Category Archives: Uncategorized

Florida Gets Major Benefits from New Residents

Florida is the top beneficiary of people relocating from other states according to data from the U.S. Census Bureau for 2018. The Sunshine State has been a popular destination for retirees (72% aged 55 and older) due to low taxes and affordability. High tax states such as New York, Connecticut and California have lost a lot of higher net-worth individuals over the last several years.

A Lending Tree study from 2016 showed that Florida had a net influx of $17.7 billion in adjusted gross income (AGI). $30.2 billion in income moved in and $12.5 billion in income moved out. People aged 45 to 54 were also a large segment of people contributing to the increased AGI. The data shows that the trend will likely continue since several states and localities continue to deal with onerous tax burdens.

Florida will not only benefit from the influx of movers bringing increased tax revenues, but it will continue to grow with new business activity. Established businesses and new start-ups will continue to increase due to the affordability of land, labor and capital in Florida. A sunny outlook indeed!

For more information, click on the article by Brittany De Lea: https://www.foxbusiness.com/economy/florida-income-american-movers

Freeport, FL, the New Hotspot in Walton County

Many know that Walton County is the fastest growing county in Florida right now. What many people may not know is that the rural area of Freeport could become the hotspot of Walton County. State Rep. Brad Drake, state Senator George Gainer and Freeport Mayor Russ Barley have discussed the town’s future and believe that the area could nearly triple in size in 10 years from 6,000 to 15,000.

In the article “Officials Foresee Economic Boom in Freeport”, Rep. Drake says, “South Walton is a very attractive choice because of the beaches, and Freeport is equally as attractive with the pristine waterways, the Choctawhatchee Bay and all the special tributaries that we have that make our area uniquely beautiful.” Many South Walton visitors learn about the area when they travel through the gateway of Freeport on the newly expanded 4 lanes of Hwy. 331.

Freeport’s master-planned community of Hammock Bay continues to grow. They house almost 4,000 of Freeport’s 6,000 residents. The development of three new subdivisions and an apartment complex are also underway. Several national stores and restaurants have opened in Freeport in the last 2 years. Freeport’s infrastructure is also growing and improving. Freeport is upgrading its wastewater treatment plant with 14 million dollars in grant money. The future definitely looks bright for Freeport and Walton County.

For more information, read the article by Nathan Cobb.

https://www.nwfdailynews.com/news/20190623/officials-foresee-economic-boom-in-freeport

Entrepreneurs Grow and Develop at the University of West Florida

The University of West Florida Center for Entrepreneurship was developed to promote entrepreneurial spirit, provide mentorship and influence economic growth. Dr. Ranelli, the center’s director, said, “… our first objective was to create a buzz for entrepreneurship among students on campus.”

The center sparks innovation by inviting local successful small business owners to share their stories in Wed. night Forums. The Idea Space at the center also hosts coaching sessions for the annual Da Vinci Innovation Celebration competition. In 2018, UWFCE sent graduate students to a national Masters-level case competition. The students had to apply their class management strategies to solve “an internal problem” for a NASDAQ company. UWF won second place! The center also provides a Job Shadow program where 50 local CEOs allow students to shadow them for a typical corporate day.

Dr. Ranelli believes that the students that are exposed to these interactions and mentorship with small business owners receive benefits that also extend into the greater community. For more information, read the following article from:

https://www.850businessmagazine.com/uwf-center-grooms-entrepreneurs-for-success/

Business Seller, Should You Hire an Intermediary?

If you are a business owner and you are considering selling your business, what are you looking for in a business intermediary? Interview your candidates and have them walk you through their process and approach. Ask about their experience in selling businesses, and about the businesses in your industry. How do they target the buyers for your business? Will you be comfortable working through the marketing and due diligence process with them?

When selling your business consider who will be answering the following questions that Brent Beshore asks in his article, “Should You Hire an M&A Advisor to Sell Your Business?”

  • Who will source and vet potential buyers? (phone calls, buyer/seller meetings & site visits)
  • Who will gather the history of my business including detailed financials, customer and vendor contracts, employment and real estate agreements and legal actions.
  • Who will negotiate the deal? (the letter of intent, due diligence and final paperwork.)
  • Who will keep me emotionally in check during this whole process?
  • Who will be proactively pushing the deal forward on my side?

If you’ve never completed a transaction like this from the selling side, you might want to consider engaging an experienced and knowledgeable intermediary. Emerald Coast Business Intermediaries would like to sit down and discuss an exit strategy with you.

For more information, click on the following article:

Should You Hire an M&A Advisor to Sell Your Business?

 

Ready to Sell? – Make Sure You’ve Built Your Market Value and Improved Your Cash Flow

 


Brian Mazar, from Louisville, Kentucky and a friend of our Manager/Broker, Jeff Moody, discusses the key points that business owners need to address before selling their business. In his article for Divestopedia titled “When is the Best Time to Sell My Business?”, Brian recommends how to prepare for the sale of your business by building market value and improving cash flow.

Even in a strong national economy, owners need to build market value by doing the following:
     * Have clean and verifiable financial statements for the last 3 years
     * Have SOPs (Standard Operating Procedures) documented and in place
     * Resolve and eliminate liabilities or liens
     * Make sure company equipment and the facility are maintained and in good operating
       condition              
     * Secure key employees with employment agreements
     * Eliminate non-contributing employees
     * Have a management team that can operate without the current owner
     * Add more customers to your base if you are relying on 1-2 large customers
Improve cash flow:
     * Reduce unnecessary inventory
     * Collect outstanding receivables
     * Renegotiate key supply contracts with more favorable terms
     * Reduce personal adjustments on income statements
     * Make sure financial controls are established

These recommendations are vital to allow potential buyers to see your business in the best possible light and help you to get the sale price you want.

For more information: https://www.divestopedia.com/2/4648/pre-sale/preparation/when-is-the-best-time-to-sell-my-business

 

The Revival of New Main Street Small Businesses

In an article written for Entrepreneur magazine by Kabbage’s Co-founder and CEO, Rob Frohwein, Rob predicts that “by 2025 a whole host of small businesses that once thrived on Main Street USA will be back with a vengeance—thanks to technology.” He says the new and not so new technologies and services are supplying small businesses with valuable tools in online marketing, financing, purchasing and fulfillment that enable them to compete with the larger online companies.
A Pew Research study shows that almost 24% of American adults have earned money in the online economy over the last year. Point of Sale systems and mobile apps, as well as platforms used by such companies as Uber and Airbnb, provide little or no capital investment along with flexibility and control.Frohwein goes on to say that millennials (people born between 1981 and 1996) will be important in the small business revival. A survey by Coldwell Banker Commercial found that almost 40% of millennials would support small businesses when making buying decisions. Another study by Small Business Development Centers found that 26% of millennials had made their total income from a small business. The study also found that 49% of millennials would like to start their own business in the next three years.

Rob believes that with the tools available today to support small business, along with the millennial generation’s entrepreneurial spirit, Main Street USA will be “bigger (or smaller) and better than ever!

For more information, read Mr. Frohwein’s article: “The New-Old Adage for Main Street 2025? The More Things Change, the More They Stay the Same.”

https://www.entrepreneur.com/article/311408

 

ECBI Statement on Hurricane Michael

ECBI Statement on Hurricane Michael

Please view the video at the link below:

https://youtu.be/xJ05Hu0cTWc

We wanted to let you know that all of our team is safe, and our offices were undamaged in the largest hurricane to ever make landfall in the Florida Panhandle. At the same time we are asking for your prayers and support of our friends to the East in Panama City, Mexico Beach, Apalachicola and inland up through the panhandle and into Alabama, Georgia, the Carolinas and beyond. Hurricane Michael was a tremendously powerful storm that caused massive destruction all along its track. Our area is strong, already helping with Hurricane Michael relief, and will come back stronger than ever. Please join us in helping the rebuilding efforts on the Northern Florida Gulf Coast and beyond.

Let us know if we can help you find or sell a business in this wonderful area.

 

The Importance of Goodwill in a Business’ Value

The value of a business is not solely based on the accumulation of its tangible assets that can include equipment, machinery or buildings (a physical property with value). Many times, more than 50% of the value of a business is attributed to intangible assets and goodwill (not physical by nature). A business is valued by its ability to produce cash flow steadily. The goodwill value reduces the risk that a business’ profitability will stumble if the ownership changes hands.

Some important contributors to goodwill are:

Reputation                                        Brand name recognition

Websites & domain names            Trade Secrets & recipes

Customer & supplier lists               Copyrights, trademarks & patents

Licenses & permits                          Contracts

Production/Order Backlog             Accreditations

Developed processes                      Proprietary designs & know-how

Customized software                      Step-by-step training systems

Customized databases                    Publishes articles

Employee skills & experience

All of these powerful assets of goodwill add to the revenue producing ability of a business. Sometimes buyers don’t understand the value of goodwill because it is not an asset that they can always put their hands on. It is important to define the goodwill of a business when determining its value.

For more detailed information on Goodwill, please read the following article:

https://www.divestopedia.com/how-goodwill-impacts-business-value/2/1090?utm_campaign=newsletter&utm_medium=best&utm_source=08082018

 

 

 

New, Expanding and Award-Winning Businesses on the Emerald Coast

Loxley, AL

The Kaishan Group will be building an air compressor plant with a capital investment of $11 million. It will open with 62 jobs in a 65,000 SF building. The Loxley plant will be a “beachhead for both North and South America,” according to Keith Schumacher, CEO of Kaishan Compressor USA. The company says it is China’s No. 1 air compressor company and the world’s 3rd largest manufacturer of air compressors.

Milton, FL

Family owned Fabbro Marine Group Inc. has expanded to a new 78,000 SF facility in Santa Rosa County Industrial Park East. The 30-year-old company, which produces Cape Horn fishing boats, outgrew its old facilities and wanted to remain in Milton. VP Tyler Cesar credits their employees for their success.

Mossy Head, FL

Mossy Head Industrial Park, located between US 90 and I-10, has taken off in just the last couple of years. It is 75% developed with big-rig dealer Empire Truck Sales, Southern Tire Mart, 2 large distributors, a motel, 2 fast food enterprises and Love’s Travel Stop and Country Store. The initial building of Love’s spurred the development of the Industrial Park.

Bay County

GKN Aerospace plans to open a parts manufacturing facility at VentureCrossings near the Northwest Florida Beaches International Airport. The company will have at least 170 full-time employees by the end of 2020.

Crestview, FL

American Elite Molding has been recognized as the Florida Manufacturer of the Year! American Elite Molding is the leading manufacturer of nylon cable ties that was established in 1998.

Pensacola, FL

VT Mobile Aerospace Engineering, Inc.’s new $46 million aircraft maintenance, repair, and overhaul facility is open at Pensacola International Airport. The company performs these services for passenger and freight airlines. The business will be bringing 400 jobs to Pensacola.

 

BP Settlement Money Starts Flowing to the Panhandle

Jim Turner, with News Service of Florida, reports the first installment of the BP settlement money will be distributed by Triumph Gulf Coast’s board of directors. More than $18 million will be given out once terms are negotiated between the local areas receiving funds and the state regarding performance requirements.

On June 12, Triumph Gulf Coast approved the final contract for $10 million to the Port of Panama City to help develop new terminal facilities. In April, it was reported that $1.5 million will go towards water and sewer lines in a new industrial site in North Okaloosa County. $6.75 million will go to career and technical education programs in Wakulla and Escambia counties.

The Port of Panama City, which is receiving additional funds from other programs, will eventually employ 140 additional jobs. This project will also bring another 250 manufacturing and distribution jobs.

This is just the start of an educational and economic boost for the 8 Panhandle counties that will be receiving funds over the next several years!

For more information read:

http://www.850businessmagazine.com/Blog/News-2018/BP-Settlement-Money-Starts-

http://www.nwfdailynews.com/news/20180613/almost-400-new-jobs-coming-to-panama-city