Weekly Roundup
We’ve got exciting updates this month as we have added 3 new listings in the last 90 days. There were certainly others that with a bit of work will be ready to come to market. We’re investing more in advertising on a monthly basis to reach more sellers so they have all of their options before them as they weigh making a change, which means you’ll see more listings here.
On the buy side we continue to get outreach from buyers every day asking to be placed on the list about upcoming businesses for sale. We appreciate the interest and are adding everyone accordingly, but one thing we are consistently asked about is “off-market” deals. Any business we’re authorized to list and sell is always published in as many places as possible to maximize our client’s chance to sell their business. Off-market deals require a targeted origination campaign, which we have a focused article on in this newsletter.
Buyer tip of the week
How to find off market deals
This one is one that comes up quite a bit, and regrettably I’m not going to have an easy button for the searchers out there but I’m going to bring some color to a topic that podcast hosts and trainers aren’t being forthright enough with. If you want off market deals, here is how to find them in 5 steps
Consider your budget - Consider the size of investment you are willing to make in a business through committed financing, cash, projected SBA approval, and any other source of funding
Consider your skillset - Often the transaction will be the easiest part of owning the business. Do your skills match and compliment the business you are acquiring
Consider your target market using the above two - Example - Pizza shops, single location, Charlotte, NC.
Utilize third party sites such as Apollo, Seamless, Zoominfo, or DataAxle to build an audience of owners.
Reach out to owners via phone, email, direct mail, and social media and ask them if they would be interested in selling for the right price. If so, send them an NDA and request documents needed for valuation
Alternatively, you could hire a broker to perform this outreach for you for a flat monthly retainer fee based on campaign size, plus a success fee to help with the deal process. Generally it is very cost competitive when factoring in the resources needed, time requirement, and the access to a deal not available to the public.
Seller tip of the week
Top to do items when preparing for sale
Clean up the books - You might save .25 per dollar keeping cash off the books, but you lose $2.00 - $3.00 per dollar by keeping cash off the books. Make sure all costs and expenditures are accurate, and enlist the help of a CPA
Identify a successor - Think like a buyer of how will the business keep going once you step away. Put a second in command in place and take time off to let them run the business
Build your team - People you should identify include a business broker, CPA, and a wealth advisor. Consult all of them on how to best strategize your transaction both professionally and personally
Listings for sale
The deals are out there….