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Buy A Business, Buy A Job
With his wife, he moved south, settling first in Savannah, Georgia. Valk's initial idea was to consult, engaging in short-term assignments helping companies with finance and management issues. When that didn't work, and Savannah's appeal as a business center began to fade, Valk started looking in June 1995 for a business to buy in north Florida. "I was looking for an ongoing business with a reasonable return to the owner operator," he says.
To find the right company, Valk searched the Internet, contacted Florida business brokers and put together his down payment and cash flow requirements. As for what type of business to buy, Valk wasn't sure. But he didn't want a gas station or convenience store.
Enter M.B. Ben Ossi, president of Corporate Business Investments, a Jacksonville business brokerage firm. Ossi suggested the door company in the fall of 1995 when he learned of Valk's interest in home renovation.
What Valk found at Fimbel was a 20-year-old company that generates about $500,000 in revenues by focusing on two niches, sales and installation of garage doors to residential customers and entry doors to both residential and commercial customers. Although based in Jacksonville, Fimbel has customers in four north Florida counties.
Fimbel's seller was Gerald Veal, 58, owner of the company for 17 of its 20 years. He listed the business with Ossi in January 1995, deciding that he wanted to take a breather from the day-to-day responsibilities of owning a business. Like many owners, Veal cited confidentiality as a prime reason for working with a broker. "I asked for it to be done quietly," he says, adding, "It was difficult to keep employees from knowing about it."
The deal took only about two months to close. The original price didn't fly because Valk wanted to keep enough cash available for working capital. Finally, he got the business down to the low six figures. Valk put two-thirds down in cash with one-third financed through a seller's note that he will repay in five years.
Now, after a year of running the business, Valk is pretty content. He does miss the contact with other professionals, but overall there have been no major surprises. Because Valk and his wife have only one employee, they do much of the nitty-gritty work themselves. "We do everything from clean the floor to dealing with all the relevant business issues," says Valk, adding, "We fully expected to get our hands dirty."
SCAMS
Buyer Beware
Anyone looking to buy a new business or franchise should keep in mind the old saying: "If it sounds too good to be true, it probably is." Late last year, the Federal Trade Commission (FTC) and state officials took legal action against more than 75 operators of get-rich-quick schemes, including 17 in Florida. The crackdown, termed "Operation Missed Fortune," led to complaints in federal district court against 11 of the schemes, three of which are based in Florida:
ComTel Communications Global Network, North Miami Beach. This pay telephone business sells franchises for $12,756 to $41,320 and allegedly made false earnings claims and violated the FTC's Franchise Rule governing disclosure requirements.
Majors Medical Supply, Boca Raton. This home medical equipment sales franchise operation sold territories for up to $35,000. It also allegedly made false earnings and start-up costs claims and violated the Franchise Rule.
Precision Communications Administration, Orlando. It offered pay-per-call business opportunities for $640 to $2,236 and allegedly made false earnings and assistance claims.
For brochures on how to avoid a business scam, contact the FTC at 1-800-554-5706 or via the Internet at http://www.ftc.gov.
