In This Issue
The Importance of Accurate and Timely Financial Information
FEATURED
CLIENTS
Specialty Chemical, Oil & Gas Industry
#2614
This is a well-established, full-service specialty chemical manufacturing and chemical solutions company, with 80% to 90% of the business being production-related. Services include oilfield production, drilling, and stimulation chemicals and industrial cleaning products. The company also has its own proprietary oilfield water recycling methods and chemistries, as well as drilling fluid recycling technology, solar oilfield chemical injection systems, and chemical injection pumps. Owners are retiring. REAL ESTATE, VALUED AT $900,000 (subject to appraisal), AVAILABLE TO PURCHASE WITH THE BUSINESS.
Purchase Price...............TBS
Down Payment...........TBS
Gross Sales.....$7,446,903
SDE.............$3,182,762
Business Summary
For more information,
contact Lynn Lage
lynn@fbb.com
This multi-location, full service staffing company has experienced incredible growth in recent years. Sales for 2014 surpassed $6 million, an increase of more than 15%. It is recognized in the industry for its commitment to honesty, integrity, and the highest standards of professionalism for both its clients and employees. The staff is dedicated to providing clients with top talent. This business specializes in all industries, including nursing/medical, light industrial, hospitality, manufacturing, clerical, and professional disciplines. We believe this company would make an excellent acquisition candidate for a sales and marketing-oriented entrepreneur with a staffing or human resource background or an industry buyer looking to establish an immediate presence in Colorado. The sales price includes $400,000 in accounts receivable.
Purchase Price..........$1,595,000
Down Payment.......$398,789
Gross Sales......$6,100,000
SDE............$450,000
Business Summary
For more information,
contact Ken Galecki
ken@fbb.com
Automotive Service & Repair
#2214
This is a well maintained, full-service automotive repair company primarily serving local clientele with both domestic and foreign model vehicles. With steady revenues over the past five years, the business is ready to expand locally under new ownership. This is in a great location for an auto shop with 11 full-sized bays. There is also a separately owned body shop on the premises, providing additional rental income for the property owner. This is a great opportunity for a buyer with hands-on automotive experience to serve as an owner/onsite general manager while building a team of technicians to serve an existing, loyal customer base. THE REAL ESTATE IS BEING SOLD WITH THE BUSINESS, VALUED AT $1,760,000 (subject to appraisal).
Purchase Price...........$2,155,000
Down Payment........$324,000
Gross Sales.....$1,474,255
SDE.............$235,936
Business Summary
For more information,
contact Rob Amerine
rob@fbb.com
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Quick Links Current Schedule of Businesses For Sale
Confidential Purchaser Profile |
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THE FBB GROUP, LTD.�
719-635-9000
800-395-7653
Email: fbb@fbb.com
www.fbb.com
 
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If you are thinking of selling your business, I cannot over emphasize the importance of addressing the need for accurate and timely financial information. Most sellers want to maximize the price that they get for their business and keep the maximum amount of cash received at the closing table. In order to achieve these objectives, one or more lenders are typically involved. This means that not only will the prospective buyer and its team of accountants be scrutinizing the financial records, but the lender's analysts will be spreading the numbers. Usually this financial due diligence will be for a minimum of three years, but it is not uncommon for a five-year look back period. Below are several suggestions for making this process faster, less stressful, and more conducive to achieving a better price structure for the seller. Use a Quality CPA Firm - When you are trying to maximize the value that you get for your business (and perhaps your standard of living in retirement), you do not want to have less than quality representation in reducing taxes and having a proper paper trail. Inventory - One of the more common problems that we encounter involves improper reporting of inventory. Without an accurate yearend inventory, it is impossible to compute an accurate Cost of Goods Sold for the period, and without an accurate Cost of Goods Sold number, you cannot have an accurate Operating Profit. It is also important to write off obsolete inventory on a regular basis. Work in Progress - Similar to inventory, not maintaining an accurate value for work in process can distort profitability. This becomes important at yearend and at the time of closing. Timeliness - We have a saying in our office that "time is the greatest threat to completing a transaction." Although filing for extensions may be acceptable if you are not selling your business, it can be fatal if you are trying to sell your business. For example, we have a business with two offers pending and we are still waiting for yearend financial statements to counter those offers with financial justification. Both buyers are getting anxious and may be exploring other acquisition options. The majority of our business is derived from referrals. Please consider referring our services if you encounter a situation involving the potential purchase or sale of a business. Sincerely,  Ronald V. Chernak President Inspiring business relationships since 1982!
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