How to sell a framing business?

[summer]

I am selling my framing business in FL and have advertised it twice in the newspaper. It seems that the only calls I have received were other framers asking financial questions but then just saying they were curious. Other than expensive newspaper advertisements, is there a more effective (and cost friendly) forum or alternative where I will target people that actually are looking to buy an established art business? Obviously, a custom framing business needs to have the right kind of buyer, for instance, creative, mechanical, some carpentry, and design talent. It isn’t for everybody, but for a select type of person its wonderful. How do I find those people? I have wonderful equipment and tons of inventory that I selling for basically the price of equipment and half the value of the inventory, so its certainly priced for a fast sale, so I don’t understand why it hasn’t sold.

Is there anybody else who is selling their business and having the same difficulty? Anybody that can give advise on how to sell a framing business?

[FramerRandy]

You need to get the word out to potential buyers in other parts of the country.
Advertise in a trade journal (not very expensive), also on this forum.
Are you a member of PPFA? If so, you can get the word out there also.
Let your suppliers know that the shop is for sale. They may know of a potential buyer.
Good luck graemlins/kaffeetrinker_2.gif

[CAframer]

Find a reputable business broker ... list your business with them ... you mention your pricing strategy for FF&E and inventory but don't mention your strategy for pricing goodwill ... have you determined a formula for this? Again a reputable broker can help.

[wpfay]

If your business is really salable, your biggest asset is your client list. The second would be a really good lease.
If you haven't either of those, you aren't selling a business, you are liquidating inventory and assets.

There are "business for sale" listings in the back of the trade journals, but if you are balking at the price of want ads in the paper, my guess is that you really don't have that much "business" to sell.

Sorry to be so negative, but the qualifications you listed describe a framer, not a business person. Judging from the lack of response from other framing businesses (you did provide financials?) I would hesitate to be encouraging.

[Julia]

How long has your business been listed for sale?
Julia

[SCFramer527]

Sunbelt Business Brokers - 4207 W Bay to Bay Blvd, Tampa, 33629 - (813) 831-5990

V R Business Brokers - 18302 Highwods Prsrve Pkwy, Tampa, 33647 - (813) 739-8722

Bradway Group The - 1101 Channelside Dr, Tampa, 33602 - (813) 864-6600

And then there is the google search -- "business broker tampa fl" yields 1,450,000 hit. Thank goodness you probably won't have to talk to ALL of them!

[summer]

Waly, you are so right, and I’ll be the first to admit it. I do not take your comments personally or negatively, and appreciate your input. If I were a savvy business person with some marketing acumen, based upon the feedback and referrals from my customers, I would have been able to grow my business at a much more significant rate. I am absolutely so much more a framer than a business person, which is why I have the sale listed as and priced as a liquidation sale, with my customer base and goodwill being a bonus to a buyer if they stay local. Otherwise, the equipment and inventory can be relocated to a new or existing business anywhere in the country. I did contact some business brokers but was told by one that their minimum sale price is $125K and by another whose minimum commission is $12K. I figured if I priced it and sold it as an asset sale, it would be quick and easy, for both me and a potential buyer. I have a friend who is also a framer in a nearby community who had his business for sale through a broker for 3 years, without even so much as a lead. I don’t have 3 years to wait, as other personal obligations are pressing at me. I have been told by friends in the business and my suppliers as well, that I have it priced too low but I have I figured if I priced it at just what I need to get out of it, it would sell quick.

As far as my lease is concerned, the flea market is a good lease, month to month and only $863.00 for 3 large permanent adjoining booths and the mall area in front of my booths. The storefront is month to month also, which is good, because I would encourage a buyer to relocate from here, as there is low visibility and barely any maintenance or upkeep by the landlord. I wouldn’t want a buyer to be tied to this location when there are so many other wonderful locations in the area, which is growing by leaps and bounds with tons of upscale housing developments underway.

Julia, to answer your questions, it has been at the flea market for 5 years, and here in the storefront for just over a year. It was previously run from home and could be run from home again, so long as the buyer has a room for the wizard, which needs a clean area away from sawdust, etc. It has actually only been for sale for about a month, and has been advertised for two weekends only. The rest of my efforts have merely been word of mouth up until now.

Thanks,
Cheryl

[Whynot]

Originally posted by wpfay:
If your business is really salable, your biggest asset is your client list. The second would be a really good lease.
If you haven't either of those, you aren't selling a business, you are liquidating inventory and assets. Wally,

Will you please explain to me why one's client list is his business largest asset? It isn't that his costumers are being forced by any means to bring their future business to the new list owner, nor that old costumers may forget of the old framing shop just because the old guy is no longer there to greet them and the new guy doesn't have a list, right? I have a feeling that there is some truth to what you've said, but I don't seem to get it all by myself.

[pcascio]

As a former owner of a business brokerage, I can tell you from experience that when someone buys a business, what they are really buying is an income.

The question that you as a Seller must ask is: Is the income my business is generating, large enough that someone would pay for the privelage?

If it is not, then you have two choices:

1. Rely on "The Greater Fool" theory - that there is still someone out there who is stupid enough to buy my business.

Or...

2. Sell the assets - equpment, inventory, mailing list ($1-$2/per name is about the going rate, but depends on freshness and what info is included.), etc. BTW, furniture, work tables and fixtures have very little residual value.

http://www.pictureframingschool.com