Language School, Well Established, Very Profitable $195,000

The business for sale is a language school located in a beautiful, quaint city in the Los Angeles area that teaches over 30 languages. Their small group and individual classes is a great way to teach new languages. The main goal is to guide their students through their language learning experience and to provide their students with the tools to communicate in the language of their choice. The classes are affordable so basically anyone can afford to learn a new language. Students range from children to adults. The school also offers ESL programs as well.
The current owner has been very successful with the business for many years and is now planning on moving out of the country with his wife. He would like to hand off the business to someone that can have the same success.

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Add Backs when selling a Business. Defining Adjusted Net Income on Financials

Great Article by Peter Siegel at Bizben:

The prospective buyer of an auto repair shop for sale in Central California noticed, while conducting due-diligence, that an office assistant was listed on the payroll. But he’d visited the business as a customer and had never seen anyone working in the office.

When inquiring about this, he learned that a “salary” of $1,500 per month was being paid to the seller’s sister-in-law, and that she was listed as an office assistant, but didn’t actually work at the company.

That’s an “add-back” and it should be included with net income the seller said.

The buyer was troubled by this discovery. Also confusing was the seller’s assertion that auto expenses, such as gas and insurance charged off as business costs, should be added back to profits.

These are just two examples of the many questions and sources of confusions that can surface when trying to understand the actual costs involved with operation of a business. The confusion comes about because many, if not most sellers attempt to show as little income as possible to reduce the taxes that have to be paid. Then, when it’s time to sell, the business owner has the opposite objective, wanting to show as much earnings as possible to justify the price being asked for the business.

The typical way of resolving this dilemma is for the seller to point out the costs charged off to the business but not really necessary to operate.

These explanations, however, sometimes raise more questions than they answer.

When the buyer who was investigating the auto repair business for sale looked into what the seller was saying, he learned that although there was no one physically present in the office during business hours, it was necessary to have someone handling office work. The sister in law came in on evenings or weekends to balance the company check book, verify that all parts ordered were charged against repair orders, to compare vendor statements with individual invoices, handle payroll and sales tax responsibilities and take care of related duties.

And while it was true that the seller was charging the business for his personal auto expenses, it also was the fact that the car was used for needed business activities such as picking up parts and taking customers to their home or office.

A well prepared adjusted profit and loss statement anticipates buyer questions and clearly defines what expenses on the operating statement are, and what are not necessary for efficient management of the business. But not every seller or business broker knows how to provide that information in a way that’s easy to understand. And not everyone is willing to engage in full and complete disclosure.

It’s up to the careful buyer to question every item on the income and expense statement. And to ask questions such as:

- Is each itemized expense necessary in order to operate the business properly?

- Is the listed total for each item the actual expense, or is the real cost lower, or higher than what has been entered in the books?

- What was the ratio of the amount in each expense item to the total of all expenses for the last complete year? How does that figure compare to the percentages in prior years? If there is a substantial change in any single category, what is the reason?

The smart business buyer does not accept, without question, the figures listed in the P&L and financials of a company being considered, but does some investigating to learn what the figures actually represent.

Selling a Business

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Uninterruptible Power Supply Company with ISO9001 Certification $300,000 / SOLD!

Uninterruptible Power Supply Company with ISO9001 Certification

Asking: $300,000
Revenue: $1,255,000
Cash Flow: $117,000
FF&E: $30,000 Included in Sale
Year Established: 1990
Employees: Owner operated and 4 full time

The business for sale specializes in Uninterruptible Power Supplies, power conditioners, diesel generators, emergency lighting systems, AC to DC and DC to AC equipment, batteries, and battery chargers. The company has impressed clientele by providing the highest quality products and service in the industry. They provide reliable power for businesses. They distribute and service a wide range of power equipment to prevent power-loss but more importantly, to keep businesses running.

The ISO9001 certified company’s engineers and technicians have the knowledge and experience to design and implement the right power system for their clientele. In addition, the company’s service and maintenance groups receive extensive training from very reputable companies.

Business Broker In Los Angeles

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Available: Mobile Party Games and Events Business – Orange County -Ventura $168,000 / OFF THE MARKET

Revenue $254,000
Net $82,000

This franchise mobile party and events business has been operating successfully for more than 7 years. The company has completed over 4,000 events throughout orange county and beyond which have become huge hits with both kids and adults. The business has received plenty of exposure through TV and media. The owner operates the business from home and has an office/warehouse space in a business park for the business operations. Part time employees conduct the events.

The business is perfect for events like birthday parties, fundraising events, and more. If people know their games will be at an event, they will come!

Business Broker Ventura

Business Broker

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Questions You Should Ask Before Hiring a Business Broker

Great Article from Entrepreneur on retaining a business broker when you are looking to sell a business.

Article

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Carpet Cleaning Business, 25 years / SOLD

The seller started this Carpet Cleaning business in 1991. All of the business is referral business. The business currently offers carpet cleaning, tile (porcelain ceramic), upholstery cleaning and area rug cleaning. The current owner has dedicated the business to incredible service and truly transcendent cleaning. The current owner has one van (which is usually parked at his home when not in use) and equipment, which will be sold with the business. The seller currently does not do any advertising. This is a great starter business for someone starting out with energy to grow or an acquisition for a carpet cleaning company that would like to add an existing customer base and vehicle to their fleet.

Sold by Business Broker LA
How to sell a business in LA

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Private Gym Fitness Center $1,650,000

Asking: $1,650,000
Gross Income: $1,254,700
Cash Flow: $426,300
FF&E: $200,000
Year Established: 2011
Employees: 9pt

The business for sale is a private fitness facility that boasts over 11,000 square feet and features changing rooms that have showers and saunas for members to use. Weight areas feature Hammer Strength Equipment to a full array of treadmills, steppers, ellipticals and exercise bikes. The fitness center for sale offers fitness classes including Boot Camp, Yoga, Zumba, Kickboxing and Indoor Cycling. Members are offered a variety of membership options as well as personal training.

Sell a Business
Business Broker

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Hazardous Material Transportation Company $329,000 / SOLD

Asking: $329,000
Gross Income: $319,000
Cash Flow: $178,000
FF&E: $33,000
Year Established: 1999
Employees: 2

Business Broker LA. For sale is a Hazardous Transportation Company. The company is based in the Valley and ran from home, but services basically the entire state of California with most of its business in LA and OC. Current owner is looking to retire. The company is ready for a new owner to jump in and take the reigns on this well run business.

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Frozen Yogurt Self Serve, Hand Dipped Chocolates – Orange County / SOLD

Gross Income: $326,000
Cash Flow: $67,000
FF&E: $110,000
Inventory: $0
Year Established: 2005

Employees: Owner operated and 5 employees
This business was opened by the current owners in 2009 and over the years has grown to be a favorite destination place for both locals and tourists. This is really two businesses under one roof. The business offers hand made chocolates with international favors and also self-serve yogurt with many different machines and flavors. The chocolate part of the business serves handmade chocolates selected from the best chocolate from around the world and every ingredient from Australian Apricots to German Gummy Bears are hand selected. Beautiful molds of chocolate are custom made for each holiday season such as Easter Bunnies and Santa Clauses all with distinctive designs. Boxes of chocolates can be packed in quantities from four pieces to larger boxes with each piece picked by the customer. Party favors are available with custom molded pieces made to order. They also sell distinctive hand selected cards and gifts that are perfect additions for a chocolate gift box.
A variety of frozen yogurt flavors is available, all dispensed from self serve machines. A large assortment of dry and fruit toppings are offered, plus hand made waffle cones. Another popular item offered here is Hawaiian shave ice, with any different flavors available. Additional revenue comes from custom gift baskets that are made on the premises. These baskets are sold for variety of occasions such as birthdays, weddings, anniversaries, graduations, Mother’s and Father’s Day, Christmas, and many more.

The business is located on the main street of a very busy tourist area. The business is also surrounded by an upscale residential community. Residents of the community are regular customers all year long. The business is fully staffed with knowledgable and customer oriented employees. One owner works approximately 35 hours per week. The other owner is absentee and does not work in the business.

The business is being sold due to a partnership dispute. Inventory, equipment, company website, and training are all included in the purchase price.

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Mailbox and Shipping store in West Los Angeles / SOLD

Asking: $85,000
Gross Income: 250,000
Cash Flow: $41,000
FF&E: $2,000
Inventory: $3,000
Year Established: 2008
Employees: 1 part time

This Business for sale is a part time owner operated mailbox and shipping store is located in a great, accessible location in the West Los Angeles area. This is a non-franchise with a grandfathered UPS account. The business ships UPS, FedEx, DHL and USPS. They provide copy, print, live scan and rental mailbox services. The business has been operation for over 20 years with over 10 yeas under the current owner. Cash flow of $52,000 as part time owner operator. Owner only works 4 hours a day Mon – Fri. The owner does not market and solely relies on walk-ins and repeat customers. There is a large potential for increased revenues. Business Broker

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