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Purchase a Profitable Health Food Store

January 26th, 2012

The health food industry is a 26 billion dollar business and continues to increase yearly with greater demand. According to the Organic Trade Association, U.S. sales of organic food and beverages have grown from $1 billion in 1990 to $26.7 billion in 2010. More Americans are concerned about eating healthier, you can help people achieve their ultimate health through this health food store.

The gross sales that the former owner reported to the IRS were as follows: 2008 ($927,709); 2009 – ($887,737); 2010 ($810,392). For a $225,000 investment you receive a guaranteed $100,000 of inventory at cost. You are buying the business for just $125,000.

You can use $200,000 from your retirement funds to earn $150,000+ year. Any profits left after paying yourself are non-taxable. You can invest them any way you want within the retirement plan.

The current owners are the original owners from 30 years ago.

If you pay all cash, you can buy the business plus inventory for just $200,000.

About the Business

  • Year Established: 1980
  • Number of Employees: varies
  • Facilities: 3,000 sq. ft. of which 2,000 is retail, 400 are 2 offices and the balance is service, bathroom and storage. Lease is triple net at $7,000/mo. The only add ons are increases in maintenance, insurance and property taxes. There are 2 sub-tenants paying a total of $2,375/mo. So net rent is only $4,625 in prime location. Term can be 3 years with a 3 year option. Initial rent does not escalate for 3 years.
  • Market Outlook and Competition: There are tremendous opportunities that the owners will share with the right buyer. While there is significant competition, the owners have said that if the store is run properly, a new owner can net $150,000+.

About the Sale

  • Management Training and Support: Sellers will give 2 weeks assistance included in the sale. If more help is desired, this will be negotiated between new owner and sellers.
  • Reason For Selling: Family needs in other states.
  • Seller Financing: $150,000 down with $75,000 @ 6% over 36 months

Financial Details

  • Asking Price: $200,000
  • Inventory: $100,000 ++
  • Gross Revenue: Not Disclosed
  • Real Estate: n/a **
  • Cash Flow: Not Disclosed
  • FF&E: $50,000 ++

++ included in the asking price ** not included in the asking price

Don’t let this great business opportunity get away. Contact Bottom Line Management, Inc. today for buying details!

Broker Contact Information

Contact: Loren Marc Schmerler
Phone: 404-550-1417
Email: LMS@BOTLINE.COM

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Own a Successful Special Trades Construction Company

December 28th, 2011

This company has AAA client roster and located in Metro Atlanta, Georgia.

ABC Company has been meeting and often surpassing customer expectations since February 2001. A full service Mechanical Engineering & Contracting company specializing in Class A/B tenant finish, Medical & Surgery Centers, and New Construction. ABC Company has a fully staffed service department focused on maintenance and repair of systems with our main emphasis placed on the best way to increase system efficiency and decrease operation expenses for our customers.

Our principals have a combined 80+ years of experience in the industry and 50+ years of craft supervision experience. We have a registered Professional Engineer on staff and can design/build a system to suit any customers’ needs. We also have experts on staff that can help with the design, construction, and upgrade of large operations. We have the experience to handle certified projects which includes the creation and submission of supporting documentation to the USGBC for any level of certification being sought on a project.

ABC Company is fully insured and licensed.

Financial Details

  • Asking Price: $2,400,000
  • Gross Income: $5,981,065
  • Cash Flow: $463,060
  • EBITDA: $231,530.00
  • FF&E: N/A
  • Inventory: $10,000.00 *
  • Real Estate: N/A
  • Year Established: 2001
  • Employees: 48
  • Business Type: Special Trades

* included in the asking price

Detailed Information

  • Facilities: 8,294 sq. ft. of warehouse and office space. November 1, 2011 – October 31, 2014. Base rent $4,200/mo. + $.50/sq. ft. CAM.
  • Competition: While there are other construction companies that provide these services, no one has the equivalent client roster and reputation.
  • Growth/Expansion: More work can easily be obtained in coastal Georgia as well as metro Atlanta.
  • Support/Training: Owner will provide 4 weeks of assistance.
  • Reason Selling: Other business interests.

Don’t let this great business opportunity get away. Contact Bottom Line Management, Inc. today for buying details!

Broker Contact Information

Contact: Loren Marc Schmerler
Phone: 404-550-1417
Email: LMS@BOTLINE.COM

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Own One of the 6th Largest Foreclosure Cleanup Businesses

November 29th, 2011
This company is projected to do $2,900,000 in sales for 2011.

Join the $2.1 billion dollar-a-year foreclosure cleanup industry. With bank foclosures at a high (record 2.9 Million U.S. properties receive foreclosure filings in 2010), banks are in need of companies to help them clean up and fix foreclosed properties.

The best part of this established business is that it’s successful and revenue generating company. No need to start from scratch and endure the challenges of starting a business.

This company is projected to do $2,900,000 in sales for 2011. It had sales of $2,252,375 for 2008, $2,379,811 for 2009 and $3,117,085 for 2010. It services a niche and has clients that are banks who REO(real estate owned properties.) These properties need to be properly maintained so that they can be sold to HUD. Current owner says that you will need working capital of $200,000. Cash Flow for 2011 will be $340,000 which is more normal than 2010 which was extraordinary.

Financial Details

  • Asking Price: $1,200,000
  • Gross Income: $3,117,085
  • Cash Flow: $620,000
  • EBITDA: N/A
  • FF&E: $200,000.00 *
  • Inventory: N/A
  • Real Estate: N/A
  • Year Established: 2007
  • Employees: 35
  • Business Type: Landscaping & Yard Services

* included in the asking price

Detailed Information

  • Facilities: 5,000 sq. ft. of warehouse and office space. Lease started June 1, 2009 and expires August 31, 2014. There is a 5 year option. Current rent is $3,700/MO. and includes CAM.
  • Competition: There are many Mom and Pop companies, but this company with 35 employees is one of the six largest.
  • Growth/Expansion: Secure additional bank relationships or spread into non-bank areas.
  • Financing: $900,000 down with $300,000 @ 6% over 10 years with 5 yr. balloon
  • Support/Training: Owner will provide 4 weeks of transitional assistance.
  • Reason Selling: Relocation.

Don’t let this great business opportunity get away. Contact Bottom Line Management, Inc. today for buying details!

Broker Contact Information

Contact: Loren Marc Schmerler
Phone: 404-550-1417
Email: LMS@BOTLINE.COM

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Take A Bite Out Of The $50 Billion Pet Industry With Dog Daycare & Boarding

October 24th, 2011

Pet popularity is at an all time high. According to the 2011-2012 APPA National Pet Owners Survey, 62% of U.S. households own a pet, which equates to 72.9 millions homes and for 2011, it estimated that $50.84 billion will be spent on our pets in the U.S. An estimated $3.65 billion will be spent on pet services that includes grooming & boarding.

This established doggie daycare for sale is a profitable and a great business opportunity.

Description

Doggie daycare, boarding and grooming businesses are on fire. Run properly, they grow rapidly and profitably. You can take advantage of the November, December and January holiday season. The current owners estimate revenues of $30,000 for both November and December.

The employees are terrific with the animals. This business has stalled because the owners each received promotions too good to refuse. *** I have sold 2 of these previously, and the owners made more than $100,000 a year. In your first 12 months you can reach $100,000 with proper marketing and customer service.

Details

  • Asking Price: $250,000
  • Gross Income: $275,000
  • Cash Flow: $60,000
  • EBITDA: N/A
  • FF&E: $15,000.00 * (* included in the asking price)
  • Inventory: N/A
  • Real Estate: N/A
  • Year Established: 2001
  • Employees: 4ft/2pt
  • Business Type: Pet Care & Grooming
  • Facilities: 7,500 sq. ft. of indoor playground and outdoor play area. New 5 year lease started June 2010. There are 2 five year options. Each 5 year option extension has no annual escalation. Current rent is roughly $5,300/mo. including CAM.
  • Competition: There are several competitors, but they do not have the appeal of this business.
  • Growth/Expansion: The opportunities are endless. Grooming can be expanded. A training school can be started. Relationships with vets who do not board can be established. Retail can be implemented.
  • Financing: $150,000 down with $100,000 @ 6% 10 yr. amortization 3 yr. balloon or $200k CASH
  • Support/Training: The staff will train the new owners for 2 weeks.
  • Reason Selling: The owners each received large corporate promotions and have no time to manage.

    Don’t let this great business opportunity get away. Contact Bottom Line Management, Inc. today for buying details!

    Broker Contact Information

    Contact: Loren Marc Schmerler
    Phone: 404-550-1417
    Email: LMS@BOTLINE.COM

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    Enjoy Working Outdoors? Be part of the Pool Service Business.

    September 19th, 2011

    Combine your passion for the outdoors with a challenging, fun and rewarding career – own this successful pool service business servicing Metro Atlanta.

    This pool service business is a very well established service business that operates within a 25-mile radius of Metro Atlanta. It is operated by a husband and wife and is ideal for either a couple or individual who hires a replacement employee to operate the retail location. The database includes 7,500 customers. The beauty of this business is that there is no fixed labor overhead. All employees get paid 40% of the labor rate charged the customer.

    Financial Details

    • Seller Financing Available
    • Asking Price: $995,000
    • Gross Income: $870,209
    • Cash Flow: $268,369
    • EBITDA: N/A
    • FF&E: $70,000.00 *
    • Inventory: $75,000.00 *
    • Real Estate: N/A
    • Year Established: 1995
    • Employees: 4 full time
    • Business Types: Landscaping & Yard Services; Other Business Services

    * Included in the asking price

    Business Details

    • Location: Metro Atlanta
    • Facilities: 2,700 sq. ft. in strip center at heavily traveled intersection. Rent is $2,683/mo. Lease renews 8/31/11.
    • Competition: While other businesses of this type have failed or closed, this business has thrived with Owner’s Discretionary Cash Flow of $265,000 in each of the two most recent fiscal years.
    • Growth/Expansion: More direct mail marketing and implementation of a customer referral program.
    • Financing: $720,000 down with SBA loan; Buyer down payment of $210,000; $275,000 note @ 6%.
    • Support/Training: Current owner will provide 4 weeks of assistance.
    • Reason Selling: Other business interests.

    Broker Contact Information

    Contact: Loren Marc Schmerler
    Phone: 404-550-1417
    Email: LMS@BOTLINE.COM

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    Make $85,000 After Debt Service On A $90,000 Investment

    August 3rd, 2011

    Profitable and successful, environmentally-friendly, service-oriented franchise catering to both businesses and individuals in North Atlanta generates a consistent revenue stream.

    Business Overview

    Xxxxxx Company is a profitable and successful, environmentally-friendly, service-oriented franchise catering to both businesses and individuals in North Atlanta. xxxxxx Company is in business to provide both New and Remanufactured products to its clientele. We offer the highest quality remanufactured products on the market at a savings of 30% or more off of what customers would pay for new products at the local superstore. 

    These products are consumables used in virtually every household and business in America. If a person breathes, then it s likely they use these products! Therefore there is a consistent revenue stream from customers returning to the store again and again! This store has a great track record for customer service and maintaining a happy customer base ensuring a high rate of repeat business. The brick and mortar store is nicely appointed with current franchise graphics and well maintained. It is located in a highly trafficked intersection in North Atlanta with great visibility and ingress and egress.

    In addition to walk-in individual customers purchasing their products for home use, xxxxxx Company has over 500 local businesses that use their products on a repeat basis. The company caters to small and mid-sized businesses providing free delivery within 24 hours of orders being placed and also offers businesses the ability to place orders online, over the phone, or via email. 

    This business is staffed with an Owner/Manager, an Owner/Sales Person, 2 full time service technicians and 1 part time customer service person. Both technicians have outstanding customer service skills. All the current staff have been with the business for a year and a half or more and have great expertise and synergies working together. The business hours are Monday thru Friday 9-6:00pm and 10-3:00 on Saturday. The owner has developed an extensive email database for both their business clients and walk-in clients and communicates monthly with them.

    Business Details

    • Facilities: 1,200 sq. ft.New lease 8//1/11 – 7/31/13. Base rent $1,700/mo..CAM $500/mo.
    • Competition: There are other businesses that compete in this space, but none provide the same level of service.. Very high repeat business and customer referrals. 1,000+ active customers. Largest customer is less than 3% of sales.
    • Growth/Expansion: More canvassing for business customers can greatly
    • Financing: SBA approved loan for $360,000; buyer puts down $90k and project cost of $450k.
    • Support/Training: Seller will assist buyer for 4 weeks.
    • Reason Selling: Relocation and other busines interests.

    Financial Details

    • Asking Price: $400,000
    • Gross Income: $525,270
    • Cash Flow: $138,014
    • EBITDA: N/A
    • FF&E: $40,000.00 *
    • Inventory: $17,000.00 *
    • Real Estate: N/A
    • Year Established: 2006
    • Employees: 2ft/ 1pt
    • Business Types: Computer & Software Services, Other Business Services 

    Contact Information

    Contact: Loren Marc Schmerler
    Phone: 404-550-1417
    Email: LMS@BOTLINE.COM

    Steps to Apply and Obtain A SBA Loan

    August 3rd, 2011

    Loren Marc Schmerler, CPC, APC, President and Founder of Atlanta based Bottom Line Management, Inc. recently shared how to apply and obtain a SBA loan for those interested in buying a business during "What You Need to Know When You Are Ready to Sell or Buy a Business or Franchise"  free monthly seminar hosted by The Edge Connection, community partner with Coles College of Business, Kennesaw State University.

    Once you have found the business of your dreams, you need to figure out a way to purchase it. One way is if you have the proverbial “rich Uncle” who can write a check for the entire purchase amount. The probability of this happening is less than 1%. Or you can go to your parents, siblings or other relatives. The probability of this happening is less than 5%. Perhaps your friendly banker will make you a conventional loan. The probability of this happening is less than 10%.

    How then do you improve your chances of getting the money you will need to buy the business in question? Well, if you are like most first time buyers, you will need a SBA loan to buy the business. And if this is your first time down the SBA path, the process is somewhat overwhelming and time consuming. Also, you need to understand that the SBA does not make loans. They insure loans. The SBA Preferred Lender makes the actual loan.

    1. Step one is to obtain the 2 most recent tax returns for the business. So if we are in August of 2011, you will need to obtain the 2010 and 2009 tax returns for the business. The SBA Preferred Lender will apply a formula to a calculated figure called Owner’s Discretionary Cash Flow also known as Seller’s Discretionary Earnings. This figure starts with Net Taxable Income from the Tax Return or Net Income (or loss) from the Income Statement and then certain line items are “added back.” The items that are added back include owner’s compensation and perks, depreciation and amortization because they are non-cash items, one-time non-recurring items, interest because it is different for each owner, etc.
    2. When the preceding number is determined, the SBA Preferred Lender will apply a formula where they take the anticipated debt service (principal plus interest) and multiple it by 120 percent. They want to make sure that the business can pay back the loan without going into default. They are less concerned with the borrower’s credit score than they are concerned with the company’s ability to pay its bills.
    3. Once the SBA preferred lender knows that the business can pay back the loan, they then start making you jump through additional hoops. You will need to complete a very long application that can run 30 pages in length. You will need to draw up a business plan that includes assumptions and strategies.
    4. The SBA preferred lender will require that a 3rd party business valuation is performed. They will also require that you obtain term life insurance for the term of the loan. Most SBA loans for businesses sold without real estate have 10 year maturities. If real estate is included, the term can be more than 20 years or less than 20 years.
    5. The loan process can take from 4 to 6 weeks if everything goes smoothly. If complications arise, it can take longer.

    The preceding steps constitute a crash course in applying for and obtaining a SBA loan.

    To learn more about applying and obtaining a SBA loan or how to buy or sell a business register for Bottom Line Management, Inc.'s free seminar "What You Need to Know When You Are Ready to Sell or Buy a Business or Franchise" >>

    Loren Marc Schmerler, CPC, APC is President and Founder of Atlanta based Bottom Line Management, Inc. He has been a business broker since 1986 and a business consultant since 1970. His accomplishments include being the original and only Business Advice Columnist for Wal-Mart’s Sam’s Club.

    Poll: 62 Reasons for Sellers Hiring Brokers

    June 29th, 2011

    62 Reasons
    Why Sellers of Small & Midsize Businesses Hire Business Transfer Intermediaries
    © 2011 Ted J. Leverette (“Partner” On-Call Network LLC) 

    This poll was commissioned by the Authorized Business Buyer Advocates ® who are licensed by “Partner” On-Call Network ®.

    Poll:  "Why do sellers hire business brokers instead of trying to sell by-owner?"

    62 reasons are why sellers of small and midsize businesses hire business transfer intermediaries (i.e., business brokers and advisors who specialize in dealmaking on behalf of sellers), according to our poll, conducted in the USA and Canada (plus a few contributors from around the world).

    To view all 62 Reasons Why Business Sellers Hire Brokers click here to view PDF. 

    The top reasons are these:

    • Brokers know how to sell businesses; most sellers don’t
    • Seller doesn’t want to be distracted from running business
    • Confidentiality preservation and knowledge of what/when to show buyers
    • Access broker’s database of potential buyers and investors
    • Maximize price buyers will pay for the business
    • Owner does not know how to find buyers
    • Prepare owner to sell and prepare business for sale
    • Broker understands and can depersonalize negotiations
    • Explain and handhold seller throughout selling process
    • Owner afraid of trying to sell by-owner 

    TIP

    Business transfer intermediaries of all types function as go-betweens; they can filter communications so all parties to the pending transaction can focus on the most salient points and realistically negotiate differences of opinion. It is normal for conflicts to arise between sellers and buyers (and their advisors). Sometimes it pertains to personalities; and maybe differing goals or misunderstandings about facts. The best business transfer intermediaries can help people understand the facts and find win-win compromises instead of becoming unnecessarily defensive.

    Own an Annual Publication With Loyal Customer Base

    May 27th, 2011

    Home based business in Coastal Georgia – work 6 months and get paid for 12 months.

    This well respected annual publication with decades of profitability and a loyal customer base in Coastal Georgia allows you to work only part of the year to earn a full year's pay. You work your own hours and customers routinely contact you to renew their ads. Many improvements have been well-received by the business customers with future improvements planned.

    There are many print and recorded testimonials by prominent business owners.

    Financial Information

    • Asking: $225,000
    • Gross: $128,923
    • Cash Flow: $71,318
    • Furniture, Fixtures & Equipment: $5,000
    • Inventory: $1,000 (included in price)
    • Financing: $150,000 down with $75,000 @ 6% over 36 months
    • Seller financing is available

    General Information

    • Facilities (Home Based): The business is home based and can be run by anyone who lives in the surrounding area. ***Included: phone number; website; all CDs to beginning of time; all phone books; all working files; all software; Adobe Indesign Creative Suite included
    • Competition: 1,000 brochures are distributed to new places in the surrounding area. The business is a member of the Chamber of Commerce and another group.The company buys a monthly list of everyone who has bought a new business license and distributes a directory to each new business owner
    • Growth and Expansion: Hire more commission salespersons to market to outreaching areas.
    • Support/Training: The current owner will introduce the new owner as the co-publisher during the first month and be available by phone assistance for 6 months afterwards
    • Reason Selling: Owners retiring
    • Employees: 1PT + 2 owners

    Contact Information
    Contact: Loren Marc Schmerler
    Phone: 404-550-1417
    Email: LMS@BOTLINE.COM

    Using an Intermediary: A Better Way to Buy or Sell a Business

    May 25th, 2011

    Author: Loren Marc Schmerler, CPC, APC, PresidentBottom Line Management, Inc.
    Featured by INC. Magazine

    Business Intermediaries Facilitate Business Sales

    What Is a Business Broker? What is a business? If you're the owner of a privately held company, it's your livelihood, your brainchild, and your identity. If you're the purchaser, it's buying a job after downsizing, taking a leap of faith that you can be an entrepreneur. For employees, it's a wish for steady income in an uncomplicated market.

    When is the best time to sell a business? It's when the business is doing well and you don't have to sell. Unfortunately many owners don't follow that pattern. 

    Where does the business broker or intermediary fit into this picture? A business broker is a trained specialist in the field of business transfers, just as an attorney is trained in law and a CPA in accounting and taxes. These are issues that are far more complicated than a real estate transaction.

    Owners, who would never think about writing their own contracts or doing their own taxes, often feel that if they have run and grown a successful business, they should be able to handle its sale.

    What should buyer and seller expect from an intermediary beyond their introduction? Besides the time consumed in qualifying buyers, there are issues that are obviously emotionally and financially involved.

    And an intermediary's experience and knowledge of the whole story of your company – finances, competition, your market – gives him (or her) objectivity to effectively offer your business for sale and know whether a deal will or will not work.

    How do you know if your business is fairly priced? The broker may suggest an “Opinion of Value” to determine the fair market value of your business within a specified pricing range. This is the best way to sell the business quickly.

    Confidentiality is of course paramount. What about employees? Should they be told? Will key employees stay and if not, how will that affect the sale? Special packages may have to be negotiated for them as part of the offer.

    Owner financing always speeds the process. Determine ahead of time reasonable payments the cash flow of the business can support and still leave enough for the buyer to have a return on his investment to live on. You can often get your asking price if the terms are attractive enough.

    Give yourself adequate time to plan your sale. Smaller businesses should expect to be on the market a minimum of seven to nine months; middle market ones at least a year or longer. As with most things in life, it's the attention to preparation that leads to the best results. A professional intermediary can help make the difference.

    Let us show you what we can do for your bottom line. We are open for business 24/7/365.
    Bottom Line Management, Inc.
    info@botline.com
    (770) 977-7334