No
business is perfect and no business will match all of your criteria.
You will have to select those criteria that mesh most closely
with your parameters. After you become the owner of the business
you will use your skills, talents and knowledge to grow and enhance
the business. If you wait for perfection, the dream of business
ownership will remain only a dream and never be realized.
California
Association of Business Brokers website
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Don't
dismiss the importance of revenue to profitability. While controlling
expenses is important, cutting costs to improve profitability
rarely results in lasting benefit. "You can't cut your way
to prosperity."
.......................................................................................................
Business
buyers… recognize the value that the employees bring to the
table. These employees are keepers of the customer relationships,
they are the well of knowledge about the company's products and
competitive advantage, and they know all the gotcha's to avoid.
They are the new buyer's path to business continuity… As
business sellers, it is important to recognize this and to take
necessary steps in advance of your sale to help the key employees
stay.
"A
Major Concern for Business Sellers…"
IBBA News
Spring 2008
.......................................................................................................
It
doesn't make any difference what you think your business is worth,
or what you want for it. It also doesn't make any difference what
your accountant, banker, attorney, or best friend thinks your
business is worth. Only the marketplace can decide what its value
is.
Business Brokerage Press
.......................................................................................................
Traits of a Marketable Business
Besides
price, the following are very important considerations for buyers.
- Increasing
Revenue - Business buyers look for operations with revenue increases
in each of the last three years, ideally even in tough economic
times.
- Complete
Financial Documentation - Buyers want provable cash flow. They
want to see these records for at least the past three years:
Federal tax returns, Income Statements ("P&L's"),
Balance Sheets, payroll records.
- Condition
of Premises - A neglected facility (including equipment) is
a frequent reason why buyers walk away from a transaction or
make offers that are significantly lower than the asking price.
- Continuity
of Ownership - Buyers are concerned if the current owner has
been there for less than five years.
The
Business Broker (edited)
November 2007
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Thinking
about buying the practice you now work in?
Statistically,
few Associates buy their employer's practice, and that's a shame.
Too many Associates see what's wrong with a practice, and buy
a different one, knowing far less about that one. Instead of seeing
just what's wrong, look at what's right in your current practice.
It already has…
- Enough
cash flow to pay you and the owner.
- An
established base of patients, many who know you.
- Staff
that you know and they know you.
- Goodwill
that you can count on.
You
may think the equipment needs replacing, the carpets are old,
and the ceiling tiles are stained. The price of the practice reflects
those shortcomings. And, it is generating cash flow for you to
live on and to pay your debt.
As
you improve the operation of the practice, there will be funds
to fix it up to your liking.
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Staff
training is important! A common question from doctors regarding
staff training is, "What if I train my staff and they leave?"
The best response we can offer came from Alan Cleinman of Cleinman
Performance Partners: "What if you don't train them and they
stay?"
.......................................................................................................
Buyers
want a super-profitable business for a very low price and very
low down payment, and then get scared because they wonder why
it’s for sale.
The
Business Broker
January 2008
.......................................................................................................
Why
have more staff? ... most optometric practices are understaffed
and many good things happen when an additional employee is added.
- Customer
service improves because people are available to help.
-
Office and clinical efficiency increases with more assistants,
so productivity goes up.
- Staff
morale is enhanced because some of the stress is taken off everyone.
-
Marginal employees improve their behavior because they realize
the practice will survive without them.
- Practice
continuity and security is improved as more people learn to
do tasks that formerly depended on one person.
-
The practice is perceived as in a growth mode by employees and
patients
Optometric
Management Tip of the Week
Tip #310, January 2008
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Asking
for help is not a mortal sin. Why is it that folks who need help
the most don’t ask for it? Asking for help is not a sign
of weakness or failure, but is in fact, a very positive sign.
... I am continually amazed at the number of highly successful,
highly organized professionals who call on us for assistance.
These professionals are winners ... and they have a pretty good
grip on what it takes to run a business. However, they understand
that in order to stay on top of their game, they have to surround
themselves with experts and fellow winners. So, if you really
want to be successful, ask for help. You’re known by the
company you keep.
“Ten
Things You Should Know About Optometry in California”
California Optometry
May-June 2002
