September
2017


Ask the Expert!

Question from KAG: How much cash does it take to buy a business?

Carl Grimes-Chairman of CBI:
 As most lawyers will answer, "It depends."

But one thing we can almost always guarantee is that you can't buy a business with NO money down. It requires some cash to buy a positive cash flowing business and you really don't want to buy one that doesn't have positive cash flow. Rule of Thumb (ROT): Expect to put a minimum of 15% cash (not borrowed money) as your down payment on any business purchase, especially one with bank financing. Banks want the buyer to have "skin in the game." Another ROT is that a buyer should be willing to commit cash down payment that equals the previous year's cash flow from the business. Example: If the business had cash flow of $100,000 in the last fiscal year, expect a $100,000 down payment



We want to hear from you, our readers! Send in your questions, and we'll have your answers in our next newsletter.

New Franchise Experiences Remarkable Growth

By Kelly Tivis- CBI TEAM Business Manager/Franchise Specialist 

A new franchisor has experienced tremendous growth since launching their franchise opportunity at the end of 2016, signing six franchise development agreements in major U.S. markets. These six deals will introduce 19 franchisee-owned locations in Arizona, California, Colorado, Missouri, Oregon, and Tennessee over the next several years.

You could be the one who introduces this exciting new concept to your area.

To learn more about franchise opportunities at NO COST to you, contact franchise@cbiteam.com, or click HERE for our quick franchise interests survey

"When lenders compete, sellers and buyers win"

The Loans 4 Business (cbiteam.com/l4b) program helps deals get done. Currently our Loans For Business program is working to fund several major deals. L4B can secure funding for the purchase of any business in industries as varied as restaurants  and medical clinics. From Fast Food to the Service Industry. We were even recently contacted to help a current business owner secure a new line of credit. If you're purchasing a business or just in need of some capital for a business expansion, contact the CBI TEAM today at info@cbiteam.com or call 877-582-5200 for more information. 

"Because the business you want to buy isn't for sale!"

 
TAP, or Target Acquisition Program is designed to find the perfect business for a motivated buyer. As the end of the year approaches, it's the perfect time to start thinking about a new start in the new year. If you have always wanted to own a business but have never seen the right one for you listed for sale the TAP program is just for you. Let us do the searching for you!  Contact the CBI TEAM today at info@cbiteam.com or call 877-582-5200 for more information on how a TAP can find the business you've been looking for
Connect With Us On Social Media:


Need some encouragement?



"Confidentially Helping People Buy Businesses to Secure Their Financial Future"

About Us|Buy a Business|Contact Us

(From left to right: Rick Millican, Seller and Larry Bone, Buyer)

Trotter Electric Sells to Larry and Chad Bone

Rick and Jennifer Millican sold Trotter Electric because they were ready to focus on mission work. Rick had been with Trotter since the 1980s and was ready to pass the torch to someone else. The Millicans decided to engage Mark Kincannon and the CBI TEAM-Fort Smith River Valley after considering selling to employees. 

Mark Kincannon listed the business and had a buyer interested within the first month. An agreement was made and the new buyers were father-son team Larry and Chad Bone. Larry and Chad had a goal of working together to create a family legacy. 

The Bones utilized the CBI
 TEAM's Loan's For Business Program (L4B) to obtain a loan through Regions Bank with the help of Itzel Meadors and Jake Sibley. Larry also utilized the BORSA program, introduced to him by the CBI Team, to obtain funds for his down payment. 

Seller Rick Millican is happy to have sold the business in order to move on to other endeavors.

Larry Bone is an equally satisfied buyer stating, "After considering other business options, I chose to contact CBI. Working through the purchase of  a business can be a challenge and end up causing many unforeseen situations. CBI removed the guesswork, helped find financing, and gave me added confidence in buying the company. I highly recommend CBI's system."

CBI TEAM-Fort Smith River Valley is happy to assist both the seller and buyer in accomplishing their goals. 

For more information about selling or buying a business, contact Mark Kincannon at 479-806-0061 or mark.kincannon@cbiteam.com

Avila Buys Little Rock Destination Restaurant 

Graffiti's (www.littlerockgraffitis.net), Central Arkansas Italian-Mediterranean destination restaurant for thirty-two years, was recently sold to Avila, LLC whose members are  Armando Yoblanos, Ana Mercedes Lara, Carlos Eduardo Valdivieso, Sarah Ann Bolanos, and Yeimer Yolando, according to CBI Central Arkansas Managing Partner Connor Grimes.

CBI, the largest business sales firm in Arkansas with three locations and one in Tulsa, Oklahoma, represented the seller in the transaction. According to Grimes, the business engagement to sell was signed in April and the transfer took place less than five months later.

Plumbing/HVAC/Electrical Supply Company

Revenue: $830,000
Seller's Discretionary Earnings: Available Upon Request
FF&E: $100,000

  • Nearly 30 year old plumbing/electrical/HVAC supply company
  • Great real estate available
  • Excellent access to Western and Northwestern Arkansas

 
 
Revenue: $1,542,265
Seller's Discretionary Earnings: $217,714
FF&E:
 $306,555

This business is an established and well-known franchise restaurant located in one of Central Arkansas' prime locations. The business has been in existence for over 4 years, and has an established annual revenue of over $1.5 million -- WITH a 6 figure CASH FLOW!

 

Financial Information Available After Signing Non-Disclosure
Arkansas's most recognizable "polished casual" restaurant brand is available for sale for the first time as the owner contemplates retirement. This well established popular and service oriented dining concept includes prime real estate with unique architecture. 

Revenue: $253,842
Seller's Discretionary Earnings: $153,291
FF&E: $47,655

  • Well-established dental practice began operating in 1978
  • Perfect starter practice for Spring 2018 dental school graduate
  • Owner is ready to retire
  • Current owner is willing to work alongside new owner for at least six months to help transition the practice.

 

Revenue: $106,154
Seller's Discretionary Earnings: $8,310
FF&E: $539,000
  • Excellent access to Western and Northwestern Arkansas
  • Company has loyal local, national, and international clients
  • Owner and founder is ready to retire after over thirty years in business



For more info on any of the new or updated listings above please contact us at (877) 582-5200 or buyer@cbiteam.com.

To view a list of all businesses for sale browse our website at 
www.bizbuy.cbiteam.com/businesses

Company Profile

The CBI TEAM is the largest business brokerage network in Arkansas. Since 1994 we have helped people sell and acquire businesses in  one of the fastest growing regions. With offices in Northwest Arkansas, Fort Smith Arkansas, Central Arkansas, and Oklahoma,  the CBI TEAM is the only business brokerage firm with offices in each of those areas. 

CBI manages the entire business sales process, from helping the seller arrive at a reasonable, market-driven price for the business, to helping the buyer to arrange financing so that the seller gets the most compensation at closing.

CBI is the one-stop intermediary for all business sellers and buyers.

Carl Grimes, Owner
Serving the Northwest Arkansas area
Contact us at (479) 770-8989 or
carl.grimes@cbiteam.com

Connor Grimes, Managing Partner
Serving the Central Arkansas area
Contact us at (501) 404-4980 or 
connor.grimes@cbiteam.com

Mark Kincannon, Managing Partner
Serving the Fort Smith/River Valley, Arkansas area
Contact us at (479) 784-9522 or 
mark.kincannon@cbiteam.com

Roy Still, Managing Partner
Serving the Tulsa, Oklahoma area
Contact us at (918) 940-6437 or roy.still@cbiteam.com