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Harvest Associates
Greg Caruso
Esquire, CPA, CVA
Ed Davis
CPA, CVA |
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A sampling of current activities:
Valuations for SBA Loans
Estate and Gift Tax Valuations
Exit Planning to increase value and reduce expenses
Businesses for Sale:
Profitable Industrial Supply Distributor, buy an expandable business for less than a Sub-shop. Asking $295,000 plus inventory
In-Home Mental Health Care Provider Very Profitable. Unpriced but estimated at over $1 Million
Tanning Salon Chain, Very well equipped, many continuing contracts etc. Good cash flow from easy to run business. Buy one or buy the chain. From $200,000 for a store to just under $2 Million for chain
POS Management Software
Specialty software with steady support fees. Perfect expansion for resellers. Unpriced but estimated at $650,000
Document Automation and Software Training Co.
High margin, relocatable niche technology Business
Asking $195,000
Let me know what I can do for you? Call Greg Caruso at 410-507-5441 or email to get started today. |
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Greetings!
Ed and I have been busy since our last edition of the Harvest Newsletter. Below I talk about my son's basketball team and their love of the game. I also present some thoughts on the current market (yes, there is a market).
One of my favorite blogs is by Rob McDonald sales guru with EntreQuest. His recent fable about his childhood love of turtles brought out fond memories from my past. If you loved turtles as a child, or want sage sales and marketing advice visit Robroy |
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Business Valuations | Exit Strategies | Business Brokerage |
Do You Still "Love the Game?"
My son Michael belongs to an Anne Arundel County recreation department basketball team. This team is all about the love of basketball and the love of playing together. They have a few practices at the beginning of the season and then just show up. They can be frustrating to play against. What other team laughs when they shoot an air-ball or throws a pass away? Other than sending in substitutes there is no coaching. It is not the best basketball but it is far better than you would think. They play inspired ball every time because they love it and they show up 100%.
It is easy to forget how real childlike love and inspiration add to your game. Are you still inspired as you were when you started your business? Are you showing up at 110% or just going through the motions? Really?
If you are not showing up consider a transitional life program like Landmark or perhaps executive coaching.
If that does not help consider selling before your revenues, profits, and business value fall away along with your enthusiasm.
Ed and I are ready to help. We can provide information about Landmark, point you to several coaching options or help you prepare and sell your business. All conversations are confidential.
What We Are Seeing Now
Things seem to be resuming a more normal outlook - or maybe we have gotten used to insanity. Here are some things we are seeing:
Market Improvement
The stock market is up - homebuilders are always a leading indicator (it won't be different this time) and they are ever so slightly starting to creep up. Some Wall Street advisors (often the same ones who said the recession will never end a year ago) are now saying we are going to have a fairly strong recovery. I am not sure about the short term although the long term does not have anywhere to go but up.
Tip: The "market" is back with activity in all industries, types, and size businesses. Transactions are taking more time and are harder at every stage but they are getting done. Start early to give yourself a little more time to negotiate a good deal.
Overequitization
A new word has emerged in the Merger and Acquisition market, "overequitization". Buyers are putting more equity into a purchase than might be justified traditionally. Clearly this is a market response to the lack of financing. Owner/operators will have higher cash flows due to the reduction of debt service and investors hope to refinance downstream to pump up their internal rates of return.
Tip: If you are a buyer with cash now is a great time as your competitors that need higher leverage loans are not in the game. As a seller make sure you are profitable and the transferability of your business is clear so the buyer can justify putting more cash in to get a great company.
Change Is In The Air
Everyone seems to intuitively understand that our economy and world are at a changing-point that is going to produce winners and losers. Just look at the publishing business. Gone is the predictability and profit. The Internet has created new winners replacing traditional music and newspapers. This is now spreading to telecommunications, TV, and movies. Everyone is very conscious that there are more buggy-whip industries on the horizon. The interesting thing is the lack of agreement as to which industries will be next.
Tip: As a seller or buyer, make sure you understand and can explain how increased automation, increased overseas subcontracting, and increased use of the Internet will improve your business.
Ed Davis 301-325-7687, eddavis@harvestbusiness.com
Harvest Associates, LLC
You Grew Your Business, We Harvest it for You
Business Valuations | Exit Strategies | Business Brokerage
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Gregory Caruso
Harvest Associates, LLC | |
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