Midas Changes Hands–Fort Smith, AR

October 2011—This month Midas Auto Service Experts in Fort Smith, Arkansas, changes hands with the help from Dawayne Murdock, one of the business brokers for The CBI+Team.

Ron and Carol Filer have owned the franchise in Fort Smith since 1987. When Kevin Smith, the new owner, started looking into buying the business, he was impressed that the loyal, honest, and hardworking auto technicians employed by the Filers had over 40 years combined business. Kevin used his 401K investment to purchase Midas. If you have a 401K plan and are looking for a penalty-free way to invest it, call us today.

Buying a business with your retirement savings is easy and affordable.

Veteran’s Job Fair Fort Leonard Wood, Missouri

Job RecruitmentOctober 20, 2011—Holly and Eric are having a great time in Fort Leonard Wood, Missouri, at the Veteran’s Job Fair! Actively recruiting business brokers. If you think you have what it takes to be a business broker, call them today! Free training by one of the top business broker trainers in the country. 417-888-0800

Boar’s Nest Fayetteville, AR–a done deal!

October 2011—Our regional business broker, Connor Grimes, helped close the deal on Boar’s Nest BBQ Club and Restaurant in Fayetteville! Stop by and say hello to the new owner, Michael McNamara. Last year, Connor sold Willy D’s Piano Bar in Little Rock for the same folks. Pictured from left to right: William Ray (seller), Michael McNamara(buyer), Will Houston(seller), and Don Ray(seller).

CBI Team Leader speaks at National Settlement Services and Compliance Summit

Carl Grimes - National SummitCarl Grimes, CBI and owner of The CBI+Team, was a speaker at the National Settlement Services and Compliance Summit in Cleveland, Ohio on June 7-8.

The National Settlement Services and Compliance Summit has become the premier annual destination for title and settlement services leaders and top real estate professionals to come together for unmatched networking and learning.

Expert speakers and noted industry veterans take the stage for two days of educational presentations, panel discussions and breakout sessions.

Attendees return year after year to learn and discuss the most important issues impacting their businesses. They walk away with CE/CLE credits, new business partnerships, innovative approaches to business, and the insight to remain compliant.

At the Bar: Business Valuations are a Hot Topic

Hot Springs ConventionSeveral members of our Arkansas CBI+Team attended the Arkansas Bar Association Annual Meeting in Hot Springs and, according to Senior Advisor Connor Grimes, one of the most frequently asked questions is about valuing businesses.

We at The CBI+Team believe that valuing businesses should only be done by those who are qualified by education, training and experience to do so.
We use three sources for valuations, one national firm for most valuations and two local (one in Arkansas and one in Missouri) to do valuations for which litigation may be involved, such as partnership disputes and divorce and IRS cases.
We use only the best to provide valuations for our clients.
Members of The CBI+Team attending the conference are Connor Grimes, Wayne Story and David Profitt of the NW Arkansas office and Dawayne Murdock and Russell McConnell of the River Valley office. If you have a question about a valuation or need one for a client, talk to one of our team members or call 877-582-5200 and we’ll help.

Wanted

Wanted:

Mature former corporate executives (sales and marketing preferred) or former business owners to learn the exciting field of business brokerage as part of The CBI+Team. Training and support provided as well as local offices with national network support. Great earning potential in underserved financial services field. Positions available in Northwest Arkansas, Fort Smith, Springfield and Joplin, Missouri.

Send resumes to: carl.grimes@cbiteam.com or

The CBI+Team

2591 S. 48th Street

Springdale, Arkansas 72762

CBI+Team (No Border)

Why Use a Business Broker Rather Than a Real Estate Agent to Sell My Business?

Below are the key reasons why a business owner should use a Business Broker instead of a Real Estate Agent to answer the question “how do I sell my business”?

  • Confidentiality-Real estate agents believe in putting a sign in front of your business saying “FOR SALE.” Most savvy business owners know that is the kiss of death for the business. You can lose employees, customers, vendor relationships and banking relationships and, using a real estate person, you may never be able to sell your business. You lose twice!
  • Pricing-Real estate agents know a lot about pricing a piece of real estate but nothing about pricing a business. They may price your business so high that you never sell it. Or they may price it too low and leave your money on the table.
  • Errors and Omissions Insurance-Most real estate agents aren’t aware that the real estate E&O insurance generally has an exclusion for business sales.
  • Negotiations-Real estate agents aren’t allowed to tell a prospective buyer why a piece of real estate or home is being sold. Business brokers know the first question a business buyer is going to ask is, “Why is the seller selling?” Business brokers prepare the seller to answer that question as the beginning of negotiation.
  • Financing a business sale-Real estate agents don’t know how to help a buyer get a business loan. It’s a much more complex loan that real estate mortgages.
  • Due diligence is much more detailed-Real estate agents know how to walk through a home and order an inspection but they don’t understand the nuts and bolts of tax returns, profit and loss statements, balance sheets and other financial data that is absolutely necessary as part of due diligence for a business sale and purchase.
  • You may have a real estate agent who you really like. If they really like you they will refer you to a professional, experienced business broker.

Contact us today to see how we can help you sell your business! Call (877) 582-5200 or email info@cbiteam.com.

What in the world is my real estate worth?

That is a common question when we meet with a business owner to help them prepare their business for sale if the real estate is an integral part of the business.

Up until a year ago the business owners usually had a pleasant surprise…their land was worth more than they thought.

However, in the declining economic climate, the reverse is often true…the land on which the business sits is actually worth less money than it was just a year ago.

Why? Because many banks greedily allowed overzealous builders and developers to overbuild real estate projects and now the entire Northwest Arkansas landscape has empty and/or foreclosed buildings.

That is NOT good news for business owners who have real estate as one of the assets they are selling with their business.

So…what can we do to help a business owner determine the value of real estate in today’s market?

About six years ago we at The CBI+Team came up with a relatively low cost method of doing that. We made arrangements with local certified real estate appraisers to do a short form real estate appraisal. The appraisers did the ground work and research to come up with a value of the real estate but didn’t do a formal report, just a one page report that gave the business owner a realistic idea as to the value of the real estate but at less than 1/3 the cost of a typical commercial appraisal.

The seller could then get a realistic idea about the value of the real estate and determine if it made sense to sell the real estate as an asset of the business.

However, in most cases, it is better from a tax perspective for the business owner to lease the property to the business buyer. The buyer can often get the seller to give an option to purchase at some point in the future.

It’s generally a win-win.

However, sometimes the buyer needs to purchase the real estate so the collateral value of the real estate helps support the purchase price of the business from a bank lending perspective (if you can find a bank making business loans these days)! If the buyer needs to purchase the real estate the seller can make his appraisal available to the buyer and the buyer’s bank. Since the appraisers are certified they can generally complete the bank’s formal appraisal in less time and for less money and the seller can often be reimbursed by the buyer for the seller’s initial expense (paying for the appraisal) as part of the closing costs.

That’s a WIN-WIN and that’s what we at The CBI+Team like!!

Creatively helping business sellers and buyers to secure their financial future!

What is good will and does my business have any and how can I get paid for it?

My Business: Blue Sky? Good Will?

Is there a difference between the meanings of these two terms?

Most business owners will fall into a trap if they don’t know the difference before planning the sale of their businesses.

Business buyers think “blue sky” is the same thing as “Good Will” and, if the business owner doesn’t correct them with the right information and definition then the business owner probably won’t get paid for the hard work poured into the business. Continue reading

How do you sell a secret?

A very successful, very savvy real estate company owner once asked the question,” How do you sell a secret?” He knew that business sales require a high level of confidentiality but, like all real estate professionals, he couldn’t figure out how to market something without putting a sign in front of the business saying “FOR SALE.”

He knew that general knowledge of his intent to sell the business could cause great economic damage to the business value:

  • Employees find out and look for other jobs or become more difficult to manage
  • Customers seek other business relationships
  • Vendors and bankers become more skeptical about their relationship with you and your business

As a business owner you must be concerned about how your business is marketed.

The CBI+Team has perfected methods of confidentially marketing your business to the local, regional, state, national and international business buyer community.

All of the confidential methods used by The CBI+Team are designed to attract the largest number of prospective buyers to look at your business.

Ask your CBI+Team member about the exclusive confidential marketing program that has helped sell hundreds of businesses.