Posted on Wed, Jul 07, 2010
This long established Heating and Cooling (HVAC) business located in Tucson, Arizona, has an excellent reputation and good customer base.
In 2009 the revenues were down due to the economic downturn. This year the seller has decided to wind down the construction side of the business and concentrate on Service and Retrofit
It is the Service/Retrofit division that is for sale! Management is layered for optimal performance. Real estate is available for $600,000. Good location, well built structure, and large yard space for storage and vehicles. This business can be relocated, combined into a larger operation, or the seller is willing to work with a buyer on a property lease or lease with purchase option. Seller works less than 20 hours per week in the business.
Asking Price: $450,000
Annual Revenue: $825,000
Years in Business: 33
Business Structure: Corporation
Reason For Selling: Retirement
Inventory: $26,500 (incl)
Equipment: $28,000 (incl)
Acct. Rec. @$68,000 (incl)
Vehicles: $78,000 (incl)
Facility Size: 6450 sq ft
Real Estate: $600,000 (additional)
Business Hours: M-F 7:30 am to 5:30 pm
Employees: 11 FT
Down Payment Terms: Sellers Prefers Cash
Business Structure: Corporation
Covenant Not to Compete: Yes
Training: 3 mos. (longer w/ salary)
Licenses Required: C39R, L39, L45, and L37
Assumed Debt: None
For more information, contact us at 520-327-4454. To download a printable copy of this listing, visit the listing page by clicking here.
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com
Posted on Thu, Jul 01, 2010
Are you seeking a career change? Have you recently retired, and are looking for a second career? Have you ever owned or managed a business? Do you like working with people? Are you comfortable with and able to work in a highly incentivized 100% commission environment? Do like being your own boss, and having weekends free? Do you enjoy variety, and being challenged to learn about new businesses continually?
If this sounds like you, then business brokerage could be the opportunity you have been seeking. Business brokers work with sellers and buyers of small an medium sized businesses, playing the role of their trusted advisor and advocate throughout a business purchase / sale transaction. They enjoy the respect and confidence of their clients, and often form lasting relationships.
To learn more about career opportunities in business brokerage with Allen & Young Business Brokerage, on of Arizona's leading and most respected business brokerage firms,
click here.
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com
Posted on Tue, Jun 15, 2010
So you're considering buying a business in Arizona? Or listing your Tucson or Arizona business for sale? Where should you look?
Here are few options to consider, ranging from large national business for sale listing services, to local Arizona options:
Of course one of the best places to learn about Tucson businesses for sale is to contact a Tucson business broker. Oftentimes a business may be listed for sale, but only the owner and their broker may be aware of this. Brokers often prefer to look for buyers confidentially on behalf of their seller clients, or network privately among one another to match buyers and sellers. This is done primarily to protect the privacy of their clients. As a result, perhaps the most effective way to learn about business for listings that may meet your criteria as a buyer is to begin a relationship with a business broker.
If you are considering buying a business, beginning a conversation with a Tucson business broker implies no obligation on your part, except that you treat with utmost confidentiality any information that is disclosed to you about the businesses for sale in Tucson that your broker may share with you. For example, in working with Allen & Young, you will be asked to sign a non-disclosure agreement. This protects the seller, and you as well if you are seriously considering the purchase of a business for sale. It is to noone's benefit that the fact a business is for sale become widely known, especially to competitors or employees, since this erodes current and future business value.
Working with a business broker in Tucson will also give you the opportunity to set forth your criteria as a buyer. What type of business are you looking for? In what industry? What can you afford to buy? To help think through those questions and others, we've developed a special section for Buyers on this site. Check it out here.
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com
Posted on Wed, Jun 09, 2010
When you are preparing to place your business for sale in Tucson ( or anywhere else for that matter), it is extremely important to ensure that you are current on all of your federal, state and local taxes. While that may seem pretty obvious, in the heat of the battle it's possible that something may have slipped through the cracks so it is best to double check.
Additionally, those qualified investors considering buying a business in Tucson will be impressed by you as a seller if you are knowledgeable about the taxes that your business is subject to, and open and transparent about sharing your knowledge. Taxes of course can be complicated, and they are continually changing. Taxes in the City of Tucson are no exception.
The purpose of this article is to continue to explore the resources that are available online at the City of Tucson to help understand Tucson business taxes. If you are considering a Tucson business investment, or buying or selling a business in Tucson, here are some important areas where further investigation will be beneficial to you
- If real estate is involved in the business transaction, make sure you understand the tax implications if you will have rental income. For example, if you lease property to an S Corp that you also have an interest in, the transaction is taxable. You will also need a business privilege license.
- If some of the Tucson business' sales are conducted with out of state customers, investigate the proper handling sales tax to customers out of state. The State of Arizona allows taxes to waived for out of state residents making purchases while in Arizona, but the City of Tucson only waives the taxes if the customer is physically outside of Arizona at the time of purchase.
- Similarly,if your business takes orders from a location within the limits of the City of Tucson, you must pay the 2% sales tax even if the customer is out of state.
If your business is for sale in Tucson, don't let confusion about how local taxation works create a misstep in the process as you prepare to sell a Tucson business.
Click here to download the City of Tucson's "City Tax FAQs" document now.
If you have any additional questions about this, visit the City of Tucson's Web site at:
http://www.tucsonaz.gov/finance/BusInfo.html
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com
Posted on Thu, Jun 03, 2010
A respected colleague in the business brokerage industry in Prescott, Arizona, Brian Harron, is the original author of this helpful article about selling a restaurant or bar. Much of what Brian writes is applicable to the sale of any business. We hope you find this valuable.
When is the best time to sell a restaurant or bar? Another question that I get asked is when is the best time to list a restaurant or bar for sale? So here are ten answers to the questions.
#1 Before you absolutely have to. The best time to sell is when there is no sense of desperation due to economic circumstances, divorce, health or whatever. Whenever desperation is present, it seems to infect the process everywhere and creates an unbelievable buyer advantage or a situation where buyers just stay away.
#2 After you have sought professional advice. Smart Sellers confer with their attorney, their tax adviser and a professional business broker and perhaps a business appraiser before putting their business on the market. Tie up loose ends first, not last, get your legal and tax house in order and know the consequences of the sale first so that when the sale is done there are no unpleasant surprises and you get a deal that you can live with.
#3 Before a deadline. You do not want to be trying to sell when the lease is running out or when you thought you were going to retire. When you want to sell, you need to know that the average time length for a business sale can be six months or longer. Allow for it and let the process unfold normally.
#4 After you spruce the business up. This is all about fixing up your business both physically and fiscally. Paint, clean, replace. This is no different than selling a house. Then get to work on the money side of your business. Clean up your financial reports, report all sales. remove unnecessary expenses and maximize your Seller's Discretionary Earnings, the thing that most likely will have the greatest impact on the price that you can get for your business.
#5 When cash flow is strong. Don't know what Seller's Discretionary Cash Flow is? SDE has a formula but in short it is the amount of cash taht an owner has access to directly or indirectly. Profit counts but not as much as SDE because most small business owners do not like paying taxes. SDE gets at the ways owners can have cash and it is generally the number that gets capitalized to create the estimate of listing price. Better read the Blog on SDE to be sure that you realize it importance to brokers, bankers and appraisers and yes, seller's too.
#6 When general economic trends are rising. Right now, April of 2010, is an excellent time to list a business. The economy is improving as is the general level of optimism. When the economy is hot is also a great time to have a business on the market as buyers are willing to pay higher prices and there are more buyers to deal with.
#7 When it is a Seller's market. A wonderful time to sell is when there are more buyers than sellers and buyers get anxious to buy, sometimes becoming a little less demanding than what they might ordinarily be. Supply and demand is always in the favor of the seller when there is a small supply and a great demand.
#8 When you have ample time left on your lease. The length of time on your lease can be critical to your ability to sell your business. Your buyer needs time to get his investment back and then time to get a return on the investment. Anything less than three or four years will cause a very deep discount in your price. With an average life span for restaurant ownership of approximately five years, a five year lease with one or more renewal options can be very important to your sale strategy.
#9 When sales are steady or increasing. Strong sales are a very good indicator of a healthy business. Generally only bottom feeders are going to be interested in a business with significant reductions in sales. Start your sales plan two to three years ahead of the time that you list your business for sale and make increasing sales one of your biggest goals.
#10 When the business is no longer fun. Most entrepreneurs get into the restaurant business because it is fun and they love it. it is for many, a physically and emotionally demanding business. When it is no longer fun or when you can feel the burnout arriving, it is most likely time to sell - before your performance,. your attitude and the business deteriorates, making it harder to get the best price at the time you want it.
To read Brian Harron's original article on his blog, click here.
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com
Posted on Thu, Jun 03, 2010
This great article by Mitch Biggs from Associated Content, raised 5 important questions that any potential business buyer or seller should think about when interviewing a business broker.
I like Mitch's to this, and fully believe that business brokers should be 100% transparent with their prospective clients and willing to answer these questions:
1. How long have you been a business broker?2. How many active listings do you currently have listed?3. What is the price range of your current listings?4. How do you get paid?5. How will you market my business and what success have you had with each method?To see the Mitch's original article, just click here.
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com
Posted on Thu, Jun 03, 2010
Whether your considering buying a business in Tucson, or placing a business for sale in Tucson, at some point as you move forward towards a transaction the issue of licenses and permits will come up in the conversation. The questions will be: does the business you're buying or selling require a Business License in The City of Tucson, and, if so, is that Tucson Business License current?
It's better to be safe than sorry, it could be costly & inconvenient to say the least if the failure to maintain a necessary business license up to date caused a business transaction to fall through. So how do you know if the business in question needs a business license?
Here are the first two questions you need to ask yourself?
- Will your business be located within the city limits of Tucson? Or, Will you conduct business within the city limits?
If you answered yes to either of those questions, then the business does need a Tucson business license. But it's not that simple, I'm afraid. We are dealing with the government here, after all!
The next question is:
- Do you know if your business is zoned to conduct your type of business in your part of town? Or, Do you know if the property /space you are about to rent will pass building and fire code requirements? Or, Do you have a Certificate of Occupancy for your business name?
If you answered yes to all the above questions, then you are in good shape. But guess what? There are 15 more questions that cover the gamut of things like the type of signage you will use, whether your business serves food, liquor, is a manufacturer, operates out of the home, etc.
If you are considering buying or selling a business in Tucson, this could be the right time to familiarize yourself with these requirement. Click here to Download the City of Tucson Business License Process.
To view the entire set of tax and licensing related regulations in Tucson, visit the City of Tucson's Web page devoted to these questions by clicking here.
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com
Posted on Thu, May 27, 2010
This excellent article appeared recently on the INC Magazine blog at http://www.inc.com/articles/2001/10/23561.html#comment-51927727
When selecting a broker to sell your business, be suspicious if:
The broker wants a significant or total fee paid upfront.
Many brokers have begun taking upfront fees, but generally the total fee is a combination of an upfront fee and commission paid upon sale of the business. But in what Glen Cooper, president of Maine Business Broker's Network in Portland, Maine, calls a "take away" sale, an unreliable broker meets with you, runs some quick numbers, tells you that you can get your price or even more for your business, and then asks for a check to get started. In many cases, business owners are so relieved that they've found a broker and elated that they'll write a check on the spot, without checking any references. "They get to 'take away' your check when they leave," says Cooper. "You'll never see them again, if they can help it."
During your first meeting , the broker says he or she can get your asking price or higher. Be wary of too much optimism. "The key to selling is that the price be reasonable," says Jeff Jones, chairman of the board of Certified Business Brokers LC in Houston and president of Certified Appraisers, Inc., the firm's appraisal practice. And according to Tom West of Business Brokerage Press in Concord, Mass., most owners overvalue their businesses. An unreliable broker might suggest after a brief meeting with you that he or she can get you your asking price or higher for your business.
The broker doesn't have a Web site. Most likely, if the broker doesn't have a site, he or she is behind the times. The Internet is a powerful marketing tool for business brokers, according to Cooper. Is the site well-written? That's another way to gauge a broker's competence, he adds.
The broker can't or won't show you printed marketing materials. "Today, all brokers prepare some kind of offering summary for each business they represent," says Cooper. He or she should be willing to share materials prepared for past clients to show you how they might handle your business.
The broker doesn't seem well grounded in business valuation.
"Your broker should be able to explain business valuation to you clearly," Cooper says. If he or she can't, then how can he or she explain to a buyer what your business is worth? Make sure your broker is confident in this area.
The broker is not licensed to sell or lease real estate in your state. Ninety-two percent of business brokers have a real estate license, according to an annual survey of business brokers West conducted. Even if your business doesn't include real estate, make sure your broker carries the license. "Unlicensed brokers are usually new to the business or out-of-state con artists," warns Cooper. And just because the broker holds a real estate license doesn't mean he or she should be selling commercial or residential real estate too. A good broker will hold the licenses but be focused on selling businesses.
This excellent article appeared recently on the INC Magazine blog at http://www.inc.com/articles/2001/10/23561.html#comment-51927727
Copyright © 2001 Inc.com LLC
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com
Posted on Sun, May 09, 2010
Have you listed a business for sale in the past? Do you have a business listed for sale now? Or are you considering listing a business for sale in Tucson sometime in the near future? Have you worked with a business broker during this process?
If so, ask yourself this important question: did your business broker take the time to educate you about the process of buying and selling a business in Tucson? Or did they just ask you the price you wanted to put on your business, give you a copy of the listing, and disappear without setting expectations and ground rules for managing the process of selling to your best advantage?
Do you know what kind of listing you have? What are the price, and terms? The commission structure? Even if you think you have experience in all this, the fact is that most sellers can make simple mistakes that end up being costly during the sale process. And when they do, it's actually their broker's fault for not spending enough time with them to fully prepare them for every contingency.
Here are a couple of examples of situations that can cause you problems if you're the seller:
1. Handling Buyers:
- Do you know what your listing agreement says about how to handle buyers that walk in the door unexpectedly? Most sellers assume that these buyer prospects are theirs without having read the agreement. But they could well belong to the broker.
- Many buyers will return to the business and try to find the seller after being shown the business. They may ask the seller to quote a price, or to show them books and records.
- This could put you in a difficult spot in front of others, and severely compromise your negotiating position.
- Did your broker coach you on how to handle such situations?
2. Keeping Your Business For Sale Listing Quiet:
- If you really want to keep secret from your employees, customers, suppliers and competitors the fact that your business is for sale, have you considered how hard that is going to be if you're the one dealing with buyers?
- One of the most important roles of a broker is to shield you from these conversations, and handle them for you.
- Is your broker playing this role for you?
If you're considering selling your Tucson business, make sure that you know as much as possible about every step in the process of selling a business before you start. That way, you can avoid being caught off guard by events and surprises along the way. Click here to take a moment to walk through the steps of selling a business.
And remember, if there is something, anything, about the process of selling your business that you are not completely clear about, and you're already working with a business broker, then you have the right and should ask that person for a detailed explanation.
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com
Posted on Thu, Apr 29, 2010
Many business owners thinking about selling their business have probably thought to themselves that these difficult economic times are not the right time to sell.
However, according to Marshall Vest of the University of Arizona Economic and Business Research Center in a report issued on March 1, 2010, the recession has been over for more than 6 months.
Here are some of the highlights of Vest's study that affect businesses for sale in Tucson:
- Employment is no longer falling
- Retail sales are increasing
- Personal income has stabilized
- Housing markets are in the early stages of recovery
- News releases of firms hiring workers have improved significantly in recent months.
- Residential building permits, an important leading indicator, bottomed in March 2009 and have increased by more than 70% statewide through December.
- Existing home sales as recorded by realtor data have rebounded sharply.
- Housing prices are no longer falling, according to industry measures.
In spite of these many positive leading indicators, Vest cautions that the recovery will come slowly over the next 3 years or so. But he goes on to conclude that "Arizona will accelerate again and is expected to move back into the top tier of fastest-growing states in a couple of years." Now that's some good news.
For business buyers, the timing of buying a business in Arizona looks advantageous with things just turning the corner and about to rebound. For every buyer, there needs to be a seller.
Click to read the entire report:
http://azeconomy.eller.arizona.edu/AZE10Q1/Recession_Is_Over.aspx
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com