SOLD!! Home & Bath Remodeling Company For Sale

Immediate Release:

Successful Chicago based contracting business

• Stellar Reviews on Social Media - Yelp, Angies List…

• Servicing Chicago North Side Residents

• Pipeline In Place

• Training & Transition Provided

This well-established, must see home and bathroom remodeling company is located in an affluent North Side Chicago neighborhood. The Company has steadily grown its revenues every year since its inception. The Company’s fantastic reviews and great web presence have allowed it to remain busy year-round, even during the months most other similar businesses experience slumps. The Company has multiple revenue streams including bathroom and kitchen remodeling, a full-time electrician for service calls, and a handyman division. The Company thrives in the middle ground between larger full remodels and small hourly jobs. 

The majority (approx. 80%) of the Company’s revenue comes from bathroom remodeling. This has allowed for the Company to focus most of its efforts and specialize in all aspects of the service. The other 20% of the revenue is made up of general remodeling, electrical and handyman repairs.

The Company’s primary customer base is middle to upper middle class residential and commercial clients. It has a large amount of repeat and referral business. Multiple real estate offices use and recommend the Company to their customers. The Company also receives many of its referrals from other trade contractors such as plumbers, larger contractors and its material vendors.

Interested buyers are required to execute an electronic NDA and provide a LinkedIn profile or resume prior to the disclosure of the name and location of the Company.

Inventory:

Not included in asking price

Real Estate:

Leased

Building SF:

3,000

Lease Expiration:

N/A

Employees:

19

Furniture, Fixtures, & Equipment (FF&E):

Included in asking price

Facilities:

The Company operates out of a 3000 sq ft office and workshop space plus 800 sq ft basement. 1500 sq ft is used for office and 1500 sq ft is used for a workshop and storage. The office space is very modern and outfitted with top of the line technology. The Company rents the space from a third-party landlord. The lease will expire at the end of 2018 with the opportunity to sign an additional 3 years.

Growth & Expansion:

There is a tremendous amount of growth opportunities for the business and industry. Adding additional sales staff, subcontractors and employees could drive revenue up even more. New services could be incorporated to drive growth. The Company currently sticks with bathrooms and small remodeling projects and has become very proficient in this one niche. It would be easy to add different trades to the business and expand the services offered. A few of the other services that could be added are HVAC, siding, windows, roofing, hardwood floors and many others.

Seller Financing: Qualified Buyers

$57900

Support & Training:

Mutually negotiated training and transition

Reason for Selling:

Other business interest

Interested buyers may contact Jim Peddle at 312-525-9622 or email President@playbookadvisory.com for more information.

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Industrial Supplier & Distribution Company for Sale

Immediate Release:

Established supplier of janitorial and packaging supplies to Chicago area companies

• Located in Northwest Suburbs of Chicago

• Loyal Customer Base

• Revenues over $800,00 in 2017

• Seller Owns Real Estate

Great opportunity for a sales and marketing pro to assume this Independent Industrial Supply and Packaging business that is located in the Northwestern Chicago suburbs. For over 25 years the Company has served its business clients throughout the Chicagoland area by offering the best industrial and office products for competitive prices. It has remained an independent, family owned business and operates out of a single facility. 

The Company started out by producing and distributing its own line industrial packaging supplies but has since expanded into a myriad of paper products and other industrial and janitorial supplies. The Company now manufactures and distributes packaging and shipping supplies, janitorial and maintenance supplies, lifting and rigging products, and floor machine products. The Company also distributes other corporate brand name products on top of its own independently manufactured products. 

The Company currently has over 100+ accounts and generates recurring revenue from 40-50 businesses. Seller will provide training and transition to buyers as well as 10% seller financing to qualified buyers. Interested buyers can contact the Broker at president@playbookadvisory.com

Detailed Information

Inventory:

Included in asking price

Real Estate:

Owned

Building SF:

N/A

Employees:

5

Furniture, Fixtures, & Equipment (FF&E):

Included in asking price

Facilities:

The Company operates out of a single, 4,000 sq/ft facility that is owned by the seller.

Competition:

The Company works exclusively B2B with many returning customers. Almost all its new business comes from referrals from its current customer base. The Company has its own ecommerce website that allows its customers to purchase their products directly. The website also keeps its list of products available for purchase up to date and includes all the necessary Company contact information. It does not have many reviews on social media, but the reviews it has are all excellent.

Growth & Expansion:

The Company does minimal marketing and a new owner could easily expand the business by pouring more into the marketing budget and investing in online advertising and SEO. There is room for a small team of sales reps to be put in place to expand into other markets as well.

Financing:

23000

Support & Training:

Mutually negotiated training and transition – 6 months

Reason for Selling:

Retirement

Interested buyers may contact Jim Peddle at 312-525-9622 or email President@playbookadvisory.com for more information.

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Uncovering the Top Sources for Finding a Business to Buy

Online Resources To Assist Buyers in Search of a Business...

At our firm, we are contacted daily with Buyer inquiries for active listings that we have available for sale. By our estimates, over 65% of these prospects come from online ads, mainly from 3rd party websites. In this post, I' thought it would be helpful to summarize the different websites where buyers can identify opportunities;

Business Sales are Different than Residential Real Estate Sales:

First, Buyers should understand the market for selling a business is very different than when you purchase a home. Realtors have a Multiple Listing Service (MLS) that broadcasts the sale of their listing and also have an active company website that advertises pictures, listing details and financing options. Confidentiality is not required so Buyers see exactly what is for sale and for how much. This is not how business brokers sell companies below are platforms utilized by both business brokers and Sellers who are listing for sale by owner.

3rd Party Websites

• Bizbuysell (Largest website online)

  One of the largest 3rd party websites that is devoted to the listing and selling of businesses for sale in the United States. Business Brokers pay a monthly subscription to list and market their listings. Business owners can also sell by owner for a monthly rate. The issue for sell by owner is confidentiality is breached almost immediately as sellers respond to buyers inquiries. If confidentiality is important think twice about selling online. Best for businesses up to $5,000,000. Great majority of buyers utilize SBA financing on deals over $500,000. We love www.bizbuysell and Playbook Advisory is an active & elite member since 2016.

• Bizquest.

  Bizquest is a sister site of Bizbuysell.com and although they say they generate different buyers are experience is they are the same at least here in Chicago. Again, best for deals that are up to $5,000,000 and most buyers need SBA financing for acquisition financing. If you are choosing between the two sites pick bizbuysell. Our firm is also an elite member of the platform find our profile here.

• Businessbroker.net

  Another site similar to the above two but in our experience traffic is much lighter from businessbroker.net. We have generated successful buyers from the site so we continue to utilize the platform for our active business for sale listings.

• Businessforsale.com

  USA.businessforsale.com is a US & UK platform that our firm has not utilized in 2018.

• Dealstream

  Formerly knows as mergernetwork the site lists businesses a little differently and makes buyers register. Brokers can confidently use the site for generating buyers but in our experience they rank below the top 3 sites in this post. With that said the site has been working to make improvements but they need to clean up older listings that are no longer for sale.

• Axial

  Axial focuses on larger M&A transactions and works hard to generate listings of size ($5mm & higher). In our experience there are more tire kickers and the follow through is low from buyers on the site, however, our typical listing is not necessarily a match so our sample size is low. Very professional platform and Axial charges a premium to buyers searching for a business to buy.

• Equire

  Another site seeking to list companies with a minimum of $750,000 in cash flow (SDE or EBITDA). Our firm has not listed any companies on the site so I don’t have relevant feedback for the site.

As you can see, there are a number of 3rd party websites devoted to listing businesses for sale in the United States. We typically find buyers only concentrate on a few, however, it might make sense for buyers to monitor more than one or two in order to identify more opportunities.

Business Broker Websites:

Buyers can also receive listing information directly from local business brokers by signing up for the brokers listing alerts or newsletters.

At Playbook Advisory, we attempt to place buyers into the right bucket so that they only receive listings that are of interest, however, it’s fairly common for buyers to purchase a business they had no idea would be of interest so it helps to keep an open mind as you search.

If you contact us please let us know the following;

• Location you would like the business to be

• Amount of Cash Flow/SDE required

• Amount your willing to invest

• Are you interested in Financing a business purchase? We can refer you to qualified SBA lenders in the Chicago area.

Although I'm aware of other Chicago business brokers that might be good for buyers to monitor send me an email I will respond with some tips on who I think can help your search based on your area of interest.

The search for a business can be exceedingly difficult at times but the rewards are life changing. Contact Jim Peddle at 312-525-9622 to discuss your needs or email me at president@playbookadvisory.com.

Other Helpful Blog Posts for Buyers:

“What is Sellers Discretionary Earnings (SDE)?

“Keeping the Sale of a Business Confidential”

What Buyers Should Know When Getting an SBA Loan...Jeff Hunt First Home Bank

The Following Post was Provided by Jeffrey Hunt from First Home Bank:

First Home Bank provides SBA 7(a) loans to a variety of businesses and for various purposes with business acquisition financing being a significant focus. As a top 10 SBA lender in the country, our team’s expertise extends beyond financing business acquisitions, and includes bankers with experience as both business owners/principals and financial advisors, making First Home Bank the first choice for business buyers seeking a financial partner to assist in an acquisition financing. We have compiled a list, a list we call the “Bankers’ Dozen”, of the most common roadblocks that come up during an acquisition transaction. The key is recognizing items that need to be addressed early in the process and discuss with your client and banker so there are no last-minute closing delays.

#1 No Creative Addbacks

• All addbacks must be documented through IRS tax returns and/or interim company financials

• Allowable addbacks can include:

  • Nonworking friends & family on the payroll if reported on W-2

  • Unusually high fees, legal or bad debt

  • Excessive owners compensation

  • Non-recurring expenses such as moving costs or product development expenses

#2 Seller Tax Return Verification

• Get a signed IRS Form 4506T from a seller on day 1. If there are any discrepancies that need to be addressed, the seller can begin to clear those up early in the process

#3 Comprehensive Business List of Insurance Requirements to Close

• SBA’s insurance requirements are not negotiable. Obtain a list from the seller of all business insurances currently in place. If insurances need to be added or amended to comply with the SBA, there will be plenty of time to be in compliance if an assessment is done upfront.

• First Home Bank prefers to work directly with the insurance agent to obtain required insurance certificates with the appropriate SBA language. This allows the buyer to focus on other deal-related items.

#4 Collateral Shortfall will require Life Insurance

• There’s no getting around this. If there is a collateral shortfall, life insurance in the amount of the collateral shortfall will be required for all guarantors.

• If the buyers/guarantors do not already have a life insurance agent, they can work with a “quick close” insurance provider as soon as the loan is approved.

• Sometimes the buyers/guarantors already have a life insurance policy in place. If so, make sure to collect copies of existing life policies and confirm that they are assignable.

• Provide the bank with contact information of the insurance provider so the bank can obtain the policy with the appropriate assignment.

#5 The Need for more Equity in the Deal

• As you are probably aware, the equity requirements for business acquisitions are changing with the release of the SBA’s new version of its Standard Operating Procedures (SOP 50 10 5(J)).

• While the SBA will be providing some additional insight into these changes, the basic change is that the buyer must contribute a minimum of 10% equity towards the entire transaction and there must be at least 10%
  equity on the post-transaction pro form balance sheet. A seller note can still be used and can provide for up to half of the required equity injection. However, the seller note must be on full standby (no payments at all) for the life of the SBA loan.

• If the source of the buyer’s equity is coming from a gift, a Gift Letter with 2 months of bank statements showing the source of this gift will be required.

#6 Seller Keeping AR & Cash at Close

• In this situation, the buyer must prove that they will have sufficient working capital at closing.

• If necessary, the loan could include a 90-day working capital supply.

• The Bank will need to document post-closing liquidity.

#7 Know Buyer’s Personal Credit Score

• If under 700, get a written explanation and make sure that there was no prior loss to the US government.

#8 Personal History Concerns

• A Resume and Statement of Personal History questions are required for each guarantor.

• The questions of “Have you EVER?” have no limitations on how long ago.

  • If “yes”, have the guarantor complete the SBA Form 912 and provide supporting documentation.

• Knowing issues early allows the Bank to clear through them during underwriting which can avoid delays

#9 Citizenship of the Buyer

• Determine the citizenship status of a buyer early on and get a copy of documentation early.

• They can obtain SBA financing if they have a green card and are legal permanent residents of the U.S.

#10 Leased Space & Landlord Subordination

• The term of the Lease must be equal to the term of the loan, and renewal options can count towards the term.

• Prepare the seller to discuss the subordination requirement with the landlord and assist with getting subordination executed by the landlord and buyer.

#11 Complete Equipment List

• Use the depreciation schedule in the seller’s business tax returns as the starting point.

• The serial numbers for all equipment over $5,000 must be included.

#12 Relevant Management Experience

• If the buyer does not have direct industry experience, obtain a detailed resume that expands on transferable management skills.

#13 Pledge of Personal Assets as Collateral

• If the business assets do not fully secure the loan, the SBA requires that any personal real property with lendable equity must be pledged as collateral.

• If there is no lendable equity, the pledge of the guarantor’s personal residence may not be required.

First Home Bank is a Top 10 Nationwide Preferred SBA Lender specializing in small business loans across a wide array of industries for business acquisitions, commercial real estate and equipment financing and working capital.

Other Reading;

Confidentiality - Why it’s important in M&A

 Where Can I Find a Business to Buy?

Playbook Advisory Announces Latest M&A Sales

Chicago Business Broker Facilitates M&A Transactions  

Playbook Advisory is thrilled to share the recent successful sale of two businesses in the Chicago region to local private entrepreneurs.

The first of these sales, transacting for $1.275 million, involved a renowned Automobile Repair and Service enterprise situated in Aurora, Illinois. The seller, with three decades of industry experience, entrusted Playbook Advisory with the exclusive responsibility to manage the sale of one of their trio of Chicago-based outlets.

This automobile business caught the attention of a private individual, marking his entry into the automotive repair domain. The financing component for both the business and associated real estate came courtesy of U.S. Bank, renowned for its role in facilitating SBA loans for business procurements.

Meanwhile, the second disclosed sale was of a pet services venture located in Barrington, Illinois. Having taken ownership of this establishment over a decade ago from its original proprietor, the seller was poised to embrace retirement in 2018.

The acquisition by the buyer stemmed from an advertisement on Bizbuysell.com, prominently displayed during the listing period. Notably, this purchase represents the buyer's second venture into the pet services arena.

Jim Peddle, President of Playbook Advisory, expressed, "2018 has commenced on a promising note for us. Our robust business listing pipeline gives us confidence that we'll surpass our 2017 sales numbers. Given the current market vigor, potential sellers should consider seizing this moment. We’re here to ensure a seamless sale process for those ready to embark on this journey."

About Playbook Advisory:

Established in March 2016, Playbook Advisory has been an unwavering ally to business proprietors, offering expertise in listing, marketing, and finalizing the sale of their private businesses. Our swift ascent in the industry is evidenced by our impressive portfolio – listing businesses worth over $25 million in the vicinity of Chicago. With a commendable $12 million in closed deals in 2017 alone, we've solidified our standing as a prominent business brokerage firm in the region.

For prospective buyers and sellers keen to explore further, Jim Peddle is available for consultations.

For a deeper dive into our offerings and more details, reach out to Jim Peddle at 312-525-9622 or visit our official website at www.playbookadvisory.com.

Provided by Playbook Corporate Advisory, Inc.

Upcoming M&A Updates:

Newswire Press Release

M&A Announcement - Sale of a Party Equipment Rental Company

Playbook Advisory is pleased to announce the sale of a local Chicago area Party Equipment Rental Company.

Business Sale Announcement

"Our firm acted as the Sell Side Adviser for the owners of this successful and growing Chicago area  based Equipment Rental Company." stated Jim Peddle, President & Founder of Playbook Advisory.

"Our team did a great job of quickly moving to bring this Company to market after another business brokerage firm located outside of Chicago failed to identify a Buyer." added Mr. Peddle

With this transaction, Playbook has now transacted over $12 Million in business sales transactions for 2017. This achievement is notable and puts Playbook Advisory near the top Nationally of all business brokerage firms in the lower middle market and Main Street niche of M&A.

"We are seeing record number of buyers coming to our firm interested in securing a business to own and operate. Now is the time for Sellers to take advantage of the remarkable amount of financing being provided by all of the banks in Chicago. I must get 2-3 new lenders seeking to lend funds for business acquisitions." added Mr. Peddle. "We will see this continuing into 2018 which is wonderful for business owners looking to sell their business.

Interested business owners who are thinking about selling their businesses may contact Jim Peddle at 312-525-9622.  We have a proven model for listing, marketing and negotiating Sell Side engagements. Come and find out how we can maximize the sale of your Company.

Please let us know if you would like additional information on any listings currently for sale with Playbook Advisory or go to our website for up to date information on companies for sale.
 

Newswire Press Release:

To reach Jim by email: 

president@playbookadvisory.com

To reach Jim by phone:

312-525-9622

To reach our website:

https://www.playbookadvisory.com

http://www.businessbrokerinchicago.com

BUSINESS BUYER, BUSINESS BROKER

"Navigating the Pitfalls: Overcoming Common Challenges When Selling Your Business"

Selling a business is a significant decision that requires careful consideration and preparation. To ensure a smooth and successful transaction, it's essential to review and address several key issues beforehand. Here are some of the most critical factors that business owners need to review before selling their business.

• Financial Health: The financial health of your business is a critical factor that potential buyers will consider. Review your financial statements and make any necessary adjustments to improve your business's overall financial performance. This could include reducing expenses, increasing sales, and improving cash flow.

• Legal Matters: Before selling your business, you should review all legal documents and contracts, including those related to taxes, employment, and intellectual property. Ensure that all legal matters are in order to minimize any potential liabilities for the buyer.

• Market Position: Evaluate your business's market position and understand your competition. What sets your business apart from others? Understanding your strengths and weaknesses will help you make informed decisions during negotiations with potential buyers.

• Business Valuation: A business valuation is a crucial component of the selling process. A professional business valuation will help you determine the fair market value of your business and assist you in negotiating a fair price with potential buyers.

• Employee Considerations: Your employees are a significant asset to your business. Consider their future and whether you will be able to retain key employees post-sale. If not, this could impact the value of your business and the buyer's interest.

• Exit Strategy: Develop an exit strategy that aligns with your goals and objectives. This may include finding a suitable buyer, negotiating a fair price, and ensuring a smooth transition of ownership.

• Due Diligence: Be prepared for the due diligence process, which is when potential buyers will review all aspects of your business to determine if it is a good investment. This includes reviewing financial statements, contracts, and legal documents.

In conclusion, selling a business is a complex process that requires careful preparation. By reviewing these key issues, you can ensure a successful transaction and maximize the value of your business. If you are unsure about any aspect of the selling process, consider seeking the assistance of a professional business broker. They can provide valuable advice and support throughout the process.

Complete an Internal Legal Review or Audit:

Is the Company in Good Standing; Confirm the company is in good standing (Illinois: https://www.ilsos.gov/corporatellc/) in all states where they do business. If your business has a physical presence in an outside state, you are required to register for a “Certificate of Authority.” Failure to do so will cause the forfeiture of certain rights and may result in costly retroactive penalties.

Business Records: Having good records will help to eliminate any opportunity for prospective buyers to seek a reduction of the purchase price after a Letter of Intent (LOI) is executed.

Business and Professional Licenses:

• Check the status of all required licenses.

  • If licenses are found to be not current - file for reinstatement

Employee Relations:

• Background and credit checks permissible with written consent.

• Workers must be properly classified as employees vs. independent contractors.

• I-9 immigration compliance for all current employees.

• Overtime pay required for all non-management employees

Appraisal of Business: Independent appraisal will educate sellers about the worth of business.

• Note - In our opinion, this is only relevant for those companies greater than $10mm in annual revenues.

Disclaimer: Business owners are highly encouraged to seek out professional legal representation prior to listing a business for sale.

Confidence Still High for Business Sales

BizbuySell released a survey of business owners this week and not surprisingly, confidence remains high for mergers and acquisitions as we close out 2017. 

Bizbuysell, the Internet's largest business-for-sale marketplace, released its 2017 Buyer-Seller Confidence Index, a national indicator of small business sentiment of the current business-for-sale environment.

Owners Remain Confident They Can Get an Acceptable Price, But Just For Today

The slight drop in Seller confidence doesn't diminish the overall positivity that has persisted since BizBuySell started calculating this data in 2013. Similar to last year, 60 percent of current owner respondents said they are confident they would receive a price that met their expectations if they sold their business today. Additionally, more than 40 percent believe the environment improved in the last year, saying they could receive a higher sale price for their business than at the same time in 2016. Those owners credited improving sales and revenue (62 percent), an improving small business economy (43 percent) and an increased interest in their business industry (25 percent).

"The stock market has been going up, which increases consumer confidence and stimulates small business. Due to these various factors, small business acquisitions are in demand," said one current owner.

Seller confidence in today's market is validated by the number and type of businesses hitting the open market. According to BizBuySell's Q3 Insight Report, the number of businesses listed for-sale increased nearly 7 percent from the same time last year. In addition, listed businesses displayed increasing revenue (up 4.4 percent YOY) and cash flow (up 3 percent), allowing for an increase in the median asking price (up 5.9 percent).

As owners remain optimistic in today's market, there is evidence that some might be concerned of an upcoming peak. Just 41 percent of owners believe their business would be more valuable next year; a significant drop from the 48 percent who believed the same in 2016. Furthermore, an increasing percentage of owners believe their business value would not change at all if they waited a year; 47 percent versus 40 percent a year ago.

Perhaps more signaling of a perceived pricing plateau, 2017 results show a 50 percent increase of owners who saw no value increase versus the prior year, up to 29 percent from 19 percent a year ago. Another 30 percent of owners believe their business value decreased. Reasons cited for declining value include increasing costs (33 percent) a depressed small business economy (30 percent) and declining sales and revenue (23 percent).

The mixed responses from owners who are more or less optimistic explains the 1-point drop in the Seller's Index and can likely be attributed to varying environments across regions and industries.

"The climate for my business has declined with the aggressive nature of Amazon and other online outlets," said one retail business owner. That sentiment was echoed in BizBuySell's recent poll of owners, showing 65 percent perceive online marketplaces, such as Amazon, a threat to small business. "While interest rates and financing create a favorable environment, declining unit volume and rising labor costs are squeezing margins," another owner said.

Overall, sellers remain confident but appear cognizant of the issues that could affect their business value going forward.

Buyers' Confidence Falls as Concern for Future Prices Takes Hold

While sellers have been consistently confident in their ability to fetch a good price for their businesses, buyers feel those rising prices come out of their pocket. It is perhaps no surprise then that the Buyer Confidence Index has remained below 50 since 2014, indicating acknowledgement that healthier small businesses mean higher asking prices. Maybe more interesting is that while buyers and owners share concern of what's to come, owners fear a peak while buyers fear continued price increases.

The 2017 Buyer Index dropped 3 points, mainly caused by buyer belief that prices will continue to increase. Only 22 percent believe they would receive a better deal by purchasing a business next year, a drop from 29 percent at the same time last year. Instead, a growing number (21 percent) of buyers believe they will receive a worse deal if they wait until next year, an increase from the 15 percent that thought the same in 2016.

"If the political infusion into relaxing business regulations takes hold, the purchase prices for businesses will continue to increase," one buyer said, citing the political scene as reason for ongoing rising prices.

The belief that next year will result in higher asking prices correlates with buyers' overall belief that small business sellers are already setting their asking prices too high. More than 55 percent of buyers said they believe currently for-sale businesses are overvalued, and a mere 4 percent felt they were undervalued.

"With the stock market at an all-time high, and with high job force participation, lots of sellers think they can get top dollar," another buyer said.

While rising prices in 2018 remain speculation for now, increases appear to have become a reality for buyers seeking to transact in 2017. 31 percent of buyers felt they would have been better off buying a business last year versus just 15 percent who felt they can find better value now. Once again, the top reason for these perceived worse conditions were owners setting unrealistic selling prices. High asking prices were cited by more than half of buyers who believe they could have a received better value last year.

"The economy is doing better so prices are being increased, but for less cash flow," one buyer explained.

Interestingly, the second most listed reason was a higher demand for small business ownership (42 percent), meaning buyers are seeing more competition for the businesses they are interested in. While many consider rising demand a negative, some buyers are hoping it will result in more sellers looking to take advantage and in turn, more opportunity to find the right fit. "I see a lot of retiring baby boomers without succession plans, which will lead to better purchase options despite a higher cost to borrow," a buyer said.

"During the last recession, we saw buyers getting great deals on small businesses because of the depressed economy and health of listed business, but it came with higher risk." House says. "As times have become more certain, those deals have evaporated and buyers have to adapt to the more equal-footed market. The record pacing number of transactions we're seeing now suggests they are."

1 in 4 Sellers to Retire as Baby Boomers flood market; Buyers relying on SBA loans, bank & seller financing to close deals

BizBuySell's Insight Report data has shown a steady increase in both listing and sold small business over the past two years. Much of the increased activity has been due to Baby Boomers reaching retirement age and that does not appear to be slowing down. The confidence study supports this as 25 percent of current owners say they will retire upon completion of their business sale.

Those who don't plan on retiring seem to be part of the serial entrepreneur community. Thirty-one (31) percent of owners said they hope to start another business after they sell while another 25 percent intend to buy another business to run. Only 9 percent want to find a non-ownership job for another company.

When sellers do move on from ownership, the majority won't be handing the keys to the family. The common perception of a small business is that it may be passed down from generation to generation but the reality is that most owners expect to sell to someone they don't know. Over 38 percent of owners say they plan to sell to a third-party owner and another 26 percent hope to be sold to or acquired by another company. Just 17 percent plan to pass the business to a family member and 11 percent to a current employee.

Finally, when owners sell their business, they should plan to receive the money over time and not as a big down payment. That's because buyers expect the seller to take on some of the risk, with 41 percent hoping to pay for part of the business through seller financing. Not surprisingly, the other biggest source of capital will be bank financing (50 percent) and SBA loans (48 percent).

"The business-for-sale market is strong when both sellers and buyers can find common ground in not only the sale price, but the other aspects that go along with a transaction," House said. "The fact that we've seen such strong activity over the past few years shows that both sides are finding value in today's market, even as it grows more crowded."

About the BizBuySell's Business Buyers-Seller Confidence Index

BizBuySell.com is the Internet's largest marketplace for buying or selling a small business, with over 1.6 million monthly visits. The company releases its Business Buyer-Seller Confidence Index on an annual basis, reporting changes in buyer and seller opinions of the current business-for-sale environment. The index and scores are calculated through a number of weighted survey questions issued to over 2,000 people currently interested in either buying or selling a small business. For more information on the survey findings and index scores, please contact BizBuySell directly.

Source: Bizbuysell.com