AboutRobert Doblmeier, M.Sc. Expertise I am happy to answer questions about Small Business Sales i.e. Small businesses with Gross Sales in the 250K to 50 million dollar range. The business must be privately or closely held(no publicly traded companies).
Experience Why me? I am a full time business broker with a 14-year history in real estate in New York and Florida. I taught the New York State Licensing course for 2 1/2 years. I am the winner of VRs’ Prestigious Bronze Award for 2006, and a major reason my office won the Centurian Award in 2006. After just seven months in this office, I closed the deal that resulted in the largest single commission in our offices’ history, a record that stood for over 1 full year. I am an instructor for the Small Business Development Administration, teaching a course I designed and created called "How to Buy a Business". I am a Certified Networker and have won the Notable Networker Award three times in one year. I am also an instructor for the Referral Institute, teaching the Referral Pipeline course. In 2006, I was nominated to the Presidents' Business Advisory Council on Small Business. Most importantly, I have amassed a large database of recognized professionals that can facilitate your transaction.
Organizations The Referral Institute, Business Networking International, International Business Brokers Assoc., German American Business Council,
Publications Small Business Development Corp. and various private newsletters.
Education/Credentials B.Sc. Stockton College, M.Sc. Long Island University,
Awards and Honors Centurion Award for 2006, Bronze Award for 3Q 2006, Recognition for the First SBA loan done in the Office.
Past/Present Clients I can not , for reasons of confidentiality name past or current clients. I can name industries where I have facilatated a transaction: marine, furniture, beauty industry, education, food service, automotive, home improvement, construction, and tax industry.
Question I am selling a seasonal business. Most of the revenue comes in over a 6 week period early in the year, but expenses occur all year long. How are the income and expenses divided betweeen buyer and seller on schedule C when a business is sold mid-year?
Answer Generally speaking, It is the buyers responsibility to have adequate working capital to cover necessary expenses. This includes seasonal businesses, So timing the purchase is very important. Many time businesses are bought prior to the cash flow season.
Example Florist are usually sold around November. You capture the cash flow for Thanksgiving, Christmas all the way through to Mothers Day. But If you purchase after Mothers day Its a cash flow dessert until next November.
Seller will be reimbursed all prepaid expenses pro-rated at the close. Unless these are concessions the seller made in the contract.
Both of you would deduct your expenses as per the sale as allowed by law. Seller deducts brokerage and accounting fees where applicable, Buyer deducts fees of incorporation and due diligence as normal expenses. Any CPA worth his salt should be able to guide both parties correctly.
