Touchstone Business Advisors
June/2011

New Listing:  Grand Lake Interior Design and Home Decor Retail Store...

on the Boardwalk!   


Operating for over 10 years, this business is well-known among Grand Lake and mountain area homeowners, many of which have vacation homes, which tend to have higher turnover rates.  That creates steady demand for remodel, interior design and home decor products.  Customers choose this business for its mountain style furnishings and convenient location -- and the individual attention the store owner can offer.  The business has strong relationships with suppliers and many great reference customers.    

 

The business is being offered with the real estate, a 1,080 sf condo on the boardwalk in downtown Grand Lake, CO.  The owner would consider leasing the real estate as well.  This is a great opportunity for an individual interior designer or Metro area firm to gain a footprint in the mountain market.

 

Revenue:$550,000

Price:  $75,000 + Inventory

Real Estate:  $300,000 

Advanced Email Marketing Made Simple  

 

Email systems... from Direct Broadcast messages to Autoresponders where an email message sequence is sent over a period of several days.   Email marketing has become a fast, easy, and affordable way to build your business.

 

It is a tactic by which you can capture prospects from your target market and keep customers.  You can send targeted messages, newsletters, and product information to both prospects and customers.  By using analytic capabilities of email marketing systems, you can quickly determine the effectiveness of your message to grow your business by monitoring which leads and customers open your emails, forward them to friends, and click on links.

 

Let's spend a minute to understand how email systems have evolved.  Many of us have experience with popular email systems like Outlook in Microsoft Office, or ccmail in IBM's Lotus Notes, or various webmail services like Hotmail, Gmail, and Yahoo!Mail.  We use these tools to enter contact information of a friend, family member, business associate, prospect, or customer onto a list; we author email messages; and we send the message to one or more members on our list.

 

Over the past few years, several new providers of email systems and services have appeared in the marketplace.  They provide the capability to develop, manage, and deliver, online, emails to a list of subscribers in broadcast mode, just like the previous email systems.  However, in addition to this broadcast capability, these email systems, offer a simple way to build a list and automatically respond by sending a sequence of pre-defined email messages.

 

Here is how they work.

 

Once a prospect completes an opt-in form, several simple pieces of information such as name, email address, and mobile phone number, the autoresponder capability begins.  This functionality places the prospect's contact information into the list and begins automatically sending a sequence of pre-defined email messages such as letters, notices about events or activities, product information, or sales materials, to the prospect.

 

The key difference between the broadcast and autoresponder capabilities is summarized below.

 

Broadcasts emails are sent once, at a scheduled date and time. They can be written as far in advance as you would like, and you won't need to log into your account to send them; they'll be sent at the saved time you have requested

 

Autoresponder emails are messages sent automatically, in a sequence. The first message in the sequence is sent immediately when someone subscribes to your list. That message is followed by a series of messages, each scheduled with a set amount of days in between.  For instance, the first follow up message could be an email sent welcoming subscribers; this way, a subscriber will receive a message, right away, acknowledging their addition to the list.

 

A second message could be sent two days later with a more detailed introduction about you and the product sold on your website.  Three days later an email message giving more information on that product could be sent, and so on.  This feature is sometimes referred to as drip mail as a series of pre-defined email messages are dripped on the new subscriber to your list at some regular interval.

 

These messages help to build a relationship and trust over time with people who may have otherwise just visited your website once, never to be seen or heard from again. They are helpful for such things as marketing materials, training sequences, and answers to frequently asked questions.  This technology is very useful to dramatically scale and leverage your marketing and sales time and efforts because the average sale comes after 7 email contacts.

 

Since email marketing channels have no printing costs, no postage costs, no envelopes to stuff, and no paper costs, this channel can lower the costs to develop and market your business.  Plus, email marketing systems are permission-based.  This means that by opting into your list, a prospect is giving you permission to send email messages to them; anyone not interested in receiving your email messages can opt-out of your list at any time.  This means that the leads and customers remaining on your list are qualified prospects and the best targets for your business.  They are truly interested in your message and what you have to offer them.

 

An email marketing system with both broadcast and autoresponder capability offers the lowest cost, most effective and targeted channel for small businesses around the world.  Several popular providers of these email systems offeri both broadcast and autoresponder capabilities include Constant Contact, which was used to deliver this newsletter.  Next month, we will explore another advanced marketing concept. 

 


Touchstone Business Listings: 
Manufacturing (MRP) Software Company  
- Diversified Customer Base, Recurring Revenue Stream
- 2011 EBITDA $210,000+, Purchaser to Submit Offer/Terms

Provider of Manufacturing Resource Planning (MRP) Software.  Relocatable anywhere, the Company is currently based in the MidWest region of the United States. 2011 EBITDA of $210,000+, with revenue predominantly coming from annual license fees; and additional revenue from software sales, training and installation.  Software is in use by customers with revenue ranging from $1M to $50M+ without geographic or vertical market concentration in the United States, Canada, Mexico and Europe.  Distinguished from competition by low cost; unlimited seats and support; and proprietary software code that is stable and that has potential to be migrated to SaaS or other platforms.

"Green Tech" Solar and Roofing Company    
- Be a Leader in the Green Revolution, Platform for Growth

- Gross $1,800,000, Cash Flow $180,000, Asking Price $500,000

This Company is uniquely positioned to capitalize on the expanding green technology market with a focus on energy savings. They are the only major Colorado installer of Building Integrated Photovoltaics, one of limited number of airsealing/insulation contractors who qualify for Xcel rebates, one of the most highly rated roofing crews, and differentiated by offering solar, airsealing/insulation, roofing and window services.  Serving the Front range of Colorado, the company has expanded sales dramatically over the past two years.  The time is right to jump into this on-trend opportunity.


Home Automation/Electronics Design & Installation   - Turn-Around Opportunity -- Owner Financing
- Gross $1,500,000, Purchaser to Submit Offer/Terms

The company is a globally recognized custom digital electronics and control / systems integrator firm specializing in high- performance commercial board rooms, media projection systems, media rooms, lighting/climate control, communications, security, environmental/energy management, pre-wire and automation control systems for both residential and commercial applications. With a 23-year history, in addition to its stability/longevity, the company's strengths are its extensive scope of services, highly trained/certified staff, extensive customer base, impressive design studio and reputation as a leading design/integrator. 

Financial Services Industry Training/Research Company  - Extensive Growth and Expansion Opportunities
- Gross $480,000, Cash Flow $300,000, Purchaser to Submit Offer/Terms

This company was founded with the mission to assist financial institutions develop a sustainable competitive advantage through service quality delivery and sales effectiveness. The firm specializes in research, training and consulting solutions that improve bottom-line sales and service quality results. The firm's products include a proven and proprietary process for inculcating cultural change, service quality research via customer interviews, on-site mystery shopping and web-based surveys, a comprehensive library of basic and advanced sales, service and leadership training programs, training needs assessment process, leadership skills inventory and incentive compensation consulting. Founded in 1995, the firm has a 15 year track record of producing results for financial institutions throughout North America. 

 

Local Metal Fabrication Die Casting Manufacturer 

- Possible Business/RE Fold-in with Existing Machine Shop
- Gross $250,000, Cash Flow $50,000, Asking Price $100,000

The company is a Denver-based die caster, who manufactures zinc and aluminum components. Castings are small (less than 2 lbs.) and are typically produced in short run quantities of less than 1,000 per order. Customers are primarily local. In over 60 years of existence, the Company has built a strong local reputation for quality service. The Company operates from a wholly-owned production and warehouse facility which is available in addition to the purchase price. This is an opportunity for a synergistic acquirer to add additional capabilities; a strategic combination with a firm already in the die casting or a related machine shop industry; or, an individual to acquire a small family-run business with a 63+ year operating history.

Full-Service HVAC Contractor      

- Possible Fold-in with Existing HVAC or Related Business
- Gross $1,800,000, Cash Flow $250,000, Asking Price $450,000

Full-service, very profitable HVAC Company with increasing year-over-year sales. The company serves the Colorado front-range area. With high regard for their professionalism and competitive prices, the company serves commercial, residential new construction and repair/service. The company is easily relocatable or merged with an existing HVAC or related business.

  Neighborhood Restaurant  
- Great Opportunity for Chef/Operator, 2010 Sales up 4%

- Gross $780,000, Cash Flow $100,000, Asking Price $300,000

Established neighborhood restaurant/bar located in renovated historic building in NE metro Denver area. Cozy layout with seating for 60 +/-, open for dinner only, catering service that may be expanded. Excellent food, award-winning recognition, full liquor license in place. Opened in 1997, current concept of fine dining with a family atmosphere is a successful stand alone model or could potentially be replicated in multiple locations. Loyal customer base is comprised of urban professionals and families from the greater Denver metro area and from surrounding suburbs. Low rent, clean books, sales have held-up well through this economic cycle. Perfect opportunity for young or established Chef with energy to take over a successful restaurant and add their touch.  

 Taos Greeting Cards, Gallery, Chocolate and Gift Shop 
- Central Location, Repeat Customers, Expand Online

- Gross $150,000, Cash Flow $52,000, Asking Price $149,000

Popular upscale card, art, chocolate and gift shop located adjacent to the premier shopping plaza in Taos, NM. The business specializes in unique greeting cards of their own design and from small card companies across North America and Europe. They offer unique gifts and original art work by local artists and from around the world, as well as hand-made chocolates from NM chocolatiers. The business serves repeat regional clientele, as well as tourists visiting the Santa Fe and Taos art scene from around the world. Since its inception in 2002, the business set out to establish its retail store as the premier boutique for cards, local artisan works, chocolate creations and regional gift items in Taos. The company differentiated itself from the competition by creating their own line of greeting cards and unique product mix. Their upscale and unique mix of products give the store the feel of a sophisticated boutique. The business prime high traffic location, word of mouth and a stellar reputation, has enabled establishment of the store s brand. Growth potential exists in existing business model, as well expansion of pottery, spirituality/new age and local artist offerings and expansion of online sales.

 

Unique Floral, Gift and Home Decor Retail Store  
- Great Upscale Location, Repeat Customers

- Gross $190,000, Cash Flow $20,000, Make Offer

Popular upscale flower, gift basket/gifts and  home decor shop located in an upscale retail shopping area of Denver. It has some of the  city's most prestigious individuals and  corporations as its clients. Since its  inception  in 2004, The business set out to establish its shop as the premier boutique for flower arrangements, gift baskets and gift/decor items in Denver. The company differentiated itself from the competition by using unusual flowers and offering sophisticated arrangements that were artistic and tasteful. Their upscale and unique gift offerings have established the feel of a sophisticated boutique. Word of mouth, participation in an exclusive wire service and a stellar reputation, has enabled them to establish their brand. Growth potential exists in existing business model, as well expansion of wedding and event business.


Contact Touchstone for more information or to discuss your business acquisition goals!
2011 Volume: 06      
In This Issue
New Listing: Grand Lake Interior Design and Home Decor Retail Store
Advanced Email Marketing Made Simple - Part 1
Touchstone Business Listings
New Listing: Colorado Springs CPA Practice
Dreams - Inaction = Squat
Touchstone Email Newsletter

  New Listing:

Colorado Springs CPA Practice 


Established, profitable accounting practice, with experience in all matters of accounting and taxation, IRS problem resolution, estates and trusts, business formation, financial planning and investment, real estate and business sales.  This small practice is located in a professional office building with good lease, easy access and free parking.  Sole practitioner firm employing one part time assistant.  This employee is not a CPA or EA.  The firm is primarily an individual tax practice.  In 2010 82% of revenue was derived from tax preparation.  80% of those tax preparation fees were individual returns.  In 2010, 245 individual returns were prepared along with 27 business returns. 

 

For more information, contact Rich Bevelhimer.  

 


  Dreams - Inaction =

Squat 


Seller's dream that somebody will walk in the door with boatloads of cash and make them an offer they cannot refuse.   Buyer's dream that they can buy a business generating boatloads of cash for nothing down.  Both are probably delusional!  As Milton Friedman said, "The most important single central fact about a free market exchange is that no exchange takes place unless both parties benefit."    

 

There is lots of talk these days about whether this is a "Seller's" or a "Buyer's" market.  Is the market flooded by "lookers" on the buy side and/or "testers" on the sell side?  Seller's are worried that valuations are unreasonably depressed.  Buyer's are worried that valuations are unreasonably high.  The result is inaction...despite many great opportunities existing for mutual benefit of both Buyer's and Seller's.  

 

Good times and bad, it is the motivated and prepared Seller; and the committed and educated Buyer that get a deal done.  Throughout the process, there will be obstacles.  The question is - whether you will search for reasons to derail a deal or address each challenge and focus on solutions to reach the finish line?   

 

Seller's will likely not be successful in achieving an ownership transition unless they prepare mentally, financially and administratively.  A qualified intermediary can help you prepare yourself and your business to unlock the illiquid wealth accumulated by your hard work.   

 

Similarly, Buyer's will likely not be successful in acquiring a business unless they are educated about and committed to the process.   The single most effective mechanism a buyer has to gauge a seller's level of motivation is to make an offer. A qualified intermediary is the best resource to help you request the information you need to acquire a business at the right price, and often more importantly, on the right terms.       

 


 

Touchstone
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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, Rich Bevelhimer or Thomas Lang.
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Charles Spickert, MS, MPH, CBI
Rich Bevelhimer, MBA
Thomas J. Lang, CPA, MBA
Touchstone Business Advisors
(303) 278-7501 phone
(303) 278-7431 fax
cspickert@touchstonebiz.com
richbevelhimer@touchstonebiz.com
  tlang@touchstonebiz.com