Florida Business Investment FAQs:

Q: Why do I need a Business Broker to sell my business?
Q: Why should I choose Florida Business Investments Inc. to represent me?
Q: How long is a Listing Agreement?
Q: What is your Commission?
Q: How many Hospitality Related Businesses have you sold?
Q: How long does it take to sell my business?
Q: How does Florida Business Investments Inc. advertise my business?
Q: How much is my business worth?
Q: Do you co-broke with other Brokers?
Q: Does Florida Business Investments Inc. sell Businesses throughout the state?
Q: Who does the Broker Represent?
Q: What kind of Investment will I need to get into business?
Q: Do I have to do any owner financing?
Q: Do I have to be a citizen or resident of Florida to own a liquor license?
Q: What other services can Florida Business Investments Inc. offer me?
Q: What are the typical Closing Costs involved?
Q: Are you interested in selling your business?
Q: Is it better to lease or buy property?


Questions to ask Brokers:

Q: Why do I need a Business Broker to sell my business?

A: This is one of the toughest decisions sellers wrestle with when they decide to "MARKET" their own business. Can you just imagine placing an ad in the paper and receiving numerous calls at your business from total strangers? A potential buyer will immediately begin barraging you with personal questions about the financial status of your business. They will want to see your bank statements, tax returns, payroll records, profit & loss statements and will probably even ask you to give an account of any money that may not have reported. You don't know this person from Adam let alone whether or not he is a serious buyer. Chances are they probably wouldn't have the financial ability to purchase your business. The scary part is that if you don't comply with the buyer's request for this information, you will probably be unsuccessful at selling your business. Another very important consideration is your employees and customers. What would happen if they were to get wind of the fact that your place is on the " MARKET"? So what do you do? - Back to Top

Q: Why should I choose Florida Business Investments Inc. to represent me?

A: Knowledge, Experience & Professionalism! Bob Lasek has been serving the Central Florida hospitality real estate and business brokerage market since 1986. With a proven track record of over 700 successfully closed hospitality transactions, Bob Lasek has clearly established a reputation as the number one broker in the industry. The true measure of success is repeat business, referrals, and appreciation for a job well done. Florida Business Investments Inc. fully understands the needs of both buyers and sellers and is committed to accomplishing their perspective goals. - Back to Top

Q: How long is a Listing Agreement?

A: A typical listing agreement is a "Sole Exclusive Right To Sell Agreement" and is in effect for a minimum of six months to possibly one year. The agreement usually commences when the broker is supplied with all of the necessary paper work required to successfully market a business in a professional manor. The terms of the purchase price contained in the listing agreement are not cast in stone. The seller from time to time may modify the agreement to accommodate any measurable increase or decrease in business or to recover any major improvements made to the business prior to the sale. - Back to Top

Q: What is your Commission?

A: Florida Business Investments Inc. is paid an 11% commission on the total purchase price of a business at the time of closing. Industry standards are usually 12% or more with most company's charging a minimum commission of $6000.00-$10,000.00. More and more real estate company's are franchised and are required to pay a portion of any commission to the franchiser. This uniformity results in higher expenses to both the seller and buyer. Florida Business Investments Inc. is an independently owned company that enjoys a tremendous amount of repeat and referral business and is dedicated to is clients, therefore we keep our commissions to a minimum in the anticipation that you will use us for further acquisitions or the future sale of your business. - Back to Top

Q: How many Hospitality Related Businesses have you sold?

A: Florida Business Investments Inc. is the absolute recognized leader in the industry in the sale of hospitality related business in central Florida. To be competent enough to sell a business you must be thoroughly familiar with all aspects of the business you are representing. Bob Lasek, president of Florida Business Investments Inc. has over 30 years experience in the hospitality industry. Bob was a senior executive vice president of a national restaurant chain for a period of 12 years. In addition Bob has owned and operated over 20 of his own restaurants, sports bars and nightclubs, many of which were in the Orlando area. This acute knowledge of the industry combined with the passion of "GETTING THE JOB DONE" has resulted in the successful closings of over 700 transactions in the eighteen years Bob has been serving the Florida market.

To the best of our knowledge that is more then all of the other brokers combined in the Orlando area. The reason is quite simple we specialize exclusively in the sale of restaurants, bars, nightclubs and liquor licenses. In addition we also do site location for national and local chains, lease negotiation and business valuations. TIP!! If you are a seller or buyer ask your sales reprehensive or broker how many hospitality business they have sold and in what time frame. - Back to Top

Q: How long does it take to sell my business?

A: Obviously our goal is to sell your business as quickly as possibly, preferably within six months. However that largely depends as much on the seller as the broker. It is crucial that the seller is realistic when pricing their business. Florida Business Investments Inc. will provide the seller with a business evaluation and suggest terms and conditions that allow you to be competitive in the market place. - Back to Top

Q: How does Florida Business Investments Inc. advertise my business?

A: Your business will be advertised anonymously on the Internet, newspapers, direct mail outs and trade magazines. In addition we have built a strong network throughout the state of Florida and the United States with other brokers specializing in hospitality sales. - Back to Top

Q: How much is my business worth?

A: Damn good question!!! This is usually the first question asked of a broker with in five minutes of the initial conversation with a seller. The truth is the broker will probably shrug his shoulders and ask the owner what he thinks the business is worth. Disaster is looming, your business will probably never be sold. Florida Business Investments Inc. takes the professional approach and prepares a business evaluation tailored to your specific operation. Several factors are involved to achieve the Determine Market Value or the Purchase Price to place your business competitively in the market place. A short list involves the following: (1) The definition Of Market Value, (2) The Application Of Market Value, (3) Business Lease or Value Of Real Property, (4) Impact Fees And Leasehold Improvements, (5) Adjustments such as product inventory, lease, utility and equipment deposits, pro-rations of taxes and licenses etc., (6) Value Of Equipment, (7) Value of liquor license if applicable, (8) Value of Goodwill and Non-Compete, (9) Net Income Value, (10) Gross Income Value, (11) Determined Market Value or "PURCHASE PRICE". - Back to Top

Q: Do you co-broke with other Brokers?

A: Yes on a frequent basis. Most brokers are like general practitioners and offer a large inventory of several different types of business. We believe a brokerage firm should specialize in a few types of businesses that they know inside and out. Further, it is vitally important that the person representing your business interest and that has first hand knowledge of it, through hours of one on one conversations with the seller, is the only person qualified to accurately relay information to a prospective buyer. Also, many Brokers do not qualify the Buyer before showing a business. Florida Business Investments Inc. will not give out the name of your business, any financial information or show your establishment until we financially qualify the Buyer. Therefore, for these reasons when we co-broke with other brokers, Florida Business Investments Inc. insists on conducting the showing of your business, controlling the flow of information between the seller and the buyer and preparing the asset agreement. The last thing you want to have happen is to see a person you don't even know prancing around your establishment like they own it, clad in a bright colored jacket with a name tag telling the obvious buyers "OH Boy! This Is The Place For You. - Back to Top

Q: Does Florida Business Investments Inc. sell Businesses throughout the state?

A: Yes depending on the size and concept. Large nightclubs and adult entertainment facilities are highly specialized operations that are subject to zoning requirements, liquor license, and occupational licenses, municipal and county ordinances as well as state statues. This is an area of expertise that Florida Business Investments Inc. excels in. We continue to research information on all of the governmental agencies that have jurisdiction controlling your business in order to better represent both the seller and buyer. - Back to Top

Q: Who does the Broker Represent?

A: If the broker has either an oral or written agreement with the seller then the broker's fiduciary relationship is that to the seller and therefore the broker is representing the seller. If a buyer approaches the broker to find him a business then the broker can represent the buyer in all transactions with the exception of any business that the broker has listed. This is best outlined by: Florida Statue 475.2701: Brokerage Relationship Disclosure Act. They are as follows:

• A fiduciary is a broker in a relationship of trust and confidence as an agent with the seller or buyer as the principal. The duties of a broker as an agent are obedience, loyalty, disclosure, confidentiality, accounting for funds, and reasonable use of skill, care, and diligence.

• A single agent is the broker who represents, as a fiduciary, either the buyer or seller but not both in the same transaction.

• A transaction broker is a broker who provides limited representation to a buyer, a seller, or both, in a real estate transaction, but does not represent either in a fiduciary capacity or as a single agent. (Note: Florida Law allows Real Estate Licensees who represent a Buyer or Seller as a Single Agent to change from a single agent relationship to a Transaction Brokerage relationship in order for the licensee to assist both parties in a real estate transaction by providing a limited form of representation to both the Buyer and the Seller. This change in relationship cannot occur without your prior written consent.)

• First contact is the commencement of an initial meeting or communication between a licensee and the seller or buyer. If confidential information is not given or potential sale negotiations are not conducted, then first contact has not been established and no disclosure is required at this time. - Back to Top

Q: What kind of Investment will I need to get into business?

A: That solely depends on the type and size of the business you are interested in buying. I guess the best answer to this question is consultation. You must seek out the most qualified professionals specializing in the nature of the business you are interested in purchasing. If it is hospitality related you need to look no further than Florida Business Investments Inc. We will take as long as necessary, with no cost incurred to the buyer to discuss and assist you with your business plans and acquisitions. 
We will provide you with a very realistic estimate of the initial investment required to purchase the specific type of business you are interested in. - Back to Top

Q: Do I have to do any owner financing?

A: Maybe. Obviously, most sellers would be happy to receive 100% of the purchase price at closing but cash buyers are scarce. The American economy is fueled by credit and leveraging. Typically, traditional lending institutions will not lend money for hospitality related businesses. The real answer to this question is do you keep squeaky-clean books, report all your income and have three years of Federal Tax Returns showing a decent profit. If so, SBA Lending is fairly simple and can be completed in approximately 90 Days. Under this scenario, you can get 100% cashed out at closing. However, if your tax returns do not meet the SBA Requirements than you as an owner will likely be the banker. In this case the buyer would pay a certain down payment of the purchase price and the seller would provide for a promissory note for the balance. The note is almost always personally guaranteed by the buyer and secured by the equipment, furniture, fixtures, and product inventory and liquor license if applicable. - Back to Top

Q: Do I have to be a citizen or resident of Florida to own a liquor license?

A: No. The only things that can and will prevent your from holding a Florida Liquor License are as follows:

• First, if you or a corporation you own have been convicted of a felony in Florida or any other state within the past 15 years.

• Second, if you have been convicted on a charge of moral turpitude.

• Third, if you are not able to prove where the funds used to purchase the business/license came from.

• Fourth, giving any false statements on your beverage application. - Back to Top

Q: What other services can Florida Business Investments Inc. offer me?

A: Florida Business Investments Inc. is as close to a ONE STOP hospitality brokerage firm that you will encounter. Our expertise encompasses a thorough knowledge of the industry; including real estate and business brokerage, market and business analysis, site selection, lease negotiation, and the sale of Florida alcoholic beverage licenses. 

The Central Florida Orlando area is comprised of four counties and numerous municipalities all with different zoning requirements, codes and ordinances. There are also several different state governmental agencies regulating your business. Finding the answers to all of the information one would need to make any type of intelligent business decision is absolutely mind-boggling. 

As part of our service to our clients, Florida Business Investments Inc. will guide you through this jungle and compile and prepare the endless forms and applications and hand walk all of the necessary paper work through the appropriate agencies. We can also recommend qualified professionals such an attorneys, accountants, contractors and suppliers. - Back to Top

Q: What are the typical Closing Costs involved?

A: Some costs are in the closing statement and others are outside. To give you a better example of a typical closing lets try to separate them. Usually all of the costs inside the closing statement are split evenly or equally between the buyer and seller. If the seller will receive all cash at the closing, they would include the closing attorneys fees of approximately $1500.00, which is the norm for the average closing. However, if the Seller is taking a down payment and holding a Note on the balance, then the cost would be slightly higher because the Attorney must prepare a Promissory Note and Security Agreement. For a complicated closing or a stock transfer the cost would be higher. Lien searches run $500.00. Doc stamps on the note depend on the amount of the note but you can calculate it at: 35 cents per $100.00, so if the note were $100,000.00 the doc stamps would be $350.00. Then there are recording fees for the note that are minimal, usually under $50.00. If your desire to retain your own attorney to represent you, then his fees would be outside of closing and solely at your expense. 

Other expenses outside of closing would be the dollar amount of the product inventory and all other deposits necessary to run the business. These are the buyer's responsibility. They would include the lease deposit, utility deposits such as electric, water, gas, telephone, etc., plus insurance premiums. Because each business is different and deposits and inventories vary with the size of the business, Florida Business Investments Inc. will always explain and disclose expenses and closing cost attributed to the particular business a buyer is interested in. - Back to Top

Q: Are you interested in selling your business?

A: If your are considering selling your business a representative of Florida Business Investments Inc. would be happy to consult with you. Remember, it is always wise to INTERVIEW a few brokers before making a decision. Don't be afraid to ask the tough questions:

• What personal knowledge do you have with my type of business? 

• Have you ever owned this type of business?

• How many of these types of business have you sold and how many has your brokerage company sold and over what time period? 

• How are you going to determine the purchase price and terms of the sale on my business? 

• What experience do you have in constructing a business valuation on a business like mine? 

• How are you going to market my business and will it be confidential? 

• What is your total commission and do you have a minimum commission I have to pay? 

• How long have you been selling business and how long has your broker been in business?

For your convince we have provided a link for you to give us a brief description of you business. (INSERT LINK HERE) - Back to Top

Q: Is it better to lease or buy property?

A: Every one has their own pros and cons on whether to lease or buy property, probably because one way or the other worked for them in the past or they just read it somewhere. In most cases in the Central Florida area it is probably better to lease. The main objective of being in business is to make money and to do so with the least amount of investment. Most restaurants or nightclubs require that old saying, " Location, Location, Location". There in lies the problem, the price of major highway real estate is staggering. Hospitality businesses should keep their rent or mortgage payments below 10% of their gross annual sales. This is rarely achievable when purchasing real property in the Orlando area. On the other hand rents are relatively low through out Central Florida with a few exceptions such as the theme park areas, downtown Orlando and a few other pocket areas. Surprisingly enough the rents haven't increased substantially over the last ten years or so. To put it context at least 90% of the hospitality business sold in Central are leases facilities. - Back to Top