Financial Information
Asking Price:	$125,000
Gross Income:	$222,531
Cash Flow:	$64,023
FFE:	Included in asking price
Inventory:	Included in asking price

Business Description

Well Established automotive repair shop for sale. Good
reputation and good customer base to work with. Good
record keeping and nice clean financials. If you are looking to
start an auto repair shop, purchase this one and have
customers from day one for less than what it would cost to
start your own.

Facilities:Large concrete building with 3,882 sq ft of space. 3,474 sq ft of shop area and 408 sq ft of office. Two bays for pull in alignment and/or inspection. A drive thru style bay for easy access in and out. Buyer can lease the space for a period of time and purchase it at the end of the lease or renew lease.

Reason for Selling:Retiring and Relocating

I want to Learn More about this Business

Financial Information
Asking Price:	$475,000 with Real Estate
Gross Income:	$254,454
Cash Flow:	$45,096
FFE:	$127,480 Included in asking price
Inventory:	$70,000 Included in asking price

Business Description

Well established welding and fabrication shop for sale.
Provides services to jobs of all sizes. Good customer
diversification. Large jobs currently booked and ready for
new owner. Business Valuation, Equipment Valuation, and
Real Estate appraisal validates asking price. Pre-qualified for
financing for smooth transaction. Real Estate included in
asking price along with equipment, inventory, and business.
Contact me for more details.

Facilities: Over 5,000 sq ft steel and block building that is well insulated and sits on 4 acres with easy access to major highways.

Reason for Selling:Retiring because of Health Issues

I want to Learn More about this Business

Buyers looking for businesses for sale can check out our listings page. If you don’t see what you want, we can search multiple sources and try to find the business you want to buy. There is no one place to go to find all businesses listed for sale so we search for you. It can take a couple of days but usually we can get some listings to you right away and then follow up with more.

Buyers looking to understand the process of buying a business can learn from our blog articles about the typical process. We also have or will be coming out with articles that discuss the many different things you will need to know and understand during the process.

Sellers can learn about our unique and proven process about selling a business. For many sellers, this can be a difficult process because they have grown the business and have worked it for many years. We take everything into consideration when helping you sell your business. If you are not quite ready yet, we even have long term planning so that you can maximize your proceeds when you are ready to sell.

Please take a look around our site to learn more today.

Great Country Feel! Excellent Employee Retention!

Business Description

Well established personal care home for sale. Currently there are 18 beds occupied with a potential of having 22. Many of the employees have been there for over 10 years and continue to provide excellent care to clients. Minimal advertising needs to be done to fill beds because of the lack of competition in the area. Enter into the Senior Care industry with this positive cashflow business. Real Estate Included.

Facilities: Great country setting. Good layout for personal care home. Real Estate is included in the asking price.

Reason for Selling:Retiring

I want to Learn More about this Business

Complete Resort with Golf Course, Hotel, Restaurant and More!

Buy a complete resort with an 18 hole championship golf course, hotel, restaurant with bar, banquet halls, and an indoor water park that is just minutes from Pittsburgh. Well known and well established resort. Everything is open to the public. Great weekend getaway for customers from all over. Course has been well kept over the years. Great employees in place that keep the customers happy. Buy this business and buy the lifestyle you always wanted.

Reason for Selling:Retiring

I want to Learn More about this Business

Well Established Car Wash

Business Description

Well established car wash with updated and well maintained equipment. Great location on busy highway near residential areas. The good reputation it has has kept this business going for over 40 years.

Facilities: 41 year old block and vinyl building on commercial property that was originally built for the car wash so the layout is just right. Real Estate is included in the asking price. All utilities available plus the option to recycle the water.

Reason for Selling:Employment Relocation

I want to Learn More about this Business

When we are talking about cash flow, we are talking about seller’s discretionary cash flow. Buyers look at cash flow for obvious reasons. They want to know how much they can expect to make after buying the business assuming things remain relatively similar in terms of the economy, how they run the business, business expenses, etc. The amount of cash flow will determine the ultimate price each buyer is willing to pay for your business. Some buyers are willing to pay top dollar for a good business while others are always looking to get a great bargain even if they have to improve the business immediately. Most buyers are reasonable with what they want to pay as long as the cash flow is consistent and provable.

Buyers also want to see consistent cash flow and/or revenue. This can sometimes depend on the industry of the business. They really like to see consistent growth but they are usually acceptable to seeing level sales and cash flow.

Probably the most important thing next to the amount of cash flow is the ability to prove the income that you say. This is where our long term planning can come in if you are not ready to sell yet. Buyers understand that every business owner wants to minimize the amount of taxes paid. What they don’t want to hear is that you take 30% off the top in cash and have no way to really prove it. If you run personal vehicles, cell phones, and other items through the business and show it on the tax return, it will show up in the adjusted financials and be provable. We do have programs and alternatives to maximize your sale price even if you do take money off the top but you will have less buyers to work with.

Clear Choice Enterprises, LLC can meet with you without any obligations and review your situation and help you choose the best path to move forward. Contact us today to learn more.

1. How do you sell, Confidentially?
• Clear Choice Enterprises, LLC will never put a sign in front of your business.
• The marketing material will not have your business name or any information that will let buyers know who you are. In fact, we let you review all marketing so you can be sure what is available for buyers to see.
• Non-Disclosure and Confidentiality agreements are put into place before buyers ever get any confidential information.
• Only qualified buyers that could move forward receive confidential information so you can be sure only a select few ever know about your business being sold.
2. How do you qualify buyers?
• We have an interview process with each buyer.
• We qualify them similar to how a bank would so that if they need financing it will most likely happen. We do this by finding out their cash available, net worth, and if they have relevant experience.
• We also make sure your business meets the buyer’s minimum qualifications such as price range, commute distance, etc before providing confidential information to them about your business for sale.
3. How do you market businesses for sale?
• First we market to our “Buyer in Queue” database because they are active buyers looking now.
• We market towards business-buyers. Not real estate buyers.
• We pro-actively seek out active-buyers using trade secrets and our own systems to maximize exposure while keeping confidentiality.
• We use online advertising, print advertising, and personal contact methods.
• We work with other business brokers, real estate brokers/agents, lawyers, accountants, and more to find buyers.
4. Do you co-broke with other brokers?
• This might be one of the most important questions!
• We DO Co-broke with other business brokers, real estate brokers/agents, lawyers, accounts, and more.
• It is our job to SELL YOUR BUSINESS, not maximize our commissions.
• The ones that do not co-broke, are doing you a dis-service because they are looking out for their commission only. I have had many buyers looking for a business only to call the broker to hear that they do not co-broke. What if that was the one buyer that would have bought your business. I have had buyers pay me for showing them businesses that the other broker would not co-broke on.
5. How do you know what to price the business at?
• We provide a free price analysis which shows you how buyer would most likely price your business. Your business is worth what buyers are willing to pay.
• We favor the cash flow method because that is what most buyers look at but we compare it to other methods to justify it.
• We compare it to other businesses that have sold that are similar to yours to justify the asking price.
• Third party business valuations are optional to relieve any doubt you may have about our pricing methods.
6. How do you get paid?
• We only get paid when we successfully sell your business!
• There are no up-front fees, retainers, or other costs for our services.
7. What do you different from other business brokers or real estate agents?
• No Long Term Listing Contracts! That’s right. We are so confident in our services that we will never make you stuck in a contract for six, nine, or 12 months like most others.
• Confidentiality throughout the whole business selling process.
• Unique marketing techniques to make your business stand out to business buyers.
• Programs that we cannot provide details on until our no-obligation meeting because we want to remain one of the top brokerages in the industry.
]]> http://www.pittsburghbusinessesforsale.com/questions-potential-brokers/feed 0 http://www.pittsburghbusinessesforsale.com/why-confidentiality-matters-2 http://www.pittsburghbusinessesforsale.com/why-confidentiality-matters-2#comments Fri, 19 Mar 2010 21:22:01 +0000 kwblank77 http://www.bkkbdesign.com/?p=593 Confidentiality should be as important to the buyer as it is the seller. The reasons are mostly the same for each. Confidentiality is important so that the business stays operating the same as when it is listed. Without confidentiality, there is a chance of losing customers, contracts, and employees.

Some customers have been going to the same businesses for years. This may be because they enjoy the owner and the employees. Sometimes a new store can open up that is closer but the customer still goes to your business. This is the best customer to have because of the loyalty. If this customer finds out that the business is for sale, they just might start going to the more convenient store. They do this because they think the new owner is going to change the atmosphere or not be as friendly as the current owner. Also, if you have long time customers that haven’t shopped around for more cost friendly products or services, they may consider doing this when they find out the business is for sale because they don’t feel a need to be loyal to the new owner. If everything is confidential, then the customer will not find out and the new owner can start to build relationships with the previous owner so that things remain similar. This helps keep current customers which helps the new owner.

Occasionally, contracts can be lost if everyone knows that the business is for sale. Some companies or suppliers that give the current owner credit may want the money upfront in fear of not getting paid in a timely manner with the new owner. This can create a cashflow problem with the new owner or current owner if they fear they won’t get paid.

Employees are another potential issue of the sale of the business is not kept confidential. This is very important if there are some key employees that the business would not be as successful without them. If you lose one of them, then your business suffers. I do find that the employees are just as worried about losing their jobs when the business is sold. They may be worried that the new owner has family members that can work there and replace them or the new owner may want to cut costs and let some employees go. When the employees get worried, then they may look for another job even if the new owner intends to keep them. As for the key employees, I would attempt to get employment contracts in place either as the seller or the buyer. If the seller has them in place, then the buyer feels more confident and knows the key employees will stay. If the seller doesn’t have them in place, the key employees may think twice about signing employment contracts because they have no idea if you are good person to work for or not.

Another reason confidentiality is important to the seller is if the business doesn’t sell. If for some reason the business doesn’t sell, you do not want everyone to know it was for sale because it could effect your bottom line and then you are stuck with a lower performing business that may even be harder to sell next time.

Buyers, please keep this in mind when you call brokers and just want to know the name and location of the business. There is really no reason for you to know this information for the above reasons unless you are a qualified buyer and seriously want to buy a business.

]]> http://www.pittsburghbusinessesforsale.com/why-confidentiality-matters-2/feed 0 http://www.pittsburghbusinessesforsale.com/seller-discretionary-earnings-2 http://www.pittsburghbusinessesforsale.com/seller-discretionary-earnings-2#comments Fri, 19 Mar 2010 12:20:57 +0000 kwblank77 http://www.bkkbdesign.com/?p=575 What are seller discretionary earnings?  Seller discretionary earnings (SDE) is a figure that is used to help value a business using multiples.  It is also called Cashflow.  Seller’s discretionary earnings is defined as net income before the primary owner’s compensation, other discretionary, non-operating, or nonrecurring income or expenses, depreciation, interest, and taxes.  How do you figure it out when you are looking to buy a business?  Well hopefully the business summary has it well explained but if there is no broker or no summary that explains it, how do you figure it out?

All of the information is on the tax returns but you will have to ask the seller some questions and do some math.  First take the taxable or net income from the tax return.  Then you have to add items to this number.  The interest, taxes, depreciation, and appreciation can be found under the expenses and added back to the taxable income.  Depending on the business structure, the owner’s salary might also be under expenses and the figure can be added in.  If not, ask the seller where his salary is in the tax returns.

Typically, other discretionary expenses come up in the auto expenses, meals and entertainment section, and travel.  You will have to ask and use your own judgement to decide if the number the seller says makes sense or not.  If the seller tells you that all of the vehicle expenses are discretionary but you see a delivery van outside, then you know not to believe his numbers and don’t add them back.  The less you add back the less your value for the business will be so if you don’t feel comfortable that all the numbers are discretionary then just use your judgment.  The other place you should ask about discretionary expenses, is under the employee wages section.  Ask if there is a family member on the books that does little or no work.  If there is and they do very little or no work, then you can add that back as well.  However, if the family member is going to stay on or you will have replace them, do not add that back because you will have that expense.  Also, check to see if the expenses make sense, especially rent.  If the seller rents from their parents, they may be getting a super deal for the area.  They may not give you that same deal.  If it is low, then subtract what you think will be the yearly difference.

The other big area that could have many discretionary expenses is the other expenses category.  There will be an attachment that has this section.  Go through each item and see if the expenses make sense for the area and industry.  Again, ask which are discretionary and make your own judgement.

So take the taxable income and add the discretionary expenses and this is the seller discretionary earnings.  Once you have the SDE, you can multiply it by the industry multiple and have some idea what the business is worth.    One good reason to understand it is to check that the SDE or cashflow listed on the websites and in the summary is correct.  Sometimes people don’t understand what cashflow is so they put in gross profits or another figure and still multiply it by the industry multiple.  It is always a good idea to check these calculations yourself.  Hope this helps.

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