Thursday, November 23, 2017

Business Broker South Florida: Buying a Business usingS.B.A. Financing



We wanted to wish all of you a very happy holiday and tell you how thankful we are for your partnership. We also want to make sure we are communicating any changes coming to our industry in a timely manner.

There has been a lot of chatter and confusion around changes in SBA lending coming in 2018. We have met with some of our top lenders as well as reviewed the details outlined on the SBA website and wanted to distill down information that pertains to our business. The changes outlined below will go into effect on January 1, 2018.
  1. Franchise Registry: The franchise registry will be managed and updated by the SBA. In order for a franchise to be approved for an SBA loan, they must be on the approved SBA Franchise Directory. All franchises must submit their franchise agreement and FDD to the SBA directly to be approved. The full list, as well as instructions for being included on the directory, is available here.
  2. 10% Equity Injection: The SBA will require a borrower to contribute no less than 10% of the total project costs for a start-up or change of ownership (acquisition) loan (there was no minimum in place by the SBA previously). Individual banks usually require a 20 – 30% equity injection, but it remains to be seen whether these standards will be lowered. We are communicating closely with our partner lenders to better understand how this might affect lending.
  3. Seller Debt cannot be considered Equity Injection. A seller note may not be used toward the 10% equity injection required from the borrower. We can still use seller debt to reduce the SBA loan amount, but the repayments will need to be factored into the debt service coverage ratio calculation by the lender. This change is most likely to have immediate implications, so we will be paying close attention to how lenders structure deals that include a seller note.
  4. Removed the 25% Equity Injection Rule when Goodwill exceeds $500,000. Equity injection requirements for business acquisitions will now be made at a lender’s discretion as long as they still comply with rule #2 above. We don’t expect a large change from the 20-30% we have been seeing.
Please feel to reach out to me should you have further questions regarding these changes. By working together, we will ensure you get the funding you need.

Have a wonderful Thanksgiving.




edwardsklar@southfloridaforme.com

Buying a Business usingS.B.A. Financing

Buying a Business in South Florida using    S.B.A. Financing 





We wanted to wish all of you a very happy holiday and tell you how thankful we are for your partnership. We also want to make sure we are communicating any changes coming to our industry in a timely manner.

There has been a lot of chatter and confusion around changes in SBA lending coming in 2018. We have met with some of our top lenders as well as reviewed the details outlined on the SBA website and wanted to distill down information that pertains to our business. The changes outlined below will go into effect on January 1, 2018.
  1. Franchise Registry: The franchise registry will be managed and updated by the SBA. In order for a franchise to be approved for an SBA loan, they must be on the approved SBA Franchise Directory. All franchises must submit their franchise agreement and FDD to the SBA directly to be approved. The full list, as well as instructions for being included on the directory, is available here.
  2. 10% Equity Injection: The SBA will require a borrower to contribute no less than 10% of the total project costs for a start-up or change of ownership (acquisition) loan (there was no minimum in place by the SBA previously). Individual banks usually require a 20 – 30% equity injection, but it remains to be seen whether these standards will be lowered. We are communicating closely with our partner lenders to better understand how this might affect lending.
  3. Seller Debt cannot be considered Equity Injection. A seller note may not be used toward the 10% equity injection required from the borrower. We can still use seller debt to reduce the SBA loan amount, but the repayments will need to be factored into the debt service coverage ratio calculation by the lender. This change is most likely to have immediate implications, so we will be paying close attention to how lenders structure deals that include a seller note.
  4. Removed the 25% Equity Injection Rule when Goodwill exceeds $500,000. Equity injection requirements for business acquisitions will now be made at a lender’s discretion as long as they still comply with rule #2 above. We don’t expect a large change from the 20-30% we have been seeing.
Please feel to reach out to me should you have further questions regarding these changes. By working together, we will ensure you get the funding you need.

Have a wonderful Thanksgiving.


edwardsklar@southfloridaforme.com


Wednesday, November 22, 2017

Business Broker South Florida: Florida Business Sales-The New Norm

Business Broker South Florida: Florida Business Sales-The New Norm: As we start the Thanksgiving Holiday, and people are reflecting on Giving Thanks, I am sharing what I am seeing in the dynamic of why peopl...

Florida Business Sales-The New Norm

As we start the Thanksgiving Holiday, and people are reflecting on Giving Thanks, I am sharing what I am seeing in the dynamic of why people are Buying a Business in South Florida.Whether you are thinking of moving to South Florida or you already live here, we are seeing a significant trend in the way people are thinking about their retirement. With all of the Baby Boomers moving to Florida and enjoying the great weather and a more relaxed lifestyle there are great opportunities to meet their needs for all of the goods and services they require. Just about every type of business that caters to this population and to the newly revived real estate market is currently experiencing a re-birth along with healthy growth. What is surprising is the number of people who are taking advantage of this market by buying service businesses. Here are a few of the groups that seem to make up a large part of this trend:


    First there are South Florida residents who are leaving the jobs they currently have and selling the businesses that they now own to buy businesses that cater to this trend in the areas where the growth is strongest, such as Broward and Palm Beach Counties. They are buying just about any type of business in Boca Raton, Fort Lauderdale, West Palm Beach, etc..that fits the growing needs of this population. They repeatedly tell us that they see this trend continuing for years and that is where they want to be. We think they are exactly correct in positioning themselves this way for the foreseeable future.
    The next group that we hear a lot from is people from across the country who have been planning to retire to Florida and have been telling us two different stories. Many see the strong growth in our area as an opportunity to speed up their move to Florida where they see a stronger business climate than where they presently live.  Others are representative of the 'New Norm' and are now changing their retirement plans to include a new business venture to supplement the income that has been diminished by the value of their real estate holdings and other assorted 'victims' of the changing economy. It is interesting to note that we have seen some people collaborate with friends and relatives to collectively buy a business that they can each work in part time. This may be an interesting trend in itself to watch as it does seem to make a lot of sense for a growing number of people.
     Buying a business in Florida is a particularly good idea for a large number of those who want to retire however they are not able to live reasonably on their social security and their savings. Many had planned on a certain return from dividends or interest from their savings and now find these returns almost negligible. In order to supplement their income many are finding that taking their years of experience and putting it to work by buying a business is the most viable option. We see this more and more and I am sure that this trend will continue at least for the foreseeable future. The dream of retirement has been dashed for many Boomers and they have accepted the 'New Norm' and are adjusting accordingly.
    The business brokerage business in South Florida is very strong right now and it is interesting to note how many people we speak with who just are tired of their present job or business and just want to try something new that they believe they will enjoy more. We love working with this group because of their enthusiasm and their determination to improve their lives. After all, that is what it is all about.
    Financing the purchase of a Business in South Florida has become much easier for those with good credit. Additionally, being able to use the funds in your Retirement Account to acquire a business has become a part of the New Norm as the stock market has reached new highs on a daily basis. Also, Seller Financing is available on many of the businesses we currently have available for sale in South Florida.
  Please contact me at: edwardsklar@southfloridaforme.com

Tuesday, November 14, 2017

Selling your Business in South Florida

 South Florida Businesses Needed 

Seeking Businesses for Sale with Sales Volume between $500k-$3m

 Active Buyers including Private Equity firms, Corporations, and Individuals, looking for Businesses 

We Do Not get Paid until you get Paid 

Complimentary Business Plan to ensure Maximum Valuation for your Business



Search South Florida Businesses for Sale

edwardsklar@southfloridaforme.com



Friday, November 10, 2017

Calling on REALTORS & Businesses to Help our Heroes

As a REALTOR, Business Broker, NonProfit Founder, and Veteran I am asking the Real Estate community to Donate a portion of your next commission to a Nonprofit organization that supports Veterans. If you are a Business Owner I would encourage you to Donate as well.
A recent report I read indicated that 22 veterans a day were committing suicide-how is this possible? The lack of resources available to Veterans is disgraceful and this is my way of trying to help our Heroes.
If you are Buying or Selling a Business in South Florida I will commit to Donating a portion of my commission on the business to a Veterans organization.