Opportunistic Deal Making

WHY BUY A BUSINESS NOW?

For investors (prospective buyers of businesses) who think opportunistically and entrepreneurially, there has seldom been a better time to make an acquisition. Business owners are motivated to sell and are more willing to price the acquisition to attract buyers. Also, financing is readily available, with interest charges at very attractive low rates currently, and not predicted to raise substantially soon.

DOWNSIZERS AND CORPORATE ESCAPEES BUY BUSINESSES

We also anticipate that literally hundreds of thousands of "down sizers", "corporate escapees" and laid off people, when contemplating what to do next with their lives, will opt to look into acquiring their own business instead of looking for another job.

WHY OWNERS OF PROFITABLE BUSINESSES WANT TO SELL:

It's a very opportune time for business owners to cash out, since

  • They usually acquired the business years ago at a reasonable cost, rode the wave of growth and prosperity, took cash out annually, reduced their debt, and now are positioned to cash out with excellent gain.
  • And, with the recent tax law changes, including allowing owners to allocate much of the price to “good will” (and low-rate, long term capital gain tax treatment), many owners are choosing to place their businesses on the market, not because there’s anything wrong with the business, but because it’s a good time for the seller to sell.
  • Another reason owners place good businesseson the market, with good cash flow, is because the owners simply want to change their lives.
  • Some owners wish to retire.
  • Others have partnerships they wish to dissolve.
  • Some businesses are sold due to divorces, deaths in the family, or because the owner wants to move to a different climate.
  • Some wish to cash out and use the money for other purposes.
  • Some owners are simply not interested in doing the same thing any more, just like some buyers quit good jobs. They want to do something different, with different challenges.
  • Financing for buyers is available from banks, so owners now can sell out and usually receive all-cash at the closing.

Owners sell good businesses for human reasons. It's rarely because the business isn't doing well, or for any "sinister" reason. It's almost always because the owner wants to change his life, or his lifestyle…which is also why buyers sometimes quit good jobs and buy a business.

OPPORTUNISTIC DEAL MAKING

During the wild 1986 tax law changes, all of us watched the incredible failures of hundreds of banks and savings and loans, the elimination of accelerated depreciation, resulting in enormous concern about the economy, resulting in the Resolution Trust Corporation arm of the US government taking over literally trillions of dollars of real estate, office buildings, and other assets of all kinds. Then, the RTC "dumped" all those assets into the economy at bargain basement prices.

Incredible profits were made at that time by investors who were buying. Fortunes were made by investors who had the foresight and confidence to energetically participate in the opportunities those "troubling times" presented. Interestingly, the economy boomed after that disaster, and almost everyone enjoyed unprecedented profits, and appreciation of values, in their investments during the years right after that event. This proves once again the wisdom of 'being in the game' and not 'sitting it out'.

The national economy, now in recovery, has been "stable" since 2001, causing business acquisition opportunities to be priced very attractively, compared to the higher pricing formulas used in the late 1990's.  

These "bargains" are available currently, even on acquisitions of good businesses, with good cash flow, so now's the time to be "in the game" and look into acquiring your own low-risk, profitable business.

Return on investment with business ownership is typically higher than the return on stocks, bonds and real estate.

Since we've been involved in the sale of thousands of different small businesses of all kinds, sizes, and prices, we have a unique data base of in-house information about what the typical buyer experiences in "Return On Investment" (ROI). 

We have reports available for review showing the typical ROI for buyers, based on the buyer's investment, the annual cash withdrawals by the buyer of the business after the acquisition, and the equity build-up benefits to the buyer.

It is not uncommon for such investments to return from 25% to 100% annually.

Case studies will be provided upon request.

To see these analysis and reports, simply register with this site by clicking on "Register with FNBC", above.

For more information about buying a business:
We currently have a large selection of active businesses for sale. We also have franchises available, of all types, all kinds, all prices, in many locations. To view these opportuities, click into "Businesses Available for Acquisitions" at the top of this page. 

We will provide you with details on any listings that may be of interest to you. This includes financial records, narratives, photos, and literature. If you haven't identified your ideal investment, and would like to arrange a no-cost, no obligation consultation, register with this site and we will provide tips & ideas for your consideration .


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