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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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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.

Bottom Line Management, Inc. Teams Up with The Edge Connection to Create Growing Entrepreneurial Businesses

June 24th, 2011

Bottom Line Management, Inc. has teamed up with the Edge Connection, a nationally recognized leader in microenterprise and small business development, to provide seminar training on buying and selling a business entitled, "What You Need to Know When You Are Ready to Sell or Buy a Business or Franchise" that offers specifics on how to successfully prepare yourself and pitfalls to avoid.

The Edge Connection offers an award-winning, nationally recognized, multi-faceted program that delivers best-practices business training, financial literacy, entrepreneurially focused technology training, and essential support services to aid micro and small business owners to launch, sustain, or grow a business. 

It was developed through community collaboration and remains a campus and community partner with Coles College of Business, Kennesaw State University.

Bottom Line Management, Inc. looks forward to partnering with the Edge Connection program to create growing entrepreneurial businesses and positively impact the community. "My passion for helping business owners understand and maximize their bottom line was the motivation for starting a free seminar. I want to share my successful experiences to help others navigate through the details of preparing, listing and selling." – Loren Marc Schmerler, CPC, APC, President

Buying or selling a business can be a complicated and daunting endeavor. Bottom Line Management, Inc.'s President, Loren Marc Schmerler, CPC, APC will unravel the mystery of the process and answer all your questions such as:

  • How do I get started? – How long should the process take?
  • What role does financing play in the process?
  • What do I need to know about buying a franchise, license, distributorship or business opportunity?
  • How can a business intermediary help you buy or sell a business or franchise?

And much more! If you have ever thought about buying or selling a business this free seminar is a MUST!

Seminar Dates:
The seminars will be offered monthly on the second Wednesday of each month from 1pm – 4pm at Kennesaw State University Center 3333 Busbee Drive, Room 464, Kennesaw, GA 30144. The first seminar is scheduled for July 13, 2011 from 1pm-4pm.


For more details contact Bottom Line Management, Inc. email: info@botline.com or call: (770) 977-7334.

About The Edge Connection
The Edge Connection is a fully independent, non-profit 501 (c) (3) organization. It is housed on the campus of Kennesaw State University's Coles College of Business and enjoys many benefits from its KSU partnership, including in-kind support and teaching assistance. In the fall of 2004, The Edge Connection became an SBA Women's Business Center that targets low-to moderate-income women, minorities, veterans, and persons with disabilities.

The Edge Connection received the U.S. Models of Excellence, Visions 2000 award from the U.S. Small Business Administration, the "Simply the Best" award from the U.S. Department of Housing and Urban Development, and the Federal Home Loan Bank Community Partnership Excellence Award. The Edge Connection is a founding member of the Georgia Micro Enterprise Network and is a member of the national microenterprise trade association, the Association for Enterprise Opportunity (AEO).

Contact:

For details or to sign up contact: Edge Connection at 770-499-3228 or email lsperry1@kennesaw.edu Leslie Sperry, Program Manager. Visit www.theedgeconnection.com

This Seminar is for:

  • Individuals who are interested in either buying or selling a business.
  • CPA/accountants interested in providing information to clients interested in buying or selling a business.
  • Attorneys interested in providing information to clients interested in buying or selling a business.
  • Business Professionals.

Visit: www.botline.com/free-seminars for seminar details.

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

Buy This 15 Year Old Distribution Company for 3.65 Multiple Sales Plus Inventory

April 22nd, 2011

Profit margins are healthy and customers are very loyal!

Looking for a successful business to purchase? Here is your opportunity!

Once every 5 years, a business like this becomes available. It's a really fine tuned machine. The staff is well trained and extremely friendly to customers and fellow employees alike. There is a branch office in Indiana manned by a key employee who is home-based. This employee knows everything there is to know about the business.

The business mails catalogs to 13 states to derive most of its business. It only carries the finest products. Profit margins are healthy and customers are VERY LOYAL.

Financial Information

  • Asking: $1,000,000
  • Gross: $2,018,446
  • Cash Flow: $224,932
  • Furniture, Fixtures & Equipment: $30,000
  • Inventory: $180,000 (included in price)
  • Financing: SBA pre-qualified

General Information

  • Location: Metro Atlanta, Georgia 30041
  • Facilities: 5,500 sq. ft. of warehouse and office space in commercial industrial park. Rent is $2,500/month.
  • Competition: This business prides itself on offering the finest customer service available.
  • Growth and Expansion: Since the business is just mailing to 13 states, by expanding the mailings to the other 37 states and Canada, the business can easily be doubled.
  • Support/Training: Owners will assist a new owner for 4 weeks.
  • Reason Selling: Retirement.
  • Year Established: 1996
  • Employees: 6ft & 3pt

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

Thirteen Reasons Why 2011 Is a Great Year to Buy or Sell a Business

January 19th, 2011

2011 is a great time to buy or sell an existing business. Read why 2011 is a good time to become your own boss or sell your business to move onto a new project.

Reasons to Buy a Business

1. Many baby boomers are reaching the retirement age of late fifties or early sixties. From my experience, the most common age when business owners call me is 62. They are tired of working 40+ years since high school, the last 15 to 20 years as owners of their own businesses. The available supply of good and well established businesses has never been greater.

2. When you find a business you want to buy, the owner will be more receptive to both traditional and creative financing. Traditional financing would be where an owner holds a note for part of the purchase price. Interest rates are roughly 6% for owner notes at the current time. Creative financing would be assumption of liabilities or earn outs. Earn outs are based on a percentage of sales above certain thresholds.

3. SBA preferred lenders are more willing to make loans due to relaxed federal guidelines and the elimination of certain costs and fees. While you will not be able to obtain an 80% loan like the good old days, you should be able to easily obtain a 65% loan with you making a 25% down payment and the owner holding a 10% note.

4. Vendors are highly motivated to make sales. Their businesses have suffered financially during the last 2 years. As a result, you should be able to purchase inventory, supplies and other materials at substantial cost savings.

5. Due to the millions of unemployed workers, the labor pool is loaded with qualified and motivated prospective employees. Additionally, existing employees at the company you purchase will be highly motivated to stay with the company, since finding another job will be quite difficult.

6. You are now able to use 401k funds, IRA funds, Sep-Ira funds, etc. to purchase a business. There are many tax advantages to doing so, and you can control how much you may yourself for salary and how much you keep within the C Corporation tax free.

Reasons to Sell a Business

7. With millions of unemployed workers living off of their savings and retirement plans, there is a high demand for good businesses. And due to the unprecedented demand, multiples of Owner’s Discretionary Cash Flow are exceeding 3 where in the past the multiples ranged between 2 and 3. Thus there will never be a better time to put your business up for sale.

8. Since unemployed people have had their 401k plans and savings devastated, and they are tired of only earning .25%, they need an alternative plan. The tax code allows them to purchase a business using retirement funds and creating a C Corporation. Once the Corporation is created, all profits can grow tax free, and the new owners are not obligated to disburse profits, dividends or salaries.

9. If you are in your late 50’s or early 60’s, there is no way to know what the future may hold. Regardless of your current health, it can change unexpectedly. Or you may have issues with aging parents. By selling now, you can remove some of the uncertainty.

10. If you are willing to provide owner financing for some or all of the purchase price, you can earn interest in the range of 6% which is more than 20 times what a bank will pay you.

11. SBA financing is loosening up which will allow more prospective buyers to have an opportunity to buy your business.

12. There comes a time when quality of life becomes more important than money. Only you can decide if obtaining freedom trumps obtaining money and to what extent.

13. There are investment vehicles that will allow you to defer most or all of the seller’s proceeds. Thus there will be little or no tax liability due in the year of sale. You can work with a financial professional to set up a residual income stream that will meet your needs and spread the capital gain over many years.

If you are unsure of what type of business opportunity to purchase or looking to sell your business but are unfamiliar with what steps to take, Bottom Line Management, Inc. provides a FREE Consultation with no obligation.

Bottom Line Management will work with you to determine how your strengths and interests will align successfully with businesses that are available in the marketplace and explain the entire selling process. Call (770) 977-7334 or click here to contact Bottom Line Management, Inc. to schedule a FREE business broker consultation.

Author’s note. After helping sellers and buyers for more than 20 years, I have found that honesty, integrity, full disclosure, patience and a willingness to consider various alternatives makes the probability of success for all parties very high.

Natural Marble & Granite Counter Top Manufacturing & Installation

September 29th, 2010

Well established business offering over 24 years of excellence in the granite and marble counter top business offering service directly to consumers and builders. This business has a strong reputation for being the top quality of counter top manufacturing and installation in Norcross and Gwinnett County, Georgia. The facility offers top notch equipment and can work with glass, aluminum and wood.

This is an outstanding opportunity for anyone who is looking to be successful in a special trades business to acquire a leader in the granite and marble counter top manufacturing and installation business.

This company makes its own unique products separating itself from its competitors!

For more information contact: Loren Marc Schmerler, President, CPC, APC Phone: 404-550-1417 or Email: lms@botline.com.

Location
Norcross, Gwinnett County, Georgia 30093

Financial Information

  • Asking: $500,000
  • Gross: $288,082
  • Cash Flow: -$61,025
  • Furniture, Fixtures & Equipment: $465,000
  • Inventory: $35,000 (included in price)
  • Financing: $250,000 down with $250,000 @ 6% over 10 years with 5 year balloon.

Summary Description
The owners of this business seek to pass the baton after 24 years of excellence. The facility has incredible equipment including 2 Brembana CNC Routers valued at $200,000. The cost to replace this equipment would be $400,000. There is a Comandully CNC Staright Edger with a fair market value of $100,000 that would cost $180,000 to replace. There is a Bridge Saw with a fair market value of $50,000 that would cost $85,000 to replace. This facility can work with glass, wood, and aluminum. Work hours are Mon – Fri 7 – 4. One machinist has been with the company since 1986 and the salesman has been with the company since 1991. The owners have not paid themselves for the last 2 years. Certainly, you can do better than this.

General Information

  • Facilities: 30,000 sq. ft. Rent should be $8,032.50 but is currently $4,016.25. Owners are behind in rent. They are not on a lease.
  • Competition: There is a great deal of competition, but this company does very high quality work and installation.
  • Growth and Expansion: More creative marketing needs to be targeted towards consumers and away from builders.
  • Support/Training: Owners will provide 4 weeks of transitional assistance.
  • Reason Selling: Retirement and medical.
  • Year Established: 1986
  • Employees: 3ft + 1pt

Learn more about this specials trade business today, contact 24/7:

Contact: Loren Marc Schmerler, President, CPC, APC
Phone: 404-550-1417
Email: lms@botline.com