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The Deal Board

Andy Cagnetta & Jessica Fialkovich

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The Deal Board

The Deal Board

Andy Cagnetta & Jessica Fialkovich

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The Deal Board podcast is a place to learn the best way to sell a business or grow by acquiring a new one. Business Exit Experts, Andy Cagnetta and Jessica Fialkovich, lead discussions with expert business brokers and entrepreneurs that have sold or acquired a business so you can learn from their experience. Whether you are looking to sell a business, buy a business or grow your business - The Deal Board gives you the behind the scenes look at the entire deal process.

Latest Episodes

Private Equity

Andy and Jessica are touching a very recurrent topic: Private Equity. Many sellers are asking questions such as: - What is it like to sell through private equity? - What is private equity looking for? - How do I attract a private equity buyer? Two experts are bringing the answers to these questions, Rob Mossman from Spur Acquisitions in Colorado and Kyle Madden from KLH Capital in Florida. Not all private equity is alike, and you are going to hear about this in today’s episode. Listing of the week: Dustin Audet (Rocky Mountains) is selling a pool installation company located in Colorado. They are installing 50 pools at an average price of $110,000. $5 million in total sales. Net Profit: $40,000 per pool. Price: $2.2 million. An ideal buyer is a businessman that sees the opportunity! Email Dustin at dustin@tworlddenver.com. Key takeaways: [4:50] Kyle Madden from KLH Capital. [5:30] Kyle explains how private equity works. [11:11] Kyle shares how private equity looks like from an exit perspective through three different scenarios. [13:14] The time frames vary in the three different cases of private equity. [14:31] How does a business owner decide if a private equity group is the right fit? [17:50] You first have to decide about what you want from a deal; what are you looking for? [24:14] Deal of the week: Peter Berg sold a business during the pandemic without meeting the seller, the buyer, or even seeing the business. Everything was done remotely. Price: $600,000. The buyer paid $580,000 with a seller note for one year. [31:53] Rob Mossman from Spur Acquisitions. [32:25] Rob talks about his professional background and shares his knowledge about private equity. [35:37] Rob explains why it is important to have a minimum of $1 million EBITDA. [40:40] The crucial importance of growth opportunities. [44:44] If you are in the Baby Boomers demographic and have run a successful business that has made you wealthy, how can you get liquidity and the freedom to enjoy it? [52:01] Listing of the week: Dustin Audet (Rocky Mountains) is selling a pool installation company located in Colorado. They are installing 50 pools at an average price of $110,000. $5 million in total sales. Net Profit: $40,000 per pool. Price: $2.2 million. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com Contact Rob Mossman from Spur Acquisitions Reach out to Kyle Madden from KLH Capital. Email Kyle at kyle@klhcapital.com Email Peter Berg at pberg@transworldma.com, or call (954) 907-3007 Email Dustin Audet at dustin@tworlddenver.com

54 min3 w ago
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Private Equity

Everything You Need to Know About Buying a Business

Andy and Jessica welcome you to the third part of the series in regard to buying a business. While transiting through the COVID-19 crisis the market has turned into a buyers’ field. This series is meant to bring together all the best information from previous episodes that buyers must have in order to be prepared to buy a business. You will hear about topics such as growth through acquisition, financing options, demographics, baby boomers, and the result of what is going to happen post-COVID-19, among other great valuable information for buyers and businesses interested in expanding. Listen to this episode for some timeless information about how to buy a business, resources, and tactics. Listing of the week: Chris “Chip” Redmond (Central Florida) is selling a seven-chair Barber Shop and two chairs in the back area set up for tattooing. The owner wants to move to a different business. Price: $20,000. 2019 earnings: $34,000. Call Chip at (321) 299-6867 or email chrisredmond@tworld.com Key takeaways: [4:40] Poor books and records can kill a deal. [6:02] What to do if you don’t have good books and records. [7:23] Have a good CPA and stop hiding cash. [8:45] Erin Bean talks about a case of a Nail Salon in Florida. [10:46] Deal of the week: Steven Hanson (San Diego) sold a business from a couple who created an accessory that could be used in all types of vehicles. They had brought their product into the market and wanted to retire. The buyer came from a similar industry. [13:55] Ross Haymes brings a case from a pavement repair company that kept great records. [16:28] Ross gives advice to sellers who have significant add-backs in a deal. [17:24] Linnea Westlake talks about overcoming challenges with poor books and records. [21:53] Deal of the week: Raymond Copell recently sold an insurance business for three times the book value. Clean books and records were substantial to get the deal done. [25:51] Many businesses rely on seller financing. [29:13] Everybody wants to leverage their money. [30:22] What is seller financing? [31:46] Andy talks about the flexibility involved in seller financing in opposition to the bank’s terms and conditions. [32:43] Andy shares how seller financing is a tool to purchase a business. [35:40] Deborah Carman (Boca Raton) attorney [36:40] 20% to 30% of the deals are cash. [37:02] Buyer feels he is a partner with the seller when there is seller financing. [38:08] Creativity is needed when structuring a deal. [39:15] How is the seller protected? [41:07] Communication is the best way to resolve issues between sellers and buyers. [44:45] Listing of the week: Chris “Chip” Redmond (Central Florida) is selling a seven-chair Barber Shop and two chairs in the back area set up for tattooing. Price: $20,000. 2019 earnings: $34,000. [47:01] Andy and Jessica explain why having a legal partner is essential in a deal. [52:13] Jonathan Langer, from Izbiky and Associates, Colorado. [52:31] Jonathan shares examples of legal issues that buyers should be prepared for. [54:42] Everything starts with a letter of intent; Jonathan shares other documents that could be needed in a deal. [57:45] The biggest risks while buying/selling a business and how to protect yourself from a legal standpoint. [1:02:01] There are different market terms for each transaction. [1:03:03] Jonathan explains the issue of different style alignments. [1:04:39] Look for an attorney who is according to your market segment. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com Email Ray Copell at ray@tworld.com or call (954) 464- 6290. Get in touch with Deborah Carman phone: 561-392-7031 or email: info@carmanlegal.com Call Chip Redmond at (321) 299-6867 or email chrisredmond@tworld.com Call Jonathan Langer at (303) 850-7080 or email jonathan@izbikylaw.com

71 minAUG 12
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Everything You Need to Know About Buying a Business

Everything You Need to Know About Buying a Business - PT2

Andrew and Jessica have been doing this podcast for almost two years and they prepared this series of shows including the most relevant content for buyers. While slowly transiting the COVID-19 crisis, the current market belongs to buyers, those who want to acquire businesses, as well as businesses that want to expand by merging and acquisition. Listen to the best of the interviews that have taken place at The Deal Board Podcast. In this amazing series, you will hear a compilation of the information that you must have, a shortcut for business owners and buyers to get all that they need to make good deals among good people. Listing of the week: Robert Cunio (San Diego Central, California) is selling an over 20-year-old sign shop. Great business opportunity in the service business area, designing, manufacturing, and installing signs. Asking price: $210,000. SDE: $118,000. Call Robert at (888) 604-8221. Key takeaways: [4:55] Bill Luce and Damien Bekker join Andrew and Jessica to talk about franchising. [10:42] Damien Bekker from Signarama shares his experience in franchising. [12:50] Damien talks about deciding to join a franchise. [16:15] Damien shares about the second opportunity that came to him through Transworld Business Advisors. [18:03] Deal of the week: Carey Davis (New York City) sold internal medicine practice offices. A complicated sale that was successfully done. Price: $225,000, 50% down payment. Seller financed. [23:04] Bill Luce, President of Transworld Business Advisors, an expert in franchising. [23:45] How does franchising dominate every industry that it gets into? [24:56] What makes a good franchise buyer? [26:40] How to know which franchise is good for you. [28:40] Bill Luce shares his advice for new franchisees. [29:20] Deal of the week: Anthony Geronimo (Florida) sold a very successful dry cleaner. The buyer has an extensive hospitality background, eager to establish some roots. Property and business sold at $1,950,000. [32:56] The flippers [33:31] What is a flipper? [35:40] Baby Boomers selling their businesses will outnumber qualified buyers. [40:28] Jason Share, entrepreneur and buyer of several businesses. [41:21] Try to find businesses that you are comfortable with. [42:37] Be willing to take risks. [44:22] Can you grow the business? [45:01] Jason Share does not focus on price but rather on the ability to grow. [46:39] Jason talks about the opportunities for Millennials. [48:18] Listing of the week: Robert Cunio (San Diego Central, California) [51:35] Tom Jones [52:10] How are flippers different from other buyers? [54:12] When buyers are looking for a business with a short term in mind they are not looking for any particular type or size of business. [55:15] How long do flippers hold on to the acquired business? [55:59] Flippers do not get emotionally attached to their businesses. [57:55] Tom talks about the opportunities in the next two to five years with Baby Boomers retiring. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com Call Carey Davis at (646) 707-4559 or email: cdavis@tworld.com Call Anthony F. Geronimo at (407) 745-0464 or email afgeronimo@tworld.com Call Robert Cunio at (888) 604-8221 Call Tom Jones at (754) 224-3111

59 minJUL 29
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Everything You Need to Know About Buying a Business - PT2

Everything You Need to Know About Buying a Business

Andy and Jessica are starting with this episode a series of shows dedicated to outlining all the major aspects you need to know when buying a business. The current market belongs to the buyers while the U.S. slowly moves out of the COVID-19 pandemic. Stay tuned, since the following episodes will include a combination of different interviews that were done during almost two years of podcasts. This series includes timeless advice for business buyers seeking great advice, resources, and tactics. Listing of the week: Chris Redmond (Central Florida). Restaurant in business since 1976, located in Orlando. One-and-a-half-acre property and business are for sale for $2.3 million. An iconic Orlando location. Great for national franchise or developer. Call Chris at (321) 299-6867 or email chrisredmond@tworld.com Key takeaways: [5:50] Why downtimes can be the best times to buy a business. [8:00] Owning your business is more secure than having a job. [10:21] Reasons why now is the best time to b...

82 minJUL 8
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Everything You Need to Know About Buying a Business

Mergers and Acquisitions

Andy and Jessica welcome you to another live episode of The Deal Board Podcast. This episode is focused on larger transactions and mergers and acquisitions in regard to the buyer and the seller’s sides. Peter Berg and Sunil Shenoy, two of the top experts of Transworld Business Advisors in the Mergers and Acquisitions department share their acknowledge and experience in the matter. Listing of the week: Albert Fialkovich (Colorado). Niche manufacturing business in Colorado. Agricultural industry. The company has been in business for over 50 years. $3 million in sales. Earnings over $1 million. Great opportunity to expand. Asking price: $5 million. Call Albert at (720) 370-6699 or email albert@tworld.com Key takeaways: [3:53] Has the M&A activity slowed since the strike of COVID-19? [6:49] People are looking for private equity groups as well as family offices. [8:38] This is not a new normal. [9:06] Will survivors get a higher multiple? [12:55] The changes in the lending environment. [15:04] It is definitely not a seller’s market when it comes to funding. [15:56] PPP loans created a huge amount of work for the lenders. [17:30] Are newer private groups in a better place? [19:38] It is a good time for sellers. [20:28] Timelines now compared to the previous ones. [23:23] Sunil shares the detail of his most recent deal. [26:00] COVID-19 has caused a pause in construction. [27:40] Sunil talks about the current deal dynamics on the buy-side. [30:42] PPP loans require a lot of diligence. [31:33] Who wins: buyers or sellers? [36:53] What are the metrics and factors lenders are looking for? [39:05] General structure of earnouts in times of COVID-19. [42:08] Owners’ compensations for deals in the private equity zone. [43:10] The buyers market during the pandemic. [45:20] What kinds of businesses are being looked out for outright purchases? [48:27] EBITDA after COVID-19. [54:45] Deal of the week: Sunil Shenoy (M&A division). One of the largest Christmas tree farms. A resilient business that has been operating for over 40 years. A challenging deal that took over a year. The biggest deal in Transworld Business Advisors history. [1:07:35] Listing of the week: Albert Fialkovich (Colorado). Niche manufacturing business in Colorado. Agricultural industry. The company has been in business for over 50 years. $3 million in sales. Earnings over $1 million. Asking price: $5 million. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com Contact Sunil Shenoy (M&A division) Call Albert Fialkovich at (720) 370-6699 or email albert@tworld.com

70 minJUN 17
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Mergers and Acquisitions

The New World of SBA

Andy and Jessica welcome you to another edition of a live podcast. The Paycheck Protection Program (PPP) loans are bringing up the subject of SBA financing for business acquisitions, Andy and Jessica are receiving the experts to dive deep into the opportunities this kind of loans are presenting in difficult times while coping with the financial impact that COVID-19 is creating. The SBA program has historically been a great way to bail out the economy and that is why, in today’s episode, the future will be assessed with the company of the experts in business lending, John Wahl, from Live Oak Bank, and Lynn Singletary, from BankUnited. Listing of the week: Charles Palmer (Nashville). Family-owned Pizza Restaurant in business for 17 years. Italian menu, ample sitting space. Asking price $175,000. SDE $170,000 annually. Really motivated seller. Great potential. Call Charles Palmer (615) 962-4462 or email ppalmer@tworld.com Key takeaways: [4:25] What is SBA lending? [8:16] The only loans that the bank has been making in the last months are PPP loans. [9:10] The lenders are looking at what industry is asking for a loan and how it was affected by COVID-19. [10:10] How is PPP affecting what is going on right now in the business world? [11:48] The rules for forgiveness have not yet been issued in regard to PPP loans. [15:35] Lynn talks about the waiver of the SBA guarantees. [17:35] 7(a) loan is approved under the CARES act with 110 billion dollars. [17:58] There is a risk of dollars not being available, but it is pretty minimal and short term in nature. [18:35] John talks about the benefits that are available now and will be accessible in the near future. [21:45] What does a typical 7(a) SBA loan look like? [26:19] How PPP loans will be handled in the transference of a business? [29:07] Will PPP money be taxable? [30:10] Make sure you have clean financials. [31:30] PPP loans are only being issued to bank customers. [34:10] How interest rates are determined in these types of loans for business acquisitions. [36:23] What if someone wants to buy a business above the $5 million range through a bank loan? [37:55] John and Lyn talk about which loans can’t be done through a bank right now. [41:55] The opportunity of buying businesses that go bankrupt. [43:54] Quickfire round questions [55:58] Deal of the week: Dustin Audet (Colorado). Liquor store specialized in Colorado products. The buyer had an E2 Visa. Listed price $99,000 plus inventory, sold at $50,000 including inventory. The buyer paid in cash. [1:00:50] Listing of the week: Charles Palmer (Nashville). Family-owned Pizza Restaurant in business for 17 years. Italian menu, ample sitting space. Asking price $175,000. SDE $170,000 annually. Really motivated seller. Great potential. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com Call Lynn Singletary at (407) 731-9555 or email lsingletary@bankunited.com BankUnited Call John Wahl at (303) 551-4453 or email john.wahl@liveoak.bank Live Oak Bank Email Dustin Audet at dustin@tworlddenver.com or call (970) 618-9330 Call Charles Palmer (615) 962-4462 or email ppalmer@tworld.com

63 minJUN 3
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The New World of SBA

What Is Going to Happen Post COVID-19?

Welcome to the second live episode of The Deal Board Podcast! Today Andy and Jessica are talking about what is the business world going to look like after COVID-19, in regard to valuations, buyers, sellers, advisors, and also the banks. COVID-19 is going to affect valuations and Andy and Jessica are sharing three different options based on different case scenarios. There will be challenges and opportunities for business owners and buyers, listen to this episode, and get ready for the near future. Listing of the week: Steve Wright (Raleigh). Great business to invest during COVID-19 times! Bakery and cafe. SBA approved. Annual revenue: $700,000. SDE: $211,000. Grown by 21% since the pandemic started. Listing price: $695,000. Visit tworld.com/raleigh or call Steve at (919) 603-4027. Key takeaways: [1:39] Quick overview of how businesses are valued. [2:45] The market method. [4:33] EBITDA valuations. [4:45] SDE valuations, what does it mean, and what is included in this business. [7:09] Recasting processes are meant to normalize businesses. [9:22] How COVID-19 is going to affect valuations. [9:52] The case of restaurant owners. [10:26] Option 1: The V Shape. The case if business reactivates very quickly increasing revenues at the same pace. [11:11] Valuations might look different in different regions. [12:10] Valuators might ignore the COVID-19 period and only base valuations on “normal” times. [13:49] The case of the businesses that are spiking in their sales during the pandemic. [16:48] Option 2: What is expected to happen to valuations if there is a hangover or the nation enters a recession. [19:30] Lots of business might be up for sale after COVID-19. [20:08] The possible issue with the SBA loans. [22:40] Banks want to lend money through the 7(a) program. [24:00] Andy talks about the business opportunities that are arising currently. [24:38] Quantity and quality of earnings. [25:27] Option 3: What happens if prices go up for certain businesses post-COVID-19? [28:49] Jessica gives suggestions for businesses to cope with the crisis. [29:23] What are the options and opportunities for restaurants? [30:58] The business is calculated based on a percentage of their assets. [35:37] The difference between this economic crisis and previous ones is that this time is worldwide; everyone is on the same boat. [36:20] The future will look different for all of us. [39:25] Andy and Jessica receive questions from the audience. [43:25] There is a trend about supporting small businesses. [52:51] Deal of the week: Nathan Willis (Denver, Colorado). Agricultural Manufacturing business. The seller was a multigenerational rancher who created a product that has been selling for the last three years. Revenue: $500,000 per year. SDE: $250,000. Price $500,000 and sold for a full cash offer. [56:08] Listing of the week: Steve Wright (Raleigh). Great business to invest during COVID-19 times! Bakery and cafe. SBA approved. Annual revenue: $700,000. SDE: $211,000. Grown by 21% since the pandemic started. Listing price: $695,000. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com The Deal Board Podcast Episodes 4 and 5 on Valuation and Recasting Get Your Business Survival Guide — Transworld Business Advisors Never Split The Difference: Negotiating As If Your Life Depended On It, by Chriss Voss Call Nathan Willis at (303)335-7126 or email nathan@tworlddenver.com Visit tworld.com/raleigh or call Steve Wright at (919) 603-4027

59 minMAY 20
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What Is Going to Happen Post COVID-19?

Ten Common Mistakes to Avoid While Valuing Your Business

In today’s episode Andrew and Jessica will go into a deeper dive into valuation — they will talk about ten common mistakes people make while valuing their business. To bring some clarity to the topic of valuation, Andy and Jessica are bringing the experts to share their knowledge and experience in this field. Listen to this episode which is aimed for buyers and sellers to have a deeper understanding of business valuations. Listing of the week: Michael Ziff (London). Leather accessory business, in business for 15 years. Purchase Price: 1 million pounds; the owner wants 750,000 pounds upfront and the balance over a couple of years; he will stay to help develop the business. Email Michael Ziff at mziff@tworlduk.com or call (0044) 771-286-7215 Key takeaways: [3:02] 1: Add back distributions [5:10] 2: Only add back one owner’s salary. [6:40] 3: You have to value each location as it was run by a business owner. [8:13] 4: Adding back personal credit card bills on top of the business’ expenses. [11:04] 5: Adding balance sheet numbers on top of the cash flow valuation that has been calculated. [12:30] 6: Taking a multiple and applying it to the wrong number [14:09] 7: Applying the wrong multiple [14:50] 8: Adding back expenses for failed business ventures [16:50] 9: Playing the revenue in earnings’ game of good years [18:00] 10: Not having any negative add-backs. [22:18] Paul Corrigan (North Shore Boston) [24:17] The secret is to look at valuation from the perspective of a nonbiased third party. [30:01] Paul Corrigan shares several valuation approaches to different businesses. [33:32] Paul Corrigan talks about the biggest mistakes he sees people make while valuating their businesses. [36:54] Deal of the week: Michael Shea (Central Florida). Printing shop. 40 years in business. The business was booming as a result of the COVID-19. 40% financed, the buyer got in the deal with $50,000. [40:32] Listing of the week: Michael Ziff (London). Leather accessory business, in business for 15 years. Purchase Price: 1 million pounds; the owner wants 750,000 pounds upfront and the balance over a couple of years; he will stay to help develop the business. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com Rosetta Valuations (617) 320-4812 or paul.corrigan@rosetavaluation.com Call Michael Shea at (321) 287-0349 or email mike@tworld.com Email Michael Ziff at mziff@tworlduk.com or call (0044) 771-286-7215

44 minMAY 6
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Ten Common Mistakes to Avoid While Valuing Your Business

The Opportunities That COVID-19 Brings to the Business Field

Andy and Jessica welcome you to the first live episode. Today you will hear about the opportunities that the pandemic is bringing to the business world. We have been through crises before, and there always have been ways in which the economy is stimulated. When these difficult times pass you will have wish you have bought a business now. Listen to this episode for a deep understanding of how is the process of buying and selling a business and why it is now a great moment to buy a business. Listing of the week: Michael Shea (Central Florida). 30 years lighting distribution wholesale company which also does installation. Working all over Florida. Family-run business. The business is making $3.4 million in sales, $600,000 cashflow. Call Michael at (321) 287-0349 or email mike@tworld.com or visit tworld.com/michaelshea. Key takeaways: [3:36] Buying a business is not an easy process. [4:18] Buying a business is more secure than having a job. [5:34] To buy a business you need to get a team together. [6:17] Sellers might be extra motivated now. [6:27] Why is now a good time to buy a business? [7:12] Take advantage of the current buyer’s market. [8:59] There is still a lot of money on the street. [9:42] How is the government injecting money into the system? [15:25] Baby Boomer businesses are entering the market. [19:12] There is going to be reduced competition. [22:18] There will be commercial real state space. [24:41] Uncertainty can be good. [25:02] Jessica and Andy answer the listeners’ questions. [31:30] There will be uniques structures in seller financing. [32:25] It is never easy to get an SBA loan. [33:44] People sell for personal issues, not financial ones. [39:09] Buying an e-commerce business. [42:54] If you are a buyer right now, get in touch with a broker. [45:19] Deal of the week: Tony Khoury (Greenville). A 20-year business owned by a couple wanting to retire, seafood processing plant located on the coast of North Carolina, manufacturing plant, wholesales and retail operation, and restaurant. Listing price: $2.95 million. Sold at $50,000 more than the asking price. Seller financing with low-interest rates. [49:45] Listing of the week: Michael Shea (Central Florida) 30 years lighting distribution wholesale company which also does installation. Working all over Florida. Family run business. The business is making $3.4 million in sales, $600,000 cashflow. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com Call Tony Khoury (252) 347-9606 or email tkhoury@tworld.com Call Michael Shea to (321) 287-0349 or email mike@tworld.com or visit tworld.com/michaelshea

52 minAPR 22
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The Opportunities That COVID-19 Brings to the Business Field

Legal Struggles While Buying or Selling a Business

Andy and Jessica are diving deep into the struggles that can arouse while buying or selling a business. First of all, having the right legal partner is crucial for a successful transaction; that is the reason why two great legal agencies are joining the conversation today to share their expertise and what is that you have to expect in a deal

43 minAPR 8
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Legal Struggles While Buying or Selling a Business

Latest Episodes

Private Equity

Andy and Jessica are touching a very recurrent topic: Private Equity. Many sellers are asking questions such as: - What is it like to sell through private equity? - What is private equity looking for? - How do I attract a private equity buyer? Two experts are bringing the answers to these questions, Rob Mossman from Spur Acquisitions in Colorado and Kyle Madden from KLH Capital in Florida. Not all private equity is alike, and you are going to hear about this in today’s episode. Listing of the week: Dustin Audet (Rocky Mountains) is selling a pool installation company located in Colorado. They are installing 50 pools at an average price of $110,000. $5 million in total sales. Net Profit: $40,000 per pool. Price: $2.2 million. An ideal buyer is a businessman that sees the opportunity! Email Dustin at dustin@tworlddenver.com. Key takeaways: [4:50] Kyle Madden from KLH Capital. [5:30] Kyle explains how private equity works. [11:11] Kyle shares how private equity looks like from an exit perspective through three different scenarios. [13:14] The time frames vary in the three different cases of private equity. [14:31] How does a business owner decide if a private equity group is the right fit? [17:50] You first have to decide about what you want from a deal; what are you looking for? [24:14] Deal of the week: Peter Berg sold a business during the pandemic without meeting the seller, the buyer, or even seeing the business. Everything was done remotely. Price: $600,000. The buyer paid $580,000 with a seller note for one year. [31:53] Rob Mossman from Spur Acquisitions. [32:25] Rob talks about his professional background and shares his knowledge about private equity. [35:37] Rob explains why it is important to have a minimum of $1 million EBITDA. [40:40] The crucial importance of growth opportunities. [44:44] If you are in the Baby Boomers demographic and have run a successful business that has made you wealthy, how can you get liquidity and the freedom to enjoy it? [52:01] Listing of the week: Dustin Audet (Rocky Mountains) is selling a pool installation company located in Colorado. They are installing 50 pools at an average price of $110,000. $5 million in total sales. Net Profit: $40,000 per pool. Price: $2.2 million. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com Contact Rob Mossman from Spur Acquisitions Reach out to Kyle Madden from KLH Capital. Email Kyle at kyle@klhcapital.com Email Peter Berg at pberg@transworldma.com, or call (954) 907-3007 Email Dustin Audet at dustin@tworlddenver.com

54 min3 w ago
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Private Equity

Everything You Need to Know About Buying a Business

Andy and Jessica welcome you to the third part of the series in regard to buying a business. While transiting through the COVID-19 crisis the market has turned into a buyers’ field. This series is meant to bring together all the best information from previous episodes that buyers must have in order to be prepared to buy a business. You will hear about topics such as growth through acquisition, financing options, demographics, baby boomers, and the result of what is going to happen post-COVID-19, among other great valuable information for buyers and businesses interested in expanding. Listen to this episode for some timeless information about how to buy a business, resources, and tactics. Listing of the week: Chris “Chip” Redmond (Central Florida) is selling a seven-chair Barber Shop and two chairs in the back area set up for tattooing. The owner wants to move to a different business. Price: $20,000. 2019 earnings: $34,000. Call Chip at (321) 299-6867 or email chrisredmond@tworld.com Key takeaways: [4:40] Poor books and records can kill a deal. [6:02] What to do if you don’t have good books and records. [7:23] Have a good CPA and stop hiding cash. [8:45] Erin Bean talks about a case of a Nail Salon in Florida. [10:46] Deal of the week: Steven Hanson (San Diego) sold a business from a couple who created an accessory that could be used in all types of vehicles. They had brought their product into the market and wanted to retire. The buyer came from a similar industry. [13:55] Ross Haymes brings a case from a pavement repair company that kept great records. [16:28] Ross gives advice to sellers who have significant add-backs in a deal. [17:24] Linnea Westlake talks about overcoming challenges with poor books and records. [21:53] Deal of the week: Raymond Copell recently sold an insurance business for three times the book value. Clean books and records were substantial to get the deal done. [25:51] Many businesses rely on seller financing. [29:13] Everybody wants to leverage their money. [30:22] What is seller financing? [31:46] Andy talks about the flexibility involved in seller financing in opposition to the bank’s terms and conditions. [32:43] Andy shares how seller financing is a tool to purchase a business. [35:40] Deborah Carman (Boca Raton) attorney [36:40] 20% to 30% of the deals are cash. [37:02] Buyer feels he is a partner with the seller when there is seller financing. [38:08] Creativity is needed when structuring a deal. [39:15] How is the seller protected? [41:07] Communication is the best way to resolve issues between sellers and buyers. [44:45] Listing of the week: Chris “Chip” Redmond (Central Florida) is selling a seven-chair Barber Shop and two chairs in the back area set up for tattooing. Price: $20,000. 2019 earnings: $34,000. [47:01] Andy and Jessica explain why having a legal partner is essential in a deal. [52:13] Jonathan Langer, from Izbiky and Associates, Colorado. [52:31] Jonathan shares examples of legal issues that buyers should be prepared for. [54:42] Everything starts with a letter of intent; Jonathan shares other documents that could be needed in a deal. [57:45] The biggest risks while buying/selling a business and how to protect yourself from a legal standpoint. [1:02:01] There are different market terms for each transaction. [1:03:03] Jonathan explains the issue of different style alignments. [1:04:39] Look for an attorney who is according to your market segment. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com Email Ray Copell at ray@tworld.com or call (954) 464- 6290. Get in touch with Deborah Carman phone: 561-392-7031 or email: info@carmanlegal.com Call Chip Redmond at (321) 299-6867 or email chrisredmond@tworld.com Call Jonathan Langer at (303) 850-7080 or email jonathan@izbikylaw.com

71 minAUG 12
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Everything You Need to Know About Buying a Business

Everything You Need to Know About Buying a Business - PT2

Andrew and Jessica have been doing this podcast for almost two years and they prepared this series of shows including the most relevant content for buyers. While slowly transiting the COVID-19 crisis, the current market belongs to buyers, those who want to acquire businesses, as well as businesses that want to expand by merging and acquisition. Listen to the best of the interviews that have taken place at The Deal Board Podcast. In this amazing series, you will hear a compilation of the information that you must have, a shortcut for business owners and buyers to get all that they need to make good deals among good people. Listing of the week: Robert Cunio (San Diego Central, California) is selling an over 20-year-old sign shop. Great business opportunity in the service business area, designing, manufacturing, and installing signs. Asking price: $210,000. SDE: $118,000. Call Robert at (888) 604-8221. Key takeaways: [4:55] Bill Luce and Damien Bekker join Andrew and Jessica to talk about franchising. [10:42] Damien Bekker from Signarama shares his experience in franchising. [12:50] Damien talks about deciding to join a franchise. [16:15] Damien shares about the second opportunity that came to him through Transworld Business Advisors. [18:03] Deal of the week: Carey Davis (New York City) sold internal medicine practice offices. A complicated sale that was successfully done. Price: $225,000, 50% down payment. Seller financed. [23:04] Bill Luce, President of Transworld Business Advisors, an expert in franchising. [23:45] How does franchising dominate every industry that it gets into? [24:56] What makes a good franchise buyer? [26:40] How to know which franchise is good for you. [28:40] Bill Luce shares his advice for new franchisees. [29:20] Deal of the week: Anthony Geronimo (Florida) sold a very successful dry cleaner. The buyer has an extensive hospitality background, eager to establish some roots. Property and business sold at $1,950,000. [32:56] The flippers [33:31] What is a flipper? [35:40] Baby Boomers selling their businesses will outnumber qualified buyers. [40:28] Jason Share, entrepreneur and buyer of several businesses. [41:21] Try to find businesses that you are comfortable with. [42:37] Be willing to take risks. [44:22] Can you grow the business? [45:01] Jason Share does not focus on price but rather on the ability to grow. [46:39] Jason talks about the opportunities for Millennials. [48:18] Listing of the week: Robert Cunio (San Diego Central, California) [51:35] Tom Jones [52:10] How are flippers different from other buyers? [54:12] When buyers are looking for a business with a short term in mind they are not looking for any particular type or size of business. [55:15] How long do flippers hold on to the acquired business? [55:59] Flippers do not get emotionally attached to their businesses. [57:55] Tom talks about the opportunities in the next two to five years with Baby Boomers retiring. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com Call Carey Davis at (646) 707-4559 or email: cdavis@tworld.com Call Anthony F. Geronimo at (407) 745-0464 or email afgeronimo@tworld.com Call Robert Cunio at (888) 604-8221 Call Tom Jones at (754) 224-3111

59 minJUL 29
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Everything You Need to Know About Buying a Business - PT2

Everything You Need to Know About Buying a Business

Andy and Jessica are starting with this episode a series of shows dedicated to outlining all the major aspects you need to know when buying a business. The current market belongs to the buyers while the U.S. slowly moves out of the COVID-19 pandemic. Stay tuned, since the following episodes will include a combination of different interviews that were done during almost two years of podcasts. This series includes timeless advice for business buyers seeking great advice, resources, and tactics. Listing of the week: Chris Redmond (Central Florida). Restaurant in business since 1976, located in Orlando. One-and-a-half-acre property and business are for sale for $2.3 million. An iconic Orlando location. Great for national franchise or developer. Call Chris at (321) 299-6867 or email chrisredmond@tworld.com Key takeaways: [5:50] Why downtimes can be the best times to buy a business. [8:00] Owning your business is more secure than having a job. [10:21] Reasons why now is the best time to b...

82 minJUL 8
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Everything You Need to Know About Buying a Business

Mergers and Acquisitions

Andy and Jessica welcome you to another live episode of The Deal Board Podcast. This episode is focused on larger transactions and mergers and acquisitions in regard to the buyer and the seller’s sides. Peter Berg and Sunil Shenoy, two of the top experts of Transworld Business Advisors in the Mergers and Acquisitions department share their acknowledge and experience in the matter. Listing of the week: Albert Fialkovich (Colorado). Niche manufacturing business in Colorado. Agricultural industry. The company has been in business for over 50 years. $3 million in sales. Earnings over $1 million. Great opportunity to expand. Asking price: $5 million. Call Albert at (720) 370-6699 or email albert@tworld.com Key takeaways: [3:53] Has the M&A activity slowed since the strike of COVID-19? [6:49] People are looking for private equity groups as well as family offices. [8:38] This is not a new normal. [9:06] Will survivors get a higher multiple? [12:55] The changes in the lending environment. [15:04] It is definitely not a seller’s market when it comes to funding. [15:56] PPP loans created a huge amount of work for the lenders. [17:30] Are newer private groups in a better place? [19:38] It is a good time for sellers. [20:28] Timelines now compared to the previous ones. [23:23] Sunil shares the detail of his most recent deal. [26:00] COVID-19 has caused a pause in construction. [27:40] Sunil talks about the current deal dynamics on the buy-side. [30:42] PPP loans require a lot of diligence. [31:33] Who wins: buyers or sellers? [36:53] What are the metrics and factors lenders are looking for? [39:05] General structure of earnouts in times of COVID-19. [42:08] Owners’ compensations for deals in the private equity zone. [43:10] The buyers market during the pandemic. [45:20] What kinds of businesses are being looked out for outright purchases? [48:27] EBITDA after COVID-19. [54:45] Deal of the week: Sunil Shenoy (M&A division). One of the largest Christmas tree farms. A resilient business that has been operating for over 40 years. A challenging deal that took over a year. The biggest deal in Transworld Business Advisors history. [1:07:35] Listing of the week: Albert Fialkovich (Colorado). Niche manufacturing business in Colorado. Agricultural industry. The company has been in business for over 50 years. $3 million in sales. Earnings over $1 million. Asking price: $5 million. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com Contact Sunil Shenoy (M&A division) Call Albert Fialkovich at (720) 370-6699 or email albert@tworld.com

70 minJUN 17
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Mergers and Acquisitions

The New World of SBA

Andy and Jessica welcome you to another edition of a live podcast. The Paycheck Protection Program (PPP) loans are bringing up the subject of SBA financing for business acquisitions, Andy and Jessica are receiving the experts to dive deep into the opportunities this kind of loans are presenting in difficult times while coping with the financial impact that COVID-19 is creating. The SBA program has historically been a great way to bail out the economy and that is why, in today’s episode, the future will be assessed with the company of the experts in business lending, John Wahl, from Live Oak Bank, and Lynn Singletary, from BankUnited. Listing of the week: Charles Palmer (Nashville). Family-owned Pizza Restaurant in business for 17 years. Italian menu, ample sitting space. Asking price $175,000. SDE $170,000 annually. Really motivated seller. Great potential. Call Charles Palmer (615) 962-4462 or email ppalmer@tworld.com Key takeaways: [4:25] What is SBA lending? [8:16] The only loans that the bank has been making in the last months are PPP loans. [9:10] The lenders are looking at what industry is asking for a loan and how it was affected by COVID-19. [10:10] How is PPP affecting what is going on right now in the business world? [11:48] The rules for forgiveness have not yet been issued in regard to PPP loans. [15:35] Lynn talks about the waiver of the SBA guarantees. [17:35] 7(a) loan is approved under the CARES act with 110 billion dollars. [17:58] There is a risk of dollars not being available, but it is pretty minimal and short term in nature. [18:35] John talks about the benefits that are available now and will be accessible in the near future. [21:45] What does a typical 7(a) SBA loan look like? [26:19] How PPP loans will be handled in the transference of a business? [29:07] Will PPP money be taxable? [30:10] Make sure you have clean financials. [31:30] PPP loans are only being issued to bank customers. [34:10] How interest rates are determined in these types of loans for business acquisitions. [36:23] What if someone wants to buy a business above the $5 million range through a bank loan? [37:55] John and Lyn talk about which loans can’t be done through a bank right now. [41:55] The opportunity of buying businesses that go bankrupt. [43:54] Quickfire round questions [55:58] Deal of the week: Dustin Audet (Colorado). Liquor store specialized in Colorado products. The buyer had an E2 Visa. Listed price $99,000 plus inventory, sold at $50,000 including inventory. The buyer paid in cash. [1:00:50] Listing of the week: Charles Palmer (Nashville). Family-owned Pizza Restaurant in business for 17 years. Italian menu, ample sitting space. Asking price $175,000. SDE $170,000 annually. Really motivated seller. Great potential. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com Call Lynn Singletary at (407) 731-9555 or email lsingletary@bankunited.com BankUnited Call John Wahl at (303) 551-4453 or email john.wahl@liveoak.bank Live Oak Bank Email Dustin Audet at dustin@tworlddenver.com or call (970) 618-9330 Call Charles Palmer (615) 962-4462 or email ppalmer@tworld.com

63 minJUN 3
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The New World of SBA

What Is Going to Happen Post COVID-19?

Welcome to the second live episode of The Deal Board Podcast! Today Andy and Jessica are talking about what is the business world going to look like after COVID-19, in regard to valuations, buyers, sellers, advisors, and also the banks. COVID-19 is going to affect valuations and Andy and Jessica are sharing three different options based on different case scenarios. There will be challenges and opportunities for business owners and buyers, listen to this episode, and get ready for the near future. Listing of the week: Steve Wright (Raleigh). Great business to invest during COVID-19 times! Bakery and cafe. SBA approved. Annual revenue: $700,000. SDE: $211,000. Grown by 21% since the pandemic started. Listing price: $695,000. Visit tworld.com/raleigh or call Steve at (919) 603-4027. Key takeaways: [1:39] Quick overview of how businesses are valued. [2:45] The market method. [4:33] EBITDA valuations. [4:45] SDE valuations, what does it mean, and what is included in this business. [7:09] Recasting processes are meant to normalize businesses. [9:22] How COVID-19 is going to affect valuations. [9:52] The case of restaurant owners. [10:26] Option 1: The V Shape. The case if business reactivates very quickly increasing revenues at the same pace. [11:11] Valuations might look different in different regions. [12:10] Valuators might ignore the COVID-19 period and only base valuations on “normal” times. [13:49] The case of the businesses that are spiking in their sales during the pandemic. [16:48] Option 2: What is expected to happen to valuations if there is a hangover or the nation enters a recession. [19:30] Lots of business might be up for sale after COVID-19. [20:08] The possible issue with the SBA loans. [22:40] Banks want to lend money through the 7(a) program. [24:00] Andy talks about the business opportunities that are arising currently. [24:38] Quantity and quality of earnings. [25:27] Option 3: What happens if prices go up for certain businesses post-COVID-19? [28:49] Jessica gives suggestions for businesses to cope with the crisis. [29:23] What are the options and opportunities for restaurants? [30:58] The business is calculated based on a percentage of their assets. [35:37] The difference between this economic crisis and previous ones is that this time is worldwide; everyone is on the same boat. [36:20] The future will look different for all of us. [39:25] Andy and Jessica receive questions from the audience. [43:25] There is a trend about supporting small businesses. [52:51] Deal of the week: Nathan Willis (Denver, Colorado). Agricultural Manufacturing business. The seller was a multigenerational rancher who created a product that has been selling for the last three years. Revenue: $500,000 per year. SDE: $250,000. Price $500,000 and sold for a full cash offer. [56:08] Listing of the week: Steve Wright (Raleigh). Great business to invest during COVID-19 times! Bakery and cafe. SBA approved. Annual revenue: $700,000. SDE: $211,000. Grown by 21% since the pandemic started. Listing price: $695,000. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com The Deal Board Podcast Episodes 4 and 5 on Valuation and Recasting Get Your Business Survival Guide — Transworld Business Advisors Never Split The Difference: Negotiating As If Your Life Depended On It, by Chriss Voss Call Nathan Willis at (303)335-7126 or email nathan@tworlddenver.com Visit tworld.com/raleigh or call Steve Wright at (919) 603-4027

59 minMAY 20
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What Is Going to Happen Post COVID-19?

Ten Common Mistakes to Avoid While Valuing Your Business

In today’s episode Andrew and Jessica will go into a deeper dive into valuation — they will talk about ten common mistakes people make while valuing their business. To bring some clarity to the topic of valuation, Andy and Jessica are bringing the experts to share their knowledge and experience in this field. Listen to this episode which is aimed for buyers and sellers to have a deeper understanding of business valuations. Listing of the week: Michael Ziff (London). Leather accessory business, in business for 15 years. Purchase Price: 1 million pounds; the owner wants 750,000 pounds upfront and the balance over a couple of years; he will stay to help develop the business. Email Michael Ziff at mziff@tworlduk.com or call (0044) 771-286-7215 Key takeaways: [3:02] 1: Add back distributions [5:10] 2: Only add back one owner’s salary. [6:40] 3: You have to value each location as it was run by a business owner. [8:13] 4: Adding back personal credit card bills on top of the business’ expenses. [11:04] 5: Adding balance sheet numbers on top of the cash flow valuation that has been calculated. [12:30] 6: Taking a multiple and applying it to the wrong number [14:09] 7: Applying the wrong multiple [14:50] 8: Adding back expenses for failed business ventures [16:50] 9: Playing the revenue in earnings’ game of good years [18:00] 10: Not having any negative add-backs. [22:18] Paul Corrigan (North Shore Boston) [24:17] The secret is to look at valuation from the perspective of a nonbiased third party. [30:01] Paul Corrigan shares several valuation approaches to different businesses. [33:32] Paul Corrigan talks about the biggest mistakes he sees people make while valuating their businesses. [36:54] Deal of the week: Michael Shea (Central Florida). Printing shop. 40 years in business. The business was booming as a result of the COVID-19. 40% financed, the buyer got in the deal with $50,000. [40:32] Listing of the week: Michael Ziff (London). Leather accessory business, in business for 15 years. Purchase Price: 1 million pounds; the owner wants 750,000 pounds upfront and the balance over a couple of years; he will stay to help develop the business. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com Rosetta Valuations (617) 320-4812 or paul.corrigan@rosetavaluation.com Call Michael Shea at (321) 287-0349 or email mike@tworld.com Email Michael Ziff at mziff@tworlduk.com or call (0044) 771-286-7215

44 minMAY 6
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Ten Common Mistakes to Avoid While Valuing Your Business

The Opportunities That COVID-19 Brings to the Business Field

Andy and Jessica welcome you to the first live episode. Today you will hear about the opportunities that the pandemic is bringing to the business world. We have been through crises before, and there always have been ways in which the economy is stimulated. When these difficult times pass you will have wish you have bought a business now. Listen to this episode for a deep understanding of how is the process of buying and selling a business and why it is now a great moment to buy a business. Listing of the week: Michael Shea (Central Florida). 30 years lighting distribution wholesale company which also does installation. Working all over Florida. Family-run business. The business is making $3.4 million in sales, $600,000 cashflow. Call Michael at (321) 287-0349 or email mike@tworld.com or visit tworld.com/michaelshea. Key takeaways: [3:36] Buying a business is not an easy process. [4:18] Buying a business is more secure than having a job. [5:34] To buy a business you need to get a team together. [6:17] Sellers might be extra motivated now. [6:27] Why is now a good time to buy a business? [7:12] Take advantage of the current buyer’s market. [8:59] There is still a lot of money on the street. [9:42] How is the government injecting money into the system? [15:25] Baby Boomer businesses are entering the market. [19:12] There is going to be reduced competition. [22:18] There will be commercial real state space. [24:41] Uncertainty can be good. [25:02] Jessica and Andy answer the listeners’ questions. [31:30] There will be uniques structures in seller financing. [32:25] It is never easy to get an SBA loan. [33:44] People sell for personal issues, not financial ones. [39:09] Buying an e-commerce business. [42:54] If you are a buyer right now, get in touch with a broker. [45:19] Deal of the week: Tony Khoury (Greenville). A 20-year business owned by a couple wanting to retire, seafood processing plant located on the coast of North Carolina, manufacturing plant, wholesales and retail operation, and restaurant. Listing price: $2.95 million. Sold at $50,000 more than the asking price. Seller financing with low-interest rates. [49:45] Listing of the week: Michael Shea (Central Florida) 30 years lighting distribution wholesale company which also does installation. Working all over Florida. Family run business. The business is making $3.4 million in sales, $600,000 cashflow. Mentioned in this Episode: The Deal Board Podcast United Franchise Group Transworld Business Advisors Transworld on Linkedin Transworld on Facebook Call us — (888) 711-9018 Email us thedealboard@tworld.com Call Tony Khoury (252) 347-9606 or email tkhoury@tworld.com Call Michael Shea to (321) 287-0349 or email mike@tworld.com or visit tworld.com/michaelshea

52 minAPR 22
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The Opportunities That COVID-19 Brings to the Business Field

Legal Struggles While Buying or Selling a Business

Andy and Jessica are diving deep into the struggles that can arouse while buying or selling a business. First of all, having the right legal partner is crucial for a successful transaction; that is the reason why two great legal agencies are joining the conversation today to share their expertise and what is that you have to expect in a deal

43 minAPR 8
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Legal Struggles While Buying or Selling a Business

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