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”at Amerivest we mean Business!”
Bringing together Sellers and Buyers of Businesses
since 1983!
Serving Clientele from
Main Street to Wall Street
MAIN ST
CONFIDENTIAL
Confidentiality
The Amerivest Selling Process
. Contingency Fee Arrangement - no up front cost, no sale, no fee !
. Competitive Fee Structure dependent on Size of Transaction
. Exclusive Right of Representation for One Year
. Recast Financials to arrive at Highest SDE
. Find Comparable Transactions to arrive at SDE Multiple
. Analyze Qualitative Factors and Adjust Multiple accordingly
. Determine ‘Most Probable Sale Price’ (MPSP) & Terms
. If Real Estate not owned Perform a Lease Analysis
. Obtain Authorization to Commence Marketing
. Prepare the Business Listing Information (BLI)
. Access our Extensive Buyer Databases
. Advertise Generically on 11 Business Brokerage Websites
. Co-operate with over 1000 Professional Business Brokers
Recasting Financials
Recasting
RECAST P&L .
Year
Actual +/- Adjusted # Actual +/- Adjusted #
Revenues
Gross Receipts $1,733,655 $1,733,655 $1,214,596 $1,214,596
Other Income -$94,700 -$2,000 -$96,700 1 -$63,847 -$1,125 -$64,972 1
Total Revenue $1,638,955 -$2,000 $1,636,955 $1,150,749 -$1,125 $1,149,624
Purchases $1,286,550 $1,286,550 $806,079 $806,079
Cost of Goods Sold $1,286,550 $1,286,550 $902,567 $902,567
Gross Profit $352,405 -$2,000 $350,405 21% $248,182 -$1,125 $247,057 21%
Expenses
1 Advertising $1,927 $1,927 $2,080 $2,080
3 Auto/Truck Exp $7,237 $7,237 $3,946 $3,946
6 Bank Charges $1,604 $1,604 $1,381 $1,381
11 Dues/Subscripts $261 $261 $428 $428
12 Equipment Rental $819 $819 $130 $130
16 Insurance $11,228 -$3,000 $8,228 6 $9,690 -$3,500 $6,190 6
17 Interest $814 -$814 $0 4 $824 -$824 4
18 Legal & Account $1,443 $1,443 $2,147 $2,147
21 Office Supplies $490 $490 $1,908 $1,908
22 Payroll Officers $24,000 -$24,000 2 $33,000 -$33,000 2
23 Payroll Employees $87,012 $87,012 $92,306 $92,306
24 Payroll Taxes $9,220 -$1,920 $7,300 3 $12,255 -$2,640 $9,615 3
25 Postage $22 $22
26 Rent $14,007 $14,007 $11,184 $11,184
32 Telephone $7,568 $7,568 $7,020 $7,020
36 Utilities $851 $851 $983 $983
38 Contributions $375 $375
39 Penalties $25 $25
40 Employee Pension $2,128 -$600 $1,528 6 $2,080 -$660 $1,420 6
41 Professional Fees
45
Total Expenses $171,032 -$30,334 $140,698 9% $182,316 -$41,055 $141,261 12%
SDE $181,373 $28,334 $209,707 13% $65,866 $39,930 $105,796 9%
Source of Data
2007
P&L Statement Tax ReturnSource of Data
2008
Analyzing Databases
COMPS & MULTIPLES
Business Type Revenues Sale Price SDE Multiple* Assets**
Equipment Sales & Installation $240,438 $200,000 $80,287 2.5 $78,565
Equipment Sales & Installation $949,079 $575,000 $230,021 2.5 $328,000
Equipment Sales & Installation $1,016,986 $425,000 $163,599 2.6 $375,000
Equipment Sales & Installation $867,762 $338,000 $148,950 2.3 $272,000
Equipment Sales & Installation $295,188 $195,000 $81,032 2.4 $146,054
*Sale Price divided by Seller's Discretionary Earnings ** Assets included in Sale
y = 2.4723x
$0
$200,000
$400,000
$600,000
$800,000
$0 $50,000 $100,000 $150,000 $200,000 $250,000
SDE
SalePrice
MULTIPLE
before
adjustment
Comps & Multiples
Understanding Your Situation
Documentation P&L Statement
Sale Urgency Low
SBA Yes
Owner Financing Average
Working Capital Required Average Unadjusted Multiple 2.472
Business Trend Up
Competition Average Qualitative Factors Adjustment 1.03
Ease of Entry Average
Customer Concentration Low Adjusted Multiple 2.55
Supplier Concentration Average
Owner Dependency High
Other Factors Average
QUALITATIVE FACTORS
SDE $145,118
Adjusted Multiple 2.55
MPSP (Most Probable Sale Price) $369,532
MPSP (Most Probable Sale Price)
Qualitative Factors
Most Probable Sale Price
Protecting Confidentiality
Category : Cleaning SIC : 7349
Detail : Mold Remediation Price : 1,150,000
County : Withheld Down : 230,000
State/Prov : Florida Adj Net : 457,399
Country : USA Sales : 1,145,359
Rare opportunity to acquire a leading franchise of a top national brand in the water/fire damage restoration and mold
remediation industry. Exclusive territories, excellent market position and superb cash flow. Very well-established
relationships with insurance companies. Franchisor provides training. One of Entrepreneur Magazine's top 50 franchise
systems. Solid books and records. This is a preferred franchise that is lender prequalified for 80% financing.
Reason for Sale : Other Business Interests
General Location : South Florida
Organization Type : Limited Corporation Hours Owner Works: 40
: Years Established: 5 Years Owned: 5 Emp FT: 9 Emp PT: 4 Mgrs: 3
Non Compete : Miles: 100 Years: 2 Weeks Training: 4 Cost: 0
Operating dys/hrs : 24/7 365 days
Skills/Licenses : Provided by Franchisor
Business is : Relocatable: N Home Based: N Franchise: Y Lender P/Q: Y
Data Source Tax Return Tax Return Tax Return
Year (Cash Flow) 2006 (N) 2005 (N) 2004 (N)
Gross Revenue 1,145,359 1,315,598 711,223
Cost of Goods 318,945 196,295 55,414
Gross Profit 826,414 1,119,303 655,809
Expenses 536,342 626,636 445,959
Net 290,072 492,667 209,850
Owner Salary 70,000 54,384 72,115
Benefits 63,065 74,173 51,979
Interest Expense 12,099 6,171 2,932
Depreciation 22,163 13,640 9,870
Other 0 56,650 0
Owner Benefit 457,399 697,685 346,746
Accounts Rec 127,000 N* Real Estate 0 N*
Inventory 0 N* ___________ 0 N*
F F & E 250,000 Y* Total Assets 250,000 Y*
Leasehold 0 N* *Included?
Lease/Month: 3499 Square Footage: 3124 Building Type: New Commercial
Terms & Options: Expiration Date: 5/31/2009
Loan/Assumable - Amt: 0 Mos: 0 Rate: 0.00 Mo Pmt: 0.00
Loan/Seller - Amt: 0 Mos: 0 Rate: 0.00 Mo Pmt: 0.00
Loan/Other - Amt: 920,000 Mos: 120 Rate: 10.50 Mo Pmt: 12,414.02
Generic
BLI
Interviewing Buyers
Screening Buyers
. Buyers must first Sign a Confidential Disclosure Agreement
. We ask for a Resume and Net Worth Financial Statement
. Provide more detailed information to ensure Buyer Interest
. Arrange a meeting with You and Buyer
. Present their Offer in the form of an Asset Purchase and Sale Agreement
which you may accept, counter, or decline
. When Agreement is achieved co-ordinate the Due Diligence Process
While you continue to do what you are best at,
namely running your Business,
we interview Buyers on your behalf
Inspecting the Details
Due Diligence Process
• You must Provide all Requested Information in a Timely Manner
• We will Co-ordinate with the Accountants and Attorneys representing you
and Your Buyer
• We will Assist with your Landlord where required in Preparation of a New
Lease or Assumption of Yours if needed
• We will Co-ordinate with 3rd Party Lender if one is used
• Our responsibility is to Guide the Process to the Successful Conclusion
Ensuring that all the Deadlines are Met
Will You be Next?
Acquisition Announcement
$8,000,000
Your Company Name
Acquired By
Private Party
Facilitated by
Amerivest Group
Acquisition Announcement
$8,000,000
Electronics Wholesaler
Acquired by
Private Party
Facilitated by
Amerivest Group
Acquisition Announcement
$27,000,000
Metal Fabricator
Acquired by
PEG/NYSE IPO
Facilitated by
Amerivest Group
Acquisition Announcement
$2,750,000
Industrial Rack Mfg
Acquired by
Strategic Buyer
Facilitated by
Amerivest Group
Acquisition Announcement
$1,300,000
Medical Supplies
Acquired by
Strategic Buyer
Facilitated by
Amerivest Group
Acquisition Announcement
$300,000
Route Sales
Acquired by
Private Party
Facilitated by
Amerivest Group
Acquisition Announcement
$21,000,000
Concrete Equip. Mfg
Acquired by
Recap for Liquidity
Facilitated by
Amerivest Group
Acquisition Announcement
$1,375,000
Nursery/Plants
Acquired by
Private Party
Facilitated by
Amerivest Group
Acquisition Announcement
$575,000
Tax Practice
Acquired by
Private Party
Facilitated by
Amerivest Group
Acquisition Announcement
$710,000
Auto Detailing
Acquired by
Private Party
Facilitated by
Amerivest Grou
Acquisition Announcement
$1,000,000
Moving Company
Acquired by
Strategic Buyer
Facilitated by
Amerivest Group
Acquisition Announcement
$2,000,000
Courier Service
Acquired by
Private Party
Facilitated by
Amerivest Group
Acquisition Announcement
$2,600,000
Sundries Wholesaler
Acquired by
Private Party
Facilitated by
Amerivest Group
Amerivest
Typical Sales
“Will you be
the next?”
Amerivest Listing Agreement
Let’s get Started!
The Next Step
• Just give us Your Okay on our Non-Binding Listing Agreement
• Provide Us with the Required Financial Information
• Await our Presentation of the Most Probable Selling Price
• And if There is Agreement, Authorize us to Commence Marketing
• And if Not, we will Consider our Listing Agreement Null and Void
”at Amerivest we mean Business!”
Corporate Offices:
4800 N Federal Hwy
Suite 100D
Boca Raton, FL 33431
(561) 988-9335
www.AmerivestGroup.com

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Amerivest - What We Do

  • 1. ”at Amerivest we mean Business!” Bringing together Sellers and Buyers of Businesses since 1983!
  • 2. Serving Clientele from Main Street to Wall Street MAIN ST
  • 4. The Amerivest Selling Process . Contingency Fee Arrangement - no up front cost, no sale, no fee ! . Competitive Fee Structure dependent on Size of Transaction . Exclusive Right of Representation for One Year . Recast Financials to arrive at Highest SDE . Find Comparable Transactions to arrive at SDE Multiple . Analyze Qualitative Factors and Adjust Multiple accordingly . Determine ‘Most Probable Sale Price’ (MPSP) & Terms . If Real Estate not owned Perform a Lease Analysis . Obtain Authorization to Commence Marketing . Prepare the Business Listing Information (BLI) . Access our Extensive Buyer Databases . Advertise Generically on 11 Business Brokerage Websites . Co-operate with over 1000 Professional Business Brokers
  • 6. Recasting RECAST P&L . Year Actual +/- Adjusted # Actual +/- Adjusted # Revenues Gross Receipts $1,733,655 $1,733,655 $1,214,596 $1,214,596 Other Income -$94,700 -$2,000 -$96,700 1 -$63,847 -$1,125 -$64,972 1 Total Revenue $1,638,955 -$2,000 $1,636,955 $1,150,749 -$1,125 $1,149,624 Purchases $1,286,550 $1,286,550 $806,079 $806,079 Cost of Goods Sold $1,286,550 $1,286,550 $902,567 $902,567 Gross Profit $352,405 -$2,000 $350,405 21% $248,182 -$1,125 $247,057 21% Expenses 1 Advertising $1,927 $1,927 $2,080 $2,080 3 Auto/Truck Exp $7,237 $7,237 $3,946 $3,946 6 Bank Charges $1,604 $1,604 $1,381 $1,381 11 Dues/Subscripts $261 $261 $428 $428 12 Equipment Rental $819 $819 $130 $130 16 Insurance $11,228 -$3,000 $8,228 6 $9,690 -$3,500 $6,190 6 17 Interest $814 -$814 $0 4 $824 -$824 4 18 Legal & Account $1,443 $1,443 $2,147 $2,147 21 Office Supplies $490 $490 $1,908 $1,908 22 Payroll Officers $24,000 -$24,000 2 $33,000 -$33,000 2 23 Payroll Employees $87,012 $87,012 $92,306 $92,306 24 Payroll Taxes $9,220 -$1,920 $7,300 3 $12,255 -$2,640 $9,615 3 25 Postage $22 $22 26 Rent $14,007 $14,007 $11,184 $11,184 32 Telephone $7,568 $7,568 $7,020 $7,020 36 Utilities $851 $851 $983 $983 38 Contributions $375 $375 39 Penalties $25 $25 40 Employee Pension $2,128 -$600 $1,528 6 $2,080 -$660 $1,420 6 41 Professional Fees 45 Total Expenses $171,032 -$30,334 $140,698 9% $182,316 -$41,055 $141,261 12% SDE $181,373 $28,334 $209,707 13% $65,866 $39,930 $105,796 9% Source of Data 2007 P&L Statement Tax ReturnSource of Data 2008
  • 8. COMPS & MULTIPLES Business Type Revenues Sale Price SDE Multiple* Assets** Equipment Sales & Installation $240,438 $200,000 $80,287 2.5 $78,565 Equipment Sales & Installation $949,079 $575,000 $230,021 2.5 $328,000 Equipment Sales & Installation $1,016,986 $425,000 $163,599 2.6 $375,000 Equipment Sales & Installation $867,762 $338,000 $148,950 2.3 $272,000 Equipment Sales & Installation $295,188 $195,000 $81,032 2.4 $146,054 *Sale Price divided by Seller's Discretionary Earnings ** Assets included in Sale y = 2.4723x $0 $200,000 $400,000 $600,000 $800,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000 SDE SalePrice MULTIPLE before adjustment Comps & Multiples
  • 10. Documentation P&L Statement Sale Urgency Low SBA Yes Owner Financing Average Working Capital Required Average Unadjusted Multiple 2.472 Business Trend Up Competition Average Qualitative Factors Adjustment 1.03 Ease of Entry Average Customer Concentration Low Adjusted Multiple 2.55 Supplier Concentration Average Owner Dependency High Other Factors Average QUALITATIVE FACTORS SDE $145,118 Adjusted Multiple 2.55 MPSP (Most Probable Sale Price) $369,532 MPSP (Most Probable Sale Price) Qualitative Factors Most Probable Sale Price
  • 12. Category : Cleaning SIC : 7349 Detail : Mold Remediation Price : 1,150,000 County : Withheld Down : 230,000 State/Prov : Florida Adj Net : 457,399 Country : USA Sales : 1,145,359 Rare opportunity to acquire a leading franchise of a top national brand in the water/fire damage restoration and mold remediation industry. Exclusive territories, excellent market position and superb cash flow. Very well-established relationships with insurance companies. Franchisor provides training. One of Entrepreneur Magazine's top 50 franchise systems. Solid books and records. This is a preferred franchise that is lender prequalified for 80% financing. Reason for Sale : Other Business Interests General Location : South Florida Organization Type : Limited Corporation Hours Owner Works: 40 : Years Established: 5 Years Owned: 5 Emp FT: 9 Emp PT: 4 Mgrs: 3 Non Compete : Miles: 100 Years: 2 Weeks Training: 4 Cost: 0 Operating dys/hrs : 24/7 365 days Skills/Licenses : Provided by Franchisor Business is : Relocatable: N Home Based: N Franchise: Y Lender P/Q: Y Data Source Tax Return Tax Return Tax Return Year (Cash Flow) 2006 (N) 2005 (N) 2004 (N) Gross Revenue 1,145,359 1,315,598 711,223 Cost of Goods 318,945 196,295 55,414 Gross Profit 826,414 1,119,303 655,809 Expenses 536,342 626,636 445,959 Net 290,072 492,667 209,850 Owner Salary 70,000 54,384 72,115 Benefits 63,065 74,173 51,979 Interest Expense 12,099 6,171 2,932 Depreciation 22,163 13,640 9,870 Other 0 56,650 0 Owner Benefit 457,399 697,685 346,746 Accounts Rec 127,000 N* Real Estate 0 N* Inventory 0 N* ___________ 0 N* F F & E 250,000 Y* Total Assets 250,000 Y* Leasehold 0 N* *Included? Lease/Month: 3499 Square Footage: 3124 Building Type: New Commercial Terms & Options: Expiration Date: 5/31/2009 Loan/Assumable - Amt: 0 Mos: 0 Rate: 0.00 Mo Pmt: 0.00 Loan/Seller - Amt: 0 Mos: 0 Rate: 0.00 Mo Pmt: 0.00 Loan/Other - Amt: 920,000 Mos: 120 Rate: 10.50 Mo Pmt: 12,414.02 Generic BLI
  • 14. Screening Buyers . Buyers must first Sign a Confidential Disclosure Agreement . We ask for a Resume and Net Worth Financial Statement . Provide more detailed information to ensure Buyer Interest . Arrange a meeting with You and Buyer . Present their Offer in the form of an Asset Purchase and Sale Agreement which you may accept, counter, or decline . When Agreement is achieved co-ordinate the Due Diligence Process While you continue to do what you are best at, namely running your Business, we interview Buyers on your behalf
  • 16. Due Diligence Process • You must Provide all Requested Information in a Timely Manner • We will Co-ordinate with the Accountants and Attorneys representing you and Your Buyer • We will Assist with your Landlord where required in Preparation of a New Lease or Assumption of Yours if needed • We will Co-ordinate with 3rd Party Lender if one is used • Our responsibility is to Guide the Process to the Successful Conclusion Ensuring that all the Deadlines are Met
  • 17. Will You be Next? Acquisition Announcement $8,000,000 Your Company Name Acquired By Private Party Facilitated by Amerivest Group
  • 18. Acquisition Announcement $8,000,000 Electronics Wholesaler Acquired by Private Party Facilitated by Amerivest Group Acquisition Announcement $27,000,000 Metal Fabricator Acquired by PEG/NYSE IPO Facilitated by Amerivest Group Acquisition Announcement $2,750,000 Industrial Rack Mfg Acquired by Strategic Buyer Facilitated by Amerivest Group Acquisition Announcement $1,300,000 Medical Supplies Acquired by Strategic Buyer Facilitated by Amerivest Group Acquisition Announcement $300,000 Route Sales Acquired by Private Party Facilitated by Amerivest Group Acquisition Announcement $21,000,000 Concrete Equip. Mfg Acquired by Recap for Liquidity Facilitated by Amerivest Group Acquisition Announcement $1,375,000 Nursery/Plants Acquired by Private Party Facilitated by Amerivest Group Acquisition Announcement $575,000 Tax Practice Acquired by Private Party Facilitated by Amerivest Group Acquisition Announcement $710,000 Auto Detailing Acquired by Private Party Facilitated by Amerivest Grou Acquisition Announcement $1,000,000 Moving Company Acquired by Strategic Buyer Facilitated by Amerivest Group Acquisition Announcement $2,000,000 Courier Service Acquired by Private Party Facilitated by Amerivest Group Acquisition Announcement $2,600,000 Sundries Wholesaler Acquired by Private Party Facilitated by Amerivest Group Amerivest Typical Sales “Will you be the next?”
  • 20. The Next Step • Just give us Your Okay on our Non-Binding Listing Agreement • Provide Us with the Required Financial Information • Await our Presentation of the Most Probable Selling Price • And if There is Agreement, Authorize us to Commence Marketing • And if Not, we will Consider our Listing Agreement Null and Void
  • 21. ”at Amerivest we mean Business!” Corporate Offices: 4800 N Federal Hwy Suite 100D Boca Raton, FL 33431 (561) 988-9335 www.AmerivestGroup.com