Andrew Rogerson's Blog, page 35

For sale Family Medical Center near Fresno, CA

A very long established Family Medical Center is now for sale near Fresno, CA. To be more exact, the Family Medical Center is about a 20-minute drive south of Fresno, CA in a wonderful small city and its located in the main street and has been there for many years. The city is a great place to either raise and grow young children to slow down from the hectic city living of Southern California or from the San Francisco Bay Area.

Family Medical Center for sale near Fresno, CA

This Family Medical Center was first established in 1970 by the owner’s husband while she took over running the center in about 1999 and has been running it ever since. It’s now time for her to slow down … just a little … and spend some time with her grandchildren.

The current owner is a Nurse Practitioner while the Family Medical Center has a doctor to review and sign off all charts to meet the necessary California Medical Board requirements as well as Medicare etc.

The buyer of the Family Medical Center will need a doctor licensed with the California Medical Board as the current doctor will also be retiring.

California Family Medical Center points of interest

Approximately 100% of patients make appointments.
From 2013 to 2015 the Family Medical Center has achieved gross revenue of over $550,000 per annum.
After all expenses, the owner benefit averages approximately $180,000 per annum.
The Family Medical Center focus is to serve the local community many of which are agricultural workers and their immediate family members.
The Family Medical Center has approximately 2,320 active patients and gets between 10 to 15 new patients per week. There are approximately 4,152 patient files on record.
The Family Medical Center sees about 130 patients per week and approximately 90% of the patients travel less than 20 miles to come to the center.
The center is run from a main street location in about a 2,100 square foot building.  The owner of the Family Medical Center also owns the real estate and is willing to sell it as a separate transaction if that’s what a buyer would like to do.
The Family Medical Center is open 5 days per week- Monday through Friday from 8.30am to 5.00pm.
The center has 6 Full-time employees and 2 Part-time employees.
The Family Medical Center has 7 examination rooms, 7 consultation rooms, 6 nurse stations, one lab, a 16 chair waiting room, a medical records filing area and more.
The center is located in a very clean, stable and low crime area of town.
The price to buy this Family Medical Center is $250,000.
The real estate the Family Medical Center practices from is also available as a separate transaction.

Finance to buy this Family Medical Center

If you hold the necessary license with the California Medical Board, finance is easily and readily available through local SBA lenders.

If you have questions about finance to buy this Family Medical Center, please reach out to Andrew so he can help you and introduce you to appropriate third-party lenders.

Buy this Family Medical Center

This Family Medical Center has been servicing the families of its immediate community in Fresno County and also draws patients from nearby counties such as King County and Tulare County.

If you have an interest to own and operate this very successful Family Medical Center, please send an email to Andrew Rogerson or give me a call on 916 570-2674.

Andrew will then send you a one-page executive summary of the practice and a Non-Disclosure Agreement to sign and return.

Once Andrew receives this from you he will send a link to a secure website where you can download a set of confidential information about this Family Medical Center.

Finance to buy a Family Medical Center or in fact, any medical, dental or veterinary practice is readily available. If you have questions about finance, you can also give Andrew a call on 916 570-2674. Do it now while you are thinking about it.

Sell your Medical Practice

Perhaps you are reading about this opportunity and already own a medical practice and are thinking about selling it?

There are many steps to buy or sell a medical practice. If you are thinking of selling your medical practice and would like some general information, visit the following link on Andrew’s website: Sell a medical practice in California.

The post For sale Family Medical Center near Fresno, CA appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

For sale: OB/GYN practice near Sacramento, CA

Asking price:
$530,000
EBITDA:
N/A
Rent per month:
$1,900


Gross Income:
$584,184
FF&E:
Included
Established:
1980


2014 Cash Flow or SDE:
$309,000
Inventory:
$5,500
Employees:
2

A very long established OB/GYN practice is now for sale about a 45 minute drive north-east of Sacramento, CA. It’s also in a wonderful city to raise young children and to slow down from the hectic city living of Southern California or from the San Francisco Bay Area.

OB/GYN practice for sale near Sacramento, CA

The practice was first established in 1980 and was bought by the doctor that currently owns and operates the practice in 1999.

The current doctor travelled the world with the US military before buying the practice and settling into this local community to raise his children. However, now that he’s reached his early 60’s, it’s time to retire and slow down … just a little.

The current owner is Board Certified with the American Board of Obstetrics and Gynecology and a Fellow of The American College of Obstetricians and Gynecologists.

The buyer of the practice will need similar medical credentials in order to operate their OB/GYN practice in California.

OB/GYN practice other points of interest

Approximately 100% of patients make appointments.
From 2013 to 2015 the practice has achieved gross revenue of over $550,000 per annum.
Th OB/GYN practice focus is to serve the would-be mothers in the local community and their related OB/GYN services.
This OB/GYN practice has approximately 5,100 patients on file with approximately 3,900 active patients within the last 2 years.
The practice averages approximately 65 patients per week while averaging 5.7 new patients per week.
Approximately 90% of the OB/GYN patients travel less than 15 miles to one of the practice locations.
The practice makes use of new technology very effectively.  This includes the use of 4 computer workstations, two printers and medical software.
The practice is located in a very clean, stable and low crime area of town. It is also exceptionally convenient and a short walk to a nearby hospital.
The price to buy this OB/GYN practice is $525,000.  The real estate the OB/GYN practice operates from is also available as a separate transaction.

Finance to buy this OB/GYN practice

If you hold the necessary license with the California Medical Board, finance is easily and readily available through local SBA lenders.

If you have questions about finance to buy this OB/GYN practice, please reach out to Andrew so he can help you and introduce you to appropriate third-party lenders.

More information about this OB/GYN practice for sale near Sacramento, CA

If you have an interest to own and operate this very successful OB/GYN practice, give Andrew Rogerson a call on 916 570-2674 or you can send an email to Andrew Rogerson.

Andrew will then send you a one page executive summary of the practice and a Non Disclosure Agreement to sign and return.

Once Andrew receives this from you he will send a link to a secure website where you can download a set of confidential information about this OB/GYN practice.

Sell your Medical Practice

There are many steps to buy or sell a medical practice. If you are thinking of selling your medical practice and would like some general information, visit the following link on Andrew’s website: Sell a medical practice in California.

The post For sale: OB/GYN practice near Sacramento, CA appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

For sale OB/GYN practice near Sacramento, CA

A very long established OB/GYN practice is now for sale near Sacramento, CA. To be more exact, the OB/GYN practice is about a 45 minute drive north-east of Sacramento, CA. It’s also in a wonderful city to either raise and grow young children to slow down from the hectic city living of Southern California or from the San Francisco Bay Area.

OB/GYN practice for sale near Sacramento, CA

The practice was first established in 1980 and was bought by the doctor that currently owns and operates the practice in 1999.

The current doctor travelled the world with the US military before buying the practice and settling into this local community to raise his children. However, now that he’s reached his early 60’s, it’s time to retire and slow down … just a little.

The current owner is Board Certified with the American Board of Obstetrics and Gynecology and a Fellow of The American College of Obstetricians and Gynecologists.

The buyer of the practice will need similar medical credentials in order to operate their OB/GYN practice in California.

OB/GYN practice other points of interest

Approximately 100% of patients make appointments.
From 2013 to 2015 the practice has achieved gross revenue of over $550,000 per annum.
Th OB/GYN practice focus is to serve the would-be mothers in the local community and their related OB/GYN services.
This OB/GYN practice has approximately 5,100 patients on file with approximately 3,900 active patients within the last 2 years.
The practice averages approximately 65 patients per week while averaging 5.7 new patients per week.
Approximately 90% of the OB/GYN patients travel less than 15 miles to one of the practice locations.
The practice makes use of new technology very effectively. this includes the use of 4 computer workstations, two printers and medical software.
The practice is located in a very clean, stable and low crime area of town. It is also exceptionally convenient and a short walk to a nearby hospital.
The price to buy this OB/GYN practice is $525,000.  The real estate the OB/GYN practice operates from is also available as a separate transaction.

Finance to buy this OB/GYN practice

If you hold the necessary license with the California Medical Board, finance is easily and readily available through local SBA lenders.

If you have questions about finance to buy this OB/GYN practice, please reach out to Andrew so he can help you and introduce you to appropriate third-party lenders.

More information about this OB/GYN practice

If you have an interest to own and operate this very successful OB/GYN practice, give Andrew Rogerson a call on 916 570-2674 or you can send an email to Andrew Rogerson.

Andrew will then send you a one page executive summary of the practice and a Non Disclosure Agreement to sign and return.

Once Andrew receives this from you he will send a link to a secure website where you can download a set of confidential information about this OB/GYN practice.

Sell your Medical Practice

There are many steps to buy or sell a medical practice. If you are thinking of selling your medical practice and would like some general information, visit the following link on Andrew’s website: Sell a medical practice in California.

The post For sale OB/GYN practice near Sacramento, CA appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Reasons to Change your Business Legal Structure

Business needs can change over the course of its life. At the start, you might’ve liked keeping things simple. However, as your business grows and becomes more successful, you may need more from its structure and organization than just ease of management and familiarity.

It can be tough for a first-time business owner to elect the optimal business structure from day one. No one can truly anticipate how your specific business might change and evolve in the future, and just because one business structure worked well during in your first few years doesn’t mean a change won’t be necessary or better when your revenue and business grow.

There are a number of reasons to look at a change in your business structure. It could mean more success, increased liability protection, and less fees and bookkeeping requirements. If you’re contemplating changing your business structure, make certain that you understand all of the options and thoroughly weigh the advantages and disadvantages a switch. A prudent move before you change anything is to discuss this issue with an experienced and local business broker, who can give you a great deal of advice from experience working in California and specifically in the Sacramento area with all types and size of companies.

If you’re contemplating a move, you and your business advisor should first reexamine the pros and cons of your current business structure. Then balance the importance of these characteristics to your business. this includes things like personal liability, taxes, fees, investment capital, and the continuity of business operations.

Some Business Organization Change Scenarios
From Sole Proprietorship or Partnership to LLC or Corporation.

If you (and your partners) decide to change your business structure, the liability of your business will move from unlimited personal liability to limited. This takes a bit of paperwork, such as drafting articles of incorporation and bylaws. You can also expect to pay more in the way of fees and expenses.

From a LLC or Corporation to Sole Proprietorship or Partnership.

Changing from an LLC or corporation to a sole proprietorship or partnership can be more of a challenge. With a corporation, you’ll have to get all of your shareholders to agree and to liquidate the assets of your business. And if you’re changing from an LLC, your tax obligations will be the only thing really different if you file as a corporation. There will be some state requirement that you’ll need to take care of, like licensing. You’ll also need to tell the IRS of the change, as your filing requirements will also be different.

From a C Corporation to an S Corporation.

As a C Corporation, a business must pay taxes on its profits, but when the owner distributes those profits to herself or himself, that income also needs to be reported on an individual tax return. This “double taxation” can be costly for a small business owner that elects to take profits out of the business. A way to avoid this is by using the pass-through tax treatment of an S Corporation, which isn’t subject to federal income tax. The company shareholders pay the only income tax on their share of the profit.

Making this change is pretty easy to do, but it’s time-sensitive. The change is completed with the IRS, not the state, and only affects your taxes. If you’re not eligible for S Corporation status, and you still want to change from a C Corp., it’s a little more complex. The rules vary in each state, and you may need to first dissolve the C Corporation and then form a new LLC. Speak with an experienced business advisor first, and don’t stay with a business structure that isn’t working for your business any longer that possible.

Andrew Rogerson is happy to help you with this decision on the types of business organizations, and can assist in the purchase or sale of a business in the Sacramento area.

To get information about business structure changes and to learn more about business opportunities in and around Sac, please visit our websiteServices and choose from the drop down menu the information you’d like.

For more immediate help, please send an email to Andrew or call him at (916) 570-2674.

The post Reasons to Change your Business Legal Structure appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

How to Know if Buying a Franchise is Right for You

Come on, you have to admit it: after a tough day with your nose to grindstone, you’ve thought of being your own boss and owning your own business.

Yes, the glamour and excitement of your own business sure can some much more fulfilling than working for someone else. You may even have an idea for starting a business or discovered an opportunity for purchasing a business that you think you can really grow.

In either case, you’ll want to consider these important questions before you move forward.

Will you start your own business or invest in a franchise?

You should ask yourself to consider the level of entrepreneurial spirit you have. In other words, do you want to adhere a proven franchise system with the security and knowledge that the franchisor has developed its procedures and policies, and refining the, over time for maximum efficiency? Would you be able to the franchise operational structure, even if you think you have a different and better way of doing things? Is this franchise set-up worth paying a royalty of 8-10% for the duration of your agreement? Is the franchise brand one that is worth that expense? If you’re answering “no” to these questions, you likely will want more control over your business. You should think about starting your own business. The franchising may best be left for those who are more risk-averse.

What can you afford to invest and where will you get it?

What assets do you have that can be used for your business investment, such as a 401(k) plan from a previous employer or a sizable amount of home equity? Can you get a loan from the SBA? How’s your credit? FYI, to qualify for an SBA loan, you need to have a credit score over 680, as well as either: (i) sufficient assets for collateral plus enough to pay all your living expenses, estimated business expenses (or “working capital”), and the loan payments for six to nine months; or (ii) a secondary income source, such as the income of a spouse.

What are your long-range goals? Do you aspire to build a company that one day you can sell? … or do you want to create a legacy business to pass down to your children? …or is the plan to create a secondary stream of income for you and your spouse during retirement? You know, different businesses and business frameworks are better suited for different objectives, like a franchise, that was discussed earlier. Talk this through with an experienced business broker who know the Sacramento business market, climate, and trends, and think about the end game as you determine what is it you would like the business to do for you.

Who is your target audience?

If you’re going to be in business, you’re going to be in sales. Think about the types of sales you like, if you do like sales of some sort. Do you see yourself in consultative, relationship-building sales with a longer sales cycle, or do you like the short “one off” sales with higher volume? If none of this sales stuff appeals to you and you’re not a sales driver of any size, shape, or color, you need work with your business broker to find businesses where the business is driven to you. That customer traffic can from aggressive marketing and/or from a great physical store location with good signage and brand awareness. That will add to the start-up costs.

Will you sell a service or a product?

If you plan on selling a service, you’ll most likely be interacting with your customers. You’ll need to have some people skills, attention to detail, and the ability to follow-up. The service also may be either business-to-business (B2B), business-to-customer (B2C), or both. Your choices here will tell you something about your other expenses, typical return-on-investment (ROI), and ramp-up time.

All of these questions should be considered as you decide the type of business that’s best for you. In addition, think about the number of employees you’re comfortable managing, the types of hours you’d want to work and how hands-on (or not) you want to be in the business. work with your local Sacramento business broker to complete as many answers to these questions as you can. That way you can focus your energy and time on evaluating the right kind of business for you.

Andrew Rogerson is happy to help you buy a franchise or business in the Sacramento area. To discuss this and to learn more about other business opportunities, please visit our websiteServices and choose from the drop down menu the information you’d like.

For more immediate help, please send an email to Andrew or call him at (916) 570-2674.

The post How to Know if Buying a Franchise is Right for You appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Tips Buying a Seasonal Business

Business owners are sure to experience ups in downs in revenue and sales, but for those business owners who have seasonal businesses, the peaks and valleys can be all the more pronounced.

That’s because the lion’s share of their revenue is concentrated on a specific time period. These businesses provide products or services which are usually consumed or needed during a specific time of the year. While some seasonal companies stay open year-round, they see most of their revenue captured in their prime sales seasons. Others open only during their prime selling time of year, which allows the business owner flexibility during the off-season.

If you are considering the purchase of a seasonal business, keep the following thoughts in mind.

Advantages of Buying a Seasonal Business

As mentioned above, seasonal businesses can offer a business owner some flexibility, as well as an additional source of income. Here a few of the other advantages to this type of business:

The ability to do advanced prep.

One luxury of a seasonal business is the ability to plan out your selling cycle during the off season. Owners have the benefit of more time to develop their budgets, sales processes, and operational procedures before the busy season.

Direct marketing.

Seasonal businesses usually have a target audience on which they concentrate during their peak sales seasons. This is true even during off-season. Get strategic and refine your customer base for a better return on investment. By doing this, a seasonal business can maximize marketing and outreach efforts by customizing the message about their products and services.

Securing seasonal labor.

If you have the ability to build a solid team of temporary workers one season to the next, your hiring will be more efficient, take less time, and cost less. The right group of workers will also enjoy the flexibility of seasonal work and look forward to their positions each season. This can create a positive work environment for your company that encourages good work ethic. In addition, incentives can help motivate your staff to refer friends and colleagues.

Disadvantages of Buying a Seasonal Business

Of course, there are a few negatives to owning and operating a seasonal business—it’s not a traditional business, and it’s restricted to making money by the time of the year. With this, there are many known and unknown factors that can affect a seasonal business.

Weather issues.

Some business may depend significantly on weather conditions, such as those selling agricultural products or based on tourism. If a storm or bad weather hit during your peak season, your projected revenues or business equipment and facilities may be affected negatively. You’ll need to make plans in the off-season for possible unfavorable weather.

Staffing.

Recruiting, hiring, and training temporary workers can really stress the administrative functions if a small business, and if you don’t have those annual employees who habitually return year after year, you may experience a high turn-over. Typically, the transitional nature of seasonal employment means a higher than normal turnover rate is likely. You can try to mitigate this by have clear standards, a positive work environment, and employee incentives prior to hiring.

Startup Capital.

The upfront expenses required to launch a seasonal business can be much more significant to a would-be entrepreneur than a traditional enterprise. There can be permits, licenses, inspections, testing, finding a location, and financing that must all be accomplished in a short period of time, which adds to the pressure of meeting seasonal deadlines and expectations.

Owning and operating a seasonal business requires creativity, diligence, and sound management. Andrew Rogerson is happy to help you buy a seasonal business in or around Sacramento. To find information about this topic and to learn more about other business opportunities, please visit our website Services and choose from the drop down menu the information you’d like.

For more immediate help, please send an email to Andrew or call him at (916) 570-2674.

The post Tips Buying a Seasonal Business appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Are You Cut out to Run Your Own Business?

The prospect of owning a business appeals to most Americans, but not everyone is cut out for it. Given a choice between running their own business or working for somebody else, 57 percent of Americans say they would rather be their own boss, according to a Gallup poll.

But despite this widespread desire to own a business, just 10 percent of Americans are self-employed and only 4 percent have employees working for them. Among those who do start up a business, 20 percent fail within a year and almost half fail within five years, Bureau of Labor Statistics data shows. As these numbers indicate, it takes more than just desire to be a successful entrepreneur. If you’re trying to decide whether you’re cut out to be your own boss, ask yourself these four questions:

Do I Have a Realistic Business Plan?

Failing to plan is planning to fail. One of the most fundamental prerequisites for entrepreneurial success is a solid, realistic business plan. A good business plan should cover essential financial, operational and marketing planning issues, including market research, a sales plan, financial projections and a financing plan. The Small Business Administration offers a step-by-step online guide to creating a business plan.

Can I Finance My Business?

One of the most important parts of writing a business plan is creating a feasible financing strategy. According to Dun & Bradstreet, 90 percent of business failures are caused by poor cash flow. Your business plan should include cash flow projections for your first three to five years of operation, with the first year broken down by month so you can see exactly how much cash you’ll need to stay in business.

Having this information will help you see whether or not you need to seek additional capital resources to finance your business. Score provides an online guide to possible financing resources. These include personal savings, family and friends, bank loans, government loans, offices of economic development, grants, angel investors, venture capital and crowdfunding.

Do I Have the Right Personal Qualities?

Successfully running a business requires a certain set of personal aptitudes, attributes and skills. One of the most important is determination to enable you to persevere through setbacks. You also need a willingness to take risks, including the risk of failure. These qualities demand confidence, which is another important attribute. Other important qualities for entrepreneurial success include being passionate enough about your business to stay motivated, knowing how to manage your finances, willingness to be your own sales representative and being willing to adapt and learn to adjust to new circumstances.

In addition, you need whatever technical skills are necessary to operate your business. If you are lacking in one or more of the skills needed for your business, hire someone to take over the task. For instance, many business owners outsource tasks such as bookkeeping and IT.

Am I Willing to Put in the Time?

Being successful as a business owner also requires a willingness to sacrifice time. If you plan on owning a business, you should expect to put in more hours than a regular employee. A survey from The Alternative Board shows that a third of entrepreneurs work 40 to 49 hours a week, while another 30 percent work 50 to 59 hours, and 19 percent work 60 hours or more.

If you’re not sure whether you’re up to the task of committing to this much extra work, give the entrepreneurial lifestyle a test by spending some of your spare time running a part-time business. For instance, try representing a company such as Amway to give you an opportunity to gain some sales experience and get used to putting in extra hours and being your own boss.

Are you thinking about selling your business? Would you like to know the value of your business? If you would like more information please visit my website Business valuation.

For more immediate help you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

The post Are You Cut out to Run Your Own Business? appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Selling Your Medical Practice with the Help of an Expert

The demand for medical practices has increased due to the growth of healthcare issues and legislation impacting the now retiring Baby Boomers and the maturing Gen X and Millennial population. Here are some ideas to help you prepare to show your medical practice’s value to buyers wanting to buy an established medical practice.

Needless to say, medical practices have undergone significant changes in business operations in light of recent healthcare initiatives. Nonetheless, when selling a medical practice, the details and preparation required to realize a successful result are much the same. Still, it’s critical to partner with an experienced medical practice broker to maximize the value of your practice for strong sale. The success of the sale is dependent on working with an experienced medical practice broker who specializes in healthcare businesses to organize and coordinate an efficient and smooth transition of ownership.

In selling a medical practice, one of the most important elements is determining the value of the of the business. A business broker can help you with valuation of your practice. This means examining your medical practice according to the market in Sacramento, economic development throughout the region including the region’s professional and social amenities.

Medical practice brokers are members of accredited business associations and have a robust knowledge of the medical industry. An assessment of your practice should be based on the actual business value, rather than the owner’s emotional opinion, and your business broker will make sure that the valuation is supported with clearly defined information, including current market findings, rational summaries, and accurate calculations that lend themselves to easy interpretation. Assumptions are another element of the assessment considerations for medical practices, and they play a part in determining the final sales price—mostly because of recent changes in healthcare requirements, as well as potential future changes affecting a medical practice.

The unique nature of the medical industry requires the use of a medical broker. The complexity of medical practice today includes healthcare requirements, medical regulations, and insurance restrictions. Your business broker will know the Sacramento market, its medical practice climate, and the competitive environment. A broker can work with you to satisfy a buyer’s wish list and help you negotiate a successful sale. Your broker will thoroughly analyze all the information for your practice, uncover any issues or limitations, and ensure that the reports present the profitability of the practice and its value. This can accelerate the negotiation to closing, and your broker will audit the financing and contractual portions of the transaction.

Andrew Rogerson is happy to help you sell your medical practice in the Sacramento area. To discuss a sale and to learn more about other business opportunities, please visit our websiteServices and choose from the drop down menu the information you’d like.

For more immediate help, please send an email to Andrew or call him at (916) 570-2674.

The post Selling Your Medical Practice with the Help of an Expert appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

Sharing Key Information selling your business

There are many components and attributes of a business that make it attractive to potential buyers. It could be your solid history of profitability, a sizeable and extremely loyal customer base, or a distinct and marketable business advantage over your competitors—like long-term contracts with customers or an exclusive distributorship. It could also be the opportunities that the buyer sees for expansion, a great location, or a highly talented and dedicated group of employees.

A buyer may be interested for any number of reasons, some of which you may not even have considered. Nonetheless, it would be very rare for a buyer to knock on your door (or contact you via your website) and make you a lucrative offer virtually sight unseen. No, it will typically take some preparation on your part and answering some requests for information. In return, you can glean some valuable information from the prospective buyer.

Let’s look at the type of preparation that will be required of you and what you can ask of a buyer to determine if they are qualified and meet your expectations.

Preparing Your Business for Sale

Let’s start by saying that if you’re even thinking of selling your business, you should begin to gather the information that will be requested by the potential buyers. You could be humming along with a successful business when a seasoned industry veteran makes an inquiry. Without any preparation, you hopefully will have at the ready a list of repairs you’ve made, your current books, and a ballpark asking price. But a legitimate inquiry from a serious buyer will require much more.

For example, he or she may want to know about the demographics of your customers, the average daily sales, the average size of orders, and a list of long-term contracts. If you’re going to consider an offer, you need to be prepared with this kind of information. If you don’t have a way of producing the data quickly, that buyer may be down the road and making an offer to your competitor. It can be hard to understand the degree of fervor and intensity with which a potential buyer may scrutinize your company. An experienced buyer may know things about your business that you don’t, putting you at a disadvantage in the sales negotiations. Don’t let that happen: work with an experienced business broker who can help you gather information and organize your financial data.

First things first: make certain that you have your books in order. Failing to provide accurate financial statements for your business in a timely manner can result in the quick disintegration of a buyer’s interest.

Additionally, make sure to have these types of information available before you think about positioning your business for sale:

The last three years of profit-and-loss statements;
The previous three years of balance sheets;
A year-to-date profit-and-loss statement;
A current balance sheet;
The last three years of your business income tax returns;
A list of business furniture, fixtures, and equipment;
A current inventory; and
A recent commercial property appraisal or your lease agreement.

You should be prepared to provide other information, as well. This will be especially true during the due diligence phase. This may include items such as your insurance policies, employment agreements, customer contracts, intellectual property, equipment leases, and monthly bank statements. In addition, make your business visually attractive to potential buyers by doing any needed cosmetic improvements, eliminating outdated inventory, and checking your equipment for any problems.

Meet with an experienced business advisor and broker to help you get organized and to set a sales strategy in motion.

Qualifying Your Potential Buyers

Once you’ve assembled all of this financial information about your business, you don’t want to waste time and energy on a buyer who won’t be able to close the sale. Serious buyers will sign a confidentiality agreement prior to your providing them anything more than a generic profile of your business. In addition, it would be nice to exchange information, so that you have some sense of the type of individual or company that’s considering the purchase.

It’s not uncommon for a seller to require that buyers submit basic information, such as the following:

The buyer’s name and contact information;
Their previous employment;
Any previous ownership of businesses;
Their educational background;
The available funds for investment;
The sources of their financing;
A required minimum monthly income;
Their anticipated timeline to complete the sale; and
Their reasons for their interest in your company.

Once you’ve located a qualified buyer, you can give them a selling memorandum and get ready to entertain an offer. The exchange of information can cease when you ask that an offer be presented. This should be a nonbinding letter of intent or a term sheet that details the major terms of a deal.

Andrew Rogerson is happy to help you sell your business in the Sacramento area. He knows the area and has worked with Sac business owners and prospective entrepreneurs for many years. To discuss the sale of your business and to learn more about other business opportunities, please visit our websiteServices and choose from the drop down menu the information you’d like.

For more immediate help, please send an email to Andrew or call him at (916) 570-2674.

The post Sharing Key Information selling your business appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.

How Digital Data Hoarding Puts Companies at Risk

Today’s business world is drowning in data. Cisco projects that the amount of data transmitted over the internet in 2016 will surpass 1 zettabyte, equivalent to 1 billion terabytes or 1 trillion gigabytes. A percentage of this is valuable, but much is useless. Eighty percent of data that companies store in active files has not been accessed for three to five years, creating excessive storage costs.

Digital hoarding can become even more costly when data results in lawsuits. For instance, Target, which aggressively mines consumer data from sources such as cell phones, web cookies and purchase histories, was forced to accept a $10 million settlement for a 2013 data breach that exposed the credit and debit card information of 40 million people.

Companies that hoard data place themselves and their customers at unnecessary risk. Here are some of the things that can go wrong when companies hoard data and how the risks of digital hoarding can be avoided.

When Data Collection Becomes Digital Hoarding

Digital hoarding stems from a few main underlying causes, says CIO Insight. Big data hype and the assumption that more is better are two key drivers. Another contributor is the fear that deleting data may result in legal repercussions. This is especially true in industries that require companies to maintain records for a set period of time. Reliance on email records, lack of organizational procedures and low data storage costs can be other contributing factors.

There are a few ways you can tell when your data collection habits have become digital hoarding, says Data Informed. One symptom is when collecting data becomes more of a focus than analyzing and deploying data. Another sign is feeling a need to save everything your company collects. This can often be accompanied by a fear of deleting data because it might be needed later. Data hoarders are also constantly running out of space and moving files without actually deleting them.

Risks of Digital Hoarding

Digital hoarding habits hurt companies in several ways. First, even though storage is cheap, it’s not free, and excessive file storage costs companies money. Digital clutter can also hurt employee productivity, making it more difficult and time-consuming to find relevant records that are buried in junk.

Data accumulation habits can also disrupt a company’s file organization system, creating duplicate records that confuse data retrieval efforts and cause miscommunication. Accumulating excessive data can also increase a company’s litigation costs in time and money in cases that require all records to be produced. Finally, legal and financial risks arise when data gets hacked, an increasingly common problem.

Getting Digital Clutter under Control

To clean up excessive data accumulations, IBMadison.com recommends that companies start by realizing that legal obligations require businesses only to make and document good-faith efforts to meet record-keeping obligations for relevant records, not to store every scrap of information.

Along these lines, companies should not confuse backups with archives. Archived information is intended for long-term storage, while backups are intended for short-term disaster recovery and typically have a life cycle of about 30 days before they outlive their usefulness. Online backup services have clear policies about what data needs to be backed up and for how long.

Baseline magazine emphasizes the value of having an experienced outside consultant walk a company through a digital housekeeping process. Where company insiders may be inclined to keep everything, an outside consultant will have a fresh perspective on what needs to be kept and what is disposable. Such a housecleaning process should include a review to ensure that record retention and legal obligations are being met.

A third step is categorizing transitory electronic data that is not currently on a records retention schedule. Data that is required for operations, retention or legal purposes should be placed on a retention schedule; anything else should be disposed of. Following and documenting such a data review and disposal procedure can help companies demonstrate that their record-keeping obligations have been met in the event of a legal challenge.

The post How Digital Data Hoarding Puts Companies at Risk appeared first on Sacramento Ca Business Broker | Rogerson Business Services by Andrew Rogerson.