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Pros and Cons of Mergers and Acquisitions

Mergers and acquisitions (M&A) are a common strategy used by companies to expand their operations, enter new markets, or acquire new technology or talent. While M&A can bring many benefits, they also come with their own set of risks and challenges. Here are some of the pros and cons of M&A.

Pros of Mergers and Acquisitions:

Growth and expansion: One of the biggest benefits of M&A is the ability to quickly expand a company’s operations and market presence. By acquiring another company, a company can gain access to new products, customers, and markets. This can help a company grow and become more competitive.
Cost savings: M&A can also help companies save money in the long run. For example, by acquiring a company that produces a similar product, a company can eliminate duplication of effort and reduce costs associated with production and distribution.
Increased efficiency: M&A can also lead to increased efficiency within a company. By combining the operations of two companies, a company can streamline processes and eliminate inefficiencies. This can lead to lower costs and higher profits.
Access to new technology and talent: Another benefit of M&A is the ability to acquire new technology or talent. By acquiring a company that specializes in a certain area, a company can gain access to new technology and expertise that can help it improve its products or services.

Cons of Mergers and Acquisitions:

Cultural differences: One of the biggest challenges of M&A is managing cultural differences between the two companies. If the cultures of the two companies are not well-aligned, it can lead to conflicts and lower morale among employees.
Integration challenges: M&A also involves integrating the operations of two companies, which can be a complex and time-consuming process. This can lead to disruptions in the day-to-day operations of the company and can impact its performance in the short term.
Loss of key employees: Another potential risk of M&A is the loss of key employees from the acquired company. If key employees are not happy with the acquisition, they may leave the company, which can impact its performance.
High costs: M&A can also be expensive. The costs associated with the acquisition process, such as legal and consulting fees, can be significant. In addition, there may be costs associated with integrating the operations of the two companies.

Should I consider Mergers and Acquisitions?

In conclusion, while M&A can bring many benefits, such as growth and expansion, cost savings, and access to new technology and talent, they also come with their own set of challenges. Companies should carefully consider the pros and cons of M&A before making a decision.

Give the M&A experts at Murphy Business a call with any questions that you may have about a potential merger or acquisition. We can be easily reached by phone at (727) 725-7090, or you may simply fill out the form on our website. We look forward to providing you the best advisory that we possibly can on what your next move should be.

Top Tips for First Time Business Owners

As a first-time business owner, you are likely feeling a mix of excitement and uncertainty. Starting a business can be both thrilling and daunting, but with the right mindset and approach, you can set yourself up for success. Here are some top tips for a first time business owner.

The First Steps

Develop a clear business plan. A business plan is a critical tool for any business, and it is especially important for first-time business owners. Your business plan should outline your business’s goals, target market, and the steps you will take to achieve your goals. It should also include financial projections, so you can understand the potential costs and revenues of your business.

Choose the right business structure. There are several different business structures to choose from, including sole proprietorship, partnership, and corporation. Each has its own advantages and disadvantages, so it is important to choose the one that is right for your business. Consider factors such as liability, taxes, and the potential for growth when making your decision.

Understand your finances. As a business owner, it is essential that you have a good understanding of your finances. This means keeping track of your income, expenses, and profit, as well as understanding how to manage cash flow and make smart financial decisions. It may be helpful to hire a financial advisor or accountant to help you with this.

Your Next Moves

Build a strong team. As a first-time business owner, you will likely be wearing many hats, but you cannot do everything on your own. It is important to build a strong team of employees, contractors, and advisors who can support you and help your business grow. Look for people who have the skills and experience you need, and who share your vision for the business.

Market your business. In order to succeed, your business needs customers. Develop a marketing plan that outlines the steps you will take to reach your target market and promote your products or services. This may include tactics such as advertising, public relations, and social media marketing.

The Final Stretch

Stay organized. Running a business can be overwhelming, with many different tasks and responsibilities to manage. It is important to stay organized and keep track of what needs to be done. This may include using tools such as calendars, to-do lists, and project management software.

Be flexible. Starting a business is not a linear process, and there will be many challenges and setbacks along the way. It is important to be flexible and adaptable, and to be willing to pivot and make changes as needed.

Seek out support. As a first-time business owner, you may not have all the answers. It is important to seek out support and advice from other entrepreneurs, business mentors, and industry experts. This can help you learn from their experiences and avoid common pitfalls.

Overall, starting a business can be a rewarding and challenging experience. By following these tips and being prepared for the challenges ahead, you can set yourself up for success as a first-time business owner. If you need help, give us a call at (727) 725-7090 or just fill out the form on our website.

What You Need To Know About Business Brokering

The way that you broker your business as well as the professionals that you have brokering your business during critical points in your business life cycle will determine your overall success in the world of business. Here are the basics of what you need to know about business brokering.

A Business Broker is Kind of Like a Sports Agent

Why do the most talented athletes going for the big contracts in pro sports need sports agents? Shouldn’t their talent on the field be able to take them all the way to the top – after all, this talent is self evident? The answer is a bit counterintuitive, but the earlier you understand it, the more money you will make in business.

No matter how talented you are as an individual athlete, there are other individuals who are just as talented as you. Even if you are the most talented on the field, you may not fit into the systems that require athletes of your caliber. In this case, you need a sports agent to explain to decision-makers exactly how your talents can be used for the betterment of a larger system. This is the same function that a business broker performs for your business, especially when it comes to explaining your business to a buyer that may not be familiar with your industry.

A Business Broker Can Get Things Done More Quickly Than You

If you are doing your job as a business owner, then you really do not have a lot of time to reach out to take care of business administration tasks. This is especially true if you are trying to sell your business. During this critical juncture, you should be spending all of your time internally making sure that the books are straight and everything is set for a transition in leadership.

While you are making sure everything internally is good, your business broker is the one reaching out to make sure that the wider world appreciates your efforts. This is virtually impossible for one person to do. Your business broker can also bring people to you more quickly than you could bring to yourself.

A Business Broker is Better at Explaining Your Business

Yes, you may be able to explain the nuances of your business to someone in your industry more completely. However, these kinds of conversations do not often translate at the executive level. This is where you need a business broker to build those outside relationships with vendors or potential sellers. Many business owners have to get over the ego that disallows for an outside presence to become the industry expert.

No matter what stage of business you are in, you can always benefit from a dedicated and experienced business broker. If you are at a critical point in your business life cycle, the experts at Murphy Business would love to help you past that point. Please get in touch with us by phone at (727) 725-7090 or simply fill out the easy form that is on our website directly.

10 Questions to Ask When Hiring a Business Broker

Deciding to sell your business can be fueled by several decisions. You may want to venture into a different niche or retire entirely from the business. To make value or profits from the industry, most owners opt to sell their businesses to a willing buyer who can continue with it or even improve it. Expertise in business does not necessarily give you the insight to make a good deal when you decide to sell your business.

The process is not easy, and if you are not careful, you can make deals that are way below the value of your business. It is advisable to hire the services of a business broker to help you sell your business and make reasonable value out of it. Getting a good business broker who can make good deals on your behalf is essential. Therefore, before you hire a broker, you should scrutinize them and gauge whether they would be a good fit for the business.

Here are some questions you can ask when hiring a business broker:

#1. What Are Your Charges?

It is common for business brokers to take a commission out of the money paid to purchase the business if successful. However, some brokers may need a one-off payment or partial payment finalized after the successful selling of the business. Prior knowledge would enable you to know if you will be financially capable of dealing with the broker.

#2. Have You Sold a Business of this Kind Before?

A broker with prior experience in selling a business of your kind will be able to make deals faster. If they have sold a business of your kind, they will have contacts and the general knowledge to make the deal faster.

#3. How Many Years of Experience Do You Have?

Years of experience matter as it speaks on the expertise of the business broker. Additionally, you can ask the broker for references from his previous experiences to gauge the validity of their experiences.

#4. How Many Deals Have You Brokered?

This question is essential as it enables you to gauge the broker’s activity in the marketplace. A full-time broker engaged in the business will efficiently market and make deals for your business as they have the resources to do so.

#5. How Do You Prepare a Business for Sale?

Preparation is vital in business sales, a process that follows due diligence. A professional broker should have a strategy to prepare a business for sale. The broker should also be transparent in your involvement in the preparation.

#6. Do You Have Comparable Sales for my Business?

A good broker should have sufficient data for business sales to show a client so they can analyze their business’s value before listings.

#7. How Long Does It Take to Sell the Business?

Selling a business can take quite some time before it is successful. However, this question will also enable you to gauge the broker’s expertise. A broker with experience will have several buyers on their database, which will shorten the process.

#8. How Do You Market Businesses?

Strategic marketing will enable your business to get a deal worth its value. A good broker should use reputable marketing strategies to attract synergistic buyers for your business.

#9. How Do You Prepare Sales Contracts?

Professional brokers will involve attorneys to structure proper contracts before you hire them for the business sale.

#10. How Do You Valuate Businesses?

A good broker should have a professional and strategic valuation procedure for businesses. You should only trust their services if they seem clear on such a crucial question.

Ready to sell your business for great value? Partner with Murphybusiness today and get value for your business. Selling a business can be hard, but not when you partner with professionals. Contact us today to learn more about getting the right broker for your business.

How to Sell a Business Quickly

Selling a business quickly is one thing; selling a business quickly while retaining maximum value for the transaction is quite another. You will need a few pointers if you are in a time crunch but you want to get the best deal. Here are the most important things you need to know about how to sell a business quickly.

Deeply Assess Your Industry

How are the tides of fortune striking your industry at this time? Are things in an upswing, or is there some downward pressure on them? You must know the macro conditions of your industry so that you will know how to price your business for a quick sale. Perhaps you are leaving your industry because you see that there is a downturn imminent. Put yourself in the buyer’s shoes. Why would he want your business? You need to know.

Get the Books Right

Nothing stops a sale in its tracks more quickly than having bad books or no books at all. How can a buyer assess the health or the potential longevity of your business without being able to take a close, hard look at that business’ DNA? If you haven’t already, take the time to get an internal audit done on your accounts. Make sure that you are compliant with all local, state, and federal statutes. Close any longstanding open accounts if possible. Become as financially healthy on paper as you can.

Put the Word Out Far and Wide

Your buyers may not all be local. The new digital age we live in allows us to reach people far beyond our closest physical borders. Do not underestimate the power of your business across the world, even if you consider yourself to be local! You never know who may be looking to add exactly what you have to their portfolio — good business has no borders.

Get a Professional Broker

There is nothing better than a professional broker to take care of the red tape and the outreach when you are trying to sell your business. No one can tell the story of your business better than you, but if you can’t get that story out because of legal hurdles or a lack of reach, then what does it matter? If you are looking for a quick sale, don’t go it alone. Get the best help you can to take care of all of the little things that need to be done before a sale gets made.

When you are ready to sell your business quickly and hassle-free without giving up large chunks of your windfall, give the business broker experts at Murphy Business a try. We have years of experience navigating difficult business transactions, and we would love to put all of that experience to work for you today. You can give us a call any time at (727) 725-7090 for an initial consultation. You may also get in touch with one of our business experts by simply filling out the form that is on our website.

How to Buy a Business in Trouble and Turn it Around

A business that is in trouble is a lot of trouble, but it can also be the best opportunity for exponential profitability. With the risk-reward ratio usually in your favor, it can be very tempting to take on the challenge! Here is how to buy a business in trouble and turn it around, step by step.

Find the Pain Points

What are the pain points of the business? Why is it in the hole in the first place? There is the story that the management and employees and the customers will tell, and then there is the truth. You will need to survey all of the salient factors in order to find out what actually happened so you can fix it. This means going through the books, reading customer reviews, interviewing employees, and learning local regulations. You should probably get a professional for each of these sections so you don’t miss any of the most important points.

Determine the New Path

What is the new path for the business? Is it the same as the old business with a few new twists, or are you changing everything including the logo and the font on the front door? You need to know how much things are going to change and exactly what you want to change. Having a focus and a vision is the most important thing you can do after you find your pain points.

Build, Build, Build

Now that you have your vision free and clear, you want to start building! But what do you start building first, and what do you leave until after the business opens again and you have revenue streams that you can depend on? This is a question for professional business brokers as well as your internal team. There are pricing concerns, assuming that you are on a budget, as well as keeping to the plan described above.

Get the Right Help

Good help is so hard to find these days, or so they say. Actually, if you have a vision, getting the right employees and independent contractors becomes a much easier job. Usually, you can pool some of the old employees to get your experienced senior class, and you can get your newer, front line workers from a new pool of individuals to bring new energy to the building. Newer workers may also be more malleable to a new philosophy, which will allow the business to pivot with more agility in less time.

If you are looking for the right professional partner to help you rebuild your business, then you should give the dedicated experts at Murphy Business a call. Murphy Business has been helping businesses pivot for decades in your local area. Give us a call for your business at (727) 725-7090 or just fill out the easy to use form that is directly on our website. We are waiting to help you rebuild your business in the best way so that you can create the product or service that you have been dreaming of!

5 Crucial Succession Planning Strategies for Family Businesses

In order to ensure the health of your business as you step away from a fully active role, you must set your succession strategy as early as possible. This is especially true when you are passing your business to your family! Here are 5 crucial succession planning strategies for family businesses that you cannot forget, regardless of your industry.

Your Succession Vision

Many business owners make the mistake of thinking the successor in a business is responsible for the future vision of the business. Although the business should be updated into the modern era, the vision stands with the people who are doing the passing! Remember that you are the only one with experience running the business from the top! Consider this especially if you are dividing ownership of the business between multiple family members.

Evaluate Skills of Family Members

A successful business reflects the skill set of its owner or owners very directly. If your family members have a different set of core competencies from you, then you must strategize for this in your overall vision. It is usually best to write out descriptions for what each family member is best suited to do within the business and give this information to everyone who will have a part in the succession well before it is time to pass on the business. That way, everyone will have an idea of what he is expected to do.

Business and Estate Plans

Your business succession plan goes hand in hand with the larger estate plan you have for your family, so you shouldn’t do any of your business succession plans in a vacuum. There are tax implications as well, and you can implement many techniques to reduce your liability here. Although you should know the basics here, the most important thing you can do is get the appropriate legal assistance. Update all of your estate plans accordingly so that you leave your family in the best position possible as you pass your business to the next generation.

Choosing Your Place in the Business

You do not have to give up your entire business in a succession plan, and you may not want to. You may choose to keep yourself on as an advisor if you want to have a bit of control or give yourself an annuity if you need it for retirement. This should be a part of the succession plan that you share with the rest of your family.

Execute Your Plan Over Time

The best succession plans are done in a timely manner, each part done when it is most advantageous. If you are rushed, your business will likely suffer disadvantageous tax situations and arguments between family members.

When you are ready to pass your business to the next generation the right way, give the dedicated experts at Murphy Business a chance to help. You can get in touch with us by phone at (850) 374-8884 or just fill out the form that we have on our website for your consultation.

Top Considerations for Business Owners When Planning for Retirement

There are very important decisions to be made at the end of a business that will determine just how profitable that business is for its owners. Planning for retirement can seem straightforward, but there are some potholes that you should look out for.

Here are some of the top considerations for business owners when planning for retirement.

Do You Want to Keep Working?

Retirement looks quite different for different people. Some business owners want to go completely off grid, forget everything, and live in the woods. Others want to maintain a presence in the business world, specifically in the business they have just sold.

There are ways to negotiate advisory positions for the latter and advantageous compensation packages for the former.

However, do not make the mistake of thinking that just because you were good at your business that you will be good at this business (of negotiation).

What are Your Family Obligations?

Many business owners consider their families when they are preparing for retirement. Do you need to sell your business for a large cash injection, or could you perhaps take in more money over time through smaller payments?

In most cases, a business owner will make this decision for more than just himself. A good business broker will be able to help you maximize your results based on the needs of your family as well as getting the most advantageous payout.

Taxes, Taxes, Taxes

Selling a business the right way means paying the least amount of money to Uncle Sam possible. A wrongheaded sale may end up providing you with a huge gross take, but a smaller net than you should legitimately get.

One of the most important roles of a business broker is to inform you of the tax implications of your exit strategy. Do not forgo this analysis before you decide to sell a business, and make sure that you have the team to perform this analysis at the proper level of sophistication it deserves.

Depending on the size of your business, it can mean quite a substantial sum of money, and proper tax analysis is always a good investment.

Who You Are Selling To

Even though you may be retiring from your business, your legacy is still at stake. The person or entity that you sell to makes a huge difference in the way that you will be remembered. What’s more, most people cannot let go of a business that easily.

When you have a good broker by your side helping you make these decisions, you can vet buyers much more precisely then you could alone. You also have the capacity to entertain offers from a much wider selection of people.

When you are ready to sell your business and retire, give the dedicated business experts at Murphy Business a call at (727) 725-7090 or fill out our easy contact form.

We can help you optimize your retirement plan and maximize your financial outcomes while preserving the legacy of your business and the personal goals that you have for yourself and your family after retirement.

Should I Liquidate or Sell My Company?

When you come to the end of the road concerning your business, the question of should I liquidate or sell my company can be an emotional decision as well as a financial one.

In order to make the right decision, you need professionals by your side who can help you make the right decisions about how to sell a business.

You also need to understand the basics of what you are doing even if you outsource the details to the pros. After all, you are the final decision maker no matter what.

Trading Money for Time

The end of your business is hopefully a time to very advantageously trade money for time. This is the opposite of what you are usually doing at the beginning of your career or a business — trading time for money.

If you can now trade that business for enough time to positively and substantially affect your life (to your personal standards), then you may want to consider liquidation or selling the business.

You gain time by getting out of debt, earning enough money from the sale to free up your day, plus the time you gain by letting go of the responsibilities of day to day business.

Staying on as Advisor

Is there any way that you can continue to generate an income from the business while giving up day to day responsibilities? If so, then you get the best of both worlds — time and money from the sale.

Depending on your skill set and negotiating skills, you may be able to do this, so don’t rule it out. Selling a business does not have to mean that you give up all of the benefits that came from running it.

Advising on your business after the sale also ensures you have a hand in the future of the business if that is important to you. It can be difficult to completely let go of your baby, and some owners want to be sure the integrity of the business lives on. You can do this in an advisory position.

The Market

Is it the best time to sell, or could you get more out of the deal by waiting for a better season? If you have the luxury of time, you may want to do a bit of research to see if you can sell in a macro upswing or an industry bubble.

Also remember that you don’t have to liquidate all at once. If the market conditions are advantageous, you can actually liquidate over time to get the best prices for pieces of your business in the market that is most appropriate for that.

In order to seek out these options and avail yourself of the many other options you may have available, you should have a professional team with experience by your side. Read our Frequently Asked Questions for more information about buying or selling a business.

The experts at Murphy Business can do this for you. Give us a call at (850)-374-8884 or fill out the easy contact form on our website for your first consultation.

You shouldn’t have to worry about when or if you should liquidate or sell. Let us help you make that decision and optimize your outcomes!

Quick Guide: Should You Form a C-Corp, S-Corp or LLC?

Choosing the structure of your business seems like a small decision, but it is actually one of the most important that you will make. Learn more about choosing between the C-Corp, S-Corp and LLC business entities.

Choosing the structure of your business seems like a small decision, but it is actually one of the most important that you will make.

The difference between these simple letters — C, S, LLC — can mean the difference of hundreds of thousands of dollars in taxes depending on the scale of your business.

Let’s take a look at whether the C-Corp, S-Corp, or LLC is the right structure for your company.

The C-Corp

Choose the C-Corp if you want your business to be owned by shareholders — the corporation. The corporation is most favorable for investors, but the minimum standards to legally hold this kind of structure are much higher than the S-Corp or LLC.

The C-Corp does provide tax benefits if the business is properly structured, but it can actually expose owners to double taxation if it is not.

In most cases, you should have professional guidance if you believe your business should form itself under the C-Corp distinction.

If you are looking to form a C-Corp, you will probably need a Board of Directors, and you will also need bylaws already written to govern how the company will be run.

The S-Corp

A business that can pay its owners a “reasonable salary” and substantial distributions may be eligible for S-Corp status. S-Corp owners are treated the same as employees in terms of taxation, but they have the advantage of paying fewer taxes on their distributions.

The minimum qualifications to legally form an S-Corp are less than the C-Corp, but more than the LLC. It is usually a proper distinction for a business that is already established with a substantial payroll.

The LLC – Limited Liability Company

The LLC (Limited Liability Company) is the easiest of all these structures to form and to maintain. It is also the form of business that is usually most advantageous for startups, micro businesses, and single owner companies.

Corporations that choose the C-Corp or S-Corp election face a “double taxation” issue that LLC owners do not. The LLC is not taxed as a company, but those profits that would be taxed there “pass through” to the LLC members. Each member pays taxes on his or her share of those profits.

Note: If you elect none of these three distinctions on your business, you are automatically categorized as a Partnership. This distinction comes with tax implications you should know as well, but that is beyond the scope of this article.

When it comes to choosing your business structure, Murphy Business has the experience you need.

We not only help you choose between the C-Corp, S-Corp and LLC, but we also help you structure the entire business so you can optimize your results on the selection you finally choose.

For your initial consultation, give us a call at (725) 727-7090 or fill out the easy contact form directly on our website.

We are happy to guide you through the entire process of properly forming your business and the many steps afterwards.

Top 4 Tips for Spearheading a Successful Merger

Successful mergers don’t just happen — they are the result of careful timing and strategy. In most cases, you will need dedicated professionals by your side to optimize the process, but you should always know the basics for yourself. You are the final decision maker no matter how many consultants you have on hand. Here are our top 4 tips for spearheading a successful merger.

Successful mergers and acquisitions don’t just happen — they are the result of careful timing and strategy. In most cases, you will need dedicated professionals by your side to optimize the process, but you should always know the basics for yourself.

You are the final decision maker no matter how many consultants you have on hand. Here are our top 4 tips for ensuring a successful merger.

Realize That Win-Win is the Way to Go

The executive suite of the acquired company has more power than you think, because they are the ones who really control the outcome of the merger.

Come to the table with a spirit of collaboration and fairness in order to quell any bad blood that could come between the deal. If you come with an “us versus them” mentality, most mergers are failed before they ever begin.

Consider the Cultures that You are Melding

Mergers often do not happen on the basis of similar cultures — they are created based on financials. However, the continuation of financial success is often contingent upon the melding of the two cultures. Each side will have its way of doing business and methods of communication.

You must find ways to blend best practices, or all of that financial due diligence may go down the drain.

And speaking of culture, you must let people know the truth about their jobs. Redundancies and overlap are an issue, and the sooner people know the truth, the more smoothly your merger you go.

Reputation Matters

If you are in the position of acquirer, the acquiree is correct to have questions about any previous reputation you bring with you concerning past mergers. If you have history, be up front with this information.

Invite your current acquiree to talk to your past merger efforts. If you score good marks on your past assessments, you can close your present deal much faster.

Never Be Afraid to (Tell Them to Take a) Walk

Regardless of all the collaboration talk above, the number one way to ensure a successful merger is to be unafraid to walk away at any moment if the deal isn’t to your liking.

Because your side of the table is already being transparent and forthcoming, you have every right to create a deal that is advantageous to you.

If the other side does not see it that way, then you should not be afraid to walk. Most importantly, the other side of the table should know that you are never afraid to walk.

Murphy Business has been handling the detailed nuances of delicate mergers for decades. If you are looking for the right team to make your merger work, then you owe it to yourself, your team and the team across the table from you to look us up.

Let us handle the details so you can focus on the strategy to build your business.

We are ready to help you — just give us a call at (727) 725-7090 or fill out our easy contact form.

How Can I Find a Buyer for My Business?

So you have done the work to build a successful business that someone would want to buy. This is certainly to be commended. However, actually finding the right buyer for your business is a profession in itself — one that you have likely had to overlook because you are too busy building your business! How exactly can you find a buyer for your business? Let’s take a look.

Give Yourself a Shortlist First

You want to go out into the market with your buyer already in mind. Otherwise, you will waste time with window shoppers and various unsavory entities. If you have a profile in mind as well as a short questionnaire to curate your shortlist, you ensure yourself a much more efficient and satisfying process than relying on the market to present you with suitable buyers.

Getting a proper valuation for your business first can help you narrow down the potential pool of buyers. You should know whether you are willing to accept installments or if you want cash only. Also, what kind of person or entity do you want running your business? Not all money is good money. Regardless if ownership changes, the soul of your business is not for sale.

Curate Your Channels Through Known Quantities

Your town may have business journals, and there are certainly plenty of business indexes online, but the best way to curate buyers is to curate your communication channels. This is usually better left in the hands of professionals who have had the time to cultivate relationships with reputable people in the local business community.

Partnering with a reputable broker with reach outside of your local area is also key. Positive revenue streams are a language that has no physical border. You never know who will be interested as long as you can get in touch with a certain level of buyer!

Understand Why You Are Selling and Who You Are Selling To

The reason you got into your business may not be the reason that someone else wants to buy it. Markets change. People change. Are you sure your message is getting through to the people you want, and are you communicating what they want to hear?

It is one thing to build a business — it is quite another to showcase why that business is worthy to move on beyond its original ownership. You must understand why you are selling and who you are selling to in order to get the right buyer on the hook and get the best deal.

Murphy Business has been helping people sell their businesses for years in the United States and Canada. We have been making those connections that will help you curate your buyers and streamline the selling process.

Give us a call at (727) 725-7090 or get in touch with us through the easy form directly on our website. We are ready to help you find the right buyer for your business through an efficient process that will ensure you a smooth transition and a satisfying result.

Benefits of Buying an Established Business

Whether you are looking for a stream of income to help you during retirement or a new passion to wake you up in the morning, there are many benefits to buying an established business. Working under a known name may also help ease the jitters of going into business for yourself if this is a first time for you.

Let’s take a look at just a few of the most important benefits of buying an established business.

Immediate Name Brand Recognition

Most new businesses can expect to run for at least six months without a profit. This doesn’t necessarily have to be the case if you work under an established name brand. When people see a brand they recognize, they associate it with a level of quality that you would otherwise have to build up yourself. You can use this reputation to your advantage and begin creating revenue streams more immediately than you could with a brand new business.

A Proven Track Record

If a business is established, that means you can look over its books to see how it performed in previous periods (you did do this before you bought it, right?). As a result, there is no guesswork when it comes to determining what kind of revenue streams this business can provide for its owners. A new business does not have this kind of track record, so much of the money talk around them is pure speculation that may or may not come to fruition.

Easy to Improve

If you have a template of performance that you can refer to directly, you can also determine more easily how that template might be improved with a few customizations. Perhaps that is why you are considering buying a certain business in the first place — you see how a few new ideas could add a lot of value to the business. This is good and essential to the growth of industries in general — new people coming in with new ideas. Sometimes the best place to put those new ideas is within the framework of an established business.

Steady Income

An established business has usually already gone through its volatile period. This means the records you see, you can count on. If a business has a good reputation already, it tends to serve as a hedge against volatility during seasons and situations when new businesses might falter. This is why many retirees focus on buying established businesses. There are fewer surprises to be had.

Are you thinking of buying an established business? Let the business experts at Murphy Business help you. Even though you may be dealing with a name brand, there are still many details that a professional should work out at the negotiation table. Please do give us a call at (727) 725-7090 or fill out your query directly on our website form. We look forward to helping you match with the business that serves your needs and the needs of your community, bringing you success and stability without the uncertainty of starting from scratch.

5 Questions to Ask Yourself If You Want to Buy a Business

Buying a business is not a decision that anyone should take lightly. Everyone likes to talk about the revenue streams and the prestige of ownership, but there are many other things to consider as well.

Here are five questions to ask yourself if you are thinking of buying a business.

Question 1 — Do You Have the Time?

Contrary to popular belief, not all businesses are passive income machines that you can just run on autopilot. The majority of businesses, especially small businesses, are time intensive activities that will require your active participation. You may not be on the floor of the business making sales, but you will likely need to be involved in strategic decisions, important paperwork, and day to day budgets — not to mention the inevitable emergencies that will happen.

Question 2 — Do You Love the Industry?

It doesn’t matter what business author you read, all of them give similar advice: It is your love of the business that gets you through the tough times. Anyone can be a business owner when times are good. When they are bad, that’s what separates the successful owners from the failures. Make sure you can tough it out during the bad times using love for the industry as your primary fuel.

Question 3 — What is the Purpose of Your Purchase?

Are you nearing retirement and looking for a business to supplement your fixed income every month? Are you taking on this business because it has a brand you want to uphold or a cause you need to see through? Your answer to this question determines when you want to get out of the business, which can drastically change whether you should own that business or not. For instance, if you are looking for monthly income from a business that is known to be seasonal, you may want to think twice before closing that deal.

Question 4 — What Kind of Income are You Looking For?

The level of income in some businesses is not what people think it is. Would be business owners will often receive a huge wake up call when they look through the books of businesses they thought made a certain level of income. By the same token, some businesses you never thought would be cash cows are. The point is that you often cannot tell from first glance. You need to read through the books, and you need to know what you are looking at.

Question 5 — How Long Do You Want to Own This Business?

Many people go into a purchase without asking how long they want to actually be in the industry. You need an endgame.

If you have gone through these questions and you still want to make a purchase, let the dedicated experts at Murphy Business help you. Our decades of experience in the local area will help guide you into deals that make sense and keep you away from the pitfalls that many new business buyers face. Give us a call at (727) 725-7090 or fill out our email form directly from the website.

Steps for Selling Your Florida Small Business

If you are looking to sell your Florida small business, you owe it to yourself to understand all of the steps it takes for an optimal sale. Regardless of the industry you are in, there are a few things that every business needs to do to ensure the best outcome. Here are those steps.

Step one: The meeting with your broker

Do you know why you want to sell? Knowing your why ensures that you sell to a truly interested party and that you do not shortchange the value of your business. You should also do a final self analysis to determine if selling is really the path you want to take.

Step two: Getting a business analysis

You will need a thorough analysis of your earnings, assets and statements before you can actually get an asking price for your business. Make sure that you have these records. If you don’t, it’s a good time to begin consolidating them, because these records are a huge part of what you will actually be selling.

Step three: Getting a marketing strategy together

Once you have determined why you are selling and what you are willing to sell for, you can put together a marketing strategy that showcases your key values and optimizes your potential profitability. You will also be able to tailor your marketing strategy for the outcome that you are looking for. If you want a quicker sale, your marketing should reflect that. If you were looking to optimize the sale price, then you will employ a slightly different marketing strategy.

Step four: Meeting with potential buyers

Now that you have your marketing strategy in place and your asking price on the market, it is time to meet with buyers that you have curated. This list should be narrowed down before you ever take a personal meeting with anyone. You want to be sure that anyone you meet with has the financial resources and the value system you were looking for.

Step five: The bidding process

Now that you have qualified buyers at the table, it is time to see who really wants your business the most. Make sure that you set aside time for negotiations with multiple buyers. You should also look to change your marketing strategy depending on how these buyers behave relative to each other. There is nothing wrong with facilitating a little bidding war to ensure that your business is respected on the market.

Step six: Accept the offer

The actual sales process has a number of little steps within it. First, you will likely receive a letter of intent from your chosen buyer. After all of the contingencies have been worked out, you can move forward to the actual purchase step.

Make sure that you have a qualified business broker by your side to get the best results selling your business. The dedicated experts at Murphy Business are available by phone at (727) 725-7090. You can also talk to a professional by filling out the email form directly on the website.

What’s Included on a Business Valuation Report?

Your business valuation is the financial lifeblood of your company to the outside world. This is your opportunity to present the internal workings of your company in an attractive way for potential investors.

But what exactly is included on a business valuation report? Let’s take a closer look.

The Appraisal Summary

The bottom line of your business is contained in the appraisal summary. It is usually the last thing that a reader comes across and includes the final value of the company and the metrics used to come to that value. If there are multiple methods used, the summary will include all of these methods.

Approach Summaries

If a business valuation uses more than one methodology to come to a final value, then it will include a summary of approaches. Within this section, there will be indications of value and the reason for the differences in valuation between the different approaches. It will also include the reason why one approach was chosen over the others to come to the final valuation.

Normalizing Adjustments

Every business will have unique events that could affect the value of the business. These idiosyncrasies should be removed in a valuation so that readers of the report can see how that business would have performed under normal circumstances. For instance, the sale of a division of the business that makes the numbers look good in one quarter should not necessarily be considered moving forward, because that event can never occur again.

Summary of Discount Rates

If the value of the business was determined through the Capitalized Income Method or Discounted Cash Flow, this summary becomes very important. It includes the rates that help define market risk and helps determine risk premium. If a company has more than one valuation, this section becomes vital because the rates used may change between valuations.

Valuation Summary

If you want to find to find out how liabilities and assets affected the value of a company directly, the business valuation summary is where to look. If the business has assets or liabilities that are currently non-operational, you will find that out here as well. If you are trying to evaluate the business, you will also need to give your opinion as to whether the valuator included all relevant assets and liabilities. There is a bit of discretion professionals can use here, and your opinion may differ from the business valuator.

If you are looking to create a business valuation or you need help evaluating the documents of a business, you can come to the dedicated experts at Murphy Business. We can provide you with the experienced opinions and metrics to use that will provide the best perspective of the business valuation. Give us a call at (727) 725-7090 or query us directly from our website. Regardless of the business that needs to be evaluated, and no matter which side of the table you are on, we are here to help you interpret these documents in a way that benefits your interests best.

What Are the Benefits of Working with an Indian River Business Broker?

Working with a business broker in your local area has many benefits over working with a generic broker. The nuances of the business community in each area differ because of culture, local ordinances, and market trends. Let’s take a look at how your business can benefit by localizing your consultation.

What Does a Local Business Broker Do for You?

If you are looking to sell your business, getting a broker for the process can help you achieve a fairer price for the years of work you have put in. A local broker will have connections in the local area to bring you the best and most reputable buyers. Local brokers also carry gravitas in the community, so you gain better leverage for a proper negotiation.

Local brokers will also be much more familiar with local business ordinances and relevant city and state law than a generic broker. Selling a business is 90% compliance, and it pays to have someone by your side to streamline the paperwork.

Is an Indian River Business Broker Less Expensive?

For the services you receive, a local business broker ends up being much less expensive than a generic broker or a virtual broker. You must think of not only the selling price of your business, but the money that you save in time and compliance. The faster you get local buyers aware of your sale, the more money you save in attracting them. The faster you get in compliance, the less you have to worry about fines, overpaying taxes, and closing costs.

An Indian River business broker may actually be less expensive than a generic broker anyway because of the focus on the local area. If so, this is a no brainer. Go for the people that have their attention on your market and cost less.

When Should I Get a Business Broker?

As soon as you are thinking about selling your business, you need to have a local broker on the line to begin talks. The selling process will likely be longer than you think, and there is a great deal of prep work that needs to be done before you can legitimately put your company on the market.

Even if you are not sure that you want to sell right now, getting a consultation from a local business broker can help you determine your timeline. Your conversation may actually inform you that a business sale is not yet prudent!

If you are looking for an Indian River business broker, then give the dedicated experts at Murphy Business a call. We have decades of experience in business brokerage, all focused on the Indian River and immediately surrounding areas. We know this area inside and out because we directed all of our resources to learn this area.

Give us a call at (727) 725-7090 or contact us by email directly on our website. We are proud to provide targeted business broker services you can count on because of our dedicated experience in the Indian River community.

Why You Need a Broker to Buy a Small Business

When your small business is ready for sale, you can be forgiven if your excitement gets the best of you. You want to sell quickly!

Slow down. Buyers sense impatience and naïveté a mile away. If you are hasty or unprepared, you will likely sell your business for much less than it is worth on the market. Let’s take a look at why hiring a broker will likely earn you more money in the final sale.

A Good Small Business Does Not Equal a Good Sale Price

It’s a buyer’s job to poke holes in your business to lower the valuation. In the open market, perception is reality: If the buyer has a good enough reason to lower the price and you can’t counter, you could end up accepting less money for your small business than you should.

A broker serves as a middleman (biased in your favor) to keep you from losing money just because you may lose an argument. Your broker won’t be talked down as easily, because (s)he isn’t as emotional about the business.

Timing the Market is Only for Professionals

They say never time the market. What they mean is YOU should never try to time the market for a buy or a sell. This includes selling your business. There are better seasons for it, and macroeconomic conditions matter as well. However, you really don’t need to worry about these things if your head has been in your business for years. Buyers will try to use this focus against you.

A broker will help you find the best time to sell, and you don’t have to become an expert market timer to get it done. (That takes years, by the way. Unless you have a few years runway to sell your small business, just let your broker handle it.)

Keeping Emotion Out of the Trading Process

Buyers will try all kinds of psychological tactics to throw you off your game. They may lowball you or freeze you out to test your financial stability over time. They might place bids with your competitors to see if they can get you to lower your price for a quick sell.

It is always better to let a broker keep an eye on these things for you. Because you are emotionally tied to your business, you are prone to making decisions that are not based in logic. Emotional decisions almost always cost you money.

When you are ready to sell your small business, the experts at Murphy Business are ready to help you make the best deal possible. With decades of experience in the exit process, we are the brokers that will get you the best price and make sure your business ends up in good hands.

Give us a call at (727) 725-7090 or by email directly on our website. Do not let buyers take advantage of you and minimize all of your hard work at the finish line — let us handle the deal while you handle the business!

The Best Ways to Find Businesses for Sale

In an uncertain financial environment, finding businesses for sale can be one of the best investments of time and money available. People will be selling at bargain basement prices. There will be forced sales and plenty of opportunities to lowball! You just need to know how to find the best businesses for sale. Here’s how you do it.

Cold Calling

Yes, you can cold call buy a business just as easily as you cold call to sell to one! In order to make this strategy effective, you should have a business plan about the businesses you want to buy. List out your budget, your preferred company type, physical location, and other relevant details. When you have these characteristics listed, you can narrow down your cold call list to focus on businesses that you are qualified to buy.

Although your research should include a focus on businesses that are looking to sell, there’s no rule that says you can’t cold call an owner and make him an offer that’s too good to refuse. Have you brushed up on your buy tactics?

Business Auction Sites

If you are not the type of person to cold call, you can find businesses for sale through professional business auction sites. This is where founders list businesses they are actively looking to sell. Although you will never have to worry about a hard “no,” you will have to deal with increased competition because the listings are easy to find.

If you come into a business auction site with your sights squarely focused on the type of business you want, you can sometimes find steals here. People use business auction sites when they want to make a quick sale. This is always a technique that is worth keeping an eye on.

Brokers for Business

You may prefer to deal with a professional salesman directly rather than negotiating with business owners. Brokers also handle some of the research if you do not have a talent for finding businesses. This solution is meant more for people who have less direction in the business they want to buy. Your goals may be more general such as simply having a business with a certain monthly revenue stream. There are many businesses that can fit this description, and a broker can find them for you based upon this specific criteria, saving you a great deal of time.

Advertising for Business

Perhaps you are more comfortable when the business comes to you. If so, you can put out ads to sellers rather than actively seek them out. This is an effective strategy for people who have a specific criteria in mind, because you can state these criteria in the ad.

If you are ready to buy your next business, the experts at Murphy Business are ready to help you regardless of which solution you prefer above. Give us a call at (727) 725-7090 or send us an email on our website directly. We look forward to helping you find the perfect business for your budget, interests and time frame!

Making Your Small Business Attractive to Buyers

Congratulations! You’ve built up your small business to a point where acquisition makes sense for buyers. But be clear — building a business and marketing that business for sale are two different animals. Let’s take a look at how to make sure your successful business looks successful to buyers.

Can Your Business Run Without You?

If you’re trying to sell your business, you are making the claim that it can run completely independent of you. Is this actually true? Many small business owners gallantly take on multiple hats to fill in the holes, but this doesn’t really fly if you’re getting ready to sell. Make sure that you set up systems that are 100% independent of your participation, even if you plan to stay on as an advisor.

Is Your Client Base Diversified?

You may start off with a few big clients paying all the bills, but your business should grow into a diverse client base. It’s much easier to provide large services to big clients who are paying top dollar. Buyers are looking for a sign of maturity — the ability for your small business to service smaller clients on possibly tighter profit margins. Servicing smaller clients also requires process standardization, which leads into the next point.

Are Your Processes Standardized?

More often than not, standardization means modernization and automation. Buyers love to see this, because you have minimized reliance on individual human aptitudes. McDonald’s is one of the most popular franchises around the world because of their processes, which can be duplicated regardless of the talent of the workforce.

Whenever you do need to rely on people, there should be a code of conduct and performance metrics in place. Job descriptions can no longer be hazy. Doing this while preserving your company culture makes your business incredibly attractive.

Can Your Business Scale Further?

Sophisticated buyers don’t buy business snapshots. They are looking for a business that can continue on an upward trajectory while maintaining a consistent revenue stream. Outreach technology is moving quite fast. Any business without online traction and/or distribution will quickly fall out of contention if it doesn’t get these things fast. Buyers understand this.

Make sure that you build your small business for the future, not the present. None of your processes should be so rigid that they cannot improve with the rise of new technology. As a matter of fact, your internal suggestion process should be one of the most straightforward and clear processes you have!

If you are getting ready to sell your business, the experts at Murphy Business may be able to help you. With decades of experience helping proprietors find profitable exits, Murphy Business has more than $3 billion in completed transactions. Get your initial consultation over the phone at (727) 725-7090 or through email on our website. We also have an information buffet of free downloads that are sure to help you sell your business.

Your business isn’t getting any younger, and neither are you! Call us when you are ready to sell.