How Employees Factor into the Success of Your Business

Quality employees are essential for the long-term success and growth of any business.  Many entrepreneurs learn this simple fact far too late.  Regardless of what kind of business you own, a handful of key employees can either make or break you.  Sadly, businesses have been destroyed by employees that don’t care, or even worse, are actually working to undermine the business that employs them.  In short, the more you evaluate your employees, the better off you and your business will be.

Forbes’ article “Identifying Key Employees When Buying a Business”, from Richard Parker does a fine job in encouraging entrepreneurs to think more about how their employees impact their businesses and the importance of factoring in employees when considering the purchase of a business. 

As Parker states, “One of the most important components when evaluating a business for sale is investigating its employees.”  This statement does not only apply to buyers.  Of course, with this fact in mind, sellers should take every step possible to build a great team long before a business is placed on the market.

There are many variables to consider when evaluating employees.  It is critical, as Parker points out, to determine exactly how much of the work burden the owner of the business is shouldering.  If an owner is trying to “do it all, all the time” then buyers must determine who can help shoulder some of the responsibility, as this is key for growth.

In Parker’s view, one of the first steps in the buyer’s due diligence process is to identify key employees.  Parker strongly encourages buyers to determine how the business will fair if these employees were to leave or cross over to a competitor.  Assessing if an employee is valuable involves more than simply evaluating an employee’s current benefit.  Their future value and potential damage they could cause upon leaving are all factors that must be weighed.  Wisely, Parker recommends having a test period where you can evaluate employees and the business before entering into a formal agreement.

It is key to never forget that your employees help you build your business.  The importance of specific employees to any given business varies widely.  But sellers should understand what employees are key and why.  Additionally, sellers should be able to articulate how key employees can be replaced and even have a plan for doing so.  Since, savvy buyers will understand the importance of key employees and evaluate them, it is essential that sellers are prepared to have their employees placed under the microscope along with the rest of their business.

Copyright: Business Brokerage Press, Inc.

fizkes/BigStock.com

Press Release

Clink on the link to our latest PR  <a href=”https://www.pr.com/press-release/776312″>Empire Business Solutions Bring New Business to Market</a>

The Importance of Understanding Leases

Leases should never be overlooked when it comes to buying or selling a business.  After all, where your business is located and how long you can stay at that location plays a key role in the overall health of your business.  It is easy to get lost with “larger” issues when buying or selling a business.  But in terms of stability, few factors rank as high as that of a lease.  Let’s explore some of the key facts you’ll want to keep in mind where leases are concerned.

The Different Kinds of Leases

In general, there are three different kinds of leases: sub-lease, new lease and the assignment of the lease.  These leases clearly differ from one another, and each will impact a business in different ways.

A sub-lease is a lease within a lease.  If you have a sub-lease then another party holds the original lease.  It is very important to remember that in this situation the seller is the landlord.  In general, sub-leasing will require that permission is granted by the original landlord.  With a new lease, a lease has expired and the buyer must obtain a new lease from the landlord.  Buyers will want to be certain that they have a lease in place before buying a new business otherwise they may have to relocate the business if the landlord refuses to offer a new lease.

The third lease option is the assignment of lease.  Assignment of lease is the most common type of lease when it comes to selling a business.  Under the assignment of lease, the buyer is granted the use of the location where the business is currently operating.  In short, the seller assigns to the buyer the rights of the lease.  It is important to note that the seller does not act as the landlord in this situation.

Understand All Lease Issues to Avoid Surprises

Early on in the buying process, buyers should work to understand all aspects of a business’s lease.  No one wants an unwelcomed surprise when buying a business, for example, discovering that a business must be relocated due to lease issues.

Summed up, don’t ignore the critical importance of a business’s leasing situation.  Whether you are buying or selling a business, it is in your best interest to clearly understand your lease situation.  Buyers want stable leases with clearly defined rules and so do sellers, as sellers can use a stable leasing agreement as a strong sales tool.

Copyright: Business Brokerage Press, Inc.

Chinnapong/BigStock.com

Empire Hires New Sales Agent

Empire is pleased to welcome Margot Murphy as a new broker to our sales, marketing, and client services team! Margot learned and honed her craft at one of the top business brokerage firms in Los Angeles County.

Margot graduated from Northern Arizona University with a degree in journalism. She brings a wealth of experience building successful self-owned, start-up businesses including:  an offshore specialty coatings construction firm, owner/operator of a large-scale speed boat tour operation in the Pacific Islands, executive business coach, owner of a national business training firm and over 15 years as a dominating force in bank-owned property management and real estate sales in the Pacific Northwest.

Margot is a top performing, high energy, professional business broker whose passion is directed toward building connections between people throughout Southern California. Her clients benefit from her consultative, passionate approach to the analysis, packaging, marketing and ultimately the sale of their business.

Roy Moss, President, said “Margot brings  experience, energy and enthusiasm which is infectious and will spread through out our organization.  She is a definite plus for Empire as we continue to grow our brand in Orange and Los Angeles Counties.”

The strength of this exciting new partnership is a good combination of resources: Roy Moss, President of Empire Business Solutions is a seasoned 35-year veteran within the M&A space. Roy’s strong-suit as broker/owner of Empire is with the lower middle market while Margot works well with main street business owners providing them not only near-future guidance to maximize their business’s value, but for listed businesses, advanced marketing tactics which source qualified buyers. She is the quintessential intermediary – connecting clients and facilitating agreements to close deals and allow the business seller to move on to the next phase of their life.

We’re excited about this partnership and the combination of diverse talents and expertise that we plan to share with our clients.

Third Successful Transaction This Year

Empire Business Solutions, a leading independent business brokers in Los Angeles and Orange County is pleased to announce the company has a dual signed Asset Purchase Agreement on one of its clients, a manufacture of parts for the automotive aftermarket.

Manufacture of Performance After Market Auto Parts

The buyers are a Private Equity Group with automotive experience and

background who see this as an opportunity to grow the business into a

major player in the automotive after market.

The Sellers, two partners, have been running the business for over 10

years  and have increased revenues every single year.   One partner is exiting

to other ventures and the other partner is staying on with the new entity.

This transaction closed Aug 31, 2016

Contact Roy Moss, President of  Empire Business Solutions at 714-374-6430 to discuss the process in selling or buying a business in Orange County.  Empire has been in business since 2005 and is considered a  leading California business brokers with offices in Orange County  which concentrates on businesses in the $1.0 mil-$10.0 mil revenue range.

 

 

Another Closed Deal in Orange County CA.

Empire Business Solutions Announces

Another Successful Transaction

 Empire Business Solutions, a leading independent business brokers in Los Angeles and Orange County is pleased to announce the company was the intermediary on the sale of Tandem Designs, Inc and its sister company Intex Exhibits, Inc. located in Orange, California  to Presentation Media, Inc in Redondo Beach, CA.  The asset sale was effective August 9, 2016.

Tandem/Intex  designs and builds custom trade show exhibits for the

past 25 years. In addition to trade show booths, this company also

fabricates for museum environments, corporate lobbies and interiors,

traveling exhibits, and outdoor kiosks. The company operates out of

a 20,000 sq ft manufacturing facility plus a warehouse location.

  • In house design and graphic capabilities
  • 65% of revenues come from existing customers
  • Manufactures its own line of modular displays which can be scaled to additional dealers
  • 50% Custom exhibits, 20% Modular, 10% Museum/Permanent, 10% Rental/Storage

Tandem  has long maintained an outstanding reputation for

providing custom and standard trade show booth and exhibit manufacturing

services that meet the most demanding customer specifications.

  • Tandem has a strong reputation for its focus on service, offering reliable industry expertise, and providing high-quality tradeshow and exhibit products. The Company’s modular portable display system, Panelflo, is well-known in the tradeshow industry.

Maury Bonas, President of Tandem Designs, said the sale of the business to Presentation Media  will ensure continued growth, preservation of the quality brand  and employment for their labor force.

Presentation Media, the buyer, is a full service graphics company providing computer- generated  presentation and technical art, reprographics, multimedia, photographic processing and printing, and large format displays and exhibits.

Presentation Media’s President and CEO, Nathan Nielson was extremely excited by the acquisition.  He said it increased their presence in the exhibit manufacturing space  and would greatly enhance their product offerings to existing and new customers.  He was drawn to Tandem by its excellent reputation ,the high quality products they produced and they varied customer base.  Presentation Media will be able to add value to Tandem’s existing customers.

 

Have We Hit the Peak of the Seller’s Market In Orange County

New information on sales activity show

New Report Shows Business-for-Sale Transactions are Up in 2016

BizBuySell’s Q2 2016 Insight Report shows business-for-sale transactions in the first half of 2016 have increased – not only from last year, but also the record-setting 2014. Data also shows that while sale prices have increased over the last six quarters, the sales cycle has lengthened.

The past 2 yrears have been an excellent time for owners to sell and this should continue for the rest of 2016.  These good times for selling a lower middle market company cannot last forever.  The next 12-18 months might be the best time to take advantage of the current trend and every effort should be made to prepare the business for a sale.  The owners should concentrate on improving the value driver’s of their business in order to achieve the best valuation and multiples.

 

What Businesses Are Selling in Southern California

6

HOT BUSINESS LIST ~ MAY 2016

Below you will find the current “hot” business list courtesy of data from BusinessesForSale.com. We asked Businesses For Sale for a monthly ranking of business types based on the number of “hits” on their site. This ranking is not based on the actual sale of businesses.

Top Categories by Impressions

Top Ten Businesses for May 2016

  1. Restaurants
  2. Convenience Stores
  3. E-Commerce Businesses
  4. Auto Repair, Service & Parts
  5. Bars
  6. Sandwich Shops & Delivery
  7. Hotels
  8. Liquor Stores/Off Licences/Wine Merchants
  9. Coffee Shops
  10. Gas/Petrol Service Stations

 

Top Ten M&A Businesses for May 2016

  1. Restaurants
  2. Convenience Stores
  3. Gas/Petrol Service Stations
  4. Services Businesses
  5. Bars
  6. Auto Repair, Service & Parts
  7. Retail Businesses
  8. Distribution Businesses
  9. Construction Businesses
  10. Health Care Businesses

Another Successful Transaction

Empire is pleased to announce it has successfully closed another deal effective June 30, 2016.   The participants have requested to remain anonymous at this time as the company transitions to the new owner.  Empire was the intermediary for selling this long established National Business Brokerage firm to a private investment fund.  The deal was worth a potential of $2.5 mil which includes an earn out provision in the first two years.  The seller will remain active in the company full time for up to six months and then part time thereafter.  Seller is looking to retirement at some point in time.

Empire Business Solutions to Sponsor Exit Coach Radio

Empire Business Solutions, a leading independent business brokers  Los Angeles and Southern California is pleased to announce our company’s newest advertising campaign.

In keeping with its commitment to public service, Empire Business Solutions has agreed to sponsor Exit Coach Radio, a nationally streamed program dedicated to preparing business owners for succession.

Ending a business can be just as hard as starting one, and for millions of Baby Boomers and their families, this phase is even more crucial. The program, which airs at 10 a.m. and 6 p.m. every Sunday, tackles the most critical aspects of business planning and offers actionable advice to business owners who need to make sure their entire company – as well as their employees and loved ones – will be protected once they leave.

Roy Moss, President of Empire,  said “The largest segment of our business is from baby boomers retiring so we wanted to target this audience to let them know of our success in selling businesses and assisting them in their exit strategy.”

Broadcast locally by KLAA 830AM before and after Angels baseball games, Exit Coach Radio is hosted by Bill Black, a certified exit planner and founder of the Exit Coach Radio multi-media organization. Thirty years ago, Black began his consulting practice to bring resources to business owners to help them with business transition and by creating written exit plans. Since starting Exit Coach Radio in 2013, Black has completed 1,000 interviews with professional advisors from fields such as law, accounting, banking, insurance and marketing to share their tips, ideas and precautions with his business owner audience. A new interview and a one-minute tip of the day are accessible daily on the ExitCoachRadio.com website.

“In what has been characterized as the greatest transfer of wealth in history, millions of America’s business owners are entering the final phase of their business ownership, and an alarming percentage are ill-prepared to execute a smart exit strategy,” Black said. “We are so happy to have the support of  Empire Business Solutions of Orange and Los Angeles County  in this quest to motivate 1 million business owners to protect their life’s work and their loved ones. Together, we will make a big difference.”