What's Behind the Numbers

Have you had a recent decline in sales and/or profit in your business? It's so important to know what the full story is behind the numbers. An economic slump, a dying industry, and new competition can all play a role in decreased sales. Sometimes, there may also be a postiive story behind the scenes.

Maybe you've been really burned out and hired additional employees to help carry the load. Perhaps the street was torn up for a period of time. A bit of investiation might uncover a legitimate reason for a decline in sales and/or profits. This would be important information in regards to selling the business and also an area that a professional broker can help uncover.

courtesy of Business Brokerage Press

Are you sure you're ready to sell?

You may have decided it's time to sell, but before you begin the M&A process, you need to take a good, hard look at what you plan to put on the block. Just because you're ready doesn't maean buyers will be interested - particularly if this is the first time you've thought about preparing your business for sale.  Prospective buyers won't just scrutinize your business, but they'll also compare it to other opportunities in the marketplace.

Asking tough questions
With the help of your M&A advisors, go over your company with a fine-tooth comb, just as a buyer will during the due diligence stage. Evaluate everything from debt levels to personnel to customer relationships and address any issues that are likely to give potential buyers pause, such as too much business concentration in only a few customers.

To read the full article by the staff at SunbeltMergers.com click here.

Exit Planning:Prepare for an out while you're still in

Running a successful business is time consuming, leaving you little time to plan what may seem like distant succession issues. It's important, however, to outline an exit plan and make succession decisions as early as possible. Evaluating and grooming possible successors or preparing for an outside sale can take years. And it's never too early to make retirement and estate plans.

Take stock
Before determining where you want to be when you're ready to retire, assess where you and your business are financially today. Prepare a detailed financial analysis of your business with the help of a valuation professional. This expert will review historical data to determine its current value.

Click here to read the full article by the staff at SunbeltMergers.com.

Creating Value in Privately Held Companies

Creating value in the privately held company makes sense whether the owner is considering selling the business, plans on continuing to operate the business, or hopes to have the company remain in the family. Building value should focus on six components:

• the industry
• the management
• products or services
• customers
• competitors
• comparative benchmarks

Click here to read the full article Courtesy of the Business Brokerage Press.

Why Your Company Needs a Physical

Complements of Business Brokerage Press

Many executives of both public and private firms get a physical check-up once a year. Many of those same executives think nothing of having their investments checked over at least once a year - probably more often. Yet, these same prudent executives never considering giving their company an annual physical, unless they are required to by company rules, ESOP regulations or some other necessary reason.

A leading CPA firm conducted a survey that revealed:

• 65% of business owners do not know what their company is worth;


• 75% of their net worth is tied up in their business; and


• 85% have no exit strategy

They are many obvious reasons why a business owner should get a valuation of his or her company every year such as partnership issues, estate planning or a divorce; buy/sell agreements; banking relationships; etc.

No matter what the reason, the importance of getting a valuation cannot be over-emphasized...

To learn more... click here to read the full article.

Recent Businesses Sold in central Indiana...

The following are businesses recently sold by Sunbelt Indiana brokers ... congrats brokers - great job!

• Free Spirit Lounge (Broker Gary Stehle)


• Kem-Co Chemical (Broker Tim Koger)


• Midas Location (Brokers Brian Knoderer & Dave Gorman)


• Mears Automotive (Broker Dave Gorman)


• Jack's Pizza - Danville (Broker Tim Koger)

If you are interested in learning more about selling your business, buying a business or planning for an exit strategy down the road, please contact us immediately. Sunbelt Indiana has been selling businesses in the Indiana marketplace for over 30 years! We have sold over 1,300 and can help you sell yours.

Ph. 317-573-2100
marketing@sunbeltindiana.com

Check Out "Sales of Small Firms Are Up" in Wall Street Journal today

Sales of Small Firms Are Up
But Gain in 2nd Period Reflects Owner's Realization Businesses are Worth Less

By Sarah Needleman
Wall Street Journal, July 14, 2011

More small business owners sold their companies in the second quarter, but there's gloom surrounding the transactions.

Sales of businesses with roughly $350,000 in annual revenue rose 8% from a year earlier, reports BizBuySell.com, an online marketplace for small-business acquisitions in San Francisco. The increase marks the third year-over-year quarterly gain in a row, with brokers nationwide reporting similar gains.

Yet the growth isn't indicative of significant improvements in business performance or banklending volume. Instead, main driving force is the acceptance among owners that their businesses are no longer worth what they once were. Many sellers cut their asking prices and agreed to finance a significant portion of the deals themselves.

To read the full article... click here.

Article 6: Equipment - The Very Expensive Desk Lamp

Courtesy of Business Brokerage Press
"Moral of the story: Prepare your business before a buyer sees it"

This is a story based on a true incident - only some of the details have been changed. The buyer and seller were ready to close on a business when the buyer asked to look at the list of fixtures and equipment that were to be included in the sale. After a few minutes reviewing the list, the buyer said that the desk lamp on the owner's desk was not listed. The seller explained that the lamp was a gift from his parents many years ago and therefore it was not included. The buyer got very upset, stating that the lamp was just perfect for the desk and he wanted it. The seller tried to explain that the lamp had lots of sentimental value, but that he would replace it with another desk lamp. This did not satisfy the buyer, and in order to stop the sale from falling apart, the seller agreed to subtract $1,000 from the purchase price to keep the lamp. That made the desk lamp a very expensive one.

To find out how this could have been avoided, and how you can avoid this scenario, read the full article... click here.

Exit Planning - Prepare for an out while you're still in

Running a succesful business is time consuming, leaving you little time to plan what may seem like distant succession issues. It's important, however, to outline an exit plan and make succession decisions as early as possible. Evaluating and grooming possible successors or preparing for an outside sale can take years. And it's never too early to make retirement and estate plans.

To read the full article from Sunbeltmergers.com... click here.

Check out our newsletters - great resources for buyers, sellers and professional advisors.

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Great articles about what Buyers expect. If you are thinking of selling your business in the near future, this is a must read...

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