But 2^nd Period Gain Reflects Owners’ Recognition That Businesses Are Worth Less

BizBuySell.com, an online marketplace for small-business acquisitions, reports that sales of businesses with approximately $350,000 in annual revenue rose 8% from last year. However, the growth is not a result of significant improvements in business performance or an increase in bank lending. Owners have come to accept that their businesses are no longer worth what they once were. Many sellers have dropped their asking prices and have agreed to finance a large portion of the deal themselves.

A number of sellers have simply reached their breaking point, and can no longer wait for the market to improve. Additionally, with the tightening of the credit markets, many sellers have to offer financing to close deals. According to the Wall Street Journal, last summer a restaurant owner in Redwood City, CA, put his 200-seat pizza eatery on the market for the second time. In 2008 he listed the restaurant for $170,000 due to a slump in sales. Now the owner, who bought the restaurant for $200,000 in 2002, is finally selling it for $75,000, and he is lending the buyer 25% of the selling price.

As for the buyers of these small businesses, they are older, laid-off professionals looking for another line of work. Unable to land jobs after being laid off, some buyers are tapping into their retirement funds in order to take up entrepreneurship. 

Even so, an increase in small business sales is generally positive for the broader economy, as such businesses account for more than half of private-sector employment and gross domestic product. 

Despite the current economic conditions, small businesses are still being sold – as long as owners are realistic about what their businesses are worth and offer financing.

Sales of Small Firms Are Up.  (2011, July14).  The Wall Street Journal, p. B8.

Alan Lippincott is a business broker and BestSoCal owner who welcomes calls to (877) 420-6478 and Email Inquiries.  His comments should be regarded as general in nature and not taken as advice without a personal consultation and signed agreement.

L1320 Experienced and Loyal Instructors at Tutoring Center!

Located in a highly-academic city with a premiere school system, this Los Angeles County tutoring center has provided excellent tutoring for students in Kindergarten thru 8th grade since 1993! The center offers daily after-school tutoring  in math, reading, writing and test preparation (GATE and CA state tests), as well as popular summer camp sessions, all taught by highly-experienced and loyal instructors.  Due to the exceptional tutoring curriculum and excellent staff, client turnover is very low.  In fact, 95% stay for the entire school year!  The business operates out of a 3,000 square foot, facility with several classrooms for the various age groups.  A low monthly rent of $4,020 helps keep overhead costs low.  There is an opportunity to increase cash flow by using the facility for adult education classes while the kids are in school. The owner would like to sell the business so that she can retire.

 Alan Lippincott is a business broker and BestSoCal owner who welcomes calls to (877) 420-6478 and Email Inquiries.  His comments should be regarded as general in nature and not taken as advice without a personal consultation and signed agreement.

Tropical Juice

101 Main Street, Suite N Seal Beach, CA 90740

“Alan has been extremely helpful and always available to us throughout the process of selling our business.  He has made it a very easy transaction.”

Gary & Deann Schultz, Sellers
Tropical Juice
“Alan was extremely professional and helpful in our transaction.  I believe he has the highest integrity and would recommend him highly.”

Rob and Janis Jones, Buyers
Tropical Juice

L1317 Low Rent & Overhead for Computer Repair Shop! 

If you are a computer enthusiast or IT professional, this business is perfect for you!  Established over 17 years ago, this computer repair shop has thrived in this busy Orange County shopping center!   This recession-resistant business repairs/upgrades laptop and desktop computers and servers, and builds custom computer systems.  It also repairs LCD and plasma TVs, and soon LED TVs.  The shop is brimming with computers that need repairing, or need viruses, adware or  spyware removed!  The owner and his single employee repair computers, and assemble new computers.  They also build custom systems using all name-brand computers and components.  The business occupies approximately 1,050 square feet and has a low monthly rent of only $1,770. Opportunities to grow the business include marketing to the thousands of customers in the database, advertising the business, and upgrading the website.  The owner is selling the business so that he can retire.

 Alan Lippincott is a business broker and BestSoCal owner who welcomes calls to (877) 420-6478 and Email Inquiries.  His comments should be regarded as general in nature and not taken as advice without a personal consultation and signed agreement.

L1261 Great Location with High Foot Traffic for Pizza Restaurant Franchise!

Looking for a fun, casual restaurant located in a popular downtown walking district of a Southern California beach city?   This established franchise serves healthy and delicious gourmet pizza, calzones, sandwiches, and salads made with the freshest ingredients.  Its award-winning and innovative recipes include a proprietary dough recipe, and unique pizza topping combinations.  This restaurant opportunity has plenty of foot traffic from nearby businesses, and convention center attendees, as well as tourists, and families visiting the local entertainment scene.  In addition, a substantial amount of the restaurant’s income is a result of repeat delivery business to offices, local industry and  the local beach community.  Approximately 60 percent of the sales are from eat-in meals, and 40 percent from delivery.  The restaurant also has a  type 41 beer and wine license. The sports-oriented environment of this restaurant attracts a large clientele.  It can seat approximately 32 at the low-, and high-top tables, and two bars, with some additional seating  outside in front. The restaurant has top-of-the line restaurant equipment, including five beer taps, walk- in cooler, three ovens, ten heating shelves, three preparation tables, and dough making machine. The fast and friendly customer service, which is the trademark for this business, is optimized with the rapid fire POS system, and four telephones. There is even office space in the back with two computers, which is very convenient for administrative purposes. Currently absentee-run, the restaurant has 14 dependable employees, including three managers, three cooks and five drivers.  A new owner could increase the sales and profit by actively working in, and managing the restaurant.  The current owners only work about 10-15 hours a week managing the restaurant, and filling in as necessary. This fast-growing franchise offers a proven concept, and strategy for success!  There are about 30 stores in the western United States, and still growing!  The franchise fees are an affordable 1 percent for advertising, and 4 percent for royalties. The owners are selling because they would like to pursue other interests.

 Alan Lippincott is a business broker and BestSoCal owner who welcomes calls to (877) 420-6478 and Email Inquiries.  His comments should be regarded as general in nature and not taken as advice without a personal consultation and signed agreement.

L1318 Popular Orange County Sports Bar with Full Liquor License!

This popular Orange County sports bar has it all — a full liquor license, favorable rent, a great location, and most importantly, a strong cash flow!  The 3,600 square foot bar, which leases for $5,130 per month, features a full kitchen, two bars and dining areas, and a front patio.  The venue also offers plenty of flat screen TVs, a pool table, table-top games, and internet jukebox.  One of the dining areas has coin-operated games, a PlayStation III, X-Box 360, Wii and karaoke, making it ideal for families, team parties and private events. The sports bar offers a wide variety of delicious items on the menu – including appetizers, pizzas, sandwiches, salads, desserts and kid-friendly entrees.  Due to the bar’s awesome menu, and its close proximity to  industrial parks, and a major Orange County freeway, its lunch business has tripled!  Breakfast is also served on weekends for those patrons eager to catch their team’s early games.  Additionally, the bar’s excellent, long-term staff consistently provides high-quality customer service. The owner is selling the business so that he can pursue another business opportunity.

 Alan Lippincott is a business broker and BestSoCal owner who welcomes calls to (877) 420-6478 and Email Inquiries.  His comments should be regarded as general in nature and not taken as advice without a personal consultation and signed agreement.

L1267 Upscale Day Spa Location—Asset Sale!

Dreaming of opening your own exclusive day spa or med spa, or perhaps relocating your existing spa to a new location?  Then this beautiful spa could be just what you are looking for!  This upscale day spa is located in an affluent shopping center with ample parking and a private entrance.  It also has a low monthly rent for its premium beach city location!  You couldn’t build out a spa for this great low price!   The spa has real ambience, from its European style décor, to its custom cabinetry throughout. The salon consists of three comfortable treatment rooms with adjustable state-of-the-art beds to pamper its clients.  There is also a private spa room with Jacuzzi tub for relaxing water treatments.  This is a perfect opportunity for an owner-operator aesthetician, or a cosmetic medical professional to have their own spa, or to expand their existing spa business.  The current owner would like to sell so that she can retire and work part- time at another spa. She will be taking the business name, website, telephone number, customer list and not providing a non-compete agreement. 

Alan Lippincott is a business broker and BestSoCal owner who welcomes calls to (877) 420-6478 and Email Inquiries.  His comments should be regarded as general in nature and not taken as advice without a personal consultation and signed agreement.

L1315 Beautiful Salon with High Foot Traffic Located in Affluent OC!

If you are looking for a well-established salon in an affluent Orange County community, look no further!  This upscale, full-service hair and skin care salon is located in a busy center that has a major national anchor, and retailers that draw customers!  This beautiful salon has a modern interior, and features 7 stations, 2 hair dryers, and 2 shampoo bowls, and a manicure station.   The facial room is fully-plumbed, and is equipped with a micro-dermabrasion machine, facial steamer, and sanitizing machine.  There is also a private office, and a kitchen/laundry area with full-size washer and dryer, and ample storage. A retail area displays a wide selection of professional hair, skin and nail care products, such as Sebastian, ISO, Enjoy, American Crew, Nioxin and Sothys.  Services offered include designer cuts, styling, expert color, up-do’s, as well as make-up, facials, micro dermabrasion, treatments, and waxing.  All of the hair stations are filled with the 6 full-time, and 2 part-time cosmetologists– 7 of whom are on a weekly rental, and 1 who is on commission. The excellent service from the long-term stylists has retained loyal customers.  Even the walk-in customers return again to receive the great hair styling services from the experienced stylists!  The owner has done an excellent job marketing the salon through its website and well-timed mailings to the community.  In addition, the loyal clientele provides a steady stream of referrals. Owner would like to sell because she wants to semi-retire, and is willing to rent a station if the new owner would like.

Alan Lippincott is a business broker and BestSoCal owner who welcomes calls to (877) 420-6478 and Email Inquiries.  His comments should be regarded as general in nature and not taken as advice without a personal consultation and signed agreement.

L1311 Well-established Salon with Loyal, Long-Term Staff!

This well-established salon is located in a newly remodeled shopping center in San Bernardino County.  The center is anchored by a major fitness club, and has many popular fast food restaurants and retailers that draw customers!  The 1,600 square foot salon features 8 hair stations, 3 shampoo bowls, 5 hair dryers, 1 facial room, plus a laundry room, a storage room, and a break area.  The facial room comes equipped with a table, steamer and towel warmer.  The loyal, long-term staff consists of 1 part-time, and 4 full-time cosmetologists, and 2 full-time barbers, all of which are on a rental basis.   The salon caters to families, and offers hair cuts, styling, color, highlights, permanents, hair straightening, as well as, men’s hair cuts, fades and outlines.  There are opportunities to grow the business by filling the remaining hair stations and aesthetician room, selling hair care and skincare products, marketing the salon, and adding a website.  The owner is selling the salon because she would like to slow down.  She is willing to stay and rent a station if the new owner would like.

Alan Lippincott is a business broker and BestSoCal owner who welcomes calls to (877) 420-6478 and Email Inquiries.  His comments should be regarded as general in nature and not taken as advice without a personal consultation and signed agreement.