33-year-old photography studio for sale in Seminole County. $80K.
Owners are ready to retire and are entertaining all offers and are open to seller financing. Contact Jessica Hadler direct at 407-770-8373 to schedule a showing this week.
Friday, October 9th
If you want to buy a business in Orlando, the current asking price is about $195,000.
One year ago, at the end of third-quarter 2008, the median asking price for businesses in Orlando was $199,000.
The third-quarter 2009 data is based on 845 Orlando-area businesses listed at BizBuySell.com. It includes listings from local business brokers, as well as “for sale by owner” listings.
Looking ahead, the fourth quarter and first-quarter 2010 are forecast to show robust growth in the business-for-sale marketplace.
Businesses in the Orlando area listed in third-quarter 2009 had a median revenue of $330,000, down from $337,000 for the same period last year.
Nationally, the business-for-sale marketplace seems to have hit bottom and is turning around. BizBuySell saw a 24 percent drop in closed business-for-sale transactions. That’s an improvement from last quarter when closed transactions declined 50 percent year over year.
The BizBuySell data suggests sellers are dropping their prices, leading to greater alignment between sellers and buyers. The median price for closed transactions, for example, declined to $149,000 from $189,500 year over year. Similar downward trends were being seen in asking prices, sale-to-ask ratios, revenue multiples and cash flow multiples.
Looking ahead, the fourth quarter and first-quarter 2010 are forecast to show robust growth in the business-for-sale marketplace. Factors behind that optimism: Easing credit, recovering business fundamentals and a change in the Small Business Administration lending criteria with respect to goodwill.
With negative economic news grabbing the headlines in the United States, business owners may think it’s not a good time to sell their company. But fortunately for owners looking to sell, that’s not necessarily true. Business sales are still taking place with sellers capturing attractive prices and favorable terms, when the deal is structured properly.
Look at the buyer’s credibility – Of course, you want to find the best buyer possible. Whether it’s an individual, another company or a Private Equity Group, look for a potential buyer with business acumen, significant assets to pledge as collateral or a committed fund, as well as demonstrated success.
With a proven, credible buyer at the negotiating table, lenders are more likely to support the transaction.
Expect some seller financing – Oftentimes during a tight economy sellers must share the risks with the buyer and the lender in order to achieve the highest value.
With the right structure, deals are still getting done across the U.S.
In many instances the value of a successful business is greater than the fixed assets. In today’s tight lending environment, a seller can still get a strong value for the business, but the seller may need to finance more of the purchase price than before. Regardless of the capital structure or finance considerations, professionally crafted and creative deal structure is the key during a difficult economy.
Typically, seller financing has been somewhere between five percent and 15 percent. With the current lending climate, seller financing may approach 15 percent to 25 percent amortized over 10 years with a balloon payment between three years and five years.
After the buyer has proven themselves in the business and shown that the debt payments will be made, the lender will generally refinance the seller’s note. As a result, the seller receives full payment within three years to five years and the lender gets to loan more funds to a demonstrated lower-risk borrower.
While the economy has put a crunch on available financing, it has not had a dramatic impact on the number of potential buyers. With the right structure, deals are still getting done across the U.S.
The International Business Brokers Association® is the largest international, non-profit association operating exclusively for the benefit of people and firms engaged in the various aspects of a business brokerage and mergers and acquisitions.
Recently, Jessica sat with Eye on Worldwide to talk about investing in businesses relocation purposes. Click here to hear the interview and learn more about how your business broker works with you and your immigration attorney to find the right business opportunities.
EyeonWorldwide.com is a leading site offering overseas travel, relocation and investing advice.
