Grow Law Firm’s Post

Normally found in the M&A world, an acquisition takes place when one company buys the controlling interest in another company and they "acquire" the company. Essentially it is when one company "buys" another. #businessterms #businesssales #businessbrokers #businessbroker #floridabusinesssales #floridabusinessbroker #floridabusinessbrokers #sellingabusiness #buyingabusiness #businesssale #businessbrokersofflorida #acquisition

In advising clients on acquisitions of businesses, both as buyers and sellers, I have observed a common trend: ensuring the seller's continued involvement in the company through deferred payments. This approach serves two primary purposes: 𝗧𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻 𝗦𝘂𝗽𝗽𝗼𝗿𝘁: The deferred payment structure encourages the seller to remain with the company for a set period, typically around 18 months. This duration is crucial as it allows the seller to assist the buyer with a smooth transition of responsibilities and operations. 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲-𝗟𝗶𝗻𝗸𝗲𝗱 𝗜𝗻𝗰𝗲𝗻𝘁𝗶𝘃𝗲𝘀: Deferred payments are also used to ensure that the acquired business meets the revenue targets set at the time of the acquisition. Linking a portion of the payment to the company's post-acquisition performance creates a win-win situation for both parties, as the seller’s payout is directly tied to the ongoing success of the business. This method not only secures the buyer’s investment but also aligns the seller’s interests with the long-term success of the company, fostering a mutually beneficial partnership. 𝘈𝘥𝘥𝘪𝘵𝘪𝘰𝘯𝘢𝘭𝘭𝘺, 𝘪𝘯 𝘤𝘢𝘴𝘦𝘴 𝘰𝘧 𝘢𝘤𝘲𝘶𝘪𝘴𝘪𝘵𝘪𝘰𝘯 𝘣𝘺 𝘢 𝘯𝘰𝘯-𝘳𝘦𝘴𝘪𝘥𝘦𝘯𝘵 𝘦𝘯𝘵𝘪𝘵𝘺/𝘪𝘯𝘥𝘪𝘷𝘪𝘥𝘶𝘢𝘭 𝘰𝘳 𝘢 𝘧𝘰𝘳𝘦𝘪𝘨𝘯-𝘰𝘸𝘯𝘦𝘥 𝘢𝘯𝘥 𝘤𝘰𝘯𝘵𝘳𝘰𝘭𝘭𝘦𝘥 𝘤𝘰𝘮𝘱𝘢𝘯𝘺, 𝘪𝘵 𝘪𝘴 𝘯𝘦𝘤𝘦𝘴𝘴𝘢𝘳𝘺 𝘵𝘰 𝘴𝘵𝘳𝘶𝘤𝘵𝘶𝘳𝘦 𝘵𝘩𝘦 𝘥𝘦𝘧𝘦𝘳𝘳𝘦𝘥 𝘱𝘢𝘺𝘮𝘦𝘯𝘵 𝘪𝘯 𝘤𝘰𝘮𝘱𝘭𝘪𝘢𝘯𝘤𝘦 𝘸𝘪𝘵𝘩 𝘍𝘌𝘔𝘈 𝘳𝘦𝘨𝘶𝘭𝘢𝘵𝘪𝘰𝘯𝘴. Let me know if you have noticed something similar in recent acquisitions. #Acquisitions #businesstransfer #lockin #deferredpayment

Normally found in the M&A world, an acquisition takes place when one company buys the controlling interest in another company and they "acquire" the company. Essentially it is when one company "buys" another. #businessterms #businesssales #businessbrokers #businessbroker #floridabusinesssales #floridabusinessbroker #floridabusinessbrokers #sellingabusiness #buyingabusiness #businesssale #businessbrokersofflorida #acquisition

💵 #TempusTips: #businessowners ask “Does a broker require a license to sell my business?”. 👉 Tempus #CEO, #BusinessAdvisor #BusinessLawyer #GilSanchez answers: “Yes! In Florida, to sell the assets of a business (known as personal property) you are required by law to have a Florida real estate license.” 📲Contact 24/7 🕕813-210-9135 to: Sell Your Business or Buy a Business anywhere in Florida through #Tempus. Join #TempusBusiness as a#BusinessBroker by emailing: [email protected] #tempusrealtors #wesellbusinesses #acquisitions #businessadvisors #tempustalks #businessbrokers #sellabusiness #buyabusiness #sellingbusinesses #buyingbusinesses #businessvaluation #businesssales #sellingrealestate #realestate #commercialrealestate #BusinessTip #LegalTip #AcquistionTip #businessbrokersofflorida

💵 #TempusTips: #businessowners ask “Does a broker require a license to sell my business?”. 👉 Tempus #CEO, #BusinessAdvisor #BusinessLawyer #GilSanchez answers: “Yes! In Florida, to sell the assets of a business (known as personal property) you are required by law to have a Florida real estate license.” 📲Contact 24/7 🕕813-210-9135 to: Sell Your Business or Buy a Business anywhere in Florida through #Tempus. Join #TempusBusiness as a#BusinessBroker by emailing: [email protected] #tempusrealtors #wesellbusinesses #acquisitions #businessadvisors #tempustalks #businessbrokers #sellabusiness #buyabusiness #sellingbusinesses #buyingbusinesses #businessvaluation #businesssales #sellingrealestate #realestate #commercialrealestate #BusinessTip #LegalTip #AcquistionTip #businessbrokersofflorida

#TempusTips: #businessowners ask: “I want to #sellmybusiness but how do I determine the price?” 👉 Tempus #CEO, #BusinessAdvisor #BusinessLawyer #GilSanchez answers: “You can use multiple ways to value a business including: a percentage of your annual gross revenues (depending on business industry), EIBDTA x 2 to 3 (this can vary as well +/-) and comparables for similar type businesses that already sold.” 📲Contact 24/7 🕕813-210-9135 to: Sell Your Business or Buy a Business anywhere in Florida through #Tempus. Join #TempusBusiness as a#BusinessBroker by emailing: [email protected] #tempusrealtors #wesellbusinesses #acquisitions #businessadvisors #tempustalks #businessbrokers #sellabusiness #buyabusiness #sellingbusinesses #buyingbusinesses #businessvaluation #businesssales #sellingrealestate #realestate #commercialrealestate #BusinessTip #LegalTip #AcquistionTip #businessbrokersofflorida

#TempusTips: #businessowners ask: “I want to sell my business with a #businessbroker, does that person need to have a license?” 👉 Tempus #CEO, #BusinessAdvisor #BusinessLawyer #GilSanchez answers: “Yes! In Florida, to sell the assets of a business (known as personal property) you are required by law to have a Florida real estate license.” 📲Contact 24/7 🕕813-210-9135 to: Sell Your Business or Buy a Business anywhere in Florida through #Tempus. Join #TempusBusiness as a#BusinessBroker by emailing: [email protected] #tempusrealtors #wesellbusinesses #acquisitions #businessadvisors #tempustalks #businessbrokers #sellabusiness #buyabusiness #sellingbusinesses #buyingbusinesses #businessvaluation #businesssales #sellingrealestate #realestate #commercialrealestate #BusinessTip #LegalTip #AcquistionTip #businessbrokersofflorida

#TempusTips: #businessowners ask: “I want to #sellmybusiness but how do I determine the price?” 👉 Tempus #CEO, #BusinessAdvisor #BusinessLawyer #GilSanchez answers: “You can use multiple ways to value a business including: a percentage of your annual gross revenues (depending on business industry), EIBDTA x 2 to 3 (this can vary as well +/-) and comparables for similar type businesses that already sold.” 📲Contact 24/7 🕕813-210-9135 to: Sell Your Business or Buy a Business anywhere in Florida through #Tempus. Join #TempusBusiness as a#BusinessBroker by emailing: [email protected] #tempusrealtors #wesellbusinesses #acquisitions #businessadvisors #tempustalks #businessbrokers #sellabusiness #buyabusiness #sellingbusinesses #buyingbusinesses #businessvaluation #businesssales #sellingrealestate #realestate #commercialrealestate #BusinessTip #LegalTip #AcquistionTip #businessbrokersofflorida

I think we often overcomplicate how to value a business.  Sure, I think there is a time and a place for a full business appraisal (specifically when required by SBA), but to get 95% of the way there, there is a simple solution 👇 I visit this page on BizBuySell weekly - https://lnkd.in/gxSZWX3g It provides the average revenue multiple and earnings multiple for businesses sold on their platform. And they have it broken down by industry for roughly 100 different industries. Given that BizBuySell is one of the largest, or the largest listing sites to list a small business for sale, I figure they have the best market data. It’s free, and I think it gets you 95% of the way there. Any other good sources for finding comparable business sale transactions to value your business? #SMB #smallbusiness #acquisitions

Selling a business is not just about the financial transaction. It's about handing over your customers, your team, and potentially your career path to someone else. I worked too hard to build this incredible team of clients and staff to make it all fall apart. It was very important for me to build on those relationships in advance and ensure this partnership was aligned with our values and goals. Today at Ntiva, Inc. we share new values that are very much aligned with our original core. Our ultimate goal is to stay true to our CORE values (Care, Ownership, Responsiveness, Excellence) while continuing to grow you, our company, and our clients. How did you prepare for a major business transition? #BusinessStrategy #Acquisitions #Partnerships Ntiva, Inc.