V-AID Business Investment Advises J.J. Kim, Inc. on Sale of Prestonwood Cleaners to Medinah DC Investment, LLC.

Plano – V-AID Business Investment is pleased to announce the sale of Prestonwood Cleaners to Medinah DC Investment, LLC. Prestonwood Cleaners is in a 2,100 SF retail strip center at 6505 W. Park Blvd #302, Plano, TX 75093.

Prestonwood Cleaners was established by the original owner in 2000 and was acquired by J.J. Kim, Inc. and has been operated by the current owner ever since. Majority of the customers are middle class that range from teens to 60 years and over. The owners have built a great business and customer base, by providing quality service for many years.

Moon Kim with V-AID Business Investment, as an exclusive business broker for Prestonwood Cleaners, provided sell-side advisory services for J.J. Kim, Inc. from business valuation, marketing and negotiating the sale to transfer of business. V-AID Business Investment is a fully-fledged business broker and M&A advisor that assists the business owner in sell their business for the maximum value while finding the right buyer who can continue to grow the business.

“I am happy to have completed the sale of this 24-year established dry cleaning plant for a full price and help the current business owners finally retire! The legacy of this long-established dry-cleaning plant will continue under the new ownership who manages multi-unit dry cleaners.” said Moon Kim, Managing Director for V-AID Business Investment in Dallas.

About V-AID

Since 2001, V-AID Group, a team of resilient business brokers and M&A advisors in Dallas TX, has been specializing in selling small to mid-size businesses in the main street to the lower middle market. V-AID’s experienced team of experts has a proven strategy that will ensure strict confidentiality, a streamlined selling process, and the maximum value for the business. With deep expertise accumulated from hundreds of done deals, V-AID delivers superior results by providing clients with strategic planning and creative solutions tailored to each transaction. Combining V-AID’s proprietary

Small Business Cybersecurity: 5 Things Business Owners Should Know

As business owners and entrepreneurs, you may understand the importance of keeping your data safe and secure. Yet, according to a recent study from Accenture, only 14% of small businesses are equipped to protect themselves from cyber threats. But in today’s digital world, it has become increasingly difficult to stay one step ahead regarding cybersecurity. With new online threats emerging daily, small businesses can find themselves particularly at risk. According to the same study, 43% of cyberattacks today target small businesses. From malware attacks that trigger financial losses to data breaches that damage customer relationships, staying protected is no longer a luxury – it’s necessary for businesses of all sizes. As we prepare for Cybersecurity Awareness Month, let’s discuss the five things business owners should know about cybersecurity.

1. Common Cybersecurity Attacks

In today’s connected world, cybersecurity is of utmost importance. Cybercriminals are constantly developing new ways to breach a company’s or an individual’s security. It’s important to stay vigilant and take necessary precautions to prevent falling victim to cyberattacks. Here are some of the most common Cybersecurity attacks:

Malware – Refers to various malicious software, encompassing backdoors, remote access trojans (RATs), information stealers like banking trojans, spyware, ransomware, downloaders, viruses, and worms. Cybercriminals employ various infection vectors to activate malware and other risky software. These methods include breaching networks, purchasing account access on the dark web, and enticing users to click on dangerous links or attachments through socially engineered phishing emails.

Ransomware – Gains access to computers and encrypts files, demanding payment for their release. The real risk lies in the impact on businesses, such as disruption, reputation loss, and the rise of Ransomware-as-a-service, enabling a growing number of less-skilled attackers to employ this threat tactic.

Spyware – Spyware and banking trojans are malicious software that steal information from target computers without consent. While banking trojans focus on collecting financial account data, spyware can also refer to legitimate software used for monitoring data. However, malicious spyware is used to profit from stolen data. It infiltrates devices through various means, monitors and captures data through tracking codes, and sends the stolen data to a command-and-control server controlled by the cybercriminal behind the attack.

2. Types of Cybersecurity

There are several types of cybersecurity strategies that individuals and companies can utilize to protect their online assets. One critical area is critical infrastructure security, guarding against attacks on essential systems like energy grids and transportation networks. Similarly, application security ensures the safety of software platforms and the data they contain. Network security protects against unauthorized access to company networks, while cloud security safeguards cloud-based files. Finally, with the rise of the Internet of Things (IoT), a network of interconnected devices, appliances, and machines that can send and receive data through the internet, innovative thinking is necessary to protect against attackers and data misuse. Each type of cybersecurity plays a vital role in keeping our digital world secure.

3. Business Owners Need Training

As businesses continue to grow in the digital landscape, business owners should brush up on the best cybersecurity practices to share these valuable insights with their employees. A few examples include staying up-to-date with the latest security software, establishing strict password protocols, using multi-factor authentication, using firewalls, every step counts. By taking proactive measures to brush up on the best security practices, business owners can lead confidently in the face of cyber threats and be equipped to prevent costly data breaches and protect their businesses.

4. Small Business Cybersecurity is a Team Effort

This leads us to our next point: business owners must take the time to educate their employees. When employees thoroughly understand cyber security threats and how to combat them, they become an invaluable asset in the battle against would-be hackers. Investing in employee education is not only a worthwhile investment; it can prove essential to maintaining the integrity of your company’s sensitive information. A well-informed employee can make all the difference in preventing data breaches by spotting red flags and taking the necessary precautions immediately. By empowering your team to be proactive in the fight against cyber threats, you’re protecting your company and your valued clients.

5. Cybersecurity Increases Your Business Value

In today’s modern business environment, cybersecurity has become an essential aspect of building and enhancing business value. Cybersecurity measures do much more than protect business operations or ensure that sensitive data and proprietary information are kept safe from cyber-attacks. Customers are also more likely to trust companies that prioritize their cybersecurity needs over those that don’t. Thus, by investing in cybersecurity, businesses can show their customers that they take their security and privacy seriously. This helps maintain customer loyalty and build a strong brand reputation, leading to increased business value over time. Something that many small businesses still neglect in this digital age.

In the end, cybersecurity is an ever-evolving field. Small businesses need to be aware of the growing threats and have the necessary steps in place to protect against them before they become catastrophic. Tactics such as the use of firewalls, antivirus software, and multi-factor authentication are essential for businesses of all sizes. Brush up on the best cybersecurity practices for your business and communicate these to staff members so that everyone can stay protected together. While these methods may seem overwhelming at first, every effort will pay off in increased customer loyalty and a stronger company brand over time. If you’re a business owner considering taking it one step further by growing or preparing your business exit, contact our team at V-AID; we’ll provide you with expert guidance to make the most profitable exit when you’re ready.

Policy Updates to SBA Program Benefits Business Owners While Creating Growing Access to Capital

The recently enacted Small Business Administration rules, and the recent move to grant Small Business Lending Company (SBLC) licenses to FinTech lenders have created a significant shift in the financial landscape of business transactions. These new regulations are intended to benefit underserved communities and small businesses by promoting more efficient and effective access to capital, but several lenders worry these changes may also have negative impacts on the SBA program moving forward. Still, the changes are mostly in favor of business owners and will allow greater flexibility in dealmaking. We’ll discuss the various ways in which these updates could change your approach to business transactions as well as the impact a growing number of nonbank FinTech lenders could have on the SBA program.

To give you an overview, here are some significant SBA program updates you should be aware of:

1) Liquidity rules and limits for personal finances have been removed.

2) It’s now possible to partially change ownership, whereas previously, it had to be a complete 100% change.

3) Sellers are now allowed to remain as “key” employees for an extended period of time, as opposed to the previous limit of 12 months and not being able to hold a “key” position.

4) Seller notes contributing to the down payment can be on standby for 24 months instead of the entire loan term.

5) The lender now determines approval for franchise eligibility, as the SBA Franchise registry has been removed.

Sellers Holding a Seller Note No Longer On Standby For the Life of the Loan.

Many of the new regulations are believed to have a very positive impact on our industry. The recent change to allow seller note contributions toward downpayment to be on standby for 24 months is a significant improvement. Previously, sellers who contributed to a buyer’s down payment were required to be on full standby throughout the loan’s entire lifespan. This change provides a more reasonable repayment timeline, and it is expected that more sellers will be willing to assist buyers with their down payments.

Seller Can Be Considered a “Key” Employee

The prospect of a seller staying on as a key employee has now become a reality. Surprisingly, this is something the SBA has said they would never allow in the past but now appears to be happening. This development is crucial for our industry, especially those businesses that require a specialty license, such as HVAC, Plumbing, Electrical contracting, and more. With the seller allowed to remain with the business as a key employee, the buyer can hold the license moving forward. This rule shift took effect in August of 2023. This allows for additional flexibility for specialty businesses as we advance.

Removal of Liquidity Rules Opens Door for High-Net-Worth Buyers

Previously, borrowers were only allowed to keep a certain amount of “Liquidity” after closing, and if their liquidity was too high, they would become ineligible for SBA financing. However, with this requirement removed, high-net-worth individuals of any level can now secure financing for acquisitions. These buyers typically seek larger businesses and are now eligible for the 7(a) program. This change will likely increase the pool of potential buyers for numerous businesses.

SBLC Licenses Granted to NonBank FinTech Lenders

Additionally, the SBA recently lifted the moratorium for licensing new SBLCs. The premise is to provide lower-served communities greater access to start-up capital loans ranging from 25K to 100K. The SBA has since granted 3 SBLC licenses to nonbank FinTech lenders. FinTech lending uses digital technology to enable lenders to issue loans through websites or mobile applications. The SBA is going to allow this algorithm-based lending, something that was done for PPP loans in the past. However, there are mixed opinions and concerns from several lenders such as banks with the Independent Community Bankers of America (ICBA) proposing the need for greater oversight and regulation for these FinTech lenders, arguing that loans from these lenders can be acquired with minimal criteria, no personal interviews, and little communication.

Why the ICBA Opposes Opening SBA 7(a) Loan Program to Nonbank FinTech Lenders.

During the PPP loan years, many FinTech lenders emerged to help small businesses expedite their assistance loans. However, the FinTech sector has a significant problem: it has been implicated with high levels of PPP loan fraud and default. This ICBA fears that FinTech lenders may soon be responsible for unprecedented levels of default within the program, which has never been seen in the SBA’s 70-year history. If the default rates of these lenders even come close to those of the PPP loans, the entire program may run out of funds to guarantee acquisition loan requests within a year. This could result in American taxpayer dollars being used to provide future funding for the program. A program that has not received government funding since 2001. This prompted the ICBA to testify before Congress. They explained how community banks have historically gone to great lengths to ensure buyers qualify for such loans. They went on to explain how they work for many months with potential start-ups to help create business plans, compile projections, and provide valuable advice through the first years of operation to ensure success. They argued this level of advice and guidance is critical to borrowers’ repayment ability and greatly decreases defaults on this type of financing. These were among several reasons the ICBA believes that nonbank FinTech lending is no substitute for federally regulated bank lending within the SBA 7(a) Loan Program. The SBA, however, challenged many of these concerns and said it was not a fair comparison to equate fraud in PPP with potential fraud in the regular 7(a) loan program, citing the latter program’s “well-established and robust operating policies and procedures.”

In Summary

The recent SBA changes will benefit both those looking to buy or sell a small business. While many within the industry are keeping a close eye on nonbank FinTech lenders moving forward—there are still great lending opportunities. Moreover, the SBA introduced several policy changes that help create greater flexibility in dealmaking for buyers and sellers, such as giving sellers looking to support a buyer’s down payment a more palatable 24-month timeline to start receiving repayment. It’s an exciting time for small business owners and entrepreneurs, especially as possibilities that previously seemed out of reach are becoming increasingly attainable. This is an ideal time to plan your future move or business acquisition. If you’re thinking about your business exit or next acquisition process, contact V-AID for help navigating these changing guidelines so you can best capitalize on available opportunities.

V-AID Business Investment Advises on Sale of Stride Rite

V-AID Business Investment Advises K & L Associates, LLC. on Sale of Stride Rite to Cindellk, LLC.

Lewisville – V-AID Business Investment is pleased to announce the sale of Stride Rite to Cindellk, LLC. Stride Rite is in a 2,600 SF retail strip center at 2585 Macarthur .

Stride Rite was established by the original owner in 2001 and was later acquired by the seller in 2014. Majority of the customers are middle to upper class that range from toddlers to teens. The owners have built a great business and customer base, by utilizing the business model and support from the franchisor and is now ready to focus on other ventures.

Stephen Lee with V-AID Business Investment, as an exclusive business broker for Stride Rite, provided sell-side advisory services for K & L Associates, from business valuation, marketing and negotiating the sale to transfer of business. V-AID Business Investment is a fully-fledged business broker and M&A advisor that assists the business owner in sell their business for the maximum value while finding the right buyer who can continue to grow the business.

“This long-established shoe store was recently sold to a buyer who shared the same passion for the business as the previous owner. A perfect transition for two perfect parties that have the same goals in mind.” said Stephen Lee, Senior Business Intermediary for V-AID Business Investment in Dallas.

About V-AID

Since 2001, V-AID Group, a team of resilient business brokers and M&A advisors in Dallas TX, has been specializing in selling small to mid-size businesses in the main street to the lower middle market. V-AID’s experienced team of experts has a proven strategy that will ensure strict confidentiality, a streamlined selling process, and the maximum value for the business. With deep expertise accumulated from hundreds of done deals, V-AID delivers superior results by providing clients with strategic planning and creative solutions tailored to each transaction. Combining V-AID’s proprietary database of buyer networks and industry-leading marketing, V-AID offers a proven selling method that has been the solution to a value-added exit for hundreds of business owners with a completion of 613 transactions totaling over 136 Million Dollars and continuing.

V-AID Business Investment Advises on Sale of Pigtails & Crewcuts Plano & Prosper

V-AID Business Investment Advises HMF TEAM, INCORPORATED and HMF TEAM 2, LLC on Sale of Pigtails & Crewcuts Plano & Prosper to SDNY Group, LLC.

Plano & Prosper – V-AID Business Investment is pleased to announce the sale of Pigtails & Crewcuts Plano & Prosper to SDNY Group, LLC. Pigtails & Crewcuts Plano is in a 1,165 SF retail strip center at 4801 W. Park Blvd Suite 417, Plano, TX 75093 and Pigtails & Crewcuts Prosper is in a 1,480 SF retail strip center at 960 Preston Road Suite #50, Prosper, TX 75034.

Pigtails & Crewcuts Plano was established by HMF TEAM, INCORPORATED in 2019, and Pigtails & Crewcuts Prosper was established by HMF TEAM 2, LLC in 2021, and both locations have been operated by the original owner ever since. The majority of the customers are Mid to High-income families with kids. The owners have built a great business and customer base by utilizing the business model and support from the franchisor.

Moon Kim with V-AID Business Investment, as an exclusive business broker for Pigtails & Crewcuts Plano and Pigtails & Crewcuts Prosper, provided sell-side advisory services for HMF TEAM, INCORPORATED and HMF TEAM 2, LLC from business valuation, marketing, and negotiating the sale to transfer of business. V-AID Business Investment is a fully-fledged business broker and M&A advisor that assists the business owners in selling their business for the maximum value while finding the right buyer who can continue to grow the business.

” Founded in 2002 and franchising since 2004, Pigtails & Crewcuts is an over 60-location franchise salon chain dedicated to children’s hair. By acquiring two units of this well-established franchised salons, Buyer is now in good position to rapidly expand this venture into 4-5 multi-unit salon franchises in North Dallas territories,” said Moon Kim, Managing Director for V-AID Business Investment in Dallas.

About V-AID

Since 2001, V-AID Group, a team of resilient business brokers and M&A advisors in Dallas TX, has been specializing in selling small to mid-size businesses in the main street to the lower middle market. V-AID’s experienced team of experts has a proven strategy that will ensure strict confidentiality, a streamlined selling process, and the maximum value for the business. With deep expertise accumulated from hundreds of done deals, V-AID delivers superior results by providing clients with strategic planning and creative solutions tailored to each transaction. Combining V-AID’s proprietary database of buyer networks and industry-leading marketing, V-AID offers a proven selling method that has been the solution to a value-added exit for hundreds of business owners with a completion of 616 transactions totaling over 138 Million Dollars and continuing.