When researching (franchise concepts to purchase there exist many resources of valuable information that you can turn to.  Listed below are a few such sources of what can ultimately be priceless franchise information for you to behold in your franchise search.

Web Research – Most potential franchisees begin their search right from their own computer.  The value of the internet really comes in initially being able to narrow down exact franchises that are best for you.  Ideally, you should expect to select no less than 6-10 franchises in which to primarily investigate and evaluate.

Consultants – Franchise consultants can be a great resource of information and help with particular franchise concepts.  Not only can they help you get a foothold in becoming a successful franchisee (of a respective system), but they can more importantly identify, from the onset, franchise concepts that likely won’t “fit” your exact investment profile.

UFOC – A look into a franchise concept’s Uniform Franchise Offering Circular (UFOC) gives valuable insight and statistics into each particular franchises history and financial system.  It is often encouraged to have both a legal counsel and a franchise accountant take a look at the UFOC once you have narrowed down your franchise choices.

Market Research – Surprising to some, there is usually a franchise system that is a “better fit” for you than any that you initially might be aware of.  While it helps to have a background in the field of the franchise concept you are interested in, it is by no means necessary.  Simply, research, research, research, and find that “best fit” or “better fit” franchise for you, regardless of what industry the franchise is in.

Franchisees – Time and again, we hear that franchisees are the single most valuable source of information when you are interested in buying any particular franchise.  A quick tip – try and locate a franchisee in the system you are interested in that is not an area rep.  Part of the area developer franchisees success comes in “selling” more franchises for the system; understandably, their information might simply be more of a sales pitch.

Management – Simply, be comfortable with the management.  Franchisors also want those individuals “best fit” for their respective system.  Ask the hard questions, and always address any and all uncertainties you might have and as quickly as possible.

Others (vendors, competition, etc.) – Lastly, vendors, local media, and even customers can be a great source of unique insight into any particular franchise.  Always ask for positive and negative feedback about how the respective party relates to / interacts with the franchise system at hand.

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This Blog Post Was Contributed By:

Tammy Baldwin is a franchise consultant specializing in assisting business buyers who are thinking of buying a new franchise.  She provides FREE consulting services to potential franchise buyers regarding new franchise opportunities. Phone Tammy direct at 888-650-0090.

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Eric was understandably upset when he learned the bar for sale he had been looking at as a possible acquisition was sold for the price he thought it was worth--a price he could have offered, but didn't think the seller would accept.

That was his lesson in the importance of making an offer.

The assumption that the seller will be offended and refuse to deal further--that was the erroneous idea in Eric's mind--is just one of the reasons that the majority of prospective buyers of small California businesses never get around to making offers on businesses, even companies that interest them and meet their criteria.

In fact, our studies indicate that 80% of people who say they want to purchase a small business in California never actually complete a deal. Most of those don't even--in the words of one business broker: "pull the trigger" on a business they've been investigating.

And considering that sellers and their brokers spend most of their time with people who are not serious, it's no wonder that sellers are in no hurry to supply information requested by buyer prospects, and that brokers aren't always good about returning "buyer" phone calls.

TO BE TAKEN SERIOUSLY

Want to get their attention?

If a business interests you, if you can see yourself as the owner of the company you've been looking at, the next step is to make an offer. Put it in writing.

Buyers who sign a purchase/sale proposal and hand over a deposit check distinguish themselves, immediately, as "real" buyers. By stating your intent to buy a company according to certain terms, even if those terms don't match those requested by the seller, you elevate yourself above the crowd, joining the 20% of the buyer prospects with whom brokers and sellers of small California businesses want to be engaged.

Making an offer shows you are serious. And it means you'll be taken seriously in the marketplace of businesses for sale.

BREAK THE ICE

Reviewing the details of a business for sale listing is helpful, as it informs buyer prospects about what the seller has stated regarding what he or she wants in a deal. But that's all. Is the seller more interested in total selling price or cash up front? Is there flexibility regarding seller financing? How firm is the seller about the way the purchase price is allocated among various assets?

A buyer prospect can speculate about these matters and discuss them with the business broker at great length. But the way to find out exactly where the seller stands on these issues is to "break the ice" by making an offer, getting the "dialogue" started and, perhaps, getting the seller's agreement or counter-offer.

It may take some courage to actually sign on the dotted line and hand over a deposit check. As one buyer puts it: "You suddenly realize that if the seller says 'yes' to what you offered, you may have bought yourself a business. It's a little scary."

The good news is that it gets easier.

Over the six months following his disappointing experience, Eric made offers on four other bars that were for sale.

The first three offers were not successful, as Eric and the sellers were not able to come to agreement. But he felt that nothing was lost by trying, and as a result of these efforts, Eric became much more comfortable with the process of making an offer and negotiating terms.

The fourth time he made an offer on a bar, Eric knew just what he wanted to ask for, and he knew how to interpret the counteroffer. And after a bit of negotiating, he and the seller came to an agreement.

Eric likes his new business and is glad he learned to overcome his initial fears and make an offer.

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BizBen viewers top picks yesterday included a Rio Linda Fish/Ski Lake And Warehouse, a Los Angeles Electronics Retailer, an East Bay Restaurant With Real Estate, a Toluca Lake Market And Meat, a San Fernando Valley Beauty Salon,  as some of the more popular California small and mid-sized businesses for sale that were added and reviewed by business buyers, business broker advisors, agents, intermediaries, and business owners selling a business yesterday on BizBen.com.

8/26/08 BizBen Top 20 Picks From Viewers Include:

1. Boat Dealership, Storage, Water Ski Lake, Boat Dock for sale located in Rio Linda - Price: $1,350,000, Adjusted Net: Call. Fish-Water Ski Lake, 4800 Sq. Ft. Of Retail/Warehouse, Storage & Apt, Boat Dock.

2. Electronics Retailer And Wholesaler for sale located in Los Angeles - Price: $750,000, Adjusted Net: Call/Email. Electronics Retailer - Well Known And Established.

3. Waterfront Restaurant With Real Estate for sale located in East Bay - Price: $1,875,000, Adjusted Net: Call/Email. Waterfront Restaurant Doing 134,000 Profit With Real Estate.

4. Market With Meat, Produce, Groceries for sale located in Toluca Lake - Price: $338,000, Adjusted Net: $60,000. Market With Meat, Produce, Groceries, Beer, Wine & Kitchen.

5. Beauty Salon for sale located in San Fernando Valley - Price: $300,000, Adjusted Net: $100,000. Beauty Salon Upscale Many Services.

6. Ladies Shoes Manufacturing, Distribution, Retailer for sale located in Santa Monica - Price: Call, Adjusted Net: $600,000. Ladies Shoe Company; Design, MFG, Distributor, Retail, Net Commerce.

7. Italian Restaurant for sale located in Santee, East S.D. - Price: $800,000, Adjusted Net: Call. Italian Fusion Cuisine (Exclusive Recipes). Beer And Wine License.

8. Check Cashing, Payday Loans, Utility Payments Service for sale located in LA County Area - Price: $179,000, Adjusted Net: $125,000. Check Cashing, Payday Loans, Utility Payments, Western Union, etc.

9. Coffee Cafe & Yogurt Shop for sale located in Modesto Area - Price: $198,000, Adjusted Net: Call/Email. Coffee Cafe & Yogurt, 2 Business’s & 2 Bldg’s Connected!

10. Boutique Wine Shop With Deli for sale located in S. Orange County - Price: $550,000, Adjusted Net: $160,000. Boutique Wine Shop With Excellent Repeat Customer Base.

11. Quik Stop Franchise for sale located in Martinez - Price: $375,000, Adjusted Net: $190,000. Quik Stop Franchise (Very High Sales).

12. Advertising / Niche Publication for sale located in SF Bay Area - Price: Negotiable, Adjusted Net: $60,000. Well-Established, Successful Publication With A Highly Recognized Name.

13. Cold Stone Ice Cream Creamery Franchise for sale located in Los Angeles - Price: $115,000, Adjusted Net: $12,000. Absentee Owner Is Selling Store Located In Very Nice Neighborhood.

14. Pizza & Pasta Restaurant for sale located in Inland Empire - Price: $55,000, Adjusted Net: Call. Pizza & Pasta Restaurant, Great For Owner Operator.

15. Vending Route for sale located in SF Bay Area - Price: $550,000, Adjusted Net: $40,247. Vending Route For Sale In The San Francisco Bay Area.

16. Gourmet Deli for sale located in N County Coast - Price: $99,000, Adjusted Net: $18,025. Gourmet Deli In Business Park.

17. Italian Restaurant for sale located in Cathedral City - Price: $149,000, Adjusted Net: Call/Email. Authentic Italian Wood Fired Pizza, Homemade Sandwiches, And Pasta’s.

18. Tuscan Restaurant for sale located in La Costa Area - Price: $389,000, Adjusted Net: $100,000. Upscale La Costa Restaurant.

19. Upscale Women’s Clothing Store for sale located in San Diego - Price: $195,000, Adjusted Net: $60,000. Great Clothing Store With Style. Client Data Base Of Over 1,000 Clients.

See all 8/26/08 Newly added listings for sale that were added yesterday!

Reveiw all the past BizBen Top 20 recent results.

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How’s this for a training program?

Miriam’s deal to purchase a dry cleaning company specified that the seller, Mr. Chu, would be available to answer questions for two weeks following close of escrow. Since Miriam had experience from a job in a dry cleaning establishment, she knew how to operate the equipment and deal with customers. She just wanted a few pointers about things that might be specific to the company she was buying, and she wanted the seller to handle a few introductions to some of the clients and suppliers. She got more than she bargained for.

For months afterward, Mr. Chu still showed up every morning when Miriam opened the door, and lingered in the establishment till the middle of the afternoon.

"I felt sorry for him, because he had nothing else to do," she explained. And Miriam reports he was quite happy when she started giving him assignments, such as covering for her at the front counter while she ran errands.

This assistance, at no cost, for an extended period following close of escrow is not typically what a buyer can look forward to. More likely, the seller will strictly adhere to the terms of the training agreement and will be glad when it has run its course--meaning that he or she no longer has any responsibility to the buyer.

WHAT THE BUYER NEEDS

There is no standard for a training agreement in a business buy/sell contract. The duration and particulars covering this service provided to buyer by seller are as varied as the individual circumstances of each party’s situation. But as the purpose of the training program is to make sure the buyer is successful in the business--which is in the interests of both sides to the deal--the program should be designed to serve this end.

Many training pacts are based on the assumption that the buyer’s need for information and advice will be most critical right after the company changes hands. That need will most likely decline after a few weeks, as the buyer learns the business operating procedures and gets to know the employees, key vendors and major customers.  Following this principal, training agreements usually call for the seller to spend time a few hours every week--maybe every day at first--with the buyer, until much of the basic information about running the business has been passed along. This initial period might require the seller to be on premises for a while.

A typical program will specify a period for the buyer to receive the most concentrated part of the training to start. That might be defined as a few days or several weeks, depending on the complexity of the business and the experience of the buyer.

The training period or periods that follow, calling for less seller involvement, should also be defined as to length and means of communication. The seller might, for example, be required to provide a “second phase” of training for a period of, for example, six weeks. Typically, the agreement will call for this part to be handled in phone or email conversations and there often is a limitation of, say two or three hours per week. The appropriate subjects for these interactions have to do with problems the buyer is encountering that were not discussed during the initial training period.

If the buyer wants the seller available to answer questions for up to six months or more after close, and if the seller is in accord with this, the fact should be spelled out in the training agreement.

IF THERE ARE PROBLEMS

While most sellers will object to being called on by the buyer to answer questions and to help solve problems after completion of the training program, the smart seller usually will cooperate with the request, at least for a few weeks. It may be annoying for a seller to continue getting calls, but it is easier and less costly than responding to a formal accusation--perhaps in the form of a lawsuit--claiming that the seller has not provided the buyer with the information and advice needed to be successful in the business. And the seller can always consult an attorney, if the buyer’s need continues well beyond the contractual period.

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BizBen viewers top picks yesterday included an Orange County Juice It Up!, an Orangevale Cellular Store, a Fresno Liquor Store, a Santa Clarita Auto Body/Paint Shop, an Orange County Florist And Cafe, as some of the more popular small businesses for sale that were added and reviewed by business buyers, business brokers, agents, intermediaries, and business owners yesterday on BizBen.com.

8/20/08 BizBen Top 20 Selections Included:

1. Juice It Up! Franchise / Juice And Smoothies for sale located in Orange County - Price: $189,000, Adjusted Net: Call. Great Location! Store Sales Up 28%! Great Price!

2. Cellular Store for sale located in Orangevale - Price: $629,999, Adjusted Net: $200,000+. This Has Been The Top Performing Store Since 2004.

3. Liquor Store for sale located in Fresno - Price: $659,000, Adjusted Net: Call. Busy Liquor Store With Low Rent / Long Lease For Sale.

4. Auto Body & Paint Shop for sale located in Santa Clarita - Price: $165,000, Adjusted Net: $120,000. Established Auto Body & Paint Shop In High Growth Area.

5. Florist And Cafe for sale located in Orange County - Price: $225,000, Adjusted Net: $32,000. 30 Yr Old Flower Shop Right Across From A Mortuary.

6. Hospice Service for sale located in Ventura County - Price: $1,500,000, Adjusted Net: $450,000. Hospice Services Quality Care.

7. Bar / Night Club for sale located in Oakland - Price: $275,000, Adjusted Net: Call/Email. Bar/Nightclub Next To Jack London Square/Type 47 & Entertain.

8. Tuneup & Auto Repair Service Franchise for sale located in N. San Diego County - Price: $200,000, Adjusted Net: $60,975. 20 Years As Owner-Operated Tuneup & Auto Repair Service Franchise.

9. Deli for sale located in Roseville - Price: $125,000, Adjusted Net: $35,000. Stanaway Deli @ Rocky Ridge Town Center, Roseville.

10. Salon & Day Spa for sale located in Sacramento Area - Price: $115,000 Ob, Adjusted Net: Call/Email. Busy Salon & Day Spa - Bring Your Best Offer! Must Sell!

11. Fish And Seafood Market for sale located in North County - Price: $125,000, Adjusted Net: $40,000. 1110 Sq. Ft., Great Location, 5 Years In Business. Lots Of Customers.

12. Mailbox, Notary, Business, And Personal Service for sale located in Santa Clara County - Price: $92,500, Adjusted Net: $48,828. Mailboxes, Notary And Many Business & Personal Services.

13. Discount Store, 99 Cents Shop for sale located in Monterey County - Price: $120,000, Adjusted Net: $60,000. Easy To Handle Owner Does Not Work In The Location. On A Busy Main Rd.

14. Flower Shop for sale located in Oakland - Price: $55,000, Adjusted Net: Call. This Property Is Located In The Heart Of Downtown Oakland.

15. Auto Window Tinting, Auto Paint Protection Service for sale located in S. Orange County - Price: $65,000, Adjusted Net: $60.000. Auto Window Tinting, Auto Paint Protection (No Stereos).

16. Ice Cream Franchise for sale located in San Gabriel Valley - Price: $380,000, Adjusted Net: $119,000. Franchise Ice Cream, Very Profitable, Fully Absentee!

17. Mexican Restaurant for sale located in Contra Costa - Price: $150,000, Adjusted Net: $70,000. Large Established Mexican Restaurant On Busy Street.

18. Teriyaki & Sushi Restaurant for sale located in Los Angeles County - Price: $159,000, Adjusted Net: $65,000. Established Teriyaki & Sushi Restaurant Near South Gate.

19. Quiznos Sub Store Fast Food Franchise for sale located in Ventura County - Price: $135,000, Adjusted Net: $70,000. Enjoy An Already Established Quizno’s Sub Store. Excellent Location.

20. Non Emergency Medical Transportation for sale located in Los Angeles County - Price: $329,000, Adjusted Net: $180,000. In Business For 9 Years, Approved By Los Angeles Department Of Transportation.

See all 8/20/08 Newly added listings for sale that were added yesterday!

Reveiw all the past BizBen Top 20 recent results.

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Nuella had excellent credit along with the downpayment required to purchase the retail luggage store she wanted. But it appeared she would be short nearly $50,000 in the working capital she needed to take over. And the credit crunch with the subsequent real estate decline put an unhappy end to her plans to borrow on her home equity for that purpose.

The broker saved the deal with some ideas about getting vendors to help with the financing.

First, the seller agreed to accept a promissory note in lieu of the cash he was supposed to receive for the inventory at close of escrow. Then, two of the suppliers, after meeting with Nuella and examining her solid credit report, said they would be willing to continue supplying merchandise to the store provided the new owner would pay one third of the invoiced amounts upon delivery, and then make regular payments so that no item would go unpaid for more than 90 days.

Thus supplied with the goods she needed, Nuella was able to generate income from the first day she took over the company, and soon had fully paid the obligations, was building a working capital fund and collecting a profit.

EQUIPMENT SUPPLIER HELPS

The vendor who assisted Isaac in completing his purchase of a yogurt business was the supplier of the freezers and yogurt maker that Isaac leased, and had installed when he took over the company. The vendor was motivated by the chance to have a retail showcase for his new models and was reassured to receive--instead of a deposit or downpayment--a security interest in the equipment at Isaac’s pizza restaurant down the street. Meanwhile, the cost of installing the new machinery was borne by Isaac’s brother-in-law, an engineering contractor who was granted a minority interest in the yogurt business. The existing equipment, incidentally, had been pledged by Isaac to a used fixtures dealer in order raise the money needed for the downpayment on the business.

A complicated transaction, indeed. But the seller agreed because he got some cash up front and a note from the buyer. And the escrow holder--after coaching from Isaac’s accountant--was able to figure it out so the paperwork could be completed and the transaction closed to 
everyone’s satisfaction.

OPPORTUNITIES FOR FINANCING CREATIVITY

With media attention directed at celebrity dealmakers and leveraged buyout artists on Wall Street, it’s encouraging to know that there are opportunities for creativity involving small business transactions throughout California.

Experienced business brokers know that many companies providing products and services to a business that is being sold are willing to ”work with” the new owner in order to keep him, or her as a customer.  The “work with” process may involve granting credit to the new owner for products and services to be provided after close of escrow. That gives the buyer--perhaps someone with limited working capital--an opportunity to start generating some cash before the payments come due.

Vendor cooperation can also be in the form of an agreement that payments still due from the seller can be made, over time, by the buyer, instead. Standard escrow closing procedure calls for all debts incurred by the seller to be paid off, so the business can be transferred free and clear to the buyer. A buyer who takes a business “subject to” various obligations that still are due to the seller’s creditors, is effectively using the vendors to help finance the transaction. It should be noted that this only works if the vendors are in agreement with the plan.

A variation on these approaches involves soliciting a company that would like to sell to the newly acquired business. As incentive to get the business of the company being sold, the supplier may be willing to extend credit to the new owner.

And a vendor who is not in a position to extend credit to a new business owner, may be able to prevail on the bank he does business with, to step in and help fund the transaction.

Prospective buyers, frustrated by the mortgage meltdown and increasing difficulty in obtaining SBA loans, might be able “create” needed financing using the company’s suppliers.

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BizBen viewers top picks yesterday included a Los Angeles Fashion Jewelry Company, a Downtown Area Restaurant,  a North Bay Area Retro Diner, an Orange County Catering / Deli, a San Diego County Motorcycle Store, as some of the more popular California small and mid-sized business opportunities for sale that were added and reviewed by business buyers, certified business brokers, agents, intermediaries, and business owners yesterday on BizBen.com.

8/19/08 BizBen Top 20 Searches Include:

1. Fashion Jewelry Retailer, Wholesaler, Manufacturing Company for sale located in Los Angeles - Price: $250,000, Adjusted Net: $96,000. High Volume Fashion Jewelry Store: Retail/Wholesale/MFG.

2. Restaurant & Liquor License for sale located in Downtown Area - Price: $40,000, Adjusted Net: Call/Email. Prime downtown Palm Springs restaurant / bar. Three separate spaces.

3. Classic Retro Style Diner for sale located in North Bay Area - Price: $155,000, Adjusted Net: Call/Email. Classic Retro Style Diner In Downtown Sebastopol.

4. Catering Service & Deli for sale located in Orange County - Price: $55,000, Adjusted Net: $49,900. Deli And Catering In Business Park, Modest Kitchen.

5. Harley Davidson Motorcycle Rental And Retail Store for sale located in San Diego County - Price: $145,000, Adjusted Net: Call/Email. Near Targeted Clientele; Competitive Pricing; Great Street Visibility.

6. Cafe Franchise for sale located in El Dorado County - Price: $375,000, Adjusted Net: $121,506. Easy To Operate Franchise Store. Long History Of Profitable Success.

7. Korean Asian Restaurant With Beer & Wine for sale located in Rowland Heights - Price: $179,900, Adjusted Net: Call/Email. Has A Strong Loyal Customer Base. Asking Price Is Below Market.

8. Preschool/Montessori Center With Real Estate for sale located in SF Bay Area - Price: $1,950,000, Adjusted Net: $315,000. Day Care Center With Real Estate In A Major City In A Bay Area.

9. Rocky Mountain Chocolate Factory Franchise for sale located in San Fernando Valley - Price: $165,000, Adjusted Net: Call/Email. 4 Years Old Brand New Store At Heavy And Busy Foot Traffic.

10. Chinese Buffet Restaurant for sale located in Dublin - Price: $480,000, Adjusted Net: Call. Chinese Buffet New High Volume In Strong Market Below Cost.

11. Garment Manufacturing for sale located in Central Orange Co. - Price: $65,000, Adjusted Net: $60,000. Well Established Newly Revitalized Garment Manufacturing Co.

12. Coffee Shop / Deli for sale located in Santa Clarita - Price: $225,000, Adjusted Net: $150,000. 90% Help Run . Need Family Operation.

13. Cafe And Coffee House for sale located in Huntington Beach - Price: $85,000, Adjusted Net: Call. Great Huntington Beach Cafe And Coffee House.

14. Robeks Juice Franchise for sale located in Los Angeles - Price: $269,000, Adjusted Net: Call. Robeks Juice Franchise In Prime Area.

15. Deli / Sandwich Shop for sale located in Antioch - Price: $27,000, Adjusted Net: $21,000. Deli/Sandwich Shop At A Busy Car Wash W/ Foot/Car Traffic!

16. Mediterranean Restaurant for sale located in Westwood Area - Price: $149,000, Adjusted Net: $41,000. Price Reduced! Westwood Blvd. Restaurant Near Ucla And Office Buildings.

17. Mini Mart for sale located in The Alameda - Price: $159,000, Adjusted Net: Call. This Is A New Mini Mart On The Alameda. Excellent Location.

18. Auto Repair And Modification Facility for sale located in South Bay Area - Price: $70,000, Adjusted Net: $30,000. 4x4, Truck, Jeep- Service, Repair And Modification Facility.

19. Restaurant And Bar, With Banquet Room for sale located in Downtown Area - Price: $199.9K, Adjusted Net: Call/Email. Turnkey Restaurant/Bar (Full 47 Lic.) In Downtown Long Beach. Real Estate Avail!

20. Dry Cleaner Agency for sale located in San Fernando Valley - Price: $75,000, Adjusted Net: $38,000. Same Location For 30 Years. Solid And Long Standing Customer Base.

See all 8/19/08 Newly added listings for sale that were added yesterday!

Reveiw all the past BizBen Top 20 recent results.

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A business category currently generating a great deal of buyer interest involves the operation of facilities catering to an aging American population.

Described in various ways, as licensed care homes, assisted living properties and residential care facilities, these enterprises can be very profitable and offer substantial potential for growth as the market for their services expands.

According to current industry estimates, nearly eight million people require living circumstances which include some degree of assistance. The figure is expected to approach ten million individuals by 2010, and continue to grow in the years following. This is an appealing prospect for entrepreneurs seeking promising business opportunities.

CHARACTERISTICS OF BUSINESSES

Those investigating the industry should be aware there are several business models for companies that deliver services in this area. They include, at one end of the spectrum, the adult day care organizations which do not provide living facilities, and at the other extreme, nursing home operations which employ medical professionals on site, to aid clients living on premises. In between are a number of facilities with limited care for seniors who are full-
time residents, and are able to handle most of their needs, but rely on the staff to handle such tasks as preparing meals and organizing activities. These limited-care operations are of particular interest to investors.

Licensed and highly regulated by the states in which they do business, residential care facilities range in size from one small property with three or four beds, up to a complex of several buildings and 100 or more clients.

Entrepreneurs reviewing businesses of this type for possible purchase will discover that most include the real estate, with pricing influenced by the location and condition of the property along with the amenities offered. A property for sale in an easily accessible locale, that shows well and includes a game room, café and well-equipped exercise facility is more valuable than one which generates the same income but lacks these appealing features. But property is not always available; some licensed care homes are marketed to business buyers with long-term leases, perhaps with the right of first refusal to purchase the real estate if offered in the future.

WHAT TO KNOW

Due diligence should begin by determining the licensing status of a prospective purchase and its record with authorities. Companies that have incurred violations of health, facility maintenance, or record-keeping rules often continue to operate, but may be subject to penalties by government agencies. A prospective new owner should be aware of any such problems because if they are not resolved, he or she may, after purchase, become responsible to pay fines or incur expensive corrections to bring the facility and its operations into  compliance.

Valuation of companies in this industry is based primarily on earnings. These average from 35% to 50% of gross revenues, depending on operating efficiencies and level of occupancy. A facility with clients occupying 85% or more of its capacity will show more earnings as a percentage of gross than a similar-sized operation with only, for example, six or seven of ten beds in use. A company being sold with its real estate commands a higher price than a similarly performing business marketed with only the right to lease property owned separately. However, cash flow generated is usually the largest single factor considered in the determination of business valuation. Appraisers consider properties used for residential care companies similar to hotels and other single-use real estate in the hospitality industry. Rather than the building and its improvements being priced by comparison with residential properties in the area, the real estate used for an assisted living business is valued as a commercial 
property--it is worth a multiple of the earnings generated by the business occupying it.

Industry rules of thumb calculate the value of a residential care business using a multiple of six or seven times annual earnings before deducting interest, taxes and reserves for amortization and depreciation. Another approach is to peg the value in the range of 70% to 80% of the annual revenues averaged over the prior three years.

Interested buyers should become informed about trends in this industry and should recognize that values are expected to grow as demand for this service continues to increase in the future.

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Other Related Blog Posts & Links:

Adult Day Care Centers For Sale In California

Assisted Living Facilities For Sale In California

Home Health Care Agencies For Sale

Business Broker Intermediary Specialists

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255 California small business listings were sold by business owners, business broker intermediaries, & real estate agents between August 11, 2008 and August 17, 2008.

Sales of California small businesses by County include:

Alameda County: 19, Calaveras County: 1, Contra Costa County: 7, El Dorado County: 5, Fresno County: 10, Kern County: 2, Los Angeles County: 52, Madera County: 1, Marin County: 2, Merced County: 2, Modoc County: 1, Mono County: 1, Monterey County: 8, Orange County: 25, Riverside County: 11, Sacramento County: 14, San Bernardino County: 7, San Diego County: 13, San Francisco County: 19, San Joaquin County: 5, San Luis Obispo County: 2, San Mateo County: 4, Santa Barbara County: 3, Santa Clara County: 19, Santa Cruz County: 1, Solano County: 2, Stanislaus County: 6, Tulare County: 3, Ventura County: 8.

Review all business sales stats by County, City, Geographic Area.

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BizBen viewers top picks yesterday included a Northern California ICF Healthcare Service, a Sacramento Area Engineering Service, a Butte County Gas/Wash/Food With Real Estate, a Foothills Area Engineering Service, a Metro San Diego Area Auto Repair/Smog Center, as some of the more popular California small and mid-sized business listings for sale that were added and reviewed by business buyers buying a businesss, business brokers, agents, intermediaries, and business owners looking to sell a business yesterday on BizBen.com.

8/18/08 BizBen Top 20 Search Selections Included:

1. Intermediate Care Facilities With Real Estate for sale located in Northern California - Price: $6,033,000, Adjusted Net: $677,000. Intermediate Care Facilities - 9 Locations With R.E.

2. Civil Engineering, Land Surveying, Consultation, RE for sale located in Sacramento Area - Price: $850,000, Adjusted Net: $213,000. Price Reduced! Long Established. Regional Market With Long Established Clients.

3. Gas Station, Car Wash, C-Store, Real Estate for sale located in Butte County - Price: $3,400,000, Adjusted Net: $285,000. Branded Gas Station, Carwash/C-Store/Real Estate/B&W/Propane.

4. Civil Engineering & Surveying Service With Real Estate for sale located in Foothills Area - Price: $500,000, Adjusted Net: $228,000. Est Civil Engineering & Surveying Firm/With R.E.

5. Full Service Auto Repair Shop, Smog Check Facility for sale located in Metro San Diego - Price: $229,000, Adjusted Net: $89,000. Are You A Real Mechanic Looking For A Real Auto Shop To Own?

6. Submarina California Subs Franchise for sale located in Inland Empire - Price: $349,000, Adjusted Net: Call. Submarina California Subs; Deli Style Sandwiches, Wraps Etc.

7. Childrens Consignment Shop And Fabric Store for sale located in Downtown Area - Price: $35,000, Adjusted Net: Call. Children’s Long Standing Consignment Shop And Fabric Store.

8. Mini Market for sale located in Van Nuys - Price: $35,000, Adjusted Net: Call. Toys , Gifts , Grocerys , Cigarettes , Ice-Cream , Cold Drinks , DVD-Video.

9. Granite Fabrication for sale located in L.A. County - Price: $75,000, Adjusted Net: $150,000. Price Reduced! Granite Fabrication Co. Equipmnt, Bldg, Lease, Customers.

10. Full Service Med Spa for sale located in Pasadena - Price: $950,000, Adjusted Net: $300,000. Huge Client Base, Professional Client Software, Full Staff, Website.

11. Crepe Store for sale located in LA Area - Price: $150,000, Adjusted Net: $60,000+. Well Established Crepe Store In Major Regional Mall.

12. Pizza Restaurant And Bakery for sale located in San Leandro - Price: $19,000, Adjusted Net: Call. Restaurant Established For Over 20 Yrs.

13. Mountain Mike’s Pizza Franchise for sale located in Sacramneto - Price: $120,000, Adjusted Net: Call. Popular Mountain Mikes Pizza Franchise At Very Great Location.

14. Tire Store And Auto Repair Service for sale located in Inland Empire - Price: $475,000, Adjusted Net: $160,000. Great Opportunity To Own A National Franchise.

15. Legal Document Prep Franchise Service for sale located in Marina Del Rey - Price: $225,000, Adjusted Net: $100,000. We The People Franchise, Over 12 Yrs-Same Location, Well Known And Profitable.

16. Beauty Supply Franchise Wholesaler for sale located in Southern California - Price: $800,000 +, Adjusted Net: $250,000. Wholesale Beauty Supply Orange County, Franchise.

17. B2B Direct Mail Advertising Franchise for sale located in San Bern Cnty - Price: $265,000, Adjusted Net: $145,000. Highly Successful B2B Direct Mail Advertising Franchise.

18. Medical Supply Store for sale located in Los Angele Area - Price: $265,000, Adjusted Net: $80,000. Net Annual Income Of 80,000 +. This Medical Supply Company.

19. Japanese Restaurant for sale located in Mission Viejo - Price: $250,000, Adjusted Net: Call/Email. Very Reasonable Price. High Potential. 2,500 S/F.

20. Deli, Cafe, Market for sale located in Goleta - Price: $99,000, Adjusted Net: Call/Email. Deli/Cafe/Market In Beautiful Santa Barbara Area! Good Site!

See all 8/18/08 Newly added listings for sale that were added yesterday!

Reveiw all the past BizBen Top 20 recent results.

   Technorati Tags: business opportunities, businesses for sale, business for sale

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