BUSINESS OPPORTUNITIES

PR Properties Group is licensed to Broker Business Opportunities as well as real property. One reason this is important to know is because businesses and real properties are often unexpectedly commingled and affect the sale of one or the other entity. Many brokerages do not have the expertise to deal with resolving these interdependencies and must farm out part of the deal to someone experienced in that area. PR Properties Group can handle transactions that have both Business and Real Property components.

Because Business Opportunities have an extremely high level of litigation, it is important to have a Broker who is experienced enough to avoid the minefield of potential problems on the way to a profitable business transaction.

HOW TO SELL A BUSINESS

• Make sure your books are in order with a readable recast P&L.
• Make sure all cash flows are properly taxed and accounted for. A dollar in unaccounted cash can result in more than three dollars loss in sale price.
• Make sure you have an escrow agent capable of handling a business transaction in order to avoid costly litigation.  We can suggest reputable escrow agents.

With almost any business for sale, there are due diligence procedures which will allow an educated buyer to determine the validity of the financial statements offered by the seller. Every business has some way of determining the correctness of the reported or stated income.

When buying a business, keep in mind the fact that working with a well established, experienced and reputable licensed Business Broker will be well worth your time. In most cases, the seller will be paying the commission to the Brokers involved, so there is usually no brokerage commission cost to the buyer. Having qualified representation during the purchase process can add to your peace of mind and will help remove any or most of the emotional aspects of the purchase.

HOW TO BUY A BUSINESS

• Make sure your business Broker is able to eliminate the 80% of businesses that are overpriced and should never be bought much less listed.
• Make sure the books of the company you are considering are in order. Your Broker is not an accountant, but should be able to guide you in finding the legal and accounting advice necessary to complete proper due diligence.
• Make sure all seller cash flows are properly taxed and accounted for to avoid future liability.
• Make sure you have an escrow agent capable of handling business transactions (rather than commercial) in order to avoid costly litigation.

In order to derive the highest possible market price when selling your business, you need to take some time to do some strategic planning. It is best if you can begin to posture your company for the sale at least one year prior to actually putting the business on the market. By the end of the “prep” year, the business should be reporting as much income as is possible and should be running as “lean” as practical. Books and records should be kept on a monthly basis. Profit and Loss Statements, along with Balance Sheets should be generated monthly.

A well established and reputable licensed Business Broker will be able to analyze your financial statement, make recommendations for increasing the value of your business, and, when the time comes, will be qualified to provide you with a business valuation.