Business Information selling a business explained by bizology business brokers

 
 
This is normally printed out in 20-30 pages depending on the style of business. This one happens to have been for a food service business. It is a good overview of what you will need available immediately. If I am submitting an opinion of value for a court settlement, this is normally what it will consist of along with national and local figures. Making a potential buyer wait for days for information is the quickest way to get rid of them...

 

 (business name)
**********************************************************************
 
(business type) BUSINESS OPPORTUNITY
 
 
 
 
(picture)
 
(business name)
(address)
(city)
 
Direct inquires to:
CHARLES BENNETT, Broker
 
 
 
 
 
 
(business type) BUSINESS PRESENTATION
 
 
 
 
1. EVALUATION
2. DESCRIPTION AND HISTORY OF BUSINESS
3. INCOME AND EXPENSE
4. APPRAISAL OF ASSETS
5. LEGAL
 
 
 
 
 
 
 
PROSPECTIVE PURCHASER INFORMATION
 
 
This valuation and listing booklet has been prepared by Charles Bennett, Broker. The purpose herein is to provide a prospective purchaser with the necessary information to proceed with the possible purchase of this restaurant (type of) business opportunity.
 
While Charles Bennett, Broker has endeavored to include herein information he believes to be reliable and relevant, he makes no representations or warranties as to the accuracy or completeness of such information or any other written or oral communication transmitted or made available to a prospective purchaser, and Charles Bennett, Broker expressly disclaims any and all liability based on such information and/or omissions therefrom.
 
This Memorandum, and the information contained herein is of a propriety nature and could be damaging to the seller if disseminated indiscriminately. In furnishing this Memorandum, Charles Bennett, Broker undertakes no obligation to provide the recipient with access to any additional information.
 
RECOMMENDATION OF LEGAL AND TAX COUNSEL; Seller and Buyer acknowledge they know that Charles Bennett, Broker; it's agents or its employees, are not authorized to give legal or tax advice. They acknowledge that no representation or recommendation is made by Charles Bennett, Broker; it's agents or it's employees, as to the legal sufficiency, legal effect or tax consequences of this or any proposed transaction relating thereto, and that these are matters which should be discussed with their legal, tax or other counsel.
 
CHARLES BENNETT, Broker
 
 
Charles Bennett, Broker is a professional business brokerage firm that specializes in business sales, mergers, acquisitions and evaluations of privately owned companies. Charles Bennett has a successful track record in real property and business sales since 1979. Bennett has expertise in a variety of business areas. Exclusive focus on business sales enables Bennett to sell his client's businesses for top market value.
 
Bennett will represent you exclusively. Represent you in screening a potential buyer for qualifications, and for confidentiality. Bennett may cooperate with other agents and companies in order to represent you in obtaining the highest possible price and terms.
The Internet is proving more and more to be a valuable advertising tool. Your business will be available on the home page of www.BIZOLOGY.com as well as the sites of www.BizBuySell.com/bizology.html and the IBBA and other leading sites.
Bennett also works with other real estate companies that specialize in selling homes and not trained or able to sell businesses. A sales lead may come from this kind of source on a referral basis.
 
CHARLES BENNETT started his real estate career in 1978 as a residential salesman in Manchester, New Hampshire. In 1985 he opened his own brokerage office specializing in residential and investment properties. In the first year of operation, Charles Bennett Realty, Inc. received the top three designations awarded by the Board of REALTORS for their class; Highest Number of Listings, Highest Number of Listings Sold, and Highest Number of Transactions per Associate.
 
In 1988, Charles Bennett went on a two week vacation to Florida and fell in love. With visions of opportunities unbounded, he returned to New Hampshire and sold his homes, apartment buildings and office building and moved within 90 days to Florida.
 
The first five years were spent living on a 42' sailboat in Sarasota selling homes, apartment buildings and business opportunities. While there, he turned down the opportunity to manage one of the premier offices for Prudential Florida Real Estate. With a smile he said "A good agent can always satisfy more clients than a great manager..." He didn't get off the hook quite so easily and ended up agreeing to teach the property valuation classes to their agents!
 
In 1992 Charles Bennett move to Fort Lauderdale where he specialized in business opportunities sales exclusively. His focus was on Southeast Florida, from Miami to Jupiter, where he fast became one of the leaders in the industry.
 
In 1998, Bennett and his wife decided to move north, Florida was just not where they wanted to be to put down deep roots. Not wanting the never ending heat, the almost never ending snow and cold of deep New England, they chose Virginia. With mountains, the ocean, parks, culture, history and a very strong business economy, he knows what it will take to bring in new buyers for existing businesses.
 
1978 - New Hampshire Real Estate License
1983 - Chairman of the Committee to Computerize MLS for NH
1984 - Chairman of the Committee to Computerize MLS for NH
1985 - New Hampshire Brokers License
1986 - Founded Charles Bennett Realty, Inc.
1986 - Began selling business opportunities
1989 - Florida Real Estate License
1992 - Florida Brokers License
1998 - Virginia Brokers License
 
Business opportunity transactions and investment decisions are most successful when they are based upon objective counsel. Charles Bennett brings to each assignment experience, expertise and honesty. He will turn you down before he will let you down and tell you what you need to know. Not necessarily what you want to hear.
 
Charles Bennett, Broker
 
 
 
 
"VALUATION"
 
BUSINESS VALUATIONS
 
Business valuation is a function of many factors: annual sales, financial assets, current performance and future outlook.
There are several widely accepted valuation techniques that are based on annual "Owner Benefits" (net adjusted cash flow benefits to the owner before interest and taxes).
 
Cash Flow Method - A multiple of Owner Benefits; 1.5 to 2.5 depending on the type of business.
 
Capitalization Rate- The rate an investor desires from his investment based upon the level of risk involved. 30% is the minimum CAP for businesses today. The CAP is divided into the Owner Benefits less the cost of absentee management.
 
Asset -Cash Flow Formula- This formula is often used to determine an approximate value of a business with high inventory or overall asset value.
 
Valuation is also a function of the financing terms. Today's market indicates a cash down payment of 35-50% and a Seller's Note for the balance paid off over 5-15 years at an interest rate of 8-10%.
 
Ultimately, the value of a business is determined in the marketplace based upon what comparative businesses are selling for.
 
 
 
 
(business type) VALUATION REPORT
 
(business name)
(address)
(city)
 
 
This (business type) Valuation Report is based on certain assumptions and information supplied by third parties. This valuation is provided for the purpose of determining a "Range of Value" for the owners to determine a price for marketing the business for sale and the purchaser's contemplating an offer to purchase.
 
No person receiving this information should rely on any conclusions set forth and is specifically instructed to make his or her own independent analysis of the business.
 
 
CHARLES BENNETT, Broker
 
 
 
 
THE RANGE OF VALUE OF (business name) IS :
 
PRICE
(ALPHA PRICE)
 
THE RANGE OF VALUE OF (BUSINESS NAME) IS BASED ON THE FOLLOWING COMPUTATIONS:
 
 
1999 Gross Sales $
 
Reconstructed Gross Profit $
 
Reconstructed Expenses $
 
Reconstructed Cash Flow $
 
Value of Cash Flow based on a Cap Rate determined by the preparer using subjective system of scoring and weighing several aspects of the business (business name)'s Cap Rate is (cap) which gives an estimated value to the cash flow of: $
 
The estimate of the value of the assets of furniture and equipment: (30% of new)$
 
 
TOTAL $
 
 
Total for the Range of Value for the business is rounded to:$
 
 
 
 
 
BASIC IDEAS WHICH ASSIST IN DETERMINING
THE VALUE OF A BUSINESS OPERATION
 
This scoring is subjective in method. It's purpose is to create logical handles to use on the multiplier of the restructured cash flow. The items were chosen based on experience and study of the business by the evaluator.
 
Business Name Date
 
1. LENGTH OF TIME IN BUSINESS
A. 1 year C. 5 years
(1 point) (3 points)
B. 3 years D. 7 years
(2 points) (4 points) _____
 
2. LOCATION
A. Fair C. Excellent
(1 point) (3 points)
B. Good
(2 points) _____
 
3. TIME LEFT ON THE LEASE
A. Less than 5 years with no options C. 10 years
(0 points) (3 points)
B. 5 years D. over 10 years
(2 points) (4 points) _____
 
4. VOLUME INCREASE OR DECREASE EACH YEAR OF THE PAST THREE YEARS
A. Increase (5 points)
B. Decrease (0 points) _____
 
5. The owner is "KEYMAN" to the business
A. YES (0 points)
B. NO (3 points) _____
 
6. REPUTATION OF THE BUSINESS
A. Good B. Excellent
(1 point) (2 points) _____
 
7. OWNER CARRY FINANCING
A. Yes B. No
(4 points) (0 points) _____
 
8. CASH FLOW
A. 5% Cash flow D. 15% Cash flow
(2 points) (11 points)
B. 7.5% Cash flow E. 20% Cash flow
(5 points) (15 points)
C. 10% Cash flow
(8 points) _____
 
TOTAL POINTS _____
 
1. TOTAL POINTS ____ divided by 40 (possible points) = point %
 
2. % of 200 = cap
 
3. cap X restructure cash flow of $ = $
 
 
 
"DESCRIPTION AND HISTORY OF BUSINESS"
 
PHOTOS
 
GENERAL INFORMATION
(business name)
(address)
(city)
Type of business ____________________ Telephone ___________________
Building structure __________________ Space occupied ______________
Property dimensions (front feet and depth) ___________________________
Parking ____________________________________________
Own or lease __________________ Lease amount per month __________
Time left on lease __________________ Options _________________________
Name of businesses adjoining on each side _________________________________
__________________________________________________________________
Number of seats in bar _______ Dining room ________ Other ________
Check average: Breakfast _________ Lunch _________ Dinner _________
Food/beverage percent of gross sales: Food _______ Beverage _______
Gross sales: 1997 ___________ 1996 ___________ 1995 ___________
Number of employees: Full time _______ Part time _______
Business hours: ___________________________________________________________
Remarks: _________________________________________________________________
_________________________________________________________________________
___________________
Date
 
______________________________________
Owners signature
 
 
HISTORY
MENU (could be price list, brochure, depending upon type of business)
MAP LOCATION
AREA CENSUS (if and when readily available to the public)
INCOME AND EXPENSES
 
TO A POTENTIAL PURCHASER
 
(BUSINESS NAME)
(ADDRESS)
(CITY)
 
 
I have made specific adjustments, as discussed in the following pages, to accounting records provided by the present owners of the (business type) for the purpose of assisting you in the proposed acquisition of the property. It is understood that this report is solely for your information and is not to be distributed to anyone for any other purposes.
We assume no responsibility for the accuracy of the data contained in the Cash Flow statement and any prospective purchaser is specifically instructed to make his or her own independent analysis of the business.
 
 
 
 
CHARLES BENNETT, Broker
 
 
FOR ILLUSTRATION PURPOSE ONLY PRELIMINARY CASH FLOW REPORT
(Business name):
(address) * (city)
 
SALES AND COST OF SALES - PREVIOUS 12 MONTHS
Actual Percentage
Sales - food $
Sales - liquor $
Sales - other $
TOTAL SALES $
Cost of food $
Cost of liquor $
TOTAL COST OF SALES $
ADJUSTED GROSS PROFIT $
 
FIXED EXPENSES
Rent $
Common Area $
Taxes (property & real estate) $
Licenses $
Personal Property Tax $
TOTAL $
PAYROLL
Wages - hourly $
Wages - Salary (manager) $
Payroll Taxes $
Medical Insurance $
Unemployment Tax $
Casual Labor $
TOTAL $
 
CONTROLLABLE EXPENSES
Advertising $
Legal & Accounting $
Credit Card Fees $
Insurance $
Janitorial $
Laundry & Linen $
Office Supplies $
Bar Supplies $
Restaurant Supplies $
Cleaning Supplies $
Kitchen Smallwares $
Paper Supplies $
Repairs/Maintenance $
Telephone $
Utilities $
House Promotion $
Other - Associations, Tourism $
Other - Bad Checks $
TOTAL $
 
TOTAL OF ALL OPERATING EXPENSES $
ADJUSTED GROSS PROFIT $
ALL OPERATING EXPENSES $
CASH FLOW $
 
 
 
APPRAISAL OF ASSETS
 
To whom it may concern:
 
There has not been professional equipment appraisal done on (business name).
 
The value of the furniture, fixtures, equipment, glassware and smallwares in place, as they relate to an operating and profitable
restaurant, are in the opinion of this evaluator worth:
$
 
Respectfully submitted,
 
Charles Bennett, Broker
 
(If you have gone to the expense of a professional appraisal on all assets, we will attach the appraisal here.)
 
 
 
(Business name)
 
DESCRIPTION QUANTITY
 
BAR AREA
DINING ROOM AREA
WAIT STATION
KITCHEN
 
LEGAL MATTERS
(copies of licenses)
 
LEASE REVIEW
Lease reviewed:
Address of property:
Original lease date: Expiration date:
Renewal provisions:
Assignability:
Base rental per month:
Escalator:
Deposit:
Taxes paid by:
Insurance paid by:
Additional fees (utilities or parking):
Option to purchase to real estate:
Second position on furniture, fixtures and equipment:
Sign:
Special provisions:
Lessor - name:
address:
phone:
Remarks:
 
 
 
Bizology - the study of business for sale

Bizology.com

email to : info [at] bizology [dot] com
Chambersburg, PA 17201-1712
 
 
BUYING* * FOR SALE * CONTRACTS - FORMS * FINANCIAL * REFERENCE * TAX - LEGAL * BOOKSTORE *
* SELLING * | buyer questions | buyers ask | seller finance | business disclosure | seller proceeds |
| information list short | business information long | records needed | seller questions | seller non-disclosure |
| seller carryback notes. | seller mistakes | partner fraud | business requests | | main index | | you are in SELLING now |

 

 

Click Here!