Posted on Tue, Aug 17, 2010
Veterinary Clinic
The Pet Industry is Growing.
Seller Financing is Available.
Contact us for more information on this listing.
520-327-4454
If this listing is not the kind of business you were looking for, we have the necessary resources to search for one that meets your specific requirements. Just click here.
Long established Tucson Small Animal Clinic.
Asking Price: $350,000
Annual Revenue: $523,000
Discretionary Earnings: $191,333
Great clientele and excellent reputation. Most of the new clients come to the clinic by referral from the existing client base. Full service small animal practice. Some exotics. There is very little competition near this clinic. This is a full service facility and the nearest clinics tend to refer a certain % of their cases to specialists as well as to this clinic.
Owner veterinarian works 3.5 days per week. Other hired veterinarian works a total of 1.5 days per week. No after hour calls. This practice has always been extremely profitable.
Facilities: 2400 Sq. ft. 3 Exam rooms, lab and pharmacy ideal for traffic flow. Automatic processor and 300 MA Xray, nice surgical suite, Isolation ward. Modern and well maintained equipment (laboratory, surgery, radiology, dentistry). Nice hospital ward with runs.
Financing: For the practice, the seller is asking $70,000 down and will carry @8% for 10 yrs. ($3397.17 per month). The real estate is available at an additional price of $420,000, or appraised value if higher, or the seller will rent the real estate at $3,000/month.
Training: Seller is willing to train for one month, or will work for the new owner on a part time basis.
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 Mon, Dec 07, 2009
Last week we talked about the emotional aspects to the business buying process. You learned when emotion must impact your thought process and conversely when to avoid making emotional decisions. Today, we will review the other side of the equation when common issues arise in the business buying process and you must let logic prevail
Numbers Don’t Lie – People Do
Whether you are looking at industry data, company financials, or any other reports on the business where numbers are involved, the only approach is to allow logic to dictate your conclusions. No matter what “twist” any seller wants to put on their numbers; the fact is that the numbers never lie; only people do. There is never any reason to attach emotion to numbers unless there is an attempt to manipulate them. So when we are talking numbers, it is all black and white, good old logic.
Now of course, there may be instances where you must take certain things into consideration when analyzing financial statements for example, or there can be some instances where further discussions are appropriate, but in all, the numbers are the numbers and so you must review them logically.
The same holds true for any data you may uncover such as customer concentration issues, declining margins, company sales data, or industry trends that could impact the future of the business. You certainly want to allow the seller to make their point, but they will need a very compelling case to override the factual data.
Are You Going To Be Successful As The Boss?
No matter how wonderful or poor a business may be today, you must logically determine whether or not you have the skills to replace the seller and operate the business successfully in the future. There is no such thing as an “easy business to run”. Every business has its challenges. Certainly, there are plenty of businesses that are operated by the wrong owner, and these present opportunities. However, this is only the case if you have the skill set to give the business what it needs to grow.
Conversely, solid businesses run by the wrong people will turn sour quickly. This is one area where business buyers make terrible mistakes. You must logically determine if YOU have what it takes to be the boss of the particular business. You cannot afford to grow into the job. Sure, there will always be some on the job training during a normal transition period, but if you lack the core strengths to run the business, then have the common sense and logic to make that determination and then find another opportunity.
Do not allow yourself to start dreaming about running the business, or trying to convince yourself you are something you are not. Take out the “logic mirror” and give yourself a good, hard look.
Are The “Fixes” Really Fixable?
Everybody is a critic. It is very easy to sit on the sidelines and point out all the things that a business owner is doing wrong. I am still amazed whenever I get an email from a prospective buyer outlining all the wonderful things they think they will do once they take over, and how they are going to repair all the ills that are now in place. Well guess what? Unless you have a wealth of experience in that specific type of business, you truly have no clue to draw up any meaningful strategies yet, nor do you know whether or not your ideas make any sense at all.
This comes back to what you have probably read many times over the years in my column; you first have to understand the business intimately before you can logically undertake any new aggressive initiatives. Translation: “Don’t try to fix anything until you know what the heck you are doing!”
Pulling Off The Deal
Right now, the financial markets are in complete disarray. Getting financing requires very specific skills, and even with those, banks are not lending. The stimulus package the government is touting provides nothing more than stimulating debate right now. Time will tell if this gets the banks to start putting money on the street for the small business buyer. If you want to leverage a deal, seller financing is a must. But along with that strategy, you have to be in a position to “sell” the seller on your ability to get the deal done, and convince them you will be successful in the future. You cannot do this by making an emotional plea. It takes a logical plan to demonstrate and convince them they should bet on you.
The vast majority of our clients (91% in fact) get seller financing, but not every seller is going to be open-minded about it (those are the ones whose businesses won’t be selling today) and so you have to be able to logically approach this type of offer. Of equal importance, you have to know where these opportunities exist.
Similarly, you cannot have delusional expectations about the size business you want to acquire. Logic must prevail in your thinking. There is no doubt that the market is poised for incredibly creative deals today that can be very attractive to a seller if, and only if, you have the know-how (a.k.a. logic) to properly structure them.
Originally posted by Richard Parker on February 15, 2009 at 07:44 PM to blog/bizquest.com
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, Nov 22, 2009
Thinking about listing your business for sale in Tucson, Arizona? Or making a Tucson Business Investment?
At Allen & Young, we believe that you will judge your satisfaction with the process of selling your business by the amount of cash that you end up with in your pocket after the sale of your business.
Before you go forward with the process of listing your Tucson business for sale, and eventually selling it, please keep in mind that there is usually a rather large difference between the sales price and the amount of money that actually ends up in your pocket. This difference could be 50%, or even more.
That is why Allen & Young always recommends that anyone considering selling a business in Tucson, Arizona, that they obtain solid advice from a good estate planning attorney and CPA prior to listing the business for sale in Tucson. This is essential. There are many things to be aware of, and some decisions you will need to make.
Some areas where you will want to investigate prior to listing a business for sale in Tucson include:
– the type of entity structure
– early transfer of stock and assets to trusts
– partnership and /or family members need to be considered.
Selling a business is fairly straightforward, and we would love to help you prepare to put your business for sale in Tucson. Just keep in mind that there are a lot of considerations, and make sure that you have access to high quality advice. We maintain a rolodex of skilled and trusted advisors in every relevant field, and are always happy to answer questions.
It all starts with a handshake.
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, Nov 04, 2009
Protecting the confidentiality of our sellers is absolutely essential. It is a responsibility that Allen and Young and the Arizona Business Broker Association takes seriously. This is necessary when you consider the potential decrease in value a business could experience if its key employees, vendors, customers or competitors discovered it was for sale.
When you begin to investigate a business that is for sale, a simple rule applies: Keep it to yourself and tell as few people as absolutely necessary. Do this at the very least out of respect for the seller, and it will serve your best interests as well if you end up buying the business. We’re really serious about this. For that reason, Allen & Young requires every prospective buyer to provide the following items before receiving our Confidential Business Profile on a business that we represent:
Confidentiality Agreement:
The confidentiality agreement makes very clear your responsibilities as a prospective business buyer regarding the confidential information that we provide to you.
We may also require a financial disclosure statement from you at this time, to determine the kinds of business opportunities that you are eligible for based upon your financial situation. There is no reason to waste your time, ours or the sellers in pursuing a business that you will not have the wherewithal to eventually purchase. Sellers understandably want to make sure they are dealing with financially qualified buyers, and since they are providing sensitive financial details of their business to you it is entirely reasonable for them to request the same in return from you.
If you are looking for businesses for sale in Tucson or Southern Arizona, and trying to decide if buying a business is the best move for you, give us a call.
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 Sat, Oct 10, 2009
Manage the Income Statement
As a small business owner, when you hear “manage the income statement” your thoughts most likely jump immediately to thinking about strategies to minimize tax impact.
However if you are considering selling a business in Tucson or Southern Arizona, tax deferral is no longer your objective. It is time now to shift gears and begin to examine the income statement from the perspective of someone who may be preparing to buy a business in Tucson or Southern Arizona.
Buyers like to see consistent revenue growth and consistent operational expenses. Revenues, or expense categories, that visibly fluctuate up and down on your income statement from year to year will immediately invite questions. When the option exists, these fluctuations on the income statement may be balanced out by increasing or decreasing revenues, giving or postponing bonuses or capitalizing or expensing certain. Just remember that any such changes made to smooth out the income statement still need to be according to Generally Accepted Accounting Principals.
Taking personal discretionary expenses results in a lower net profit and less taxes. But just remember that for every $1.00 spent, the sales price may be reduced from $3 to $5 or more. Keep receipts for all discretionary expenses in separate folders so that you have proof of these expenses to show to a buyer.
A business broker can explain the process of “recasting” your Income Statement to better determine the profitability of your business and thus the likely pricing range it will fall into in the market. How you have managed your income statement will have an impact on what a buyer is willing to pay for your business.
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 Sat, Oct 10, 2009
If you want to sell a business in Tucson or Southern Arizona, or make a Tucson business investment, choose your business broker carefully.
Most business owners seeking to sell their business in Tucson or Southern Arizona have a pretty good idea of what they would like to get for their business. And there are many business brokers who will simply ask them what price they want for their business, and then tell them what they want to hear. “Sure, I can sell a business in Tucson like yours for that price,” they’ll say. They will tell a business owner that they can get whatever he or she wants for the business in order to get the listing. They base this decision not on any analysis of comparable businesses for sale in Tucson or Southern Arizona in the past or present, nor based on the soundness of the business’ financials, rather on their desire to get the listing. Such brokers are in the “listing business”, and are not being 100% honest with business owners seeking to sell their business in Tucson or Southern Arizona during this process.
When you sell a business in Tucson or Southern Arizona, what you end up getting for your business is not what you want for it, but what a buyer, someone wanting to buy a business in Tucson or make a Tucson business investment, will be willing to pay for it. Any rational buyer (and nearly all buyers of small businesses are highly rational about how to invest their hard won dollars) will perform due diligence on your business and determine what they are willing to pay for it based on the reality of its historical financial performance and a realistic assessment of future cash flows. The fact is that this has very little to do with what you may want for your business, or think it is worth. If you are trying to sell a business in Tucson or Southern Arizona, keep in mind that the asking price is what a seller wants, and the sales prices is what a seller gets based on market realities.
If you work with a business broker who is in the “listings” business, and who goes along with listing the business at the price you might want, but a price that is not supported by the financial performance of the business and prevailing market realities, you will get a wake up call not long after the business has been listed. Your broker will tell you, usually within 30-60 days, that your business hasn’t received many inquiries from investors seeking to buy a business in Tucson or Southern Arizona, and that they would like to lower the asking price. They will lower the price repeatedly over time until it reaches the range of its realistic market value. In other words, the price it should have been listed at to begin with. At this point, buyer inquiries are more likely to occur and to be serious.
If this sounds to you exactly like what happens when you are selling a house, you’re right, because it is. Most business brokers operate their businesses based on the real estate model, and have no further training or certification to enable them to properly understand the differences between valuing and selling a business and a home. But the two could not be more different.
If you want or need to sell your business, wouldn’t you rather work with a broker who counsels you to set a realistic market price based on fact-based analysis, and who will sell your business as soon as possible because it is priced right?
Allen & Young’s brokers have achieved many additional accreditations and specializations within the field of business brokerage, and we do not run our business based on the real estate model. Our customers are only satisfied when we put money in their pockets, as soon as possible. We will not list a business at all unless the seller agrees to set a realistic asking price.
If you are serious about selling your business, and want to deal in a straightforward process based on experience, integrity, facts and analysis, please contact us.
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, Oct 01, 2009
If you are considering selling a business in Tucson or Southern Arizona, remember to pay attention to your balance sheet.
Many small business owners pay less attention to the Balance Sheet than to the Income Statement.
Sometimes the entries to balance sheet accounts are incorrect or misnamed. It is best to have a professional review the balance sheet and income statements and make necessary corrections prior to initiating any business sale process.
Keep in mind that If there are any items that will NOT be included in the sale of the business, they need to be removed from the balance sheet prior to publishing it for review by a potential buyer. Such things might include real estate, personal vehicles, personal equipment, patents and copyrights, and even excess cash.
Additionally, inventory and accounts receivable need to be accurate, and the method of tracking them needs to be consistent.
Anyone considering buying a business in Tucson or Southern Arizona, or making a Tucson business investment will want to carefully understand what is on your balance sheet.
Therefore, preparing your balance sheet accurately and carefully before considering selling a business in Tucson or Southern Arizona will be time well spent and will contribute to a smoother business selling process.
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, Sep 23, 2009
It seems that blogging has become the rage in the business community today. Everyone is fascinated by social media, developing profiles on Facebook, and beginning to explore the use and business value of networking sites and social media outlets like Twitter.
If you’re like us, you probably already have enough on your plates, and creating your own social media presence, much less reading someone else’s blog or tweets, seems like more than you may be able to handle. You are right to question the value of this blog, and doubt whether you should take the time to read it. We are aware of that.
That is why with this first post, we are making the commitment to you to not waste your time. We want you to be able to trust us, and trust what we say. We will not write anything here that will not or does not add value to your business, or share knowledge with you about what we believe are the best practices in buying and selling a business in Tucson or Southern Arizona. Period.
Thanks for reading. We welcome your comments and look forward to a dialog with you.
Carrie Allen CBI BBS
Owner and Designated Broker
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com