Touchstone Business Advisors
July/2010
Rejuvanest
New Listing:
Relocate or Consolidate this Growing & Profitable HVAC Company


Full-service, profitable HVAC Company with increasing sales. The company serves the Colorado front-range area. With high regard for their professionalism and competitive prices, the company serves residential new construction, commercial and repair/service. The company is easily relocatable or merged with an existing business.  The business operates out of a carriage house on residential property owned by the Seller. There is no lease, and the business is easily relocatable. Vehicles included in the purchase price are 1 Chevy, 1 Ford and 2 GMC Vans.  There is significant potential for growth as residential new home construction recovers, expansion of geography served and developing sales/marketing channels. Additional untapped growth opportunities include retrofits, service and duct cleaning.

Year Established:  2004
2009 Sales:  $1,600,000
2010 Forecasted Sales:  $1,800,000+
Marketing 101:  Push Versus Pull Marketing Tactics

Types of marketing activities generally fall into one of two categories: push marketing and pull marketing. To marketers, it's as basic as breathing in and out. If you think of your business as a physical (or virtual) doorway, and just on the other side of the doorway is your product or service. And, unknowing about the existence of your doorway, or reluctant to enter the doorway, are potential prospects. How do you get them to come in...with marketing! Think of marketing as a type of force that moves prospects to action. You can choose to pull the prospect through the door or you can push them through the door.

What is push marketing?Push marketing is where you develop advertising and promotional strategies geared toward your sales and distribution channels to entice them to promote your product. Consumers rarely see this type of marketing when it is directed to your sales force or distributors. It might include wholesale discounts, kickbacks, bonuses, and other types of support. It's all designed push prospects through your channels to the door. Referral and word of mouth marketing are other types of push marketing. When companies encourage happy customers to spread the word to their friends and families, that's a type of push marketing.  You can also create a "buzz" with press releases, articles and participating in blogs - that's another type of push marketing.

What is pull marketing?Pull marketing is where you develop advertising and promotional strategies that are meant to entice prospects to buy your product or service directly. Some classic examples are "half off!" or "bring in this coupon to save 25%" or "buy one get one free", etc.  With pull marketing, you are trying to create a sense of increased time-limited value so that the customer will come through the door to buy.

Why you need both.Most companies need to employ both strategies to create a great marketing mix that powerfully entices customers to come through the door. Some customers react to one type more than another. For example, bargain hunters might react to pull marketing tactics, while socially-aware buyers might respond to a push marketing campaign. Or, if you have a product that requires a lot of convincing to buy, a "double barreled" approach might help to ensure action.

Some companies rely too much only on push marketing.  The best companies utilize a multi-channel approach that incorporates both push and pull marketing.  In the old days, marketing options were limited to print media, television, radio and direct mail, which functioned to support sales and develop leads.  Now days, email blasts, blogs, Internet advertising, web sites and all forms of social media are vastly less expensive than those traditional methods.
 
When you review your annual marketing plan, make sure that you are scheduling marketing 7 days a week, 52 weeks a year, utilizing both push marketing and pull marketing throughout the entire year. Identify your marketing efforts as push marketing or pull marketing. You'll see that they overlap sometimes and always support each other. Make sure that 365 days a year you are doing both!  It will be worth it!

Touchstone can help you review your marketing tactics and develop strategies that makes sense for you!  Contact our office today at 303-278-7501 to schedule a meeting or visit www.touchstonebiz.com for more information on Touchstone's services. 
BizbuySell.com Reports Transactions Up for Second Quarter 2010, But...

2010-Q2 National Data

BizBuySell.com has released its latest economic data for the Second Quarter of 2010. The company's data, which tracks trends in the business-for-sale marketplace, suggests that business-for-sale market is considerably more active than last year at the same time. The number of closed transactions reported to BizBuySell.com in Second Quarter 2010 rose significantly, 6.3 percent, as compared with the same time period in 2009 -- from 1,040 transactions to 1,106. This is good news, but in Second Quarter 2008, business brokers reported 2,098 closed transactions. In other words, relative to two years ago, the market is down 47%. Things are looking up, but we are still down considerably compared to prior years.

In addition to an increase in completed deals, BizBuySell.com notes slight changes in the metrics that are used to value companies. Compared to the same quarter last year, revenue multiples declined while cash flow multiples increased, suggesting that sellers with cash flow positive businesses may be seeing more qualified buyers bidding to buy companies. This puts upward pressure on business sale prices, which is reflected in the higher cash flow multiples. Sellers are clearly valuing cash flow more than revenue, as evidenced by the decline in revenue multiples.
 
To be specific, revenue multiples on reported closed transactions in Second Quarter 2010 declined from 0.68 to 0.66 compared against Q209, representing a 2.3% decrease. In contrast, cash flow multiples increased slightly from Second Quarter 2009's 2.59 to Second Quarter 2010's 2.81, representing an 8.5% increase. The revenue and cash flow multiples are calculated by dividing the selling price of the business by its reported annual revenue or cash flow.

Contact Touchstone for a specific evaluation of your situation, whether buying or selling a business.  ontact our office today at 303-278-7501 to schedule a meeting or visit www.touchstonebiz.com for more information on Touchstone's services.
2010 Volume: 07
In This Issue
New Listing: Relocate or Consolidate this Growing & Profitable HVAC Company
Marketing 101: Push Versus Pull Marketing Tactics
Bizbuysell.com Reports Transactions Up for Second Quarter 2010, But...
Touchstone Email Newsletter
Update on Touchstone Listings
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From time to time, Touchstone has new business listings, changes to existing listings or important new developments, which are first previewed to those valued clients, who have previously expressed an interest in a business acquisition or sale.  If you have a business associate who would be interested in hearing about our services, listings and /or receiving our articles, please forward this newsletter and they will be able to sign-up for future notices.  You can also keep abreast of these changes and download NDA forms and business profiles on our website:  www.touchstonebiz.com

Touchstone Business Advisors is a boutique business brokerage advisory firm focused on serving the needs of business buyers and sellers. Our firm is committed to providing individuals and companies with high quality business acquisition, business transition, and advisory services. We provide clients with personal attention from start to finish and are entirely focused on achieving our client's objectives. For more information please contact Charles Spickert or Rich Bevelhimer.
  UPDATE ON TOUCHSTONE LISTINGS

MANUFACTURING

Niche Manufacturing & Distribution Company
- 23 year Operating History, Industry Growth, Strong Seller Support, and RE Available
    
RejuvanestNiche Manufacturer Construction Company

- High Quality, Low Cost Storage Shed Manufacturer

Local Job Shop Die Casting Manufacturer
- 63 year Operating History, RE Available

AUTOMOTIVE

Fleet Truck/Van Repair & Maintenance Company
- Full Service Facility and Mobile Service, Satisfied Customers, Great Cash Flow

ELECTRONICS

Residential and Commercial Systems Integrator/Installer
- 23 Year Operating History, Wide Scope of Services, Highly Trained Staff and Extensive Customer Base

FITNESS

Personal Training Studio/Fitness Club
- Turn-key Opportunity to Acquire Expertly Designed Boutique Personal Training Studio/Membership Fitness Club

RESTAURANT

Established Hip Profitable Neighborhood Italian Restaurant
- Great Location - Profitable Operating History

FRANCHISE RESALES

Curves

North Boulder
- Great Neighborhood Location with Absentee Owner, Who Will Provide Financing

2 Central Denver Locations
-  Loyal Customer Base, Growing Membership, Low Rents

Northeast Denver
- High Growth Redeveloping Denver Neighborhood, Growing Membership, New Lease

For Detailed
Information See
www.touchstonebiz.com
Charles Spickert, MS, MPH, CBI
Rich Bevelhimer, MBA
Touchstone Business Advisors
(303) 278-7501 phone
(303) 278-7431 fax
cspickert@touchstonebiz.com
richbevelhimer@touchstonebiz.com