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Expert Tips: What to Look for When Buying a Business with Luis Zavala Consulting and Murphy Business Sales Tampa

Expert Tips: What to Look for When Buying a Business with Luis Zavala Consulting and Murphy Business Sales Tampa

by | Jun 15, 2023 | Buying a business

Buying a business is a complex and involved process that requires a lot of research and analysis. By working with a professional business broker or consultant, like Murphy Business Sales Tampa and Luis Zavala Consulting, you can streamline the process and increase your chances of success.

 

Financial Performance

One of the first things to consider when buying a business is its financial performance. This includes analyzing financial statements and looking for trends in revenue and profit growth. You’ll also want to identify any potential red flags, such as declining sales or high levels of debt.

 

Industry and Market Trends

It’s also important to understand the industry and market trends in which the business operates. This includes researching competitors, market demand, and any regulatory changes that could impact the company’s operations. A professional business broker or consultant can help you assess these factors and determine if the business is poised for growth or decline.

 

Employee Structure

 Another important consideration is the company’s employee and management structure. A well-functioning and experienced leadership team can greatly impact the company’s success. Be sure to review the organizational chart, assess employee turnover rates, and identify any labor or union issues.

 

Assets and Intellectual Property

The assets and intellectual property of the business are also crucial factors to consider. Review the company’s physical property, equipment, inventory, and intellectual property to verify ownership and assess their value. Additionally, it’s important to review any patents, trademarks, or copyrights the company owns to ensure they are up-to-date and properly registered.

 

Get Expert Advice with Luis Zavala and Murphy Business Sales Tampa

 Working with a professional business broker or consultant, like Luis Zavala Consulting and Murphy Business Sales Tampa, can provide you with expert guidance and support throughout the entire process of buying a business. With their years of experience in business consulting, valuation, and M&A, they can help you find the perfect business opportunity and negotiate the best deal.

In summary, when considering buying a business, it’s crucial to conduct thorough research and analysis of the company’s financial performance, industry and market trends, employee and management structure, and assets and intellectual property. Working with a professional business broker or consultant can help you navigate the complexities of the process and increase your chances of success. Contact Luis Zavala with Murphy Business Sales Tampa to get the expert advice you need to buy a business.

WHY YOU NEED A VALUATION

by | Sep 9, 2022 | Business, Business Information, Buy a Business, Buying a business, For Buyers, For Sellers, General Business, Sell a Business, Selling, Selling a business, Valuation, Valuing

The buzz is that if you are a Baby Boomer and you want to sell your business in the next few years, then you are in the majority. You are not the only Baby Boomer and will possibly have your business compete against many more similar businesses in both model and industry. In order to be well-prepared, you will need a proper valuation. Establishing a baseline value of your business will help you overcome weak areas that keep you up at night. Why would a buyer want to buy your problems? Some savvy entrepreneurs will want your problems, but most will not.

 

Check out our short video on the different types of Valuations.

 

Roger Murphy, our CEO, explains the different types of valuations we provide.

Think Like a Buyer When Selling Your Business

by | Sep 9, 2022 | Buying a business, For Buyers, For Sellers, Selling a business

When you’re hoping to sell your business there are a number of things to be concerned about. There are a few ways you can get a step-up on your buyer and anticipate their moves before they have thought them up themselves. If you want to swim with the piranhas you’re going to have to nip a few toes; if you want to sell your business, you’re going to need to think like your buyer.

Understand what the buyer is after – One of human beings greatest faults and one of the things which every business seller can be at fault of is being too rooted in your own self-interest. If you would take yourself out of the equation for a moment, you’ll likely find that your deal is skewed towards your own interests; at least in your own mind. Think about what the buyer is after; what could make this deal impossible for them to say no to? If all business sellers would simply take a minute and put themselves in their buyer’s shoes they may find that the work is done for them. The schematics of the deal will fall into place effortlessly if you let them.

Be Upfront when selling your business – You would hate to be trying to hide something negative about your business; be it the structure of the building, last year’s receipts, inflated accounting or anything else; only for this to be revealed later on and to be bitten by it down the road. Rather than fight that fight, be upfront. Not only does this tactic save time on the vetting; then the buyer is a lot more likely to be straight with you. You can know sooner if this deal is a good fit or if the time has come to part ways.

If you’re able to be flexible with financing, be flexible! – Financing is another bugaboo. If you’re the outright owner and are able to be flexible with financing you may as well offer that up as an option. This may allow you to keep your hand in the kitty just a little longer and enjoy continued fruits of your labor. Be wary of the hostile takeover – Don’t be too nice. If you feel as though you’re being stepped on, best to revert to a defensive pose.

It’s also a good idea to have a trusted partner on your side to help broker the deal.

Understanding Buyer Priorities: What Matters Most to Business Buyers

by | Sep 9, 2022 | Buy a Business, Buying a business, For Buyers

An established business has much to offer a prospective buyer. A proven product or service exists, as well as a customer base. Typically, there are experienced employees and managers in place (and many choose to remain with the company after the sale is complete). There is a cash flow from the first day the buyer takes over the business. The company is already accustomed to paying its debt service in addition to a reasonable salary for the owner. The following are some of the things that will make your business stand out and be attractive to buyers:

  • Proven verifiable books and records, tax returns
  • Reasonable Price
  • Leverage and terms, They want to use bank financing, owner financing and as little of their own money as possible
  • Solid, verifiable cash flow
  • Furniture Fixtures and Equipment properly valued and in good condition
  • Positive appearance of facility, good reputation
  • Favorable lease and lease options
  • Training, transition period with the seller
  • Covenant not to compete, non-solicitation agreement
  • Solid Reason Why the owner wants to sell
  • Experienced Employees who will stay on
  • No last minute surprises