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Embracing failure as a natural part of the journey allows you to take risks without the fear of making mistakes. Don’t have paralysis by analysis.

In a world that often celebrates ease and comfort, there is immense value in deliberately choosing to tackle hard things. The process of challenging one self, stepping out of comfort zones, and pursuing difficult goals fosters growth, resilience, and a deeper sense of accomplishment. One personal example of this is my experience with writing and staging a reading of a musical I wrote “In Between 48th Street”. It was no doubt one of the most difficult yet rewarding endeavors I had ever undertaken.

From the initial formation of the concept to writing the script, lyrics, songs (with the help of my partner Steve Sloane), recording and editing demos, to the intense rehearsals and the final stage reading, the multiyear journey of bringing “In Between 48th Street” to life was fraught with obstacles. The complexities of coordinating with actors, directors, and musicians was a huge lesson in human resource management. Despite these challenges, the process was transformative. It demanded creativity, perseverance, and a willingness to face and overcome numerous setbacks.

Over the years, I have started and purchased several businesses, each with its own set of challenges. Navigating the entrepreneurial landscape requires not only a strategic mind but also the courage to take risks and the tenacity to bounce back from failures. Additionally, serving on charitable and industry boards has presented its own unique difficulties, requiring diplomacy, leadership, and a deep commitment to making a positive impact. Writing books has been another arena where I have continually pushed myself. Crafting a book demands a significant investment of time, energy, and emotional labor. Yet, the sense of achievement that comes with holding a finished book in one’s hands is unparalleled.

For anyone looking to tackle hard projects, there are several strategies that can make the journey more manageable.

Seeking out experts and mentors can provide invaluable guidance, motivation, and insight. YouTube is also rich with educational videos and how-to guides on just about anything. Finally, enrolling in private lessons, online schools, or attending conferences (of which I did each) can of fer new perspectives and techniques that will enhance your ability to succeed. Additionally, breaking down large projects into smaller, more manageable tasks can prevent you from feeling overwhelmed. Setting realistic milestones and celebrating small victories along the way can keep you motivated and focused. We often use tools like Slack and Trello to keep track of to-do lists and task assignments.

The benefits of pursuing difficult tasks extend far beyond the satisfaction of achieving your goals. Engaging in difficult projects cultivates resilience, enhances problem-solving skills, and builds confidence. Each challenge adds to your experience and strength, which can be drawn upon in future endeavors. Moreover, the process of striving and even failing teaches you valuable lessons about perseverance, adaptability, and the importance of persistent determination. Failure, though often feared, is a crucial component of growth. Each setback provides an opportunity to learn, adjust, and improve. Embracing failure as a natural part of the journey allows you to take risks without the fear of making mistakes. Don’t have paralysis by analysis.

In conclusion, choosing to do hard things in life is a powerful way to foster personal and professional growth. Whether it’s writing a musical, starting a business, or any other challenging endeavor, the process shapes you in profound ways. By seeking expertise, embracing continuous learning, and maintaining a resilient mindset, you can navigate the difficulties and emerge stronger, wiser, and more accomplished. Ultimately, it is the pursuit of these hard things that leads to a more fulfilling and enriched life.

Reflecting on a Remarkable 2024 for BBF

As we approach the end of 2024, it’s hard to believe how quickly this year has flown by. It has been an incredible honor to serve as your State Chairman for the Business Brokers of Florida (BBF). This year has been a remarkable one for our organization, and I am proud of what we have accomplished together.

Throughout 2024, BBF members across the state demonstrated resilience, dedication, and innovation, ensuring our industry remained strong in the face of changing market dynamics. We’ve seen a continued demand for business brokerage services, driven by a robust economy and an increasing number of entrepreneurs eager to buy and sell businesses. This year, Florida once again proved to be one of the best states for business transactions, and BBF played a significant role in facilitating those opportunities.

One of our key achievements this year has been improving communication and collaboration among our members. By strengthening our networks and sharing best practices, we’ve fostered a culture of excellence that benefits brokers and clients alike. Our educational initiatives have also expanded, providing members with more tools and resources to excel in their practices.

Additionally, we hosted outstanding events this year, including regional meetings and statewide gatherings that were not only informative but also energized our community. These events reinforced the core values of BBF and reminded us all of the importance of staying connected and informed in this competitive industry.

Looking ahead to 2025, I’m filled with optimism. While 2024 has been a banner year, there is still much work to be done to ensure the continued success of our organization and the industry at large. The new year brings opportunities to expand our reach, enhance our educational programs, and strengthen the bonds between brokers across the state.

As we prepare for the challenges and opportunities of 2025, I encourage all BBF members to stay vigilant and focused on their businesses. The work we do is not only rewarding but also critical to the entrepreneurial spirit that drives Florida’s economy. Let’s remain dedicated to our clients, our craft, and each other as we build another exceptional year together.

Thank you for your commitment to BBF and for making my first year as State Chairman such a memorable and successful one. Here’s to a prosperous and dynamic 2025!

What is working capital? Working capital represents the short-term liquidity and financial health of a business. Positive working capital can indicate the business is well-managed and financially stable. Working capital is the money available to meet current, short-term obligations. It is calculated by subtracting short-term liabilities from short-term assets. Short liabilities include accounts payable, salaries, taxes, and other debts/accrued expenses. Short-term assets include cash, accounts receivable, and inventory that will be converted into cash within twelve months.

Oftentimes, sellers are taken by surprise when a buyer demands a specific amount of working capital to be included in the sale price of a business. In lower-middle-market valuations based off EBITDA multiples, working capital is included in the price. In main street business valuations based off SDE multiples, working capital is not included in the price. However, with a stumbling economy, more sophisticated lower-middle-market buyers are reaching down into main street businesses and applying their expectations to main street acquisitions. So, why would a buyer want to include working capital in the acquisition?

Here are seven reasons why a buyer may expect working capital to be included:

It is important to note the inclusion of working capital in the sale price should be clearly defined in the purchase agreement. Both parties should agree on the methodology for calculating the working capital amount, any adjustments, and the target working capital amount at the time of the sale. Proper due diligence is crucial to ensure the working capital included in the sale price accurately reflects the needs of the business and is fair to both parties.

Sources: Bank of America and Chat GPT

In light of the devastation from Hurricane Helene, we want to provide some information that may be helpful in providing assistance to businesses that have been affected by Hurricane Helene.

For 7(a) loans that are not sold on the secondary market, Lenders may:

For 7(a) loans that are sold on the secondary market:

Payment Deferment:

Any payment modifications, changes to the loan amount, interest rate changes, extensions of maturity, and deferments over 90 days (cumulative):

References for the above actions:

Please help us spread the message about SBA Disaster Assistance:

SBA is in the process of putting together a communication outreach for Hurricane Helene disaster survivors.

Meanwhile, please help us spread the word…

Please call 800-659-2955 (TTY 711) with questions. Once a business has applied for a loan, the applicant may ask questions through the My SBA Portal.

When considering new 7(a) loan applications:

Subordination of SBA Disaster loans:

For SBA Lenders requesting subordination of a lien securing an existing SBA COVID-EIDL or Disaster Loan:

Upcoming 7(a) Connect Quarterly Update on Oct. 8th:

Please join us on Tuesday, Oct. 8th at 3:00 Eastern using this link. We will have SBA subject matter experts on all of the above to discuss this and other information and to answer questions.

In the current market of business sales and acquisitions, private equity groups (PEGs) are some of the most active buyers of mid-market companies. They are placing a growing emphasis on what is commonly known as “industry roll-ups” – a strategic merging of multiple companies within the same market or vertical.

This has been a growing trend throughout the state since the beginning of this year and could present some big opportunities for Florida business owners looking to sell. At the same time, sellers need to be well informed about how roll-ups work, so they can properly protect themselves during the sale process.

Understanding Industry Roll-Ups

Industry roll-ups involve a buyer, often a private equity group or another financial entity, acquiring several companies within a specific industry, usually one approaching maturity. These acquired entities are then integrated or “rolled up” into a single overarching company.

According to Investopedia, private equity firms use roll-up mergers to streamline competition in crowded or fragmented markets and to combine companies with complementary capabilities into a comprehensive business entity.

Buyers like industry roll-ups because they help them achieve substantial, rapid growth and increase market presence in a relatively short period of time. Investors who acquire businesses with the roll-up method can consolidate back-office functions, allowing them to increase overall revenue without increasing overhead. This helps increase the per-company return on investment much more than if a business was purchased on its own.

Benefits of Industry Roll-Ups for Business Sellers

Selling a business as part of an industry roll-up can offer sellers advantages not typically found in conventional sales processes. The competitive dynamics of multiple PEGs pursuing roll-up strategies in the same industry can drive up the selling price due to heightened buyer interest. More buyers lead to increased leverage for the seller.

Even more importantly, roll-ups give sellers the opportunity to realize additional profits by opting to “roll equity” in the transaction. In a typical roll-up scenario, sellers receive a combination of cash and shares in the holding company in exchange for their ownership stakes in the acquired companies. This arrangement can potentially yield substantial returns in the long term.

To clarify the concept of rolling equity, here is an example. Instead of selling your company for 100% cash, you decide to receive 75% of the value in cash, then roll 25% of the value in the roll-up. Five years later, after more companies have been added to the roll-up, the combined company sells for a lot more money, and you, as one of the individual sellers, can cash out.

Considerations When Selling a Business

While industry roll-ups present enticing opportunities, sellers must exercise caution. Unlike conventional sales, where buyers typically drive the due diligence process, sellers must also scrutinize the buyer’s capability to execute successful acquisitions and ensure post-purchase earnings growth.

As a seller, it is important that you are comfortable with the buyer’s strategy and track record in executing roll-ups. Some key items to ask about include the buyer’s experience in the industry, their past roll-up endeavors, integration plans for acquired companies, and your continuing role within the new entity. Make sure you gain an understanding of how many deals the buyer has executed and the value those deals have created. With respect to the current roll-up, ask about the number of companies that are included and specifically which ones.

Navigating the complexities of industry roll-ups requires the involvement of a seasoned M&A professional, such as a business broker. A broker can navigate you through the intricacies and potential risks associated with roll-up transactions. Do not underscore the necessity of expert guidance in this type of transaction. If you are not an expert on roll-ups a small mistake can prove to be very costly. Choosing the right professional to guide you through the process can significantly improve the chances of a successful and lucrative transaction.

If you are considering the sale of your business in the near future, or even within the next few years, it’s important to understand what your options are, and what type of buyers your business may appeal to. Unless you’ve sold multiple companies, getting a holistic picture of the entire process can be overwhelming.