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Comment on the need to use a good Broker from September 7, 2013 article
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Ken
I love your Legal e-mail News Letter. You have done a great job for our Industry. Steve Rubin & Ron Davis and his associates are some of the Best Business Brokers in our Industry, It would be hard to find anyone that knows more about the Industry, I have a high level of respect for them and Steve was right on Target with his comments
I will add a few comments to what Steve had to say, I am a Business Broker who has been in this Industry for over 40 years and like the Davis Group, Your Business Brokers, do a lot more than what Steve talked about. Over 90% of all Alarm Security Businesses are not ready to sell, The best Business Brokers should be recruited and used for a year or 2 before you are ready to sell.
I spend most of my time helping Alarm-Security Businesses get ready to sell. The first day that you go into business you should be working on your “EXIT STRATEGY” . Yes I am a Business Broker, but it is more important to me that I am a “COACH” to the Alarm-Security Industry. I help people get their Business into the right shape, so that it is more valuable to all those hundreds of Buyers.
Did you know that about 180 of the most active Buyer have purchased over 1,400 Alarm-Security Businesses in the last 4 years and have paid over $4.2 Billion dollars for those companies and their R.M.R. PLEASE REMEMBER THAT WHEN YOU HIRE ME OR ANY GOOD BROKER, MAKE SURE YOU FIND ONE THAT WILL SELL IT TWICE. ANY ONE CAN SELL YOUR R.M.R., BUT I CAN SELL YOUR BUSINESS TWICE. MOST SELLER GIVE THE OPERATION SIDE OF THEIR BUSINESS AWAY WITH THE R.M.R. Many buyer will tell you that when they are buying your R.M.R. they are also buying all your other assets; that used to be true, that is not true today. The Integration part of your Business should be very profitable, and you will get a good price for that part of the Business. Please send me an e-mail asking for my “Document” “What I Need to Know About Getting My Business Ready To SELL”.
Dennis Riley
Cell # 240-462-8220
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Ken,
I wanted to respond to the article on the value of retaining an Industry Specialized Business Broker, Bennetts Associates has specialized in helping both sellers and buyers for the last 10 years in the Security and fire alarm industry............what I have found is that a large percentage of our sellers started out trying to sell their business on their own and find out that there is a lot to know about the process, and that there is a huge time commitment involved in putting together a professional offering and packaging the business so that the seller can achieve maximum financial benefit at the time of closing.
We have also discovered that many of the transactions where sellers are representing themselves the deal has fallen apart prior to closing. The point I'm trying to make is that we as industry brokerage Firms, need to be better at educating our sellers, and approach the transaction as a professional consultant, much like that of the sellers attorney, or the sellers accounting professional, and that all three are needed to allow the seller to have a smooth transition and achieve the maximum amount of financial benefit, while still balancing a win/win situation with the buyer of the transaction.
We at Bennetts Associates provide a professional consulting service that we recommend prior to the sale, sometimes as much as 10 years before the seller is actually looking to sell the business, we look at this as an exit strategy that assists a prospective seller in determining when the time is right to sell. This includes a current valuation, and looks at what the seller needs to get from the sale of their business when the time is right.
Bennetts Associates has spend many years giving consulting advise and brokerage services to the Security and fire alarm industry, you can reach Jeff Bennetts @ 704-321-7895 or 704-516-3652, or email at jeff@bennettsassociates.net. (All initial consultations are Free and confidential)
Jeff Bennetts
Bennetts associates
Matthews, NC 28105
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More on is alarm installation personalty or real property from Sept 6 2013 article
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Ken,
With regard to wiring being or not being part of the real property therefore expensed or not expensed, I have been told many times over the years by CPA’s that if the wiring is in the walls, etc. it is expendable as it is then part of the real property. If the wiring is surface installed it is not expendable as it is removeable
Bob
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Response
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From a tax perspective that is correct