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Posts Tagged ‘Quorum Business Advisors’

The value of potential when selling your business

blue sky

The value of potential (blue sky) when selling your business.

One day two men were talking. The younger man Tom mentioned that he had just gotten married and thought it might be time to buy a house. The older man John asked him what kind of house he was looking for. Tom answered “three bedrooms, two bathrooms, a two car garage and a pool would be nice”. Immediately John clapped his hands together and with a broad smile said “I have the perfect thing for you – come follow me”

So the two men got in their cars and the younger man followed John until they turned down an unpaved road. There the older man jumped out of his car and with a flourish pointed to an overgrown empty lot and shouted. “There it is!” Puzzled the younger man said “but there is no house”. John answered “true – but it’s got POTENTIAL!”

I am reminded of this story when I speak to business owners who bring up the “potential” of their business. They will tell me that if a new owner just did this or that they could make so much more money. But the moral of this story is that if you want to be paid for it you must build it.

Just as Tom is not going to pay John for a house he has not yet built, a buyer is not going to pay a business owner for potential not yet realized. Business are valued for what they have done in the past. The potential belongs to the buyer. If you are considering selling your business in the future lets talk.

There may be time for you to build on that potential, so you do indeed get paid for it.

Anthony John Rigney is the Broker / Owner of Quorum Business Advisors, LLC and a Board Certified Intermediary. If you would like to know more about his services contact us

 

Business Broker as Transaction Broker

Transaction Broker

Business Broker as Transaction Broker

In the State of Florida business brokers are required to have a real estate license in order to sell businesses. Unlicensed activity is considered a third-degree felony and punishable by up to five years in prison. However, while we share the same license with realtors there is a key difference in how we operate. Most realtors work as “single agents”. This means that they can only work with buyer or seller not both and that they have fiduciary duties as well as the duty of loyalty to their client. business brokers on the other hand rarely work as single agents. Instead we choose to work as “Transaction Brokers”

As a transaction broker we provide buyers and sellers with a limited form of representation. Unlike single agency transaction brokers do not have a fiduciary duty and to not owe the buyer or seller loyalty. Instead our job is to facilitate the transaction. In this way we can expedite a business transaction by representing both parties.

We are in effect a neutral party. However, we still owe both parties limited confidentiality. This means for example that we are not allowed to tell the seller that the buyer will offer more or tell the buyer that the seller will take less without permission from the party in question.

The transaction broker has the following duties to both buyers and sellers.

1.  Dealing honestly and fairly;

2.  Accounting for all funds;

3.  Using skill care and diligence in the transaction;

4.  Disclosing all known facts that materially affect the value of real property and are not readily observably to the buyer.

5.  Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing.

6.    Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, or the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or of any other information by a party to remain confidential; and

7.  Any additional duties that are entered into by separate written agreement.

 

Acting as transaction brokers allows us better assist both buyers and sellers of businesses which ultimately is to the advantage of all parties.

 

Anthony John Rigney is a Jacksonville based business broker and Board-Certified Intermediary (BCI). He is also the President of the North Florida district of the Business Brokers of Florida (BBF). If you are interested in buying or selling a business – contact Anthony today at www.904broker.com

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The Worst Negotiation Strategy Ever

 

Many years ago, I was in Mexico with my new wife. Along with other Americans we visited a local craft market where the craftsmen were selling their wares. These were hand made items and many of them exquisitely designed. Some of our party made a point to disparage the work of these men with the goal of setting a lower price. It was clear from the look in the men’s eyes that they were insulted and did not want to deal with these people. My wife took a different approach. When she found an item she liked, she picked it up. Admiring it she discussed the beauty of the work. The craftsman’s eyes light up with delight. Then she explained that she was on a tight budget and while the item was worth every penny he was asking she could only pay so much. Not offended at all the craftsmen accepted her offer with a smile. 

This was not a conscious negotiation strategy on her behalf. But intuitively she knew the right way to approach these men. If you are looking to buy something do not disparage the item to its owner. Whether it’s a business, home or some other item all you will succeed in doing is making them ill disposed to selling to you. 

I have worked as a business broker in Florida for over ten years. In that time, I have assisted in the sale of many businesses. The successful deals happen when buyer and seller build a rapport. The smart buyer does not insult or devalue the business in order to attain a lower price. Instead noting the good and bad he/she will make a fair offer and explain in a respectful way the logic of the offer. This does not guarantee a seller will accept the deal, but it will make it more likely that common ground can be found.

The worst negotiation strategy is to devalue whatever it is you are trying to buy. If you sit before a seller and run down the value of their property or product all you do is make them not want to sell to you at any price.

Being respectful does not mean you have to pay more than you want. On the contrary you will likely find that doing so will get you a better deal in the end.

Anthony John Rigney is a Jacksonville based business broker and Board-Certified Intermediary (BCI). He is also the President of the North Florida district of the Business Brokers of Florida (BBF). If you are interested in buying or selling a business – contact Anthony today at www.904broker.com

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Restaurant for Sale or Lease

Restaurant / Bar

 

 

 

 

 

 

 

Business Description

8,487 +/- SF Stand Alone Building 
Asking Rent $25.00/SF NNN
Asking Price $2,500,000 ($295/SF)
Located at 9720 Deer Lake Ct.
Jacksonville, FL 32246
Formerly Tilted Kilt
 

Detailed Information

Facilities:
8,487 SF fully equipped Restaurant and Bar located in the heart of the Southside of Jacksonville
Demographics:
2017 population estimate
1 mile 13,013
3 mile 72,257
5 Mile 201,985

*8,487 SF fully equipped Restaurant and Bar located in the heart of the Southside of Jacksonville
*Property is an outparcel to the 24 Screen Cinemark Movie Theater and in close proximity to St. Johns Town Center
*63 on site parking spaces and ample overflow parking with the movie theater parking lot. 
*Blue Cross of Florida campus and Merrill Lynch campus with over 15,000 employees within 1/2 mile
*51,000 cars per day on Southside Blvd.

Contact Anthony Rigney
Quorum Business Advisors

 

Recently Sold Tanning Salon and Spa

Tanning Bed

 

 

 

 

 

 

 

 

 

Anthony John Rigney of Quorum Business Advisors recently brokered the sale of a Tanning Salon and Spa in Jacksonville, Florida. Anthony represented the buyers. The sale was completed in 46 days from signing of the contract to the closing of the deal. If you are interested in selling your business please contact Anthony today.

Buying or selling a business is a complex process. Make sure you have the right team on your side. Contact us today!