Bison Business

If a Seller wants you to "make me an offer" on their business, and they don't have an asking price and won't give you any guidance, they're probably overestimating the business' value in their heads and don't want to appear foolish by articulating their indefensible number with their mouths. And they probably don't know how to value their business either, so they couldn't get it 'right' if they wanted to, which is normal or okay. Check out and read the 4 steps How! https://lnkd.in/g_Bi5J3Z #SMB #Sellabusinesstoday #Buyabusinesstoday

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Reminder: YOU are not your business. You are valuable and loved even if your business is struggling or might go under. Every great entrepreneur has struggled and most have a long list of gut-wrenching failures. You're not alone. Talk to any biz owner if you're struggling and be honest about where you're at and they'll confirm what I'm saying is true and be there for you.

❗ NEW DEAL ALERT ❗ Fishing/Boating Related E-Commerce Business Massive YouTube and Social Media Following with over 450K loyal fans/followers ✅ Over $6M in annual Revenue. Looking for an experienced E-Commerce or digital media experienced partner who can buy majority / controlling interest and help these partners scale up for a bigger exit down the road. The numbers: 2023- $6.1M Rev / $327K SDE 2022- $4.3M Rev / $177K SDE 2021- $1.1M Rev / $101K SDE Their brand-name products are a hit with customers, and their licensed retail stores are just the beginning of their expansion story. With exclusive distribution agreements in place, this company is up for success. The company is social media savvy and drives revenue through social platforms. Additionally, they have efficient systems and processes to optimize customer interactions. NDA link in the comment section. Don't miss out on the chance to be a part of their journey and experience the growth that comes with it. #sellabusiness #buyabusiness #boatingbusiness

It's not just "what multiple are you paying" that determines a good business deal. I think three other things quickly tell me how much I like an SMB deal, and perhaps are more important than multiple: 1) Cash on Cash Return - How quickly can I get the cash I put into this deal, back out? Many times good deals get 100% or better CoC returns. If it's under 30-50%, I'm getting less and less interested. 2) DSCR (Debt Service Coverage Ratio) - What's the ratio between available free cash flow post-closing vs the debt service payments? Most banks want 1.2 or better, but that's too thin for my liking. I want a 1.5 minimum, and preferably substantially higher. 3) "Out of the Woods" Time Calculation. I made this one up but look at it every deal. It's how much time will it take me, if I throw all available Free Cash Flow after Debt Service at reducing debt Principal, until I owe less on this business than the Tangible Assets are worth at Fair Market Value. Or phrased simply, you're out of the woods when you could sell all the "stuff" the business owns and wipe out all business debt without it impacting your personal assets. OOTW Formula: (SDE - annual debt service) / (Total Debt - FMV of Tangible Assets) = Years till Out of the Woods. The faster the better, but I typically want this to be less than 2 years until I'm safe from exposure to loss of personal assets on PG'd debt.

ON THE BISON MARKET! Solid Reputation. A longstanding company with over three decades of experience. Amazing 8-employee plumbing company on the TX Gulf Coast. -$2,200,000 Revenue. -Weighted SDE Earnings of $655,000 -Asking Price: $1,700,000 -SBA Eligible. -Real Estate is not included but can be purchased. The lease cost is already subtracted from SDE. With a diverse client base and a proven track record of success, this turnkey opportunity is your gateway to sustained growth and success in the competitive plumbing services sector. Complete the NDA today to explore the possibilities and make this services business your next lucrative investment. BISON MARKETPLACE & NDA: https://lnkd.in/eugtwGZC #bisonbusiness #smallbusinessowners #sellmybusiness #buyabusiness #businessbroker #businessforsale #texaslife

ON THE BISON MARKET! Solid Reputation. A longstanding company with over three decades of experience. Amazing 8-employee plumbing company on the TX Gulf Coast. -$2,200,000 Revenue. -Weighted SDE Earnings of $655,000 -Asking Price: $1,700,000 -SBA Eligible. -Real Estate is not included but can be purchased. The lease cost is already subtracted from SDE. With a diverse client base and a proven track record of success, this turnkey opportunity is your gateway to sustained growth and success in the competitive plumbing services sector. Complete the NDA today to explore the possibilities and make this services business your next lucrative investment. BISON MARKETPLACE & NDA: https://lnkd.in/eugtwGZC #bisonbusiness #smallbusinessowners #sellmybusiness #buyabusiness #businessbroker #businessforsale #texaslife

❗❗ANNOUNCEMENT ❗❗ New Podcast / YouTube channel coming in April! Patrick Dichter and I will be co-hosting: "Inspired or Acquired" This will be the "Love it or List it" of HGTV fame for the SMB world. Each show we will talk to a real business owner about their vision and dreams for their life, and about their actual business numbers. On the show we'll tell them what price their business would likely sell for today, and what we think it could be worth within 5 years. At the end we'll put them on the spot and see if they think they'll put their business up for sale within the next few years, or are inspired to keep working on it and growing it to hold for the long term. "Are you inspired, or are you ready to be acquired?" You'll learn a lot about business valuation, strategy, and building a business that serves your life (not one you're stuck serving for life). Patrick and I have obtained generous sponsorships for the first 25 episode run, from Appletree Business, a top Bookkeeping and Accounting Firm, as well as Bison Business, a top M&A Firm and Business Brokerage. Weekly episodes starting to drop in April. Tag a business owner you'd love to see on our show and we'll reach out and get them on the schedule! P.S. We will have some guests use their real names and some choose to remain anonymous, but getting real about your actual numbers, your business valuation, and your goals in life is going to happen every time.

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Florida is the only state with a business broker MLS system and mandatory co-brokering (sharing of fees with buy-side business brokers.) They usually rave about it being great when they talk to business brokers from other states. The rules: - you must put your deal on the MLS within 7 days after exposing publicly - 50/50 split <1.5M asking price - 60/40 split 1.5M-3M asking price - 70/30 split 3M-5M asking price - not required to split or list on MLS >5M asking price So what do the FL brokers actually do when they launch a biz? A 3-step process to try to avoid the split whenever possible: - market quietly to their internal buyer list first - list everywhere but the Florida MLS 2nd - wait until exactly 7 days later to list on Florida MLS at the last minute they're required to without breaking the rules Results in about 33% of their deals resulting in co-brokering splits. Meanwhile, states like TX we have a mixed bag. Brokers don't have any such co-brokering rules and take a mixture of stances ranging from: - I NEVER co-broker or share fees - I only pay a small referral fee for a Buyer (often 10% split) but don't do 50/50 co-broker - I ALWAYS am willing to co-broker (but you have to ask what split they'll do as they often don't mean 50/50 and will often value the buy-side split less than their sell-side) Co-Brokering remains a hotly debated topic nationally among business brokers. There's no concensus and I can understand both sides of the argument. Business Brokerage is also highly confusing state to state as some states require real estate licensing and are subject to real estate regulations, and some are unlicensed states and a bit more "anything goes". Nevada is the only state with a specific Business Broker license. Some states you have to be registered with the state as a business broker to do deals in. Some you don't. And standard practices vary greatly state by state. For example, some states' brokers hate LOIs and teach 'go straight to purchase agreement' and use standard forms whenever possible. And some fully embrace LOIs and expect custom legal docs every time. This fractured state-by-state regulatory and common deal practices patchwork makes it hard to create "one-size-fits-all" solutions, build national marketplace platforms, or get widespread cooperation from our industry.