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Don't Fall For It | The 5 Mistakes Business Owners Make When Dreaming Of Selling Their Company
If there's one thing I've learned in my years of working as a Certified Financial Planner™, it's that entrepreneurs are a special breed of people. They're motivated. They're inspired. They're incredibly tenacious. They're smart. They're optimistic. And they know how to get what they want.
On the flip side, many entrepreneurs are guilty of being a little pie-in-the-sky-especially when it comes to their own businesses. Unrealistic expectations of the exit process can both hinder the sale of a company and affect the morale of an entrepreneur getting ready to sell. Be wary of these five mistakes and you'll enter the exit process better informed, better equipped strategically, and more likely to enjoy your sale process.
Read entire article on our blog
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Eagle Delivery Service
 | | Left to right: William Sias (Buyer), Peggy Tate (CBB Broker), Douglas Busker (Seller) |
Seller, Douglas Busker, started this commercial delivery company in 1978. So, after 26 years, he was ready to retire. Busker also owned the property on which the company operated and it was part of the sale.
The buyer, William Sias, originally came into the CBB office because he was going to provide funding for a friend's son to purchase a business. He had been in his current position in mortgage securities on Wall Street working in a business development role for 30 years and was admittedly bored.
When the commercial delivery business became available for sale, Tate, the CBB broker, recalled that early in the buyer's career, he had worked in oil & gas services. Tate believed the commercial delivery business, which services oil & gas service companies, could benefit from a new owner with business development experience. She called him about it and he agreed it could be a great career change for him. He decided to go for it.
Two weeks after the sale, Tate spoke with buyer and seller and they are both enjoying working together through the transition. The buyer specifically is loving being engaged by work again and is already thinking about buying another business! He's having fun....
The business was sold within 3-1/2 months of going to market.
Ray Doba listed the business and Peggy Tate sold it.
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Simple Steps Learning Center
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Left to Right: Marcia Bowron (CBB Broker), Darren Jones (Seller), Cory Scott (Buyer)
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The buyers, Cory & Rebecca Scott, had been looking for a daycare for almost a year. They were prior franchise business owners. Cory is a corporate pilot and Rebecca a business manager. She will be overseeing the child care center, while a director, already on staff, runs the day-to-day operations. Some seller financing was involved in the sale.
The seller, Darren Jones, owns four day care centers in California and had specifically purchased this center (through CBB) to implement a number of cost-cutting measures and improve the bottom line. As an expert at what he does, he achieved his goal and sold the center for a profit. He is considering doing it again with another daycare needing improvement.
The business sold within four months of going to market.
Marcia Bowron listed and sold it.
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Fish City Grill
 | | Left to Right: Rene & Shiv Rai (Sellers), Peggy Tate (CBB Broker), Antonio & Jose Moreno (Buyers) |
This fine, high-volume restaurant franchise, established in 2007, is located in Katy, one of the fastest growing communities in the nation. With a full bar and outdoor patio, a manager on staff runs daily operations.
The buyers, Antonio & Jose Moreno, had been working with CBB to acquire a business for two months. They looked at several restaurants but gravitated towards Fish City Grill because of its strong operations and financial performance....with verifiable records. From the beginning, the Moreno brothers seemed to have an easy chemistry with the sellers, which often bodes well for a successful transition. The Moreno's between them have a law degree, a business degree, a master's degree in finance, and 10 years of experience in banking and casino operations. The sellers, Rene & Shiv Rai, felt confident with the buyers' background and financial wherewithal needed to be successful after acquiring the business. This was key since Seller financing was part of the deal.
After a very smooth closing, the buyers are excited about running their new business and taking it to a new level. The sellers, who are very energetic entrepreneurs, have already embarked on their next enterprise, a sports bar, and are looking to get into other types of industries as well.
The business was sold in 10 months from going to market.
Ryan DeGennaro listed the business and Peggy Tate sold it.
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Ask the Experts
Question:
I've been looking for a business to purchase for quite some time. I finally found one that has all the bells and whistles. But, there's one catch. The owner of the business also owns the real estate and wants to sell the business and the property together. What are the advantages of buying the property?
Answer:
When you own your place of business, you have:
- security of tenure (no landlord is going to kick you out)
- you can make it into whatever you want and need for your enterprise
- every month the mortgage is paid down, you are saving for your retirement
- when you do retire, you will have something to sell or rent for extra income
- real estate generally maintains its value or increases in price over time giving you inflation protection
- your monthly costs to own are often less than renting
- there's no landlord around who wants to raise your rent every few years.
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Texas Economic News
