Category: Brokerage Services

Tips for Buying a Business

If you’re about to buy a business, you may feel incredibly excited about the road ahead. Finally, you get to realize your dream of becoming a business owner! Nonetheless, it’s important that you don’t allow this excitement to cloud your judgment when it comes to finalizing agreements with the seller. 

There are several things you should consider before closing the deal. Take a look at our tips for buying a business to ensure you’ve completely covered your bases in advance of making this monumental decision. 

Consider Getting a Non-compete Agreement

With so many details going into the negotiation process, you may underestimate the importance of including a non-compete agreement into the final purchase and sale agreement. This type of agreement is beneficial for the future security of your business as it guarantees that the seller won’t compete with you for a set period of time. 

“No solicit” and “No recruit” agreements may also be worth considering. A “no solicit” agreement prevents the seller from soliciting your customers, while a “no recruit” prevents them from poaching their former employees after the deal closes. 

Understand the Role that Key Employees Play

Many businesses that experience success do so based on the hard work of a few key employees. If you happen to lose these employees during a transition, you may find that you’re left with a different business than the one you thought you’d purchased. 

Putting in the effort to keep some of the most important employees in their roles can go a long way in maintaining successful business operations throughout your first crucial months as a business owner.

Depending on the situation, you may even want to negotiate a way for the selling owner to remain at the business in some capacity for an extended period of time. This could involve a structured payment plan or incentive plan to encourage peak performance and a smoother transition. 

Avoid the Pressure Trap

Too often, sellers will try to pressure potential buyers into rushing the decision-making process by telling them about all the other potential buyers jumping at the bit to purchase the business. However, these contenders aren’t always real, and these claims shouldn’t necessarily be taken seriously. 

If you feel pressure at any point during the negotiation process, don’t hesitate to take a step back to reevaluate your priorities. Most importantly, never fall into the trap of thinking that it’s worth proceeding simply because of all the time you’ve spent to get to this point. The worst-case scenario is not wasted time, but rather owning a business that you regret purchasing. 

Don’t Overlook Dishonesty

Be wary of sellers whose documents show that they’ve been fibbing on their tax returns. While they may claim that “everyone does it,” you can be sure that if they’re willing to be dishonest with the government, they won’t hesitate to be dishonest with you either. 

If you decide to proceed with a business owner who’s been underreporting their sales, you’ll need to do extra homework to ensure that you won’t be held liable for their behavior. In addition, you’ll want to have all the information they’ve given you independently verified to sort out what’s fact and what’s fiction.

Partner with a Business Broker

Are you in search of tips for buying a business because you feel overwhelmed by the decisions you’re facing as you navigate this complicated process? An experienced business broker can provide much-needed guidance and help you sidestep any pitfalls along the way. 

At Murphy Business, we understand how stressful it can be for first-time buyers to enter into negotiations on their own. You can rely on our professional brokers to assist you as you make important decisions about your future. We offer trusted valuation services, negotiate on behalf of our clients, and can help with drafting a final agreement that allows you to seal the deal with confidence. 

If you’re looking for more tips for buying a business, our business brokers are ready to help. Call Murphy Business today at (888) 561-3243 to speak with a professional business broker near you.  

How to Find Businesses for Sale

If you’ve recently decided you want to become a business owner, congratulations! You’ve just reached a huge milestone in your professional career. If you’re interested in owning an established business but aren’t sure how to find businesses for sale, you’re in the right place. We’ll fill you in on the various roads that you can take to become a business owner by purchasing an already existing business.

Locate Businesses for Sale with These Methods

Whether you want to start your career as a business owner by a specific point in time or are simply on the lookout for good opportunities that may arise, there are a number of routes that can lead you to your goal. Here are some of the most common—and most effective—ways to find a business for sale.

Calling Businesses in Your Area

While you may not feel totally confident cold-calling local businesses at the start, taking this step can help you get a sense of the market in your area. Since many business owners don’t advertise that they’re interested in selling for fear of scaring off customers or startling employees, it’s not always easy to figure out which businesses are for sale without asking directly.

Of course, the vast majority of business owners you reach out to won’t be looking for an exit. Nonetheless, this doesn’t mean you’re wasting your time. The individuals you connect with may be able to refer you to other business owners who are interested in selling. Making these contacts is an essential part of establishing yourself within the network of small businesses in your community and growing the list of people you can reach out to throughout the journey of business ownership.

Browsing Online Aggregators for Small Businesses

It probably comes as no surprise that there are plenty of websites out there dedicated to posting the details of small businesses for sale, including sites like BizBuySell.com and Bizquest.com. Other websites, such as Franchisegator.com, are geared more towards advertising franchises for sale. 

These sites offer tools that make it easy to search through different businesses based on their selling price, location, and industry. By using these tools, you can gain a better understanding of the businesses on the market in different locations if you’re not married to the idea of settling down in a specific area.

Putting Out Your Own Ad

Posting your own ad is a great way to get the word out that you’re looking to purchase a business. This route can bring about different opportunities than those you would find through a simple online search. 

Whether you choose to post on Craigslist.com, a local newspaper, or an industry publication, you increase your chances of catching the eye of a greater range of business owners when you put out an advertisement of your own.

Working with a Business Broker

Partnering with a professional business broker is probably the most efficient way to go about buying a business. Instead of trying to figure out how to find businesses for sale and determining which options are worth pursuing, you can rely on a professional who knows the ins and outs of the process and can guide you every step of the way.

What’s great about business brokers is that they won’t just show you what businesses are for sale in your area; they’ll also offer you expert advice that’s personalized to your individual preferences and professional goals. This can be especially valuable if you’re uncertain about the best industry to enter, or how your personal skills and strengths can contribute to your success in different fields. 

A broker can also expand your horizons about the many types of businesses out there—you might even come across an industry you’d never previously heard of that’s actually a great match for you.

In addition, the experience of a business broker can come in handy for knowing which businesses to avoid buying. After all, not every deal is going to be a good one, and you may not be in the right position to spot the pitfalls before diving in headfirst. Rather than making a decision you’ll regret, you’ll have the benefit of years of experience at your fingertips.

If you want to know more about how to find businesses for sale, get in touch with Murphy Business today at (888) 561-3243 to speak with a professional business broker in your local area. 

 

How to Negotiate When Buying an Established Business

Solid negotiation skills are key in many facets of life—especially when it comes to buying and selling. If you’re looking at buying an established business, lengthy negotiations are a sure part of your future. In order to get the best deal possible, it’s crucial to formulate a negotiation strategy to guide you as you make decisions around the monumental task of purchasing a business.

Whether or not you consider negotiating to be a personal forte, you’ll benefit from reviewing some time-tested negotiation techniques before you begin the process of buying an established business. Read on for some tips from the professional business brokers at Murphy Business.

Nail Negotiations with these Tips and Techniques

    • Consider the whole deal—not just the price tag. Would-be buyers often get caught up on a single number rather than considering the many terms and conditions of the deal in question. Factors like first refusal for future transactions, seller financing, and recourse against the seller in certain circumstances each have a value in their own right. By negotiating terms in addition to price, you and the seller can come to a compromise without sacrificing your top priorities. That being said, it is important to come to the table with a well-researched “walk-away” number to ensure that you don’t stray too far from your comfort zone.
    • Be prepared to make concessions. Making concessions can be a strategic move if you do it right. What’s important is that the seller understands that you’re giving up something you believe to be of value. After making this known, you can ask the seller to reciprocate by making a concession of equal value or meeting a certain condition. It’s also key to make concessions over time, not in one go, to stretch their potential for appreciation further.
    • Don’t be afraid to make the first offer. While you may think it best to wait for the seller to make an offer that you can counter, you can actually gain a significant advantage by being the first to make an offer. After all, doing so enables you to determine the point around which future negotiations will revolve. Just be sure to do plenty of research before naming a number, or you may make the mistake of overpaying for the business.
    • Avoid letting frustration cloud your judgment. If you feel that negotiations are turning into a never-ending process, you could be tempted to settle for a deal you’re not actually happy with. After spending so much time and energy navigating obstacles and making compromises to get to this point, it can be painful to think about walking away empty handed. However, in many cases, that’s simply the best move to make. Keep a clear mind throughout the negotiation process and stay realistic about the possibility of having to walk away.

How the Experienced Negotiators at Murphy Business Can Help

It’s not always wise to jump into the process of buying an established business without any previous experience. At best, you might get a deal; at worst, you’ll be stuck with a dud of a business that you paid too much for. When you turn to Murphy Business, you can have confidence that you’re making business decisions that are in line with your personal and professional goals as well as your budget and the current market.

Not only do we offer access to a wide range of opportunities that you may not find on your own, but we also bring experience and expertise to the table. You can count on us to consult with you in-depth about what you’re looking for in a business purchase before negotiations ever begin. That way, we can help ensure you stick to your priorities as you consider different options.

As we’ll negotiate on your behalf, you won’t have to endure the tunnel vision that often comes with making stressful decisions during what is often an intimidating process. With the ability to maintain perspective, as compromises are made and terms are agreed upon, you’ll increase your chances of finalizing a deal that you’re satisfied with.

If you’re considering buying an established business, it’s best to have experience on your side. Call (888) 561-3243 today to learn more about partnering with a local business broker from Murphy Business.  

How to Sell a Company for the First Time

Unfortunately, it’s all too common for small business owners to make mistakes when they decide to sell their business. Not only can these mistakes lead to leaving money on the negotiating table, but they can also result in the loss of years of long-term investment opportunities. If you’re an entrepreneur, you may know how to build a successful business, but are likely unsure about how to sell a company for the first time. 

If you find yourself in this position, you’ll want to ensure that the decisions you make enable you to enjoy the benefits of all the hard work you’ve put into building your business. With the help of a business broker, you can have a successful business sale that matches the success you’ve had as a business owner. 

At Murphy Business, we understand the ins and outs of the selling process and are committed to helping our clients make the best sales possible. Read on to learn more about how to sell a company with the guidance of one of our business brokers.

Selling Your Business, Step by Step

If you want to sell your company with no regrets, make sure you don’t skip any of the following steps:

Step 1. Gain a big-picture understanding of the process. Before getting started with a business broker, it’s worth doing some research to understand the process for mergers, acquisitions, and business valuations. While you don’t have to learn how to sell a company completely on your own, you’ll only benefit from putting in time to gain a big-picture understanding of the process you’ll be going through. Key terms to get your head around include the following:

        1. Valuation
        2. Offering Memorandum
        3. Letter of Intent
        4. Term Sheet
        5. Due Diligence

Step 2. Give yourself plenty of time to find the right buyer. Selling a business doesn’t happen overnight. If you set an unrealistic deadline for yourself, you may find that you end up selling to the wrong buyer. Simply completing a business valuation and drafting the Offering Memorandum can take a month or two. After a business is on the market, it often takes 6-11 months to be sold. Negotiating a close also requires plenty of time—budget 2-3 months for this important step.

Step 3. Get your financials in order. Prevent red flags from popping up during negotiations by dealing with your financials now. You can enlist the help of an accountant to gather business tax returns for at least the past three years and ensure that all income has been accounted for. As you’ll need to have clean financial statements ready for potential buyers, doing this in advance of listing your business is sure to save stress and complications down the road.

Step 4. Complete a professional business valuation. In order to have a realistic estimate of what your business is actually worth, you’ll need to employ the services of a business appraiser. They’ll create a review of your business that covers a wide range of factors, not just current revenue. The appraiser will consider everything from inventory and assets to outstanding debt, threats, and potential opportunities. With Murphy Business, you’ll have access to professional valuation services that provide an accurate understanding of your business’s value.

Step 5. Prepare an Offering Memorandum. The Offering Memorandum is a full presentation of your business, including operations, staff and management, significant accomplishments, current risks, and financial details. This is the file that potential buyers will be looking at when making the initial decision to seek more information about purchasing your business. Our business brokers will help ensure that your Offering Memorandum is a robust portfolio that will appeal to serious buyers.

Step 6. Focus on the deal, not the selling price. Once you’ve found a buyer, the process moves to the negotiation stage. Many small business owners fall into the trap of setting an unrealistic price tag that brings talks to a standstill and causes buyers to drop out. At this point, it’s crucial to understand that a high selling price isn’t the only benchmark by which a successful sale can be judged. There are other important details to consider, including the overall structure of the agreement, tax treatments, and intangibles. With the guidance of a business broker, you can settle on a deal that leaves you satisfied in the long run, even if the selling price isn’t quite what you’d hoped it would be.

If you’re ready to learn more about how to sell a company for the first time, Murphy Business can help. Don’t hesitate to call (888) 561-3243 today to speak with a business broker near you.

Find Out What Your Business is Worth with Business Valuation Services

Do you know how much your business is worth? Many business owners are uncertain of the true value of their businesses and only have a vague idea of what their selling price would be. With business valuation services from Murphy Business, you’ll gain a better picture of where you stand in the market and the potential for selling your business.

Appraisals are also essential for helping business owners prepare for a variety of professional and personal events, from a merger to divorce and tax issues. When you have a current valuation of your business at hand, you can face the future with confidence and make informed business decisions. Keep reading to learn more about understanding the value of your business through professional business valuation services.

When Are Business Valuations Necessary?

Maintaining an up-to-date business valuation report is not unlike having a resume ready to go in case an unexpected opportunity or unfortunate event comes your way. After all, the unexpected does happen. So you can protect your business and your assets, it’s important to be prepared for situations including:

  • An opportunity to sell the business
  • Adding a new partner or coping when a partner leaves
  • Creating a plan to exit the business
  • Acquiring financing
  • An event in your personal life, such as divorce, death, or disability
  • A natural disaster that affects your business
  • Disputes with shareholders
  • Liquidation
  • Litigation and legal disputes

Understanding the Business Valuation Process

Much like an appraisal for a home sale, the process of business valuation requires an appraiser to analyze the value of assets within the business, depreciation that has occurred, and other important factors that could affect what the business is worth.

The appraiser will also take intangible assets into account during the valuation process. Intangible assets, such as trademarks, patents, copyrights, licenses, customer relationships, and technologies, are often very difficult for business owners to assess on their own. However, they can have a significant value potential that should not be overlooked.

Types of Valuation Reports

Because businesses can be valued in different ways based on the circumstances of the valuation and the information that being sought, there are a range of different business valuation services to choose from. Here are some of the most common options:

  • Business Valuation Report: Provides an abbreviated but formal summary for the determination of a selling price or facilitation of a buy-sell agreement.
  • Calculation of Value Report: Offers a calculated value in line with the standards put forth by the National Association of Certified Valuators and Analysts and the Institute of Business Appraisers.
  • Business Appraisal Report: Presents a step-by-step explanation of the valuation process for use in litigation and for tax purposes.
  • Broker’s Opinion of Value™: Used by buyers, sellers, and brokers for the pricing of small businesses.

Preparing for a Business Valuation

Certain types of valuation processes will require certain documents. However, you’ll likely need to gather the following for the appraiser no matter which type of business valuation report you’ve requested:

  • A company history or description
  • Governing documents
  • Employee information, such as benefits and pay
  • Financial statements
  • Tax returns for the previous 3-5 years
  • Details about company assets
  • Paperwork for legal issues or current litigation

Why Choose Business Valuation Services from Murphy Business?

At Murphy Business, we understand how important it is for business valuations to be thorough and accurate. Our business valuation services are conducted by professional appraisers with expert knowledge in all aspects of the business valuation process, as well as related business transfer procedures.

We work to stay on the cutting edge of developments in the field of valuation and appraisal, taking part in teleconferences and annual conferences whenever possible. We also perform our valuations according to the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation, in addition to the Business Appraisal Standards of the Institute of Business Appraisers. You can have peace of mind that we work according to proven peer-reviewed valuation methods that provide an accurate understanding of the value of your business.

Don’t wait to have the value of your business assessed by a professional appraiser. Contact Murphy Business today at (888) 561-3243 to hear more about our business valuation services.

Buying an Existing Business? A 2020 Outlook

With the national economy in a stable position and consumer spending at a noteworthy level, it’s no wonder existing businesses are being bought and sold at high rates. If you’ve been thinking about buying an existing business, make 2020 the year you follow through on achieving your business dreams. 

A local business broker from Murphy Business can help you assess your options and handle negotiations so you can start your journey of business ownership with confidence.

What to Consider When Buying an Existing Business in 2020

If purchasing a business is on your list of goals, you’ve likely considered the benefits that come with buying an existing business over starting a business from scratch. However, it’s important to note that in both situations, becoming a business owner can be a complicated and risky venture. 

If you’re uninformed about the lengthy procedures involved in this process, you may find yourself having second thoughts after diving in. By following time-tested procedures and doing plenty of research ahead of time, you can ensure you’re making a decision you won’t regret.

Taking a Step-by-Step Approach to Buying a Business

When it comes to purchasing a business, there are often mountains of paperwork to go through prior to any decisions being made. Not only do you want to take the time to thoroughly analyze these documents, but you also want to be able to properly contextualize the information they contain. It’s this data that will enable you to adequately vet the business and confirm it’s a worthwhile investment of your time and money.

In addition to gathering information about potential businesses, you’ll also need to pencil in time to visit with the current owners of the businesses. Time should also be allotted for discussions with attorneys, financial advisors, and other individuals who will be involved in the asset transfer. At every point in this process, you’ll come upon new data that will factor into your final decision. 

Because there are so many steps to complete before you can even think about signing on the dotted line, a business broker can be especially instrumental in guiding you through the decision-making process and preventing you from overlooking any important details along the way. A business broker can also keep you on the right track so you don’t lose sight of your personal and financial goals when evaluating your options.

Getting your Finances in Order

Your finances are one of the biggest considerations to keep in mind as you think about buying an existing business. In many cases, additional financing may be required. As it can take a significant amount of time to secure a loan, you’ll want to factor this into your purchase timeline.

Whether you are able to pay for an existing business with cash or need financing to complete the transaction, it’s crucial you are comfortable with the end price. The negotiation process can be quite tricky and intimidating for a first-timer. Trusting in a business broker to negotiate on your behalf will give you the chance to take a step back and maintain the perspective needed to make a decision with confidence.

Understanding the Business Environment in 2020

Committing to a good business opportunity often requires some in-depth research into the industries that are currently thriving and are predicted to experience continued growth in the upcoming years. Several factors can influence the types of businesses in this category, from recent innovations in technology to new niches and changes in consumer demand.

Wondering what the current business outlook is for 2020? Some of the most profitable opportunities on the market are in the following industries:

  • Healthcare. As life expectancy rises and baby boomers grow older, there are more and more people in need of high-quality healthcare. Consumers are looking to gain access to healthcare that’s convenient. Consumers are also concerned with general health and well-being making a wide variety of healthcare options available.
  • 3-D printing. From prosthetics to food, 3-D printing enables business owners to create and sell sought-after products at a profitable margin.
  • Office space rentals. With the increase in the number of individuals working remotely or as freelance contractors, there is a greater demand for short-term office space rentals. This niche allows you to make use of a property investment while securing multiple repeat customers.

Finding the Right Business for You

If you’re ready to buy an existing business but are unsure which field is the most promising in the context of your personal and professional ambitions, a business broker can help introduce you to new industries and explain how they could meet your needs. With the support of an experienced broker, you can ensure your decisions make sense in the current business environment so you’re set up to succeed in 2020.

Learn more about buying an existing business in 2020. Contact Murphy Business today at (888) 561-3243 to connect with a business broker in your area.

Finding a Small Business for Sale that’s Right for You

Have you always wanted to be an entrepreneur? If you love the idea of being your own boss, setting your own hours, and being able to take pride in every aspect of your job, then becoming a business owner may be the right step for you. But you don’t have to be sitting on a brilliant business idea in order to become a business owner. Buying a small business for sale enables you to start a business without beginning from scratch.

Finding a business to buy can be a challenging but rewarding experience, and there are plenty of ways to go about this process. Read on to learn about the various methods you can use to find a small business for sale to purchase.

5 Strategies for Discovering a Small Business for Sale

It’s important to take a strategic approach to find a business to purchase. This approach will enable you to peruse and compare a variety of options before making your decision. Here are five methods you can use to discover small businesses for sale.

Connect with Businesses in Your Area

If you’re interested in local small businesses that are for sale, the first step is to network with business owners in your area. While it’s not a guarantee that any of them will be interested in selling, making these connections will give you a better feel for the current market in your community. It will also help get the word out that you’re looking to buy a business in the area.

It’s important to keep in mind that many businesses hesitate to advertise that they’re for sale. There are a number of reasons for this, including the fear of alarming customers and staff. That means you may only be able to find out that an owner is interested in selling by asking them directly. Even if they’re not looking to sell, they might point you in the direction of business owners they know who are in search of potential buyers.

Browse Websites Listing Small Businesses for Sale

Websites like BizBuySell.com and Franchisegator.com are a great place to start looking for businesses for sale, especially if you’re open to buying a business that’s not in your local community. These online aggregators list a wide range of small businesses and franchises for purchase and make it easy to search through their extensive listings by factors like price, location, and industry.

Doing research online makes comparing different options quick and easy and provides you with a wealth of details almost instantaneously. Plus, you can often set them to notify you when a business goes on sale that meets your specific criteria.

Keep an Eye Out for Advertisements

While small businesses aren’t all that likely to put up advertisements on their own property, many do choose to post “For Sale” ads in local newspapers, industry publications, and classified ad websites like Craigslist.org. Be sure to check these sources frequently so that you don’t miss out on an opportunity in your area.

Spread the Word with Your Network

You’ve likely built business connections over the years with people who are in your industry or share your interests. This network is a valuable resource that you can turn to as you begin searching for a business for sale. Your network will have a good idea of the fields you’d prefer to work in and business types that would best fit your skills and lifestyle. 

Turn to a Business Broker

Business brokers are often hired to connect sellers with buyers and assist with the negotiating process. Both individual business brokers and larger brokerage firms typically have access to a large pool of businesses for sale and share this list with potential buyers.

Working with a business broker is almost always the best option for first-time buyers. One often-overlooked advantage is a broker’s ability to help buyers determine what they want out of a business so they don’t waste time during the search. A business broker can introduce you to industries you may not have previously considered and will provide much-needed guidance as you assess different options.

A business broker won’t just help you move in the right direction concerning industries and business types. Their experience can be extremely valuable in understanding the difference between a good deal and a bad one. With a broker, you’ll be more likely to avoid pitfalls that could lead to making a decision you ultimately regret.

Finally, business brokers take over the complicated process of negotiating the deal between the buyer and the seller. You’ll sidestep a lot of stress, save time, and have a clearer understanding of what you’re purchasing when you choose to go through a business broker. For these reasons, using a business broker is one of the most efficient ways to discover small businesses for sale that are right for you.

If you’re ready to find a small business for sale, don’t hesitate to contact Murphy Business Brokers today. Call (888) 561-3243 to connect with one of our local business brokers and get started with a free consultation.

Buy a Company with Confidence with Murphy Business

Murphy Business Brokers can help you find the perfect business.If you want to open a business, you don’t have to start from scratch in order to launch a successful enterprise. In fact, building a business from the ground up comes with a multitude of risks and a high level of uncertainty. Before you can even establish steady cash flow, you’ll have to put plenty of effort into marketing the business and cultivating a customer base. When you buy a company, you can avoid these disadvantages while enjoying the benefits of owning your own business.

If you buy a company through an experienced business brokerage firm, like Murphy Business, can save you time and energy. A business broker can also provide you with a greater level of confidence in your new endeavor. Our local brokers will act as your guide during the decision-making process, helping you make choices that reflect your goals every step of the way. In addition, we’ll assist you with sidestepping common pitfalls that could lead you to make a decision you’ll eventually regret.

How We’ll Help You Buy a Company

There are several steps that go into purchasing a business, and these steps can be quite complicated and time-consuming for first-timers. Having a business broker by your side will save you the stress of going it alone and ensure that you buy a business that is primed to succeed. Read on to learn more about how you can buy a company with confidence when you choose to work with Murphy Business.

Choosing the right business type

There’s no such thing as a “perfect” business. Like many things in life, it’s all in the eye of the beholder. The right business type for you may be the wrong choice for someone else. Until you know all of the options available to you, you won’t be able to make the best decision for your professional future. A business broker from Murphy Business can help you understand which business type will best match your skillset and previous experience. With our assistance, you’ll become more familiar with various industries and be more likely to select the right business for your goals.

Taking a closer look

Once you’ve chosen the business type you’re most interested in, we’ll help you narrow down existing businesses for sale in that field. One of the most important things our brokers do is prescreen businesses, which protects our clients from investing in especially risky ventures. Our system has a proven track record for doing due diligence on business valuations. When you work with us, you’ll know exactly what you’re buying and who you’re buying from.

Sealing the deal

Negotiating the final purchase contract is rarely a straightforward process. However, we can help make it less of a headache for both parties. We’ll represent you during negotiations, assist with writing contract terms that reflect your intentions, and find workarounds for any roadblocks that come up between you and the seller. We can also guide you in acquiring financing and help you avoid commitments that could lead to a cash shortage.

Making a smooth transition

You can count on us to pave the way for a smooth transition that enables you to put your best foot forward as a new business owner. First, we’ll help to negotiate a purchase agreement on the best terms possible. It’s crucial that both you and the owner feel good about what will happen to the business when they finally make their exit. In addition, ending things on a positive note will make it easier to have a successful start with employees, customers, and suppliers, who will all be key players in your daily operations.

We can also help lay the foundation for a smooth transition by writing training terms into your contract with the seller. Depending on the business type you’re purchasing, the necessary training period could range from a couple of weeks to several months. This period is often critical for maintaining consistent business operations during and after the handover.

Buying a company with confidence is all about having the expert support you need to make the best decisions for your personal situation. When you rely on one of our business brokers to be your guide as you choose a business type, evaluate your options, negotiate terms, and finally become a business owner, you’ll have access to reliable information that informs your decision-making process and instills you with confidence about the future.

Learn more about how you can buy a company with confidence today. Just call Murphy Business at (888) 561-3243 to connect with a business broker in your area. 

Business Brokers Help Franchisees and Franchisors

At Murphy Business, we understand the ins and outs of franchising, including the procedures involved in buying and selling franchise locations. After all, we’re a franchise brand ourselves! Our network includes over 250 business brokers with in-depth expertise in the process of transferring businesses. 

Whether you’re a franchisor looking to establish a resale program, a franchisee who wants to transfer your business to a buyer, or an entrepreneur hoping to purchase an existing franchise location, we can help.

How Our Business Brokers can Assist with Your Franchise-Related Needs

As specialists in the sale of businesses, you can count on our expert knowledge for all of your needs related to buying or selling a franchise location. From performing professional business valuations to matching businesses for sale with qualified buyers and conducting negotiations, we’re able to simplify an otherwise complicated process. Read below for details about how our brokers assist with buying and selling franchise locations.

Helping Franchisors Ensure Smooth Resale Transitions

As a franchisor, it’s smart to put a system into place that enables new entrepreneurs to enter your system and allows current franchisees to exist with ease. Through a formal resale program, you can encourage smooth transitions that propel your brand forward rather than causing confusion.

A structured resale program is also an asset in attracting franchisees. Many potential franchisees want to know that there is an organized process in place for them to sell their location after putting in the hard work of running their business. In addition, this type of program promotes proper management of franchises, leading to long-term value and growth.

Putting our brokers in charge of your franchise resale program frees you up to focus on expansion instead of getting caught up in selling existing locations. Plus, we make it possible for you to reduce your liability during the valuation process; thereby ensuring that resales occurring within your system leave new franchisees with a solid foundation for growth.

Helping Franchisees List and Sell Their Businesses

If you’re a franchisee that’s looking to sell your location, it’s important that you’re able to get the maximum profit from this transaction. However, this isn’t always easy to accomplish on your own. Our professional business brokers can help you achieve the highest possible selling price thanks to our extensive knowledge and experience.

First, we’ll conduct an expert valuation of your business, and then we’ll design a complete offering package for marketing your sale to potential buyers. We’ll work with you every step of the way to find a buyer with the qualifications to satisfy your franchisor and help you close the deal in a way that results in a smooth transfer of ownership.

Helping Entrepreneurs Purchase Existing Franchise Locations

While many entrepreneurs choose to open a new franchise location, there are numerous benefits to purchasing a resale franchise that’s already in operation. For example, resell locations generally offer a faster track to profitability with less risk than a new franchise. With an established cash flow, a built-in customer base, and infrastructure that’s already in place, you’ll be able to hit the ground running.

Our business brokers can assist with selecting a franchise to purchase that is both well-managed and offers reliable income. Not only do we have the tools and expertise needed to assess the franchise resale market in your area, but our in-depth understanding of how franchises work also enables us to match entrepreneurs with franchise brands and businesses that fit their strengths and preferences.

We’ll give you counsel throughout the buying process so that you can avoid common pitfalls and enter negotiations with confidence. We can even provide references to experts in the legal and financial fields and assist you with finding financing through lenders in your community.

Learn more about how our business brokers help franchisees and franchisors today. Contact Murphy Business at (888) 561-3243 to inquire about a free consultation. 

 

Wave of Businesses for Sale Linked to Baby Boomers

Over the next two decades, experts say that the U.S. can expect a record wave of businesses for sale. According to some, the size of this wave is so great that it can be more accurately described as a tsunami. And the cause of this wave? America’s retiring generation of Baby Boomer business owners.

Baby Boomers already make up an outsized portion of the U.S. population. As a result, America is expected to see a record-setting generation of seniors as the Baby Boomers retire.

But for the number of Baby Boomers nationwide, this generation has an even larger presence among business owners. And as more Baby Boomer business owners opt for retirement, this will trigger an unprecedented number of businesses for sale.

Baby Boomers Make Up a Large Share of Business Owners

To understand the scope of the issue at hand, let’s quickly look at some data from the U.S. Census Bureau. According to data from 2018, there are now more than 70 million Baby Boomers in the U.S., more than 20% of the national population.

The share of Baby Boomers in the U.S. is a big reason why the average age of a U.S. resident is now 38.2 years old. That’s higher than any other time in the country’s history and a full ten years older than in the 1960s and 1970s.

These figures, however, don’t even start to tell the story when it comes to small business owners. One 2019 study found that 57% of small business owners in the U.S. are currently over the age of 50. Others have found that, even now, Baby Boomers start businesses at a higher rate than any other generation.

But nobody can run a business in perpetuity. As more and more Baby Boomers start to retire, we’ll see more and more of these businesses for sale.

In fact, figures released by the California Association of Business Brokers project that there will be more than 12 million Baby Boomer businesses for sale or bequeathed within the next two decades. The total value of these businesses? More than $10 trillion.

What Makes These Businesses for Sale Different

As we see more Baby Boomer businesses hit the market, it’s worth thinking about what makes this wave of businesses for sale unique.
Earlier this decade, before the Baby Boomer wave started, some experts worried that the glut of businesses for sale would result in an overabundance of supply, triggering a decrease in business values. But over the past few years, as the first Baby Boomers have reached retirement age, we’ve seen the expected increase in business listings. But there’s been no corresponding decrease in business values.
During this time, however, we’ve seen other distinct trends among this first set of sales.

In particular, many brokers have noted how Baby Boomer business sellers have put an increased emphasis on finding the right buyer. Many of these business owners are not simply trying to secure retirement incomes — they’re also trying to secure a strong future for their company.

As a result, they tend to be much more selective about who buys their business. What’s more, because they’re in less of a rush to sell, they can wait out unsatisfactory bids to find the right buyer. And when they’ve found the right buyer, they’re more willing to assist during the ownership transition. By lending a hand during the transition, they ensure their business is in the best possible position to succeed moving forward.

Find businesses for sale with help from Murphy Business Brokers! Call (888) 561-3243 today to connect with your local office and request a free consultation.