Category: State of Industry

State of Industry

“Happiness”

There has been a lot written, and a lot of research, on happiness in recent times. There is general agreement on the ingredients contributing to happiness. We believe owning your own business ticks all the boxes.

Positive emotions – having enough to live a comfortable lifestyle, educate the kids, and buy what you want (within reason). The latest findings suggest that money does buy happiness.

Engagement – being involved in what you are doing, enjoying your job.

Meaning – not necessarily changing the world, but...

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Invitation to Participate -- Quarterly Review Survey

Two in five business sellers are prepared to be “very flexible” with their asking price, according to the latest BusinessesForSale.com quarterly survey.

The survey, which forms part of the Market Intelligence section on BusinessesForSale.com surveyed business buyers and sellers worldwide. Further highlights include that 30% of sellers thought that shortage of credit was significantly affecting sales, compared with 14% who were confident that they’ll find a buyer. Nearly half (48%) of the buyers surveyed would pay a premium for a business with a good track record. Yet 45% of potential buyers will buy a struggling business if it's realistically priced and 34% would even enjoy the challenge of turning round a failing business.

We are now extending our market intelligence service to brokers/franchisors and are inviting them to participate in future surveys on their areas of interest. Please click here for more information. 

4th Quarter Market Snapshot

Almost half of people trying to sell their business have had a much worse response from potential buyers than expected, according to the latestBusinessesForSale.com survey.

Seller trends

Respondents were selling their businesses in geographical locations worldwide including Sweden, Indonesia, Pakistan and Jordan, among others. Seventeen percent of sellers were hoping to sell hotels or guesthouses, the most common type of business for sale, followed by real estate property (13%), manufacturing (13%), retail (11%) and cafes and restaurants (11%).

Of sellers whose businesses have been on the market for some time, 47% said...

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How Long Will It Take to Sell My Business?

The more things change, the more they stay the same.

When I first sold businesses 50 years ago sales agreement forms were only 2 pages long, IBM golf ball typewriters had been introduced the year before, commission rates were 2%, and supermarkets and shopping centres were in their infancy.

No internet. No cellphones. No faxes. No emails. No photocopiers. No PCs.

But we... 

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The businesses-for-sale marketplace: a snapshot

Thousands of buyers and sellers have taken part in the latest BusinessesForSale.com quarterly survey. Respondents answered from more than 15 countries, including the UK, USA, Australia, Canada and South Africa. Over 70% of respondents were aged 42 and older, with 20% of those wanting to buy or sell a business being female. We outline some highlights below.

Seller trends

The survey reveals that although economic conditions may be biting...

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Middle Market Business Outlook

 Comment from Tom West:

We receive a lot of newsletters and email information from business brokers and intermediaries. Below is an excellent example of what some do. Informative, but it also sells Bob’s company. In fact I enjoyed reading it and also learned some things. If you’re going to have a company newsletter that you send to potential buyers and sellers, Bob’s is a good example of what can be done.


To all-

We enter the fifth year of tough economic conditions with some measurable positive signs for middle market transactions: SBA lending is clearly...

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One Person’s Opinion Regarding the IBBA (for members only)

The following is an opinion by Tom West regarding a vote that closes February 17, 2012. 

Many of you may be unaware of what has been transpiring over the past few years within the Association (IBBA). What follows is strictly my take on the events, but the ultimate conclusion could, in my opinion, be catastrophic for both the IBBA and its subsidiary, the Source.

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2012: So, What's Changed?

The more I look at recent surveys asking who the business buyers are and why they are looking to buy (see some of those results here), the more I want to say, “So, what’s changed?”

When comparing some of these results to those found in surveys conducted 20 years ago, except for the increased use of computers and the reliance on listing sites, such as www.bizbuysell.com, not much has changed. Sure, the economy has impacted the business,

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The Latest on Private Equity in the Restaurant Sector

This article in BlueMauMau from John Gordon of Pacific Management Consulting, includes an updated private equity and restaurants report. The information details activity in the restaurant industry by private equity (PE) firms. The result? A lot of activity, investments, and some high profile failures.

Recently, FranchiseKnowHow published a two part series on Private Equity in Franchising.


© 2011 FranchiseKnowHow, LLC

Ed Teixeira is the President of FranchiseKnowHow, LLC. He can be reached at franchiseknowhow@gmail.com.

Cut the Time Between Listing and Closing

We recently reviewed a survey we had done for the International Business Broker’s Association by Babson College 20 years ago. One of the questions asked for the average number of days from listing to sale. We compared the results of the 1992 survey to our most recent survey results from 2011.

Survey Year Average time from listing to sale
1992 4.8 months
2011 10 months

The big question is, obviously, "Why do deals now take more than twice as long from listing to closing?"

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The Franchise Fitness Craze

The fitness industry continues to be one of the fastest growing concepts in the franchise industry. This article provides a look inside the fitness franchise craze and why this sector will continue to grow.

As Americans become more health conscience and focus greater attention on diet and exercise, the personal fitness industry continues to benefit from this healthy trend.  According to its 2010-2011 forecasts, the Bureau of Labor Statistics predicts employment of fitness workers is expected to increase 29 percent over the 2008–18 decade, which is much faster than the average for all occupations. These workers are expected to gain jobs because an increasing number of people are spending time and money on personal fitness, as more people recognize the benefits of health and fitness programs.

The United States Department of Commerce reports that there are approximately 31,000 fitness centers and health clubs in the United States and franchises represent almost 65% or 20,000 of the total, which includes personal fitness programs unique to franchising, such as Jazzercise. There should be little doubt that the personal fitness industry will continue to provide significant opportunities for individuals looking for franchises with a strong upside.

Market Potential is Key

When considering any franchise opportunity, market potential is an important factor. A strong and vibrant market for a franchise provides the right climate for...

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5 Positive Signs for Restaurants

Nation's Restaurant News recently posted an article that outlines five reasons why things are looking up for restaurant operators this year.  The reasons come from a research note by Brad Ludington, a restaurant securities analyst at KeyBanc Capital Markets.

Read the article.

 

Preliminary Survey Results -- Businesses Sold

According to our survey results so far, the average number of businesses sold in 2010 was 11 with a range from 0 to 297. The average for offices was 16 and the average for sole practitioners was 7 businesses sold.

If you haven't yet completed our industry survey, you have until the end of this month (just 4 days away) to complete the survey online and receive a free electronic copy of the industry survey results. If you have already completed the survey, feel free to forward the survey link to other brokers you know. The more brokers complete the survey, the more accurate picture we'll be able to provide of the 2010 state of the industry.

Baby Boomer Bubble???

Surveys have suggested that there will be a flood of new businesses for sale as baby boomers reach the age of 65 and that this will drive down the price of firms.

We do not believe it and see no evidence of it.

The reality is that people are living longer and healthier and see no good reason for retiring just because a certain age has ticked over. Many have no faith in the government looking after them and are unimpressed with the returns from investment in term deposits, shares, property, and (naturally) finance companies.

Of course, every business changes hands eventually, but we are not expecting a sudden flood.


April Market Report from Clyth MacLeod

Business sales are still slow. The main problem is a lack of good listings – saleable businesses with proven profits or genuine potential. Owners are hanging on to their firms.

Yes, we have plenty ofbuyers – immigrants, corporate redundancies, returning ex-pats, and people wanting to fly on their own wings. They are cautious and credit is very difficult to obtain – but they are ready, willing, and able to buy when the right opportunity is presented. We welcome the new financial year and look to many more business sales.


 

Participate in BBP's Industry Survey for 2010

Throughout the month of May, we are inviting all business brokers and intermediarys to complete our Industry Survey for calendar year 2010.  In appreciation for the time required to complete the survey, participants will receive free Industry Survey Results.

Survey results offer a glimpse of industry averages, changes and trends over time, as well as the general state of the industry. Obviously this "glimpse" is only as accurate as the data entered by those in the profession, so we do ask that participants take the time necessary to provide accurate information.  We so appreciate those who have completed our industry surveys in the past.

If you complete the survey by May 31st, we will make sure you receive a free copy of the results.

Begin the Survey Now

From the Desk of Tom West: SEC Suit

by Tom West

The letter to members of the M&A Source from Len Krick (see previous blog entry) should be read by all business brokers. We don’t know how far this will go and more importantly, what the ramifications will be. The unfortunate part of this is that Len is one of the good guys. He is a leader in the profession, always willing to share, works hard, has been very successful, does nothing wrong,...and look what happens.

If this case didn’t have so much importance in the workings of our business, we could say, "Well, these things happen." Of course, in this case, Len had nothing to do with what happened over the past five years. The deal closed that long ago. But, because of the asset sale changing to a stock sale, Len is in the middle. He had no decision in the change and informed all of the parties of the situation and his concern. They went ahead and paid him, and now, due apparently to the poor decision-making of the new owner (the buyer’s son-in-law), the seller, Len, and Len's firm have been sued.

Hopefully this case will die a quick death and court will see what actually happened and dismiss it. But, as Len points out, if it goes further, we may all pay the price.

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BizBen’s Busineses Sold in California

from BizBen.com

This list from BizBen.com of small and mid-sized businesses sold in Caliofornia presents a real picture of how the economy influenced the sale of businesses.  See the startling contrast from 2007 to 2010.

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CONTRIBUTORS

Tom West
BBP Co-Founder  ~  Massachusetts

Tom is a founder and past president of several large business brokerage firms and is also a founder, past president, and former Executive Director of the International Business Brokers Association (IBBA).  He has authored and co-authored several books, is editor of all 21 editions of The Business Reference Guide, and is often quoted in a variety of national newspapers and periodicals.

Email 


Loren Marc Schmerler
Bottom Line Management, Inc.  ~  Georgia

Loren CPC, APC is President and Founder of Bottom Line Management, Inc. He has been a business broker since 1986 and a business consultant since 1970. Loren represents sellers and buyers and has qualified for the 2012 Georgia Association of Business Broker’s Million Dollar Club.

Email  |  Web



Robert Flynn
Managing Partner of United Brokers Group, LLC ~ Rhode Island
Robert has been a business brokerage firm owner for nine years. Prior to that period he was a Senior Executive in two public and privately held technology and manufacturing businesses for twenty-eight years. From 1982 to 1996 Robert was a Senior Executive at the publicly traded +$3 billion (USD) London-based Cookson Group. He managed technology and manufacturing companies in England and the United States with a particular emphasis on startup and turnaround situations. Robert is also a licensed Rhode Island real estate salesperson and has owned five businesses.

 

Email  |  Website 1  |  Website 2 


Bob Sweeney
President of Innovative Travel Acquisitions, Inc. (ITA) ~ Georgia
Bob founded the Atlanta-based travel and tour business brokerage firm in 1991 after a successful 9-year career on Wall Street. Known as the "Matchmakers for the Travel and Tour Industries", ITA is a member in good standing with the American Society of Travel Agents (ASTA), the National Tour Association (NTA) and the International Business Brokers Association (IBBA). ITA operates a confidential platform LINKING buyers and sellers of travel and tour related companies throughout North America.

Email  |  Website  


Darrell Arne
Founder of Arne & Co.  ~  New Mexico
Darrell began his professional career in public accounting in 1970. In 1983, Darrell formed his own CPA practice, with emphasis on business valuation; by 1992, he had earned the Accredited Senior Appraiser (ASA) designation in business valuation. He then earned the Certified Business Intermediary (CBI) designation in 1995, and Certified Merger & Acquisition Advisor (CM&AA) designation in 2008. He discontinued practicing in public accounting in 1994 when he formed Arne & Co., specializing in exit strategy planning for business owners, business valuations, business acquisitions & sales, business dispute mediation, part-time CFO services, and developer of business training seminars. 

Email  |  Website  


Jean D. Sifleet, Esq.
Business Attorney and Creator of Smart Fast®  ~  Massachusetts
Jean began her career with big law and accounting firms. She did a stint in state government, and then moved to the computer and communications industry. Frustrated with bureaucracy, Jean co-founded and sold two successful companies.  Today, Jean practices business law. She enjoys working with people who are starting a company, or who want to grow their company and stay out of trouble. Her advice is grounded in her first-hand experience as an entrepreneur as well as her knowledge of law, finance and management.  Calling herself a nontraditional lawyer, Jean uses Smart Fast®, a practical and systematic approach to evaluating options and making informed decisions. 

Email  |  Website


Ron Johnson
Chairman, ABI Business Sales, Mergers & Acquisitions  ~  California
Ron is Chairman of ABI Business Sales, Mergers & Acquisitions, which was established in San Ramon, CA, in 1984. Ron has been the intermediary in over one hundred transactions since entering the profession in 1991, and has managed, for his associates, many hundreds of additional transactions. Ron is well recognized nation-wide in his profession, having served 10 years on the Board of Directors of the California Association of Business Brokers (CABB), including two terms as President of the CABB.

Email  |  Website


Ralana Shelley
Certified Business Intermediary, Sunbelt  ~  Indiana
Ralana comes to the table with over eight years of experience in the Business Brokerage industry. Prior to making the transition to Business Broker, Ralana specialized in Marketing small to mid-sized businesses in the Indiana marketplace in her role as Marketing Manager for Sunbelt. 

Email  |  Website 1  |  Website 2  |  Website 3  |  Blog  |  LinkedIn  |  Twitter


Rose Stabler
Certified Business Brokers (CBB), Managing Partner ~  Texas
Rose has 25 years of business experience from serving in management and consulting positions in the Oil & Gas, Biotechnology, and Manufacturing industries to working for private equity giant Forstmann Little & Company to starting, building and selling an online promotional product firm that featured her own line of items. Rose serves as business advisor on the Houston Business Show on CNN650 and appears regularly on the Movers and Shakers panel discussion segment of Houston Manufacturers Show. Rose has published many articles about the process of buying and selling businesses and has contributed to Inc. Magazine. 

Email  |  Website 1  |  Website 2  |  Website 3  |  Blog


Wayne Quilitz
Murphy Valuations, President ~  Florida
Wayne's experience includes 28 years in electrical engineering and marketing in the electronics industry.  He served in the U.S. Navy, worked for Boeing Aerospace and Texas Instruments, and owned/operated a retail store for five years before joining Murphy Business and Financial Corporation.

Email  |  Website 


Richard L. Kolman
Franchise Note Buyers, LLC, President & Principal Owner ~  San Diego, CA

Richard has long served as trusted in-house legal counsel for some of the nation’s leading franchising companies. Rich began his franchise legal career in 1988 as a Corporate Attorney in the Legal Department of McDonald’s Corporation. He recently retired from the UPS Legal Department, following eleven years as Senior Franchise Counsel for The UPS Store and Mail Boxes Etc. (4,400+ franchises).  Despite the current adverse national economy, Franchise Note Buyers and its strategic underwriters bring unparalleled access to large sums of liquid capital needed to quickly fund numerous Franchise Notes at top-dollar prices.

Email  |  Website  |  Blog 


Bill Martin
ABMI, USBIZCORP and USFRANBIZ Founder  ~  Missouri

Since starting as an agent in 1982, Bill's career has included the building of business brokerages from scratch in over 20 cities coast to coast.  He is the founder of United States Business Brokers, Inc (USBIZCORP) and USFRANBIZ, Inc.  Bill has been involved in the sale of almost 4,000 different business acquisition transactions. He has also had articles and opinion memo’s published in trade publications, and is a nationally recognized trainer and mentor in the business brokerage industry.

Email


Russell Robb
Managing Director, Tully & Holland, Incorporated ~ Massachusetts

Russell Robb is a 20-year veteran in the mergers and acquisitions business, providing investment banking and corporate finance advisory services to a wide range of middle market companies. His transaction experience includes numerous companies in the consumer products industry, as well as a broad array of other manufacturing and distribution companies in various industry sectors. Russ is the past president and owner of two sporting goods manufacturing/retail companies. He is a published author of Selling Middle Market Businesses and the former editor of a highly regarded monthly M&A industry newsletter. 

Email


Len Krick
Sunbelt Owner, CBI, M&AMI ~  Las Vegas, NV
Len, owner of the Sunbelt Las Vegas office, is a Certified Business Intermediary ("CBI"), a Merger & Acquisition Master Intermediary ("M&AMI"), and holds a Nevada Real Estate Broker License. He has over twenty years of business and business consulting experience and is an active member, moderator and speaker for the International Business Brokers Association ("IBBA"), the Las Vegas Business Forum, and the Las Vegas CFO Group.

Email  |  Website


Ted J. Leverette
"Partner" On-Call Network, President 
Ted, The Original Business Buyer Advocate ®, has consulted with thousands of business buyers and owners on buy/sell, valuation and business improvement since 1974. Since 1993 he has taught affiliates in the USA and Canada, who independently own and operate their consulting practices, The Street-Smart Way to Become a Business Consultant™. He has been a lecturer for trade associations and author of texts, articles and the book, How to Get ALL the Money You Want For Your Business Without Stealing It™.

Email  |  Website


Ed Teixeira
FranchiseKnowHow, LLC ~  New York
Ed is the founder and President of FranchiseKnowHow, LLC a franchise-consulting firm. Ed has worked in the franchise industry for thirty years and has served as a corporate executive for firms in the retail, manufacturing, healthcare and technology industries. He has been involved with over 1,000 franchise locations and has transacted international licensing in Europe, Asia and South America. Ed is the author of Franchising From The Inside Out.

Email  |  Website


Jeff Fabian
Fabian, LLC ~  Baltimore, MD
Jeff is founder of Fabian, LLC, a boutique law firm headquartered in Baltimore, Maryland that provides trademark and copyright protection and contract drafting and negotiation services for businesses, artists, entertainers and athletes. He has published scholarly articles on trademark use in the Internet context and state franchise relationship laws, and has co-authored numerous articles appearing in various legal, business and industry publications.

Email  |  Website 1  |  Website 2  |  Twitter 


George D. Abraham
Business Evaluation Systems, CEO 
George has been involved in the transfer of over 450 businesses and performed over 12,000 appraisals in the past 32 years. Two of the appraisals Mr. Abraham was involved in passed the scrutiny of the World Bank. His company was the first in the nation to develop and gain national attention for its unique and highly accurate business evaluation software programs.  George is a licensed Real Estate Broker, Real Estate Appraiser, Business Appraiser, Machinery and Equipment Appraiser, Board Certified Business Broker, Certified Environmental Inspector, Certified Business Intermediary, Licensed State Property Tax Consultant, Accredited Review Appraiser, and Certified Business Counselor.

Website


Clyth MacLeod
Clyth MacLeod, Ltd. Managing Director ~ New Zealand
Clyth has over 40 year's experience in business broking and business valuation. yth is also a director of Business Appraisals Ltd (business valuers), BizStats Ltd (a national database of business sales information) and Australasian Business Valuations Ltd (consultancy).As well as authoring many articles and texts Clyth has lectured nationwide and overseas on business sales and valuation for many organisations including the Institute of Chartered Accountants of New Zealand and the International Business Brokers Association in the USA. The only business broker to be awarded a Life Membership by the Real Estate Institute of NZ and a Fellowship by the International Business Brokers Association he remains active in the industry and committed to leading a professional team.

Website


Jack R. Sanders
Spectrum Corporate Resources, LLC Managing Director
Jack has been an active full-time business intermediary since 1985. He has personally handled over 130 business transfers and has appraised over 1,450 businesses. He is also the author of the “BIZCOMPS®” studies, a leading authority on the market value of small and medium business in the United States and Canada. The studies contain actual transaction information on over 12,000 transactions and are marketed in both print and electronic form. Jack is also an instructor in educational courses leading to the Certified Business Intermediary designation.

Website


Christopher George
George & Company, President ~  Worcester, MA
Christopher is a Certified Business Opportunity Appraiser, Company President, and also a past president of the Association of New England Business Brokers. Chris has been engaged in the appraisal, sale and financing of small to mid-sized businesses since 1971. He has personally aided buyers & sellers in thousands of sales and appraisals.

Email  |  Website  |  LinkedIn  |  Facebook

 


Roger Murphy
Murphy Business & Financial Corporation, President / CEO ~  FL
Roger is a Certified Business Intermediary and Master Certified Business Counselor with over 25 years experience in executive management and financial management. He is the President / CEO of Murphy Business & Financial Corporation, one of the largest and most successful business brokerage firms in North America with business brokers located throughout the United States and Canada. Murphy Business specializes in businesses for sale, franchises, business valuations, and commercial real estate.

Email  |  Website 


Amanda Puppo
MarketReach Inc., CEO & Founder  ~  Lawrenceville, NJ

During her dealings with various companies, Ms. Puppo became aware of an apparent general aversion towards the application of the cold-call, while at the same time, realizing its importance in business. In March, 2001 at the age of 26, Ms. Puppo created MarketReach Inc. MarketReach does cold-calling/lead generation and market surveys, so clients can spend their time building their business and servicing their customers. MarketReach was named a Finalist in the Most Innovative Company category in The 2004 Stevie Awards for Women Entrepreneurs. 

Email  |  Website   |  Twitter

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