You know that feeling you get when you come back from a great conference? When you gain new knowledge and network with outstanding people? I attended our Annual Murphy Business Conference in Clearwater, Florida, last month and I brought home some great information. I’ll share a few of those concepts with you today:
Banks are lending again. Not all banks, but enough of them that we can likely get deals done. Loans guaranteed by the Small Business Administration (SBA) are particularly attractive right now. There were many SBA lenders who wanted to talk with us about their program and their desire to loan money. This is great news for buyers and sellers.
If I had a dime for every time someone said, “I’m not really into fast food,” when I asked if they had ever thought about buying a franchise…I’d be rich! Not that there is anything wrong with fast food franchises, mind you. But the reality is there are hundreds of really great franchise opportunities that have nothing to do with food. They are ideal for a first-time business owner and/or someone coming out of the corporate world because they come with a “how-to” manual and a great support system.
This is not a new concept, but it’s gaining even more momentum lately: for buyers that have a ton of money tied up in a retirement account (but maybe not so much sitting in a checking account), we have access to tools that can help you buy a business using those retirement funds without taxes or penalties. It’s true. You can invest in yourself and your own abilities instead of the stock market.
Sellers: we now have access to a tool that will help determine the ideal structure under which you can sell your business. It takes into account your business structure and tax consequences to drill down into what you will actually put in your pocket after a sale. This is particularly helpful to guide discussions with your accountant, attorney, and financial planner. The cost is minimal when you consider the value you can derive from the tax savings by structuring a deal correctly.
Now that I’m back from the conference, let’s talk about your plans. If any of these concepts are of interest to you, please contact me. I look forward to talking with you about buying or selling a business!