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Hello --- I hope you had a great 4th of July week. 

Each month I send out information worth sharing on the first Friday of the month around 1pm or so. Feel free to share this with your clients or other professionals. I am here to be a resource for you and your clients. If you ever have a question about buying / selling a business -- just give me a call. 

Here are some insights that I thought were worth sharing: 
1. SDE vs. EBITDA - The difference between Seller's Descrectionary Earnings (SDE) and EBITDA is the owner's salary. In businesses under $1M of EBITDA, we often use muiltiples of SDE. Typically we see 1-3x's SDE or 4-6x EBITDA. I recently had a client try to use 4-6x SDE. This is a common mistake for sellers. 

2. Our buyers are looking for cashflow more than "stuff." I had a business with $500k of inventory, and with a negative cash flow the business is truly only worth a fraction of the value of the inventory. Cashflow is one of the most important factors in selling a business. 

3.  Get options on Leases, preferably 3-4 options for the existing terms (3-5 years). The landlord of a business I had for sale decide they did not want to renew the lease and drastically increased the lease and instead of selling the business, he is closing it down. 4 years of hard work gone because he did not have any options on his lease. Help your clients protect their business and get options on the lease. 

4. Supertasters are people with a more acute sense of taste. They are more sensitive to scents and tastes. Wonder why your child is picky eater? Maybe they are a supertaster. 

5. EVENT: Bay Street Band (with Attorney John Miller) is celebrating 30 years together on July 14th at 7:30pm at the SpeakEasy in Jax Beach. Come join us in celebrating them. To get the address and password, RSVP [email protected] (she can also get you directions). 

If you have something worth sharing, please send it to me, I'd love to share it. 


Thanks for reading and here's to a great July! 

I'm never too busy for your referrals, 

Kimberly Deas, BCI

Franchise Owner / Business Broker
Murphy Business & Financial Services

"We don't just list businesses – we sell them" 
www.SellYourBusinessFlorida.com

904.571.9580

Click to search for a Business for Sale

*** Know a business owner thinking about selling, have them call us ***


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Murphy Business & Financial Services - North Florida, 130 Corridor Rd, Unit 1074, Ponte Vedra, FL 32004-1074, United States
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