Information for Business Buyers

1. A Business of Your OWN SUNBELT ® Business Brokers If you’re never going to be President of the company you’re with, you may need a new company!

11. Cash Flow = Seller’s Discretionary Cash $ = Buyer’s Discretionary Cash Less 25%* - Your Acquisition Cost $ = SELLER’S DISCRETIONARY CASH $ + Net Profit (Loss) from P&L $ TOTAL ADJUSTMENTS $ b. Amortization $ a. Depreciation $ Non-Cash Expenses $ Non-Recurring Expenses (explain) $ g. Owner(s) Personal Expenses paid by the Business $ f. Owner(s) Benefits and Perks $ e. Entertainment $ d. Interest, if not applicable $ c. Insurance (excess) $ b. Travel $ a. Auto Expense $ Discretionary Expenses, if included in expenses $ Owners(s)/Officers Salary, if included in expenses Addendum to P&L Summary

12. Example: 36,000 Annual Net X 12 3,000 Monthly Cash Flow (1,000) 25% for Debt Service 4,000 Mo. Cash Flow 30,000 1/3 down $100,000 Sales Price

20. Brokers Do… drive you to the closing! We’ll even Present Facts Arrange & facilitate Franchisor meeting Aid in your meeting your Landlord Coordinate any inventory tabulations Bridge gap between you & Seller Provide tips & resources on incorporating & starting out Negotiate Identify professional support - attorneys, accountants, & appraisers Educate Facilitate funding your purchase with either the Seller or Lenders Save you Time & $$

25. And with the. . . Keys in your pocket! Documents signed. You Are In BUSINESS Congratulations!