SBA programs. [11:48] Goodwill deals [12:32] Stearns Bank delivers very fast. [13:43] 7 days approval, 30 days close. [14:38] Be prepared! [16:42] Benefits of the SBA [17:44] Deal of the week: Sale of a furniture store. [19:40] John Wahl from Live Oak Bank [21:04] Larger SBA deals. [22:13] Differences in requirements for a small or bigger loan. [23:45] Beware of red flags such as travel expenses and excess expenditures. [25:30] Buyers' qualifications. [26:52] Changes in the interest rates and its effect on loans. [28:51] Listing of the week: Custom stone countertop fabricator and installer. Mentioned in this Episode: What is my business worth? Transworld Business Advisors Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us 888-711-9018 Email us [email protected] Stearns Bank Live Oak Bank Tweetables: "There is no other way of funding goodwill than through SBA." #thedealboard #transworldbusinessadvisors #goodwill #SBA "Clean financials are essential to ease the process of getting a loan." #thedealboard #transworldbusinessadvisors #cleanbooks #SBA "Money is still cheap and it's a great time to acquire a new business." #thedealboard #transworldbusinessadvisors #business

Andrew and Jessica are talking about small business, the ones that are earning less than a million dollars, that want to get ready for a fair sale. Recasting is the way of looking at the financials in order to show all the available moneys for a working operator. Not always an easy job, since businesses' values are changing all the time but Jessica and Andrew are highlighting all the essential tools for a seller to have, keeping consistency and transparency as a priority. Listing of the Week: Tom Milana, South Florida broker, offers a well established AC company in Fort Lauderdale area, 10 years of operations, $250,000 in owners benefit. Price: $750,000. SBA program approved, only would need 10% down payment. Great opportunity! Key Takeaways: [1:38] What is recasting? [2:41] Checking seller's discretionary earnings. [3:38] The goal of recasting is to show earnings and compare them with other business. [4:16] Start with net profit and then add expenses, depreciation, and amortization. [4:43] What happen when there is more than one owner for the business? [6:48] Recasting items that are more typical in a business. [8:05] Documentation is the key! Buyers and the bank will ask for them. [9:14] Secondary items that could be added too. [10:55] How to deal with donations? [11:30] Deal of the week: Nate Ernest Jones, broker, presents a profitable and lifestyle business sale. Scuba Diving Business in Florida, the buyer? An employee of the business. [16:42] Non-recurring or one-time big expense. [18:44] Documentation on the seller's part when preparing to sell one or two years in advance. [21:33] Avoid the "seed of inconsistency" by being very conservative in the recast. [22:04] Listing of the week [23:49] What about cash that is not reported? [27:55] Consistency and transparency. Mentioned in this Episode: What is my business worth? Transworld Business Advisors Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us 888-711-9018 Email us [email protected] Tweetables: "Recasting is looking at someone's financials to show all the available moneys for a working operator." #thedealboard #transworldbusinessadvisors "Businesses change value very quickly because value is made on future income." #thedealboard #transworldbusinessadvisors

Andrew and Jessica are talking about small business, the ones that are earning less than a million dollars, that want to get ready for a fair sale. Recasting is the way of looking at the financials in order to show all the available moneys for a working operator. Not always an easy job, since businesses' values are changing all the time but Jessica and Andrew are highlighting all the essential tools for a seller to have, keeping consistency and transparency as a priority. Listing of the Week: Tom Milana, South Florida broker, offers a well established AC company in Fort Lauderdale area, 10 years of operations, $250,000 in owners benefit. Price: $750,000. SBA program approved, only would need 10% down payment. Great opportunity! Key Takeaways: [1:38] What is recasting? [2:41] Checking seller's discretionary earnings. [3:38] The goal of recasting is to show earnings and compare them with other business. [4:16] Start with net profit and then add expenses, depreciation, and amortization. [4:43] What happen when there is more than one owner for the business? [6:48] Recasting items that are more typical in a business. [8:05] Documentation is the key! Buyers and the bank will ask for them. [9:14] Secondary items that could be added too. [10:55] How to deal with donations? [11:30] Deal of the week: Nate Ernest Jones, broker, presents a profitable and lifestyle business sale. Scuba Diving Business in Florida, the buyer? An employee of the business. [16:42] Non-recurring or one-time big expense. [18:44] Documentation on the seller's part when preparing to sell one or two years in advance. [21:33] Avoid the "seed of inconsistency" by being very conservative in the recast. [22:04] Listing of the week [23:49] What about cash that is not reported? [27:55] Consistency and transparency. Mentioned in this Episode: What is my business worth? Transworld Business Advisors Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us 888-711-9018 Email us [email protected] Tweetables: "Recasting is looking at someone's financials to show all the available moneys for a working operator." #thedealboard #transworldbusinessadvisors "Businesses change value very quickly because value is made on future income." #thedealboard #transworldbusinessadvisors

Business valuation experts Andy and Jessica talk about the worth of a small business from the buyer's and seller's perspectives. Business valuation is an art and it can be approached through different methods, highlighting the assets, the earnings, or the market. As a buyer or a seller, you need to educate yourself about business worth, to understand how it operates under different variables, keeping it simple and finding the best deals according to the particular circumstances each business presents. Transworld Business Advisors are experts in the arena of valuation and in this episode expose the main facts for you to understand the pillars of a business's worth. Listing of the week: Chris Cantwell (Denver) presents a Restaurant and Bar at the Resort Mountain Communities, $1.3 million in revenue this year, SDE $300,000. They are asking $799,000 for the business. Call 303-408-3882 or email [email protected]. Key Takeaways: [:45] Two times! [2:55] Small businesses from $0 to a million dollar SDE. [4:11] Three approaches: Assets, Multiple of Earnings, and Comparable method. [5:47] The Market Method. [6:40] Comparing gross revenues. [7:52] Look at the earnings. [10:19] Quantity and quality. [10:49] Deal of the week: Florida with Anthony Geronimo, a buyer with extensive hospitality background bought a dry cleaner, sold for $1,950,000; great finances plan. [14:10] What are quality earnings made of? [15:43] The simplest way of predicting the future is looking to the past. [18:40] The buyer doesn't think the business is worth its price and the seller doesn't think they are getting enough money. [19:52] Listing of the week: Amazing Restaurant in Denver. [21:11] Main point of valuation when shopping or selling a small business. [23:40] Wait until you have real reasons to sell your business. [24:23] All about earnings. [25:25] Assets method is used for the business that is not making money. [26:38] Buying a business is one of the safest investments. [28:44] Educate yourself, know the market. Mentioned in this Episode: What is my business worth? Transworld Business Advisors Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us 888-011-9018 Email us [email protected] Tweetables: "Look at earnings for the true valuation." #transworldbusiness #valuation "The earnings method is truly based on future earnings." #transworldbusiness #earningmethod "The simplest way of predicting the future is looking into the past." #transworldbusiness #businesspredictions "The buyer doesn't think the business [is] worth its price and the seller doesn't think [they are] getting enough money." #transworldbusiness #buyer #seller

Selling and purchasing a business cannot be done right without considering in detail who is the landlord, in which economic atmosphere you are and how are you going to negotiate the lease. Listen to this episode and get to know about great and not so great real business done by three awesome brokers from San Diego, Texas, and New York, who will share their success and failures while dealing with landlords and lease arrangements. Listing of the week: 22-year-old business in Fort Lauderdale. PDR. Dealing with several new car dealers. Owners benefit projected for this year: $165,000! Only at $300,000. Contact Randy Bring. Key Takeaways: [:54] Landlords in a time of rising crisis. [2:10] If you are going to sell your business you have to read your lease. [3:20] The buyer will have to personally guarantee. [4:33] Linnea Westlake from San Diego's North Office [4:55] Retail in San Diego. [5:21] Who is the landlord? [7:10] Sellers must have a strong lease or they don't have much to sell. [11:10] How do landlords look at the new owners of the business? [12:51] Buyers: Cash is great but you have to be worthy of the lease. [16:55] Listing of the week. [19:12] Darrow Graham from Texas sharing about a deal that did not happen. [24:32] Advice to business owners that are in a lease negotiation. [26:07] Get a master lease. [27:23] The deal of the week: Small business Great Deal. [29:15] Eric Straus from NY: Landlords are nasty. [30:36] Sellers need to be up to date with the rent. [31:58] Read your leases before getting into them! Mentioned in this episode: Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Contact us https://www.tworld.com/ Call 888-719-9098 Tweetables: "Different types of landlords have different types of agendas." #transworldbusinessadvisors #landlords "Sellers must have a strong lease or they don't have much to sell." #transworldbusinessadvisors #stronglease "When buying, cash is great, but you have to be worthy of the lease." #transworldbusinessadvisors #lease #solvency

In today's episode, Andrew and Jessica dive into the complicated topic of dealing with landlords in the commercial real estate market and the inevitable fluctuation of the characteristics of this negotiation according to the economic atmosphere at the time of the deal. Prolific or down markets will set the features of the encounter with the landlord. Listen to the rich perspectives of Steven and Eric, business advisors from California and New York City respectively, and get tips to anticipate and set your strategy for a better deal. Key takeaways: [:40] Location, location location. [1:17] Different times in economic cycles impose different ways of dealing with landlords. [2:48] Transferring lease and negotiation with the landlord. [5:35] What happens in a down market when transferring leases? [7:05] Opportunity to renegotiate. [8:30] No banks were financing in 2009 economic crisis. [10:11] Steven Hanson's input about the commercial real estate market in California. [11:18] Tip to prevent deal killers: Get in touch first with the property manager. [13:02] Seller's strategy: See your lease as an asset. [14:55] Eric Straus' perspective on the market from NYC: Landlords are tough. Mentioned in this episode: Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Tweetables: "Down markets are opportunities to renegotiate." #tdb #transworldbusinessadvisors #downmarket #opportunity "Connect first with the property manager to prevent deal killers." #tdb #transworldbusinessadvisors #propertymanager "Sellers should treat their lease as an asset." #tdb #transworldbusinessadvisors #seller #lease

Andrew and Jessica welcome you to the The Deal Board podcast, a place to learn the best way to sell a business or grow by acquiring a new one. The goal is to help you understand the process, through talking with outstanding entrepreneurs who have learned from their own business endeavors so your path could be easier. Welcome aboard! Key takeaways: [3:24] Good deals for good people. [3:42] How did Jessica end up in this business? [6:35] The story behind Andrew Cagnetta's career in business. [11:18] Eric Straus, a serial entrepreneur who started in the radio business. Mentioned in this episode: Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Tweetables: "Different cultures run business differently." #thedealboard #business #culturaldiversity