Common Mistakes Sellers Make

When you’re selling a business, there are a lot of moving pieces. That means there are ample opportunities for things to go wrong. It’s always best to be prepared. When mistakes are made, it cannot only mean a significant expenditure of your time, but can also cost you money. These kinds of issues can derail your deal completely.

Smart Exit Planning

Smart exit planning is about maximizing business value, being financially prepared, and ensuring you have an after-exit strategy. Whether your business is growing, reached maturity, declining, or even closed, there is much you can do to maximize value and achieve a more favorable outcome. Your exit plan has a direct influence on the transition of your business.

Timing is Everything

When selling a business, timing is everything.  The key to a successful deal is to prepare well, come out strong and maintain momentum throughout the business sale process. Here are things to consider:

Know when it is a good time to sell YOUR business. Usually, the best time to sell is when sales and profits have been increasing each year and signs indicate the trend will continue. Current market conditions also play a role in prices paid for good businesses.

What is Due Diligence?

Due diligence is an investigative inquiry into a business that is performed by a potential small business buyer in order to ensure that the business being purchased is everything that has been represented by the business owner/seller.

During a due diligence period, the buyer will have an opportunity to verify the accuracy of financial information furnished to him by the seller and other details of the business for sale.

How Goodwill Impacts Your Business Value

Since the largest part of the purchase price of a profitable small business is usually goodwill, it is important to have knowledge and understanding of just what goodwill is and why there is value in it. 

Magnificent Mile to Main Street – The Transformation of Retail

Everyone’s heard the buzz about the death of traditional brick and mortar and the rise of experiential retail. U.S. retail vacancies were at 10.2% at the end of 2018, a marginal increase from 10.0% a year earlier, according to a report from Reis. Current market trends have challenged retail owners and investors with vacancies in retail spaces from areas like Magnificent Mile and Fifth Avenue as well as on Main Street.

Rules of Thumb

There are situations that justify a quick and easy business valuation based on Rules of Thumb, rather than a lengthy and costly business valuation.  To apply Rules of Thumb, the first step is to determine seller discretionary earnings (SDE).  This is calculated by adding back certain non typical expenses as well as non cash expenses to the net operating income.  This calculation is the first and most important step when valuing a business and should only

4 Not-So-Obvious Reasons Why Warehouses are Hot Investments Right Now

Vacancy rates are at all time lows. Absorption rates are at their highest and the “industrial sector has outperformed all other property types with double-digit total returns” according to the Integra Realty Resources 25th annual Viewpoint report covering the commercial real estate industry.

4 Reasons Senior Housing is Interesting to Investors

While senior housing has always been a profitable industry, it has really been able to stand on its own two feet recently as a viable and significant class of real estate – with more and more outside investors jumping on board and adding senior housing to their portfolios.

Numbers used to Evaluate a Potential Real Estate Investment

Evaluating a potential real estate investment is no easy task, and there are a number of things for investors to consider. Two of the metrics commonly used are the capitalization rate (both at purchase and estimated at sale), and the internal rate of return objective. Both measures can be useful evaluation tools, but it’s important to understand exactly what they measure and why they’re important.

Capitalization Rate

Risks and Realities of the Contract for Deed

While contracts for deed offer some advantages over a traditional mortgage, such as speed and simplicity, they can offer advantages and disadvantages.  In a contract for deed, the purchase of property is financed by the seller,  rather than a third-party lender such as a commercial bank or credit union. The arrangement can benefit buyers and sellers by extending credit to buyers who would not otherwise qualify for a loan. 

I've owned a business for many years and would like to sell it. How do I start the process?

First of all, Assemble a 'team' of professional advisors that would represent your best interest in the transaction. Your team should include an experienced business broker, an attorney and a CPA. There are many considerations in the sale of a business and each professional would lend their expertise. You may want to consider a 1031 exchange which would allow you to defer the capital gains tax upon the sale.

Why Grocery Stores are the New “Mall” of Our Era

For decades, large department stores served as the anchor store for malls and shopping centers. The anchor is the main attraction while all of the other retail shops inside of the mall pay the majority of the lease. Without the anchor, the mall dies. With so many big anchor stores closing in malls throughout America, could grocery stores replace department stores as the new “mall” of our era?

Selling Your Business | How to Start the Process

I've owned a business for many years and would like to sell it. How do I start the process?

Commercial Real Estate Matters | Co-Tenancy

I’ve heard that some retailers are going with a co-tenancy program.  What does that mean?