Thomas Coffey Part Time CFO Malvern PA B2B CFO

Oct 10
14

Businesses Put Up for Sale Smack Into Harsh Reality-Wall Street Journal

By SARAH E. NEEDLEMAN

Small-business owners banking on a big payoff when they sell their establishments may have to settle for a lot less than planned.

A combination of tight credit, skittish buyers and business owners unwilling to sell at rock-bottom prices—factors similarly affecting home sellers—has left the small-business marketplace at a standstill.

David Wetzel tried for two years to sell his New Jersey hardware store.

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David Wetzel says he spent two years trying to sell his business, Dorset Hardware, a Ventnor City, N.J., shop he’s owned since 1993. He’s now liquidating the business and expects to earn only about a third of his asking price. “I had some very close leads who wanted to buy, but they could just not get the financing,” says Mr. Wetzel, who is 64 years old.

Just 1,117 small businesses were sold in the U.S. in the third quarter, the same number as in the year-earlier period, reports BizBuySell.com, an online marketplace for small-business acquisitions in San Francisco. By contrast, there were 1,462 small businesses sold in the third quarter of 2008, according to BizBuySell. (BizBuySell.com licenses some of its data to The Wall Street Journal.)

One of the problems, experts say, is that business owners are proposing prices greater than their companies’ true value.

“Owners still think their businesses are worth what they used to be,” says Thomas Coffey, a partner in Malvern, Pa., with B2BCFO, a provider of outsourced chief financial officers to small businesses. In reality, many “small companies just aren’t earning what they used to earn,” he says.

During the third quarter of 2010, owners listed their businesses for a median price of $245,000, according to BizBuySell. However, the average closing sale price in the period was $140,000, which was 6% less than what owners sold their businesses for during the same period in 2009, according to BizBuySell data.

Some owners say they have identified interested buyers but that many of these people are unable to obtain sufficient funding amid declines in loans guaranteed by the Small Business Administration. The agency backed $16.84 billion in loans in its fiscal 2010, down from about $20.61 billion in 2007.

As an alternative, some sellers are offering to finance part of the asking price for buyers “to close the gap,” says Joseph L. Caffrey, president of Worldwide Business Brokers LLC. The arrangement has been typical of transactions that his company has brokered over the past 18 months, he adds.

For example, the owner of a frame shop in Virginia recently agreed to finance $62,500 of the business’s $125,000 price tag over a five-year-period for a buyer who could raise only half of the total upfront and was unable to obtain a loan for the rest, Mr. Caffrey says.

Another challenge hindering sellers is that even potential buyers with sufficient funding are hesitating to close deals due to the volatile economy, says Mike Handelsman, BizBuySell.com’s general manager. “People’s risk profiles have taken a dramatic kick in the stomach over the last few years,” he says.

Business owners also are shying away from the marketplace. Though the number of enterprises sold in the third quarter was stagnant, there was a 7.1% decline in listings from a year ago, to 31,856, according to BizBuySell.

Mr. Caffrey says some owners whose businesses lost market value during the recession are waiting for the economy to rebound before going to market. “They’re reluctant to sell based on current valuations,” he says.

For many, selling in the current environment will likely mean having to settle for less, which from the buyers’ perspective, can be a good thing.

Timothy C. Barry says he bought two online stores last spring for the e-commerce and consulting business he co-owns, Intelligent Technologies Inc. of Vancouver, Wash. He says he first saw them listed nine months earlier for double the amount of the final sale price.

In January, Dwight Davis bought an existing LearningRx franchise in Charleston, S.C., that he says had been on the market for about year. With the help of a bank loan, he says he paid $107,000 for the cognitive-skills-training business, which was roughly 30% less than the original asking price, he says.

Franchises may have the benefit of a more recognizable brand name. Stacy Swift, owner of FranNet Colorado, a franchise brokerage business in Denver, says sales of new and existing franchises she’s brokered over the past year have increased moderately. She declined to disclose figures.

Some business owners fearing a double-dip recession aren’t willing to wait around for the market to improve, especially baby boomers like Mr. Wetzel, who is hoping to retire after the liquidation of his hardware store.

“They probably started thinking of selling their businesses years ago and times got tough,” says Maria Coyne, executive vice president of the business-banking unit at KeyBank, a division of KeyCorp., in Cleveland. “But now they’re thinking we’re back to a more reasonable environment” and they’re not going to go through a recession again.

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Sep 10
1

B2B CFO NAMED IN PRESTIGIOUS INC. 5000 LIST

B2B CFO NAMED IN PRESTIGIOUS INC. 5000 LIST

184% Growth Earns B2B CFO Spot in the 2010 List of Fastest
Growing Companies in America

Phoenix, Ariz. August 24, 2010 – B2B CFO, nation’s largest
provider of CFO services to small businesses, has been named to the
prestigious Inc. 5000 list of fastest growing companies in America.

Now in its 29th year, Inc. Magazine’s annual ranking judges US-based
and privately held companies by their revenue growth. This year’s
list was ranked on the percentage in revenue increase from
2006-2009. B2B CFO’s growth earned 84th place in its industry.

“There are approximately 27 million small businesses in the U.S.
today,” said Jerry L. Mills, founder and chief executive officer of
B2B CFO, “It is a huge honor to be among the fastest growing and the
most successful businesses in the country. Our firm has experienced
tremendous growth over the past few years and we are on track to
continue expanding. I am especially grateful to all of the firm’s
dedicated Partners who continue to advocate our services around the
nation.”

In a personalized letter congratulating B2B CFO on this
accomplishment, Jane Berenston, editor-in-chief of Inc. Magazine’s
wrote “Congratulations: your company, B2B CFO, has made the 2010
list of the fastest growing private companies in America. This
achievement puts you in rarefied company, especially if you consider
that over 27 million businesses are registered in the USA. The elite
group you’ve now joined has, over the years, included companies such
as Microsoft, Timberland, Visa, Intuit, Jamba Juice, Oracle, and
Zappos.com. I look forward to congratulating you in person in
Washington, D.C.”

B2B CFO’s growth is reflected in numerous awards this year. The
company was also recently named in ACE Corporate Growth Awards,
which recognized the most successful and fastest growing companies
in Arizona.
In August 2010, B2B CFO has grown to 170 Partners across 39 states,
representing 5,000 years of cumulative experience. Each Partner is a
seasoned financial executive who serves as CFO to growing businesses
on as-needed basis. Approximately 80% of the Partners have a
background that includes senior executive positions at the Big Four,
and all of the Partners have held high level executive finance
positions in various industries in corporate America. Together, B2B
CFO Partners work with more than 500 businesses in the nation with
combined annual sales of more than $3 Billion.

Jerry L. Mills and many of the B2B CFO Partners regularly dedicate
time to educate business owners on financial matters. Mills is a
frequent speaker and contributor and has been featured on many
national media networks including FOX Business, Fortune Small
Business, Smart Money and many others. Mills is also the author of
The Danger Zone – Lost in the Growth Transition, and Avoiding The
Danger Zone – Business Illusions, both business non-fiction books
that help entrepreneurs understand and build a strong financial
strategy.

“We look forward to participating in the Inc. 500|5000 conference in
Washington, DC this fall,” added Mills. “Along with my colleagues, I
look forward to the October 2nd awards ceremony and to meeting the
entrepreneurs that created the other 5000 fastest growing companies
in America.”

About Inc. Magazine

Founded in 1979 and acquired in 2005 by Mansueto Ventures LLC, Inc.
is the only major business magazine dedicated exclusively to owners
and managers of growing private companies that delivers real
solutions for todays innovative company builders. Inc. provides
hands-on tools and market-tested strategies for managing people,
finances, sales, marketing, and technology.

Inc. Magazine’s 29th annual Inc. 5000 ranking of the fastest-growing
private companies in the country is available online at
www.inc.com/inc5000/list

About B2B CFO

Headquartered in Phoenix, Ariz., the firm was founded in 1987 by
Jerry L. Mills. B2B CFO is the nation’s largest CFO firm serving
entrepreneurial, growth and mid-market companies with revenue under
$75 million. The firm’s partners have an average of 25 years of
experience and each individual partner is a senior level executive
with a broad range of expertise. Please visit online at
http://www.b2bcfo.com/

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Jul 10
11

About Philadelphia

From Wikipedia

Philadelphia (pronounced /ˌfɪləˈdɛlfiə/) is the largest city in Pennsylvania and the sixth-most-populous city in the United States.

In 2008, the population of the city proper was estimated to be more than 1.54 million,[3] while the Greater Philadelphia metropolitan area’s population of 5.8 million made it the country’s fifth largest. The city, which lies about 45 miles southwest of New York City,[4] is the nation’s fourth-largest urban area by population and its fourth-largest consumer media market as ranked by the Nielsen Media Research.

It is the county seat of Philadelphia County, with which it is coterminous. Popular nicknames for Philadelphia include Philly and The City of Brotherly Love, from the literal meaning of the city’s name in Greek (Greek: Φιλαδέλφεια (/pʰilaˈdelpʰeːa/, Modern Greek: /filaˈðɛlfia/) “brotherly love”, compounded from philos (φίλος) “love”, and adelphos (ἀδελφός) “brother”).

A commercial, educational, and cultural center, Philadelphia was once the second-largest city in the British Empire[5] (after London), and the social and geographical center of the original 13 American colonies. It was a centerpiece of early American history, host to many of the ideas and actions that gave birth to the American Revolution and independence. It was the most populous city of the young United States, although by the first census in 1790, New York City had overtaken it. Philadelphia served as one of the nation’s many capitals during the Revolutionary War and after. After the ratification of the U.S. Constitution, the city served as the temporary national capital from 1790 to 1800 while Washington, D.C., was under construction.

Philadelphia is central to African American history. Many of its larger suburbs such as Chester, Pennsylvania; Wilmington, Delaware; Camden, New Jersey; and Trenton, New Jersey (sometimes included in the New York metropolitan area) have African American majorities. This community has been large since before the Great Migration, and despite area civil rights gains, continues to be affected by poverty and high crime. The area, in common with most of Pennsylvania, also has a very large population of Italian Americans.