You’re Invited!!!

As a member of the Board of Directors for this wonderful organization, Gary Rayberg would like to invite you all to join us for a very special event!

Register Now for A Worthy Celebration
November 30th, 2017

Surprises, shopping, and more!

We are counting down the days to the Worthy Celebration!

Our team has been working tirelessly behind the scenes to prepare for the launch of an exciting new campaign celebrating our programs, supporters and volunteers! As you know, Worthy Village is all about empowerment and sustainability. This campaign will empower the Worthy Village network to generate support and awareness for our vital programs in rural Guatemala. We are so excited to bring this to our community live at our landmark event!

Our 2017 event will feature a fresh, new product line, just in time for holiday shopping. Our new line of ethically produced, fair trade products is truly a testament to the talent and dedication of our artisan partners. Our work would not be possible without these women and we are so excited to showcase their artistry.

Thanks to our dedicated community of supporters, the 2017 live auction is sure to please the foodies, artists, athletes, sports fans, and adventurers in the crowd…and the competition is sure to be fierce! There is still time for you to get involved! Help us expand our impact in rural Guatemala by donating an auction or raffle item to our event. If interested, please contact us at info@worthyvillage.org!

REGISTER

Please take a moment to register for the event. Tickets are FREE through Eventbrite.

Where?
F1 Boston
290 Wood Road
Braintree, MA 02184
When?
Thurs., November 30th, 2017
6:00PM – 10:00PM EST

 

How to Increase the Value of Your HVAC Business

When the time comes to sell an HVAC business, many contractor owners might not recognize the true value of their company or how to increase its worth.

It’s an issue many HVAC business owners can relate to.  They’re so busy taking care of the day-to-day responsibilities of running a company they put off planning for the inevitable – the day when they realize it’s time to sell.  And even when that light bulb finally hits, they might not recognize the true value of their company and/or how to increase its worth.

Ideally, the time to begin thinking of a sale or succession plan is three to five years beforehand. Or better yet, the day you open for business.  The process, when done correctly, involves a solid team:  a good financial planner, CPA, business intermediary and business attorney, all working in conjunction to develop a comprehensive strategy for the business owner’s best benefit.

The Worth of Your Company – A Good First Step
If you are lost in the woods and want to find a road, the first thing you must determine is where you are on the map before you can decide what direction to go. The same principal applies to company value. A valuation will not only tell you what you are worth today but should also provide you with the insight to know what changes may need to be made. It is a great education on the risks and strengths of your company and will provide a course to increase value for your business.

The Importance of Accurate (and Timely!) Monthly Financial Statements
At the top of the “must have” list are sound financial records. These days, that goal is easily attained by using an online format monthly, and keeping a close accounting of in-process job costing.  As example, if there is a half-million-dollar job underway for which a significant amount of equipment has been purchased but not yet been billed, then the business’ cash basis is disingenuous. The imperative is to know exactly what is coming in and what is going out today, not tomorrow.  Databases exist that can help manage this process.  I am always surprised that high volume, successful HVAC companies do not have a strong grasp of their financial position (even though they may think they do). A buyer and a bank will be equally confused and will value your company accordingly.

Customer Concentration and Business Mix
Customer concentration has to do with the percentage of annual revenue you receive from a single customer.  As a rule of thumb, it is best not to have a customer that represents more than 15% of your total revenue each year. While it can take years to change this, it is worth working on.  The higher the “concentration” becomes, the higher the risk.  A buyer will perceive this and it will affect value.  As far as business mix is concerned, service is king at resale. I always hear that new install-and-replacement have higher margins. I get that, but service is “sticky revenue” which repeats each year, and will attract more buyers at a higher value.  Fifty percent or more service is ideal for maximum value. An install-and-remodel-only company will take much longer to sell and bring a lower value than a company of the same revenue level that has a strong service component.

Key Employees
Segue to the issue of highly trained employees.  A good business – and one that will sell quicker and for a higher price – is defined in large part by its employees. Prospective buyers want an established turnkey operation that includes a staff that has been provided advanced and consistent training.  Cross-training employees also adds value, particularly for smaller HVAC businesses where a couple of sick days out for a technician could set the operation back substantially.

Consider licensing a major issue too.  Make sure you are not the only person who processes the licenses necessary to operate the company.  Ideally your company can be sold to someone without any industry experience. With a minimum of about $4 million in annual sales and key employees who have all the needed licenses to operate the company, this can happen. In general, our experience is that an outside-the-industry buyer will pay a higher value for a company than an in-industry (competitor) buyer.  We have seen many examples of this over the years.  Remember that these key employees become an asset of the company for the buyer, and will be viewed as important in the sale.

What must also be considered is the median age of a company’s current management team.  If all or most are looking to retire soon after the company sells, the business might not be as valuable to a buyer.  Training additional employees can solve the problem if this is the case at your firm.

Consider also, do company strengths lie in specific services? Taking on new hires for specialized divisions now might add to a company’s value down the road.  For those HVAC businesses looking to expand prior to selling, plumbing and electrical divisions are trending upward. With the addition of just one technician in each division, revenue increases today, and creates a healthier financial bottom line when it comes time to sell.

ROI Corporation Announces Purchase of New England Mechanical Associates by M2 Mechanical

ROI Corporation, a leading business brokerage firm based in Weymouth, MA, Simsbury, CT, and Marietta, GA, today announced that it recently completed brokering the sale of the Londonderry, NH-based New England Mechanical Associates to Exeter, NH-based M2 Mechanical.

Gary Rayberg, CBI, M&AMI, president of ROI Corporation, handled the transaction for ROI Corporation. New England Mechanical Associates, sold by Alan Rubin, offers quality heating and air conditioning solutions through commercial installations, retrofits, and 24/7 service, as well as heating repair, air conditioner repair, and air filtration services.  M2 Mechanical is a multi-divisional provider of HVAC services throughout New England to retail and commercial accounts, and also offers drain and sewer services.  M2 Mechanical is jointly owned by Judi and Steve Sewall.

Joe Rubin, general manager of New England Mechanical Associates, will stay on with the company, and customers of New England Mechanical Associates will see no change in the family service they’re accustomed to.

Terms of this recent sale were not disclosed.

“We were happy to help two impressive and family-owned HVAC businesses achieve their business goals through this transaction,” said Rayberg.  “Both enjoy strong reputations throughout New Hampshire and the region, and it’s great to see that these services will continue to be offered for their customers.”

 

 

About ROI Corporation

ROI Corporation, based in the Boston market, has been involved in the sale of businesses and real estate in over 30 states since 1997. They also assist in the transfer of business ownership between generations and to key employees and management teams. ROI serves all of New England including MA, NH, RI and CT with two divisions; a main street division serving smaller businesses as well as their middle market M&A division.  Their Marietta, Georgia, office, specializing in Service Distribution & Manufacturing Companies, serves the southeast United States. They also have an office in Simsbury, Connecticut.  For more information, please visit us on the web at www.roicorporation.com or call (781) 682-6209

HOW TO IMPROVE THE VALUE OF YOUR BUSINESS NOW!

Learn how the value of your business will be determined by a bank or buyer, and the many steps you can take now to dramatically increase that value.

Your business may be a substantial part of your net worth. Improving the value of your business
often means making more proits now and selling for a higher number later! A real win-win.
In this seminar you will learn simple ways to improve the value of your business to a bank, for
inancing, and to a buyer. You will…

• Learn how your business will be valued!

• Learn how your business will be valued!• What are the “three buckets of value”?

• Learn the positives and negatives that a buyer and a bank will look at in valuing your business.

• What are the big turn offs and how to avoid them.

• What type of buyer will pay the most and why?

• What changes can you make now to improve value?

• Thinking of transferring ownership in the next two to ten years?What should be on your to do list NOW!

Click here to register

ROI Corporation Announces Purchase of Middlesex Cooling by Cotti-Johnson HVAC

WEYMOUTH, TAUNTON, and MARLBOROUGH, MA, ISSUED SEPTEMBER 14, 2017… ROI Corporation, a leading business brokerage firm based in Weymouth, MA, Simsbury, CT, and Marietta, GA, today announced that it recently completed brokering the sale of the Marlborough-based Middlesex Cooling to Taunton-based Cotti-Johnson HVAC.

Denis Mezheritskiy, a broker at ROI Corporation, handled the transaction for ROI Corporation. Middlesex Cooling, sold by Bob Bersey, has operated since 1981, providing HVAC services to the communities of Acton, Ashland, Berlin, Bolton, Framingham, Holden, Hopkinton, Hudson, Lincoln, Littleton, Marlborough, Maynard, Northborough, Shrewsbury, Southborough, Stow, Sudbury, Worcester, Westborough and surrounding areas. Cotti-Johnson HVAC has been in business since 1944, focusing originally on projects throughout the South Shore and the Cape but expanding throughout eastern Massachusetts in recent years. Adam and Angela Bocalinni have owned Cotti-Johnson since 2008 when they purchased the business through ROI Corporation. Terms of this recent sale were not disclosed.

“Middlesex Cooling is a great fit for us,” said the Bocalinnis. “Given that we currently offer hearth-related services out of Wayland, this purchase will help us to offer additional services to the towns west of Boston.

“We’re also lucky to be adding a great group of employees to our company,” they added.
“It was great working with Bob, Adam, and Angelo on this transaction of two longstanding HVAC businesses, both of which enjoy very positive reputations in their regions,” said Mezheritskiy.

 

Above is Denis Mezheritskiy, the broker who represented Middlesex Cooling

BUILDING PRACTICAL BUSINESS INTELLIGENCE SEMINAR

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PBI SERIES OVERVIEW v6

ROI Corporation expands into Connecticut; seasoned broker David Richman to lead office in Simsbury

ROCKLAND, MA and SIMSBURY, CT, ISSUED JULY 10, 2017… ROI Corporation, a leading business brokerage firm based in Rockland, MA, and Marietta GA, is expanding into Connecticut with the opening of an office in Simsbury, and with the appointment of seasoned business broker David Richman leading the charge.

Richman, who will serve as Executive Vice-President/Regional Director, brings a wealth of experience to his new role with ROI. His business brokerage experience includes working within the service, manufacturing, technology, education, restaurant and retail industries. He has negotiated sales and acquisitions of private and public companies valued over $21,000,000. The Simsbury, CT resident has been an active business broker with another agency for the past four years but switched to affiliate with ROI in June because of ROI’s strong reputation in the marketplace. “ROI is a powerhouse,” he said, adding, “I am looking forward to working with Gary Rayberg and his team and building the ROI brand here in Connecticut.”

Richman is no stranger to the acquisition and sale of businesses. He has started and sold 11 of his own companies. His resume includes developing a self- storage business, a digital sign company, a business managing 14 commercial properties, and a large employee benefits agency. He said, “I understand from personal experience the time to buy and the time to sell. I consider myself a dealmaker, one who has learned from personal experience.” He built his employee benefits agency to include 11 partners, 30 employees and to the 4th largest agency in Connecticut. He is also the owner of David Richman Insurance Strategies. Richman will concentrate his efforts on mid-market, for businesses from $500,000 to $5,000,000.

“Connecticut is a market that needs ROI’s services,” Richman said. “We believe the mid-market business is underserved here. Many baby boomer business owners are looking to transition, and that provides great opportunities for up and coming entrepreneurs. We are very pleased to be able to offer a brokerage that addresses this growing need.”

He and his wife reside in Simsbury, CT where they raised two daughters and a son. In his leisure time he enjoys being with his family, skiing, fishing, the outdoors, and playing the saxophone. He enjoys reading business literature and researching business trends. He is also active with the American Tinnitus Association and started a Connecticut chapter. He has served on a number of boards, including his local synagogue.

Gary Rayberg, President of ROI Corporation, said, “Bringing David onto our team, and our expansion in to the Connecticut market is a win-win for us. Not only do we get to establish the ROI brand in Connecticut with a new office, we get the most seasoned broker to join forces with us!”

He added, “David has that unique ability to assess a business on a first face-to-face meeting. He knows how to ask the right questions, and as an entrepreneur himself, he understands businesses and what makes them tick.”

He continued, “David is a quality broker with a stellar reputation and strong, strong business background. We look forward to partnering with him as ROI expands in Connecticut.”

About ROI Corporation
ROI Corporation, based in the Boston market, has been involved in the sale of businesses and real estate in over 30 states since 1997. They also assist in the transfer of business ownership between generations and to key employees and management teams. ROI serves all of New England including MA, NH, RI and CT with two divisions; a main street division serving smaller businesses as well as their middle market M&A division. Their Marietta, Georgia office, specializing in Service Distribution & Manufacturing Companies, serves the southeast United States. For more information, please visit us on the web at www.roicorporation.com or call (781) 682-6209.

 

ROI Corporation oversees and completes the transaction of Commercial Air Control (CAC) of Weymouth; new owner for 45-year old HVAC firm

WEYMOUTH, MA, ISSUED February 20, 2017…ROI Corporation (http://roibusinessbrokers.com), a leading business brokerage firm based in Weymouth, MA, and Marietta GA, today announced the completion of the sale of the 45-year old Commercial Air Control, a heating, ventilation and air conditioning provider, to Dr. Izuh Obinelo.

Dr. Obinelo, the company’s new owner, brings an impressive background to his newest venture. He founded a company called sEnergy Thermal LLC in 2008. Prior to founding Senergy Thermal, he served as Director of the Center at Airflow and Thermal Technologies (CATT), a Degree Controls research facility for developing advanced cooling solutions for different applications, notably in the military, telecommunications, … and medical industries. He has authored or co-authored patents and technical articles on electronics cooling.

Commercial Air Control (CAC) is a 25-person company, established in 1972, which focuses on HVAC (heating, ventilation and air conditioning) projects throughout Massachusetts. CAC handles new installations, renovations, retrofits and service of commercial heating, ventilation and air conditioning systems. The firm is located at 19 Rantoule Street, Weymouth. The company’s owners prior to the transaction were Richard Auger and Ed Forbes. Both of the firm’s previous owners will remain with the company under the new ownership, as will the rest of the company’s current employees.

 

Gary Rayberg, President of ROI Corporation, said, “What an incredible pleasure it was for us to work with both the buyer and sellers on this transaction. One of the great outcomes of this transaction is that the former owners and the team will be staying on. The new owner, Dr. Obinelo, has strong knowledge of the industry and we know is going to do a great job building on the success of Ed Forbes, Rich Auger, and their capable teams.”

 

He added, “This is a great industry with recession-resistant qualities. HVAC is something that you can’t go without. There is a change afoot in this industry, with one generation selling off to a newer and younger generation.” He continued, “We enjoy our role of doing the necessary searching and negotiation to bring qualified and motivated buyers together with sellers to assure a smooth and successful transition.”

 

The sellers were represented by Attorney Marc Clerc of Clerc and Associates; and the CPA firm of Newburg & Company, represented by principal David Natan.

 

The buyer was represented by the law firm of Schlossberg LLC, and Michael O’Neil. The lender was Customers’ Bank of Boston, represented by Jennifer Mason.

 

About ROI Corporation

ROI Corporation, based in the Boston market, has been involved in the sale of businesses and real estate in over 30 states since 1997. They also assist in the transfer of business ownership between generations and to key employees and management teams. ROI serves all of New England including MA, NH, RI and CT with two divisions; a main street division serving smaller businesses as well as their middle market M&A division.  Their Marietta, Georgia office, specializing in Service Distribution & Manufacturing Companies, serves the southeast United States. For more information, please visit us on the web at www.roibusinessbrokers.com or call (781) 682-6209.

 

Photo caption: Rich Auger, one of the former owners/partners at CAC, is shown with new owner Dr. Izuh Obinelo (far right) and his wife Nzenalu (center) following the transaction of the business ownership.

 

 

The Oldest Liquor Store in Boston is passed to new owners!

Don Buehler of ROI brokers the sale of Simons Liquors. On January 11, 2017 Simmons Liquor Store, the oldest liquor store in Boston was sold.  It first opened in 1934, the year after Prohibition was repealed.  Alex Marder, the seller, owned the liquor store for 17 years, and built the business up by stocking the shelves with items that ranged from the most popular for regular consumption to the most elite for special occasions.  Will Patel, the new owner, plans to continue that business model and the tradition.  Alex ran the store since 2000 and will be retiring.   He commented that he enjoyed his years at the store and was happy to be passing it on to Will who is a very experienced operator. “I know I am leaving my customers and the neighborhood in good hands”.

Will is looking to add some items to the extensive inventory but will keep the store, for the most part, as it has operated for years.

Don Buehler, a senior Business Broker at ROI Corp, represented the seller in the transaction.  Don stated that, “Working with the Alex and Will was a pleasure and being able to help facilitate the passing of the baton on this Boston landmark was an honor.”  Rockland Trust provided the financing and the seller was represented by the firm of Blank and Solomon.

Don Buehler is a Senior Vice President at ROI Corp, a major Business Brokerage and Valuation company serving New England and Georgia. Don can be reached for further comment at 781-682-6209 Ext 263 or at dbuehler@roibusinessbrokers.com.

ROI Featured in Article on Selling your Bisiness on NCR Website

ROI Business Brokers was quoted in a post on the NCR website titled “Selling Your Business? Time it Right”

The complete post can be found here

 

The article is reposted here from the NCR website.

 

Selling Your Business? Time it Right

If you need to sell your business — you have sudden medical expenses to cover, or debts are piling up that you can’t pay — you may not have a lot of choice about timing. But if you want to sell — it’s time to cash in and retire or try something different — getting the timing right can put more money in your pocket.

NCR talked to two business brokers about the ideal timing of a sale.

Don’t rush it

lara-van-pletzen

“Look at all factors, speak to your financial advisor, your tax specialist, a business broker — even a business coach, perhaps.” -Lara Van Pletzen (Photo: Lara Van Pletzen)

Greg DeFoor, president of the Georgia Association of Business Brokers, said the best scenario for selling a company is having planned and prepared for it two to three years in advance. “The best time to sell is always when the owner wants to, instead of when the owner has to,” he said.

“The ideal situation would be to have at least three consecutive years of growth and profitability before you consider selling,” he noted. “However, that is not always possible due to the circumstances.”

Lara Van Pletzen of ROI Business Brokers said it takes an average of nine months to sell a business from the listing date. “Many think businesses sell as quick as homes do, but there is so much more that has to fall into place,” she noted.

Like DeFoor, Van Pletzen also recommended taking two or three years as a planning period before selling your business. “Look at all factors,” she said. “Speak to your financial advisor, your tax specialist, a business broker — even a business coach, perhaps.”

Know your value

When Van Pletzen first meets with a business owner considering a sale, she provides a complimentary consultation to determine a range of value for the company. “We earn our commission only on a successful sale at the end, so we won’t list anything that we don’t believe we can sell,” she said. “Sometimes that means telling a seller that they will be better off closing, and liquidating their equipment and inventory.”

When you sell, said DeFoor, the company should be profitable enough for the new owner to cover any debts incurred during the deal while still providing them with a living.

“The best time to sell is when you have sustained profitability, key managers that can run the business and a diversified customer base so you’re not dependent on only a handful of customers,” he said. Having these factors under control will make your business more appealing to potential buyers.

Consider the market

target-market-drawing

(Photo: Chatchawa/Shutterstock)

“Selling when the market for your business is hot is the most ideal time to sell,” said DeFoor, “but reality is an owner can’t always wait for that when retirement, burnout, health or other personal reasons dictate the necessity for a sale.”

He noted selling during an economic downturn is more difficult but not impossible. “Even then there are opportunistic buyers looking for a good deal.” It all depends on how much risk you want to take on, he added.

“If you want to maximize price, a several months-long decline in the overall economy might be an indicator to delay selling, but only if you are in a situation to weather a decline in the economy. Otherwise, it might be better to place the business on the market and accept a lower transaction price so you don’t have to weather a tough economy.”

Lower interest rates and a growing economy are obvious “green light” indicators that it’s a good time to sell, noted DeFoor. “Being in an industry that is in demand is certainly better than being in one that has plateaued or is in decline.”

Be willing to adapt

A looming mega-trend that imperils your business can induce you to sell — but selling isn’t always the right answer. “When threatened,” said DeFoor, “a company should evaluate external threats to determine what corrective action can and should be taken to minimize those threats.”

Selling out of fear can cause you to miss an opportunity for a grand success. “Adapting to change in one’s industry can be a good thing for a business if addressed properly,” he said.

“Mega-trends don’t necessarily indicate sell or don’t sell, but they may require a change in your business model to positively address those threats.” -Greg DeFoor

Knowing when the time is right to sell your company is very specific to each business owner, said Van Pletzen. “It is a very personal thing and there is no one-size-fits-all.” But consistent profitability and a solid market awareness will definitely help the stars align.