Air Conditioning Supply Company Sale a Cool deal

Russell Cohen, a top-ranking U.S. Business Broker and the Owner/Broker of a Murphy Business franchise based in South Florida for almost 17 years, has sold more than 475 businesses since 1999 and 10 businesses already in the first quarter of 2016.

I remarked that this was a “cool “ deal and offered congrats to Russell Cohen on the sale of A&A Supply Company located in Davie, Florida for $600K to an international buyer from Venezuela. There is a lot of responsibility and being an expert in selling businesses as well as in helping people to buy businesses, Russell changes lives.

The new business owner left behind employment in his country and invested money to be able to have a VISA and a new life for himself and his family here in the United States and especially South Florida.

A&A Supply Company services the trades with air conditioning and ventilation equipment and supplies.This business was first established by two partners in 1981 and in the 1990′s one of the partners bought the other one out. the company then remained owned by one person until this sale.

Many factors contributed to the successful sale of this business. Business Broker Russell Cohen stated that the owner of the business listened to his expert advice about establishing a fair and realistic sales price for the company that would attract buyers and lead to more offers and ultimately the best chances of selling the company in a reasonable amount of time.

Also making things easier for a sale were the documented business records. Russell explained that documentation and profitability make a huge difference. He referenced stories about sellers who want to have documents for tax purposes that show they are not making money or losing money and this type of strategy does not work when you are trying to sell a business -most of the time.

It is much more common for people to want to buy businesses that make money and can give them a return on their investment capital. This would be especially true with our trend here in South Florida of attracting foreign buyers who must meet certain criteria to obtain Visas with their purchase of a business here in the United States.

Although all transactions are unique Russell explained that these Visa related business purchases by foreign buyers tend to range from purchase prices of $100K to $1million and most purchases under $750,000.

When asked about some of the steps to success and profitability for this company we learned that there was a small staff, not huge overhead and there was huge demand for what this business offered.

The lessons to be learned as words of wisdom to those who are selling a business from this transaction were , “Be sure that the lease for your location is in order and long-term so that you do not put the sale of your company at risk of not happening because of a poor or non-existing long-term lease agreement for your business location. What would you do or how would you feel if you had a landlord who asked for terms that made staying in business a financial hardship?

Russell Cohen shared that there were some lease negotiations necessary as part of the business sales transaction for the Air Conditioning supply business he just closed. Thankfully, the lease negotiations were successful. They could have been a deal breaker and destroyed the sale.

Some other businesses may not be this lucky if they do not heed this advice. It could be a huge mistake and cost a potential sale of a business if the seller does not secure a long-term lease option with favorable terms for his or her business so they can remain in business.

Russell told us that if these leases are not in place , they should be before putting the business up for sale. A sale of a business could be lost without favorable and acceptable lease terms to transfer to the next business owner.

You can find Russell Cohen at http://www.FlaBiz4Sale.com

Originally published at successipes.tumblr.com.