In This Issue
Combined Business and Real Estate Sales
CLIENTS
Unique Logistics Businesses
#216, #316
These businesses specialize in services provided to municipalities, schools, institutions, and businesses. Services include the handling of furniture, storage, and relocation needs, to include sales, new installations, configurations, tenant finish, comprehensive project management, shelving, warehousing, delivery, inventory, and design. Projects, although primarily in Colorado, take place throughout the Western United States.
Purchase Price...........TBS
Down Payment.........TBS
Gross Sales...$3,926,338
SDE...............$730,171
For more information,
contact Lynn Lage
Retail - Indoor/Outdoor Entertainment
#2815
This business was founded in 1995 and is a full-service retail outlet for spas, billiards, and related accessories, including products such as pool table lights, game tables, bar stools, outdoor grills, BBQ islands, etc. It is an established SUPERSTORE for non-electronic recreational products. The business offers families fun, rest, and relaxation, as well as a great way to enjoy their homes. The business has a long history in its present location on the Front Range and great signage from the highway! It is believed that this could be a good acquisition for a first time entrepreneur who wants to own their own business.
Purchase Price........$400,000
Down Payment......$100,000
Gross Sales...$1,007,498
SDE.........$182,977
For more information,
contact Kim Hoyal
Custom Building Products
#2515
This company, located in a high-end mountain community, offers decorative finishes necessary for most remodels, upgrades, and new construction projects. With the growth in new construction and expansion of its product line, this company has seen an increase in sales year over year since 2011! The business continues to expand into new geographic markets through its motivated sales staff. Through it's highly effective website, designers from around the world have discovered this company and the unique, quality products it offers. PURCHASE PRICE INCLUDES REAL ESTATE VALUED AT $795,000 (subject to appraisal).
Purchase Price....$1,730,000
Down Payment.....$432,500
Gross Sales....$1,696,390
SDE.........$355,510
Business Summary
For more information,
contact Lynn Lage
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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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When we are dealing with a business owner that owns the real estate that the business occupies, we are often asked about the best way to treat this underlying real estate. Unless there is a particular circumstance that clearly dictates the decision, our response is almost always to be flexible and be prepared to keep or sell the real estate to maximize the marketability of the business. In most situations, it is more difficult to sell the business than the real estate and the business owner has some options to achieve the desired outcome.
For combined transactions of $5,000,000 or less, SBA financing is likely to be used. Most SBA lenders like real estate as collateral and will make more attractive loans if real estate is involved. Not only will the buyer receive a better interest rate, but the amortization of the loan may be extended from 10 years to 15 years or longer, depending on the relative values of the business and the real estate. The lower interest rate and the longer amortization result in lower monthly payments, which enables the buyer to pay more for the combined transaction.
In some situations, the Seller would prefer to keep the real estate as in investment, but we have encountered buyers who will not buy the business without the ability to also buy the real estate. This scenario may particularly occur for destination-driven businesses in premium locations. In this type of situation, the Seller of the real estate can make a Section 1031 election to defer the tax gains, if any, on the profit from the sale of the real estate. The Seller would then reinvest the proceeds in another parcel of investment real estate. There are detailed rules that must be followed in these types of tax deferred transactions and experienced professionals should be involved, but the benefits can be substantial.
For example, over 20 years ago, I sold my parents' wholesale gift distributing business. They also owned an office warehouse building that had significant appreciation. I helped them sell the warehouse and reinvest in a farm. The transaction saved six figures in taxes, and resulted in a low maintenance income stream that subsidized their retirement. Upon their death, the farm will get a "stepped up basis" and the farm can be retained or sold with little or no taxable gain.
In other situations, the buyer may not want to buy the real estate. For example, Private Equity Groups often do not want to purchase real estate, as they believe they can generate higher returns for their investors by investing and creating value in operating businesses, rather than real estate. In this scenario, the real estate owner can either keep the real estate and rent it to the buyer or sell the real estate to an investor. If the Seller of the business is contemplating retaining the real estate, he or she should make sure that there is a formal lease in place at fair rental value with terms that would be acceptable when dealing with a third party lessee.
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.
Ronald V. Chernak
President
Inspiring business relationships since 1982!
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The FBB Group Welcomes New Intern
The FBB Group announced this week that Marty Gaspar will join the firm's team as an intern for the spring.
Marty Gaspar is from the U.S. Virgin Islands and is a sophomore at Colorado College, where he is majoring in Economics. He hopes to enter a career in finance and to gain valuable experience working at The FBB Group.
"We are glad to welcome Marty to The FBB Group and look forward to his contributions in the coming months" said Ron Chernak, President of The FBB Group.
The FBB Group, Ltd., is one of Colorado's largest and most successful business Intermediary firms. Representing privately owned businesses, the firm has completed over 1,000 business sales covering a wide variety of industries, since its inception in 1982.
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