BROKER'S BLOG

Things are Getting Better. Really.

March 9, 2011

I suspect that many business owners have put their future plans "on hold" during this recession. If so, now may be a good time to consider developing an Exit Strategy. The business for sale market has dramatically improved over the past six months. This is what we have been seeing:

• Buyers are still cautious, but there is an increased willingness to take some risk. We are currently working with many motivated buyers looking to purchase a profitable business in this area.
• People are once again looking to relocate from other states to Florida. During the peak of the housing boom, this migration had slowed dramatically. Now that houses are more affordable, many individuals are once again looking to relocate to our state and buy a business.
• National lenders are staffing their SBA loan departments for the first time since the credit crisis began. Lenders are certainly still cautious, but they are cooperating a little more by looking at recent business trends. If business sales are "up" versus the same period last year, then they are giving that favorable consideration in the loan approval process.

If your business is starting to trend up again, it may be a good time to develop an effective Exit Strategy.

With Change Comes Opportunity

June 20, 2009

Never has this saying been more true than now. The Great Recession has displaced millions of workers, tested the strongest of business owners and affected the savviest of investors. This is a time when many are changing direction and assessing their life priorities. There is a greater appreciation of the things that matter most in life. For many, this will be the time for changing direction and "reshuffling the deck".

It is a time to be creative and take control of your own destiny. Industries are consolidating, business owners are rationalizing every expense in their P&L, everyone is "hunkering down". A new world order is emerging. The opportunity exists to buy some historically strong businesses at fire sale prices. The opportunity exists to apply your skill sets in new creative ways.

Materials and labor are cheaper, competition is thinner, employees and landlords are more accommodating. If your life has changed, will you identify and seize the opportunities or lament the way things used to be? There is no turning back. Our country and our economy have been permanently altered. There will be big winners on the other side of this -> those who realize what's most important in life, are honest with themselves, set actionable goals and aggressively pursue the opportunity that change has brought.

The Millionaire's Club

November 19, 2008
Ken Elkin, Broker/Owner Acquisition Experts LLC.
To contact, comment or respond, ken@acquisitionexperts.net

I saw an article recently that had an interesting statistic - 50% of all existing US millionaires made their money running their own business. Statistics have always fascinated me. Compare that statistic with the famous truism we often hear - "9 out of 10 new small businesses fail". These are two very different "clubs" whose members are small business owners. Obviously, we prefer to help our clients join or stay in Club #1 (through the sale or purchase of an existing business) and avoid participation in Club #2.

I believe a great many prospective business buyers are confused about RISK. They tend to equate risk with the AMOUNT of money to be invested, not the PROBABILITY of succeeding and earning a desirable return on that investment. This is part of the classic "Build vs Buy" decision. It is certainly riskier to start a business from scratch than to buy an existing successful business with proven products, services, systems and relationships. The amount of initial investment may be less for a start-up (or to buy a very small existing business), but the odds of failing and losing that initial investment are, generally speaking, much higher.

Which investment has more risk: $50k invested to start a business with a 90% chance of failing or $250k invested as a down payment on an existing business with, say, a 90% chance of succeeding? Buying a successful business of a minimum size - with good people, systems and customers already in place - greatly improves the likelihood of substantial success. The investor buying a proven established business may indeed put more money at risk, but the odds are much better that initial investment will enable membership into "The Millionaire's Club"

Sharing Philosophy

November 7, 2008
Ken Elkin, Broker/Owner Acquisition Experts LLC.
To contact, comment or respond, ken@acquisitionexperts.net

We live in the trenches, putting together deals every day and maintaining relationships with literally thousands of business owners and prospective buyers. We have gone through difficult negotiations side-by-side with our many clients. Sometimes we learn as much from them as they learn from us. We've shared in the pain of hard lessons learned. We've celebrated great achievements and dreams realized. We see the difference between success and failure and even mediocrity. The real difference makers are often "between the lines" - an attitude, a philosophy, an approach - that separates the winners from the losers. We would like to share some thoughts and observations that may hopefully help you in the pursuit of your significant life goals.