Sell A Business Dallas - David Barr

"Working with Venture Opportunities was the best decision I made in selling my business; Anne's professionalism and organization were appreciated, but it was her results that won me over." - Kendra W.

"Without Anne and David Barr, I would not have bought my first business. They understand that every buyer has different needs in order to complete each deal. They go above and beyond in meeting the buyer's needs in getting the contract signed and closed. An example of this is when they spent a Friday evening driving around town gathering signatures, making sure the contract got signed. It was a very difficult transaction due to the extensive negotiations required. To this day, I am still amazed at how they got the deal completed. If the seller had chosen another broker, the seller would still be trying to sell the business. I am now working on buying a second and third business through Anne and David. They have been instrumental in assisting me in this process as well--They know what it takes for a buyer to secure financing, and assist in getting the required paperwork to the lender. If I ever decide to sell my business, I know where I am going for my broker." - Wesley H.

"We appreciate all of the expertise you put to work in getting this deal completed, and so quickly. It was a pleasure." - Christine H.

Many people dream of owning a business to be their own boss, have job security, control their hours, build equity, create a legacy, etc. Whatever your reason may be, you need to decide if business ownership right for you. The experienced professionals at Venture Opportunities can help you make this decision and guide you through the process of buying a business whether it’s an existing independent business, an existing franchised business, or a new franchise.

To help determine if business ownership is right for you, assess your:

• Personal Background
• Personal Interests
• What are Your Transferable Skills?
• Risk Tolerance
• Limitations
• Financial Resources
• Credit Score

Things you should consider when evaluating a business opportunity:

• How much money will I need to put down?
• What are the sales and what is the annual increase in sales?
• What is the inventory?
• What makes the business different/special/unique?
• What can be done to grow the business?
• What can be done to add value?
• Will the seller stay to assist new owner after closing?

For many, the thought of business ownership is very appealing. Business ownership is a way to control your own destiny, be your own boss, and ultimately build yourself a strong financial asset. There are different ways to embark on your business ownership journey. Should you start a new business, start a new franchise , or buy an existing business? Consider the following to help you make your decision.

If you are considering starting a business:

- Do I have a good concept?
- Have I done enough research?
- Do I have enough money to support my business & myself until the business is profitable?
- Do I have the business knowledge and expertise to successfully run a company?

Many people jump into starting a business without taking the time to do proper research. Sometimes starting your own business can seem like a more affordable option. Often times you can start something on the side or from your home. But the challenges you will have to overcome are much larger. If you are starting an independent business, you will have no “models” to go by when it comes to management, marketing, advertising, public relations, etc. You must develop everything from scratch. For some people, this is a great option. For others, it may seem like a good idea in the beginning, but they will quickly realize that they do not have enough experience in all areas of business ownership to be successful.

If you are considering opening a new franchise:

- Have I thoroughly researched the franchise concept?
- Are other franchisees happy?
- Does the franchisor provide adequate training & support for its franchisees?
- Do I qualify financially?
- Do I have enough money to live on until the business is profitable?

When buying a franchise , you have several distinct advantages over starting a business. Sure, it will cost you more in the beginning, but your investment will surely pay off. You will have the advertising, marketing, management, and public relations expertise from your Franchisor. They will help you get the business up and running, and provide ongoing training and support. You are in business for yourself but not by yourself. Investing in a franchise can be a very wise option if researched properly and if you are prepared. Franchise ownership can also be an intelligent “first step” into business ownership because of the proven concept and assistance previously mentioned.

Full article at: http://www.evancarmichael.com/Buying-A-Business/2777/Is-Business-Ownership-Part-of-Your-Destiny.html

HOW MUCH IS YOUR BUSINESS REALLY WORTH?

ValuationsA realistic valuation is a critical element regardless of the purpose. In today’s advantageous market, many business owners still leave substantial money on the table when they sell their companies - most often because owner(s) do not truly have a handle on their company’s value. Also for the purpose in regards to divorce, estate planning, business planning, partnership disputes, etc. For these reasons, the valuation process is a true asset to the business owner. Valuing a company requires a broad scope of technical and business experience, the ability to consider and select appropriate valuation techniques, along with a thorough understanding of today’s tax laws and corporate finance.

Why Should Business Owners Consider a Qualified Business Valuation?

SBA Lenders, Banks and sophisticated buyers require a qualified business valuation. A through, professionally prepared business valuation will assist the owner in:

• Expediting the business selling time frame and solidifying the price of the business.
• Help identify the key value drivers, major strengths and, more importantly, the major weaknesses of a company allowing the owner to solve both obvious and hidden problems prior to the selling process.
• Determining a reasonable selling price. Many owners rely on general rules of thumb, casual advice from friends, or similar unreliable sources. Unless the business owner goes through the valuation process, he/she will not know. If the owner’s expectation of value is too high, it will prolong the selling process until a price concession is made. If the price is too low, money is left on the table.
• Fully understanding the value of the business will strengthen the owner’s negotiating position. In this market, one can expect buyers to be sophisticated and experienced. A business owner must be prepared. Sophisticated and experienced buyers will conduct a rigorous analysis of the Company even if the Seller has not.
• Estate planning and business planning purposes. Divorce. Partnership disputes, etc.

Valuation Process

1. Obtain and review key elements of the business which includes but not limited to: Corporate/Business Documents, Business Financial Records, Company’s Market, Key Personal, Key Customers, Industry Trends, and Comparable Sales of Similar Companies.
2. Determine value indications of the business and owned operating and non-operating assets using categories of valuation approaches: Assets, Market and Income approach.
3. Determine final opinion of value after consideration of all information obtained, reviewed, analyzed and making appropriate allocations for goodwill and other intangibles the business possess.
4. Prepare a written report.

Valuation Based On Size of Company

• Express Valuation - Annual Sales of $500K & Under
  Depending on the purpose, the valuation can range between 7 to 25 pages. The final document will contain a formal cover letter outlining the purpose of the opinion and valuation conclusion, followed by the supporting financial exhibits.
  
• General Valuation - Annual Sales of $500K to $1MM
  A 40 - 45 page financial based valuation summary using general valuation techniques, comparable sold transactions, and industry rules of thumb. This type of valuation is designed specifically for small main street businesses.
  
• Formal Business Valuation - Annual Sales of $1MM to $5MM
  This limited scope valuation provides a complete analysis of the income statement and balance sheet, common size analysis, comparable transactions, industry analysis, economic outlook, current and future performance of the company.
  
• Mergers &Acquisition Valuation - Annual Sales in excess of $5MM
  A USPAP Comprehensive Valuation for transactional purposes. This valuation is intended for the larger small business that are expected to sell for more than $1MM., strategic Mergers & Acquisitions and generally any business with significant growth expected in the future. This report is a complete and self-contained financial and operational review.