Raleigh Business For Sale
Looking to buy businesses for sale in Raleigh, NC? Buying a local business is becoming more of a reliable employment strategy as many families are wanting to relocate to Raleigh to live. Portfolio.com has ranked Raleigh’s small business vitality as the third strongest in America. The small business for sale in Raleigh, NC are about as safe of a bet as one can make today. The Raleigh Metropolitan Statistical Area ranked 2nd on the list of best-performing cities for 2017, according to the Milken Institute.
Over the past few decades Raleigh, NC has been continually ranked as one of the “Best Places In America To Live.” When people move here there are three options: become an employee, start a business or buy a business.
For many median aged adults, the idea of starting over, punching the clock, sending out resumes, the corporate grind and asking someone half their age for permission to take a vacation isn’t that appealing. Not having the working knowledge and risk tolerance of starting their own business many are considering the safer route of buying an established business.
There are many quality businesses for sale in Raleigh, NC as many Baby Boomers are nearing their retirement years.
Boomers & Businesses For Sale In Raleigh, NC
Over the next seven years, the largest intergenerational transfer of private businesses will take place in the history of the world. 2012 saw the first year of Baby-Boomer’s retirement that began a tsunami of business sales and transfers. Researchers estimate that over 10 TRILLION DOLLARS in business assets will be transferred by 2025.
Boomers (1946-1964), make up 76,000,000. A common characteristic of this proud generation is their work ethic and strong entrepreneurial spirit. Boomers make up 60% of all privately held businesses in the US meaning that boomers own the highest percentage of the 15 million businesses in the US. Christopher Nicholas, Shields & Co., at ACG Boston’s DealSource Select.
9 million US businesses will need to be bought and transferred before these Boomers retire. This is a staggering number to comprehend. A 2016 survey of small business owners indicated that 72% do not have a clear exit strategy. The population growth and a wide selection of businesses for sale in Raleigh, NC make it an ideal location for those considering buying a business in this area.
Build A Business or Buy a Business in Raleigh, NC?
If you have already decided that jumping back into the rat race of corporate America is not your best option then the decision to build or buy is probably the next decision you have to make. Both have tremendous advantages and challenges.
Raleigh is ranked second in the nation for being a welcoming business climate. So whether you are starting a business from scratch, franchising or buying a business the Raleigh area has much to offer for the budding entrepreneur.
Option 1 – Starting From Scratch – There are those rare few that possess the pioneering and creative spirit to give birth to an idea, bring it to fruition, create systems of production, and create a fully scaled operation from scratch.
When I think of these types I often think of the early pioneers that loaded their wagons and traversed across the country in search of better opportunities for them and their families.
These mavericks loaded up their wagons (No GPS or maps) and off they went. Where were they going? How would they cross the rivers and mountains? What would they eat or how would they defend themselves? They certainly had more questions than they did answers but off they went. Many made it and started new lives for themselves but unfortunately many more died in storms, attacks, starvation or sickness.
Starting a business from scratch can be done but it isn’t for the faint of heart. Many experts encourage young entrepreneurs to start with a two-year cash reserve to weather the first couple of lean years.
If you fail do not give up. Some of the greatest businesses in the world are lead by men and women that failed with early attempts at starting a business. “Success is a poor teacher. We learn the most about ourselves when we fail, so don’t be afraid of failing. Failing is part of the process of success.
Option 2 – Buying A Franchise – Buying a franchise is another way to build a business. Franchising will allow you to build and buy a business in Raleigh, NC with having the security of a safety net. When my wife and I started talking about moving back to the Raleigh area we almost 100% certain that we would buy a business. We ended up purchasing a franchise after we spoke to an experienced business broker.
Here are a few of the benefits that we found of buying a franchise: Branding, Systems, Marketing, Ongoing Support and Proof of Concept. I’d encourage you to speak with a Raleigh TransWorld Business Broker as they are the leaders in this industry. He or she will help you navigate franchise costs, the best demographic locations and they will be with you post-sale to assist you with ongoing support and resources.
There are literally thousands of franchises for sale today and you need to know a lot about them BEFORE you put a deposit down. What is the mortality rate of a franchise (how many do not make it past year one), Demographics (you don’t want to buy a Sub franchise surrounded by 10 others or in a declining area), FDD’s (sometimes hard to understand and can reach 200 pages or longer) and Royalty Rates (How do you know the royalty rates compared to other franchises in this space?). The safest and best bet is to work with a TransWorld Business Broker.
Option 3 – Buying An Established Business – Of the three options listed here, buying a business is the safest and most secure investment. It isn’t entirely without risks but as the old saying goes “Numbers don’t lie.”
When you buy an established business your brokers present the hard facts through a profit and loss, tax returns and balance sheet. The tax return is typically for the past three years of operation.
Most often in businesses with UNDER 1 million dollars of revenue a multiple of the Seller’s Discretionary Earnings (SDE) is used to determine the selling price. For business for sale in Raleigh, NC with OVER 1 million dollars in revenue a multiple of the EBITDA (Earnings before Taxes, Depreciation & Amortization) used. Nine out of ten times a multiple of the SDE or the EBITDA is used to set the selling price of a business.
Why is buying a business considered the safest and most secure of the three options? Let’s say you are purchasing a Florist that has been owner-run for over thirty years. This business has weathered economic storms, established a loyal customer base, credible financial history, immediate cash flow, you are buying reputation and goodwill, existing trained employees and the hard work of a startup has been done for you.
Is Buying A Business The Safest Investment?
2008 was a difficult time for the US and the world. If you purchase a business that survived that storm then chances are you are buying a healthy business.
My wife and I watched her mother sell her business through a business broker 10 years ago and the lady that purchased her business had little experience in the florist industry. My mother in law ran her business 40 years and the transition went seamlessly. The new owner works her schedule, she has independence, she is making more money than she ever has in her life and she is enjoying the fact that she is a business owner.
Have you ever purchased or sold a business? The best place for you to start is to contact a Raleigh TransWorld Business Broker. TransWorld is a global leader in the industry. For forty years Transworld has specialized in the sale of businesses worldwide with offices in 20 different countries. TransWorld helps buyers find small businesses from $50,000-$50,000,000.
All three aforementioned options bring risks. The least risky of the three is typically option number three. Typically the multiple for each industry space is determined by the specific industry. Recently we reviewed a Dry Cleaning business and the program that TransWorld uses quickly compiled recorded sales from 47,000 dry cleaners that had been sold. These types of resources and records add great protection to buyers of businesses worldwide.
The Process Of Buying A Business?
The first step to buying a business is to understand the primary reason that owners use business brokers to sell their business. PRIVACY, PRIVACY, PRIVACY- You never drive down the street and see a business with a sign on the front door that says FOR SALE. The owner doesn’t want his competitors to know, he/she doesn’t want customers to know and they do not want their employees to know.
When you put your house on the market you want everyone to know but when you are selling a business you only want approved buyers to know. A business broker can’t disclose information about business until the potential buyer provides three documents: Personal Summary, Non-Disclosure Agreement & a Personal Financial Form.
The business broker on behalf of the owner wants to verify privacy and that they are dealing with a qualified buyer. Some buyers may not understand why all this required but when they are serious about a business purchase they understand that a business is the owner’s baby. You wouldn’t give your child’s information out to a stranger and a business owner isn’t going to share financials and business details with just anyone.
After forms are filled out, signed and returned then the business information is sent to the potential buyer. Typically several buyers are reviewing each business's financials. The first one that submits an offer enters into a time of due diligence with their accountants to verify the numbers, they meet the seller(s), visit the business location and make a written offer. If an agreement is made a closing is set and executed.
Why Consider Businesses For Sale In Raleigh, NC?
Raleigh is a desired location for many reasons. Educational opportunities, strong economics, location related to mountains, and the beach and Raleigh continues to thrive as an international city. The Research Triangle Park is home to hundreds of businesses that sustain Raleigh’s continued growth.
A current listing of businesses for sale in Raleigh, NC will help you review the incredible opportunities that are currently available in Raleigh. Read our free eBook today if you are considering buying a business in the Raleigh, NC market.
Tired of the corporate rat race, toxic work environments and no real opportunity for promotion? Many are turning to Google and their business advisor and they are searching for terms like “business for sale in Raleigh NC”. Here is a great question, Why are hundreds of men and women typing in this exact phrase business for sale in Raleigh NC?
In this article, we are going to explore the five primary reasons people are using this search term and many just like it. It is estimated that in Raleigh alone that more than two thousand pioneering or budding entrepreneurs are turning to Google for help with their next career choice.
Transworld Business Advisor is the industry leader worldwide in business sales. for maximum profit. They help business owners market and sell thousands of business annually in the $50,000 to $50,000,000 business space as a global company. Transworld believes that Raleigh, as an international city, is poised for record growth for those seeking to buy a business for sale in Raleigh NC.
Why Buy A Business In Raleigh NC?
Unless you have lived under a rock the past 3 decades you know that Raleigh, NC has been a desired destination for families, singles and businesses alike. The Research Triangle Park is often referred to as the Silicone Valley of the East Coast and it is now home to near 300 companies like IBM, BASF, Dupont, American Airlines, Sony and many others.
Raleigh is a finalist for Amazon’s bid for its east coast headquarters bringing more than 50,000 jobs to the Raleigh economy. More than business, Raleigh is an educational and recreational haven. NC State, UNC & Duke universities are each located nearby crowning Raleigh as the Ph.D. capital of the world.
A Business For Sale In Raleigh NC
Researchers estimate that over 10 TRILLION DOLLARS in business assets will be transferred by 2025. The largest intergenerational transfer of private businesses will take place in the history of the world over the next decade. 2012 saw the first year of Baby-Boomer’s retirement that began a tsunami of business sales and transfers.
This simply means that INCREDIBLE businesses are flooding the market at the same time that many Americans are looking to leave traditional employment. Many internationals are also gobbling up these business opportunities as foreign investors sort through these businesses that are rock solid and tried and tested.
A business for sale in Raleigh NC for a foreign investor also comes with VISA qualifying rights that also make these investments attractive. A business for sale in Raleigh NC with the opportunity to live in the US makes these attractive to foreign investors.
5 Reasons To Own A Business In Raleigh NC
1. Easy Process- The process of owning a business in Raleigh has never been simpler. Not long ago the only way to purchase a business was like finding a needle in a haystack. You either needed to know an owner selling or know someone that knew someone. There was no careful selection of several businesses from a variety of industries.
Today, an individual can contact a Transworld Business Advisor or search their online Raleigh database. Searching through the Raleigh businesses for sale will allow anyone the ability to review listed businesses.
Most people have used Realty.com or Zillow and they are familiar with the process of online searching. Transworld will give you basic business information like Location, Asking Price, Down Payment, Seller’s Discretionary Earnings & Business Category.
As you search for a business for sale in Raleigh NC to purchase, the aforementioned details will help you begin your search and narrow your options based upon your financial comfort, location, and business type. There is no cost to shop and see what is available, how easy is that?
2. Financing Options- 401k Rollover, Small Business Administration (SBA) and Seller Financing are some of the financing options available along with simply paying cask for a business. Loans for veterans, women, minorities as well as creative financing for small businesses are becoming more accessible and easier to apply for.
Your Transworld Business Advisor can help connect you regarding your legal, financial and accounting decisions. When someone purchases a home they present a pre-approval letter or proof of funds before purchase. Likewise in a business purchase, the seller will want to see that the buyer has the capabilities to gain funding.
3. Contentment & Freedom- Let’s be honest, most universities and colleges train people to become employees. Very few schools train their students to become business owners and when entrepreneurial students graduate and go to work for a company almost immediately they know something is wrong. While this person might not be able to articulate the issue they simply know that something isn’t right.
I recently spoke to an owner of a local sign company and his annual income was around $500,000.00 a year. When he decided to sell his first company he told his wife that he wanted to take 12 months off before he started his next business. He has done this twice now and he is about to start his third business just to stay busy. This type of freedom and this kind of thinking is unheard of in corporate life. In corporate life, it becomes difficult to get off the hamster wheel.
I spoke to another business owner and he said he loves his freedom. He said, “I work hard but I close my business every week at lunch on Fridays because that is what I want to do. I have trained my staff and if I need a few days off, if I come into work late or if I need extended time off there is never a problem. I do not want to ever ask anyone if I can go to one of my children’s events.” Contentment to this business owner had to do with freedom of choices not to mention that he tripled his traditional career’s income.
4. Business Transition- What if I have never owned my own business? The truth is there will be a learning curve but there is a learning curve with any new job. Remember that the Wright brothers built the first flying machine (airplane) in the back of their bike shop where they both worked full time. They didn’t have financial support, no coach and there were no instruction manuals.
Business transitions are negotiated as part of the transaction. In many cases, the seller is more than glad to stick around for the first 30 days after the closing and then stay available as a consultant. The staff is retained as part of the transition helping to make the transition smooth.
5. History- Every business has a history. Your Transworld Advisor is a skilled business historian that will be able to guide you through the pre-purchasing process.
Imagine purchasing a business that has been around for twenty-five years. Imagine the economic dips, recessions, staff transitions, vendor issues and demographic shifts that have occurred during this time. Natural disasters, bad business decisions or even economic downturns could NOT shut this business down. If this is true it is very unlikely that you will kill it either.
This history also brings the good with it. Trained staff, community goodwill, loyal & generational customers, a proven system and instant income. The great thing about buying an existing business is that you start getting paid on day one.
It has never been easier to purchase a business for sale in Raleigh NC. Even if you are unsure about purchasing a business remember that there is no charge to shop and kick the tires.
Businesses For Sale In Raleigh, NC
At any given time there are approximately 100 businesses for sale in Raleigh, NC. These Raleigh businesses come in many shapes and sizes and across many different industries.
At any given time we may have Raleigh businesses from the $10 million range all the way down to $50 thousand. We sell both independent, locally owned businesses and franchise re-sales.
Wanting To Buy A Raleigh Business?
If you answered yes to wanting to buy a Raleigh business then you need to consider the following factors.
- Industry Experience – Do you have direct industry experience for the business that you are looking to buy? Do you have a transferrable experience that will apply to the new business?
- Legitimate Deposit – How much money do you have to place down on the new business? Remember that most lenders will request that you have three months of cash reserves at hand once you purchase a business.
- Seller’s Discretionary Earnings – When businesses are marketed by a professional business broker you will see an amount given labeled SDE, Cash Flow or Owner Benefit.
If you want to buy one of the businesses for sale in Raleigh you will have one primary question, “What will my annual income be if I purchase this business?” This is an important question because it tells the business buyer how effectively they will be able to service the loan and how much money you will end up within your pocket.
- Business Multiples – Businesses are valued on multiples of the SDE. Multiples vary from one industry to the next and some businesses are valued at a multiple with business inventory added to the total number.
- Age of Business – When a business buyer is inquiring about a possible business that they have interest in, they need to find out the age of the business. None of these factors tell the complete story concerning the health of a business but when added all together, the business buyer is able to begin connecting the dots.
- Owner’s Reason For Leaving The Business – Why does the current business owner want to sell their business? Business owners sell their businesses for a variety of reasons including health, retirement, burn out, family considerations or other business interests.
Cash, SBA or Seller Financing – Business owners love it when someone can pay cash for their business. Cash buyers can avoid the hassle of SBA lending and speed the process of closing up considerably.
If a buyer can’t pay cash the have to borrow the money from the bank, a friend, family, bank lending or seller financing. Some business owners will require some form of financial prequalification prior to going under contract with a buyer.
It never hurts to ask a seller if they are open to some form of seller financing.
The Big Umbrellas
Businesses fall into three primary categories – Retail Businesses, Services Businesses, and Professional Businesses.
A great place to start is a genuine consideration of each business industry. Learn the economics that has historically shaped this industry and the current shaping factors. Learn standard industry margins and meet with owners of different industries that you might be considering.
Contact us today for more information. Our Raleigh business brokers would love to assist you!