Tag Archives: South Carolina Business Broker

Selling South Carolina Business

By | |
Comments Off on Selling South Carolina Business

Selling  South Carolina Business

….When Your Product is You.  Doing business in today’s web based world is changing almost daily.  You work on your website,  get on Facebook,  you try to learn all about social media to either try to just keep up, or maybe to move your marketing efforts forward.How does this affect Selling South Carolina Business.

Your competitors may have the ability to learn more than you to stay a step ahead of you.  They may have discovered the next best Facebook app to get them more Likes, Fans, and or interest.  Others may have more money than you and can outspend you, they can Out-Tweet you, out post you, out pagerank you, out comment you, out link you….

Be The Best You Can Be

Small Business Marketing- Selling a Business

But no one can Out-You You.  Or stated in the first person- “You Cant Out-Me Me”  .We all are busy trying to move our businesses forward but do we really know if Twitter will be in ours or others marketing plans 5 years from now.  So how or where does one focus.  Is your product or service you sell- you?  

I am a business broker based in  South Carolina and I help/work with people with the process of buying and  selling South Carolina Business.  One aspect of the business that makes a business more saleable is the ability for the business to not be dependent upon the owner so that if/when the owner is “replaced” a transition can be seamless.  So building a business based on the brand or product being “You” can appear counter-intuitive.

My view based on my experiences is that a customer does business as much with “the way a company does business”, “company philosophies”, “company approach”, as much as they do business with a certain individual.  When you think about it we do like the person that we do business with but what is it that we really like?  I tend to think it’s the way that person deals with me,  and it’s easy to assume that approach starts” at the top”.

 

How Important is Business Owner when Selling a Business?

So I think it’s easy to assume if a customer/client likes the approach or way you do business as an owner and your “brand” is based on how you approach service and ethics and business practices- that this is who the company is and the company is NOT you.   If you as the business owner demand honest ethical reliable hard work from yourself and customers see that, they know what your expectations as a business owner are.

So if you as a business owner are not truthful, don’t return phone calls, think it’s ok to quote one price and then demand another price after the work is done why would the customer expect anymore from anyone else in your organization.

Submit Your Business To Your Philosophy

But the product/brand that you are building on the web content that you post to build your brand may not need to be about you by name- it may be your philosophies, your ways and approaches toward running your business.  I have been posting business articles about my experiences, views, and ideas for several years.  When someone engages me as a business broker -they are engaging me, and they can understand me through my writings if they choose to do that as a starting point- or they can choose not to engage me as a business broker because of my writings.

Maybe you don’t have the most experience, maybe you are not the smartest, maybe some of what you offer has some shortcomings- most everything does.  We all have areas of what we do that can use improvements, but you know you do bring something to the table that is unique to you.

So as the internet changes and strategies change on what new  site/app/blog/tweet/hashtag/social bookmark you should be using- you can retain certainty that you and your story will forever remain unique.  There is only one You.  But as the old song goes from The Who – Who Are You? – You are your feelings, your beliefs, your experiences, ideals, likes, dislikes,  the good and the not-so-good of you, and your way of going thru life (and business).

Nobody can do you better than you.  So when you are creating or building a brand,  and the brand is you- no competitor no matter how much money or how smart or how experienced is going to out you- you.

Scott Messinger is a Business Broker that is currently based in South Carolina and also works in Florida and Southeast USA.  I have personally purchased multiple business and currently own and operate businesses and business interest in multiple states.  If you are looking to sell your business in the Upstate ( Greenville, Spartanburg, Anderson, Clemson included)  Please feel free to contact me.

Scott Messinger  Business Broker South Carolina (864) 210-8226   Scott@GatewayBusinessAdvisors.com

Waiting…. to Sell Your Business

By | |
Comments Off on Waiting…. to Sell Your Business

I just had a birthday.  Yeah I know- So What….  But  celebrating a birthday when you are “Middle Age” by most definitions and or “old” by my teenage daughters definition a little introspection is done.  Fact is Im not getting any younger.  As a business broker based in Florida it also makes me think of all the business owners that are getting older and maybe are or have been ready to sell their business but the bad economy has delayed that decision. Another year passes, the “recession” is still with us and it really looks like it will be with us next year and maybe beyond.

How Long Can A Business Owner Wait To Sell Their Business?

What if this down economy last 2,5, 10 years.  I am generally an optimistic person.  I started and owned a business for 20 years and during the lean years I continued to see the glass as half full, and fought thru some difficult years and successfully sold my business when I was ready.

I believe there are many business owners that had planned to have exited their business by now.  Maybe they planned to sell their business and begin enjoying “that retirement thing” they have heard of, but had to delay those plans due the the reduced value of their 401k and other investments, the reduced equity in their home, and the lower revenue and profit of potentially their biggest asset- their business.  Its easy and common to say ” I want to sell my business but I don`t want to sell it now when my business is down”.   I understand that thought process.

Things To Consider When Deciding To Sell Your Business

But I think from here is where the thought process becomes more difficult.  Considerations should include:

  • What if we remain in a prolonged recession- can I wait 3-5 plus years?
  • What happens in our world of supply and demand. Is a pent-up supply when released, going to affect prices/values downward as the increased supply hits the market?
  • Is there really this large number of baby boomers looking to exit businesses and move into retirement to further flood market and affect supply/demand price?”
  • Maybe I’m told I should wait… Ive been working for 20-30 years towards this “end game”, do I really want to wait?

As a business broker in Florida, maybe some day I will go to a meeting of business owners and not hear stories about a foreclosure that one is going thru or their friend is going thru.  Maybe I will attend a seminar or educational session put on by bankers or SBA bankers that doesnt sound empty and completely disconnected by thier purported audience- the small business owner , that needs financing or entrepreneur that wants to buy a business.  This may happen, but its not going to happen tomorrow.  But how many tommorows is it going to take.  How many more birthdays will pass before the time is right to sell your business.

How to Double Your Customer Base Overnight-Buy a Competitor

By | | , ,
Comments Off on How to Double Your Customer Base Overnight-Buy a Competitor

As a business owner for 20 years I was involved in an industry that was expanding and rapidly growing. The  size of the “pie” my competitors and I were  competing over was getting larger as the industry grew and we all sought to get our share of this bigger “pie”. So we increased our customer base as the market grew, and we also grew our customer base by buying competitors which resulted in many successful synergistic acquisitions.

In today`s economy in so many industries people are needing to spend less, cut back and therefore the “pie” is staying the same size or the “pie” is getting smaller. So you have business owner competing for their piece of a smaller pie .  As you have the same amount of competitors competing for a smaller pie either all get less, some get more by pricing or efficiencies, but those getting more, results in other competitors getting less and or so much less that they no longer exist.

 

Today as a business broker in both South Carolina and  Florida.  I am working with several business owners looking to keep afloat and looking for exit strategies that meets their needs.   Selling their business and going to work for the acquirer  is an interest I have heard on several occasions as an exit strategy that they would welcome. (Also work with several business owners that have solid business models that are doing well).

Buying A Competitor

A fast and often cost effective way to gain a bigger piece of the pie is by buying a competitor. Growing your customer significantly “overnight” by  buying a bigger “piece of the pie”.  Buying a business in a growing industry and or economy is a solid and effective way to grow a business.  I had utilized this approach on multiple acquisitions to add to our own organic growth.  Buying a business, or buying a competitors business in a recession can also be an effective means to grow your customer base and grow it fast.

Often most business owners dont consider acquisition as a possible way to grow a business because they feel they do not have the funds or resources to make such acquisitions.  But:

1)possibly you can find a struggling competitor that may welcome the opportunity to escape the burden of trying to run a struggling business

2) possibly you can buy a business of a competitor that offers Seller financing.

3) possibly part of the purchase price can be the assumption of debt on trucks and or equipment that may be assumable and may be affordable thru the synergistic cash flow of the business

4) possibly offering the owner of the business you may buy long term employment.  A small struggling business that may have a few employees-  who may be the last person to get paid?- the owner.  An owner may welcome the premise of steady and consistent compensation.

5) Possibly you can secure outside financing- An approach I always used as my last choice but may fit your situation

Furthermore, would you be “just buying a failing business”? No.   Syngergies that can be realized can be plentiful and the cost saving that follow may help or completely finance the acquisitions.

Cutting The Costs When Buying A Competitor

You have an office space or shop so does the competitor.  Can you and your competitor both operate under one roof?  When you eliminate the need for 2 spaces you also eliminate so much of the lease cost, utilities, insurances, phone, internet and other Fixed Overhead cost associated with that space.  Also by adding these customers your customers,  density may increase  and you may be able to increase efficiencies in service and maybe you need 1 less employees or more, along with the benefit cost that goes along with the employees.

Advertising does not need to be duplicitous,  maybe some equipment of vehicles are also duplicated and can be potential cost savings.  As a business broker I try to look at buying selling a business from the perspective of a business owner and see that during this recession improving your position thru acquisition may have many long term beneficial results.

So what do you do when you are trying to keep your piece or get a bigger  piece of a smaller “pie” ?

Buy another piece of that pie it may not cost you as much as you had thought.

 

 

What Business Would a Business Broker Buy?

By | |
Comments Off on What Business Would a Business Broker Buy?

Many Business Owners will utilize a professional business broker to help sell their business.  Many prospective business buyers may hire a business broker to help them in their quest to find and buy the right business.  The perspective of a business broker will be different from the perspectives of both the buyer and seller.

The business broker has the perspective of being involved with reviewing many businesses and speaking with many prospective buyers and sellers.  A “normal” business buyer or business seller may only buy or sell a business one time in their business life.  But what sort of business would a business broker buy if he/she were buying a business?

  • What Business would a business broker buy?
  • Would  a business broker buy a franchise
  • Would  a business broker choose to start a business
  • Would a business broker  decide due to current market conditions to wait and defer the decision to buy a business until the economy improves

Just as every business buyer will have their own set of criteria for evaluating and making a business acquisition, every business broker will have their own criteria they deem as important.  As a business broker based in Florida,  and former business owner ,I always look at businesses for sale from the perspective as a prospective business buyer and ask myself “Would I buy this business at this price if I was buying it?”.   And if I ran across a terrific business opportunity that is a great value,  that met my lifestyle and financial requirements, I may be a business buyer again.

Business Broker`s Criteria For Buying A Business

What are the few basic conditions I would most look for in today`s business environment.

  1. Motivated Seller– I recognize the Seller really needs to want to sell.  Not that the Seller needs to sell, but rather WANTS to sell for what ever reason it may be.  Selling ones business is a process.  Many business owners have  been doing a certain thing for a long time, and continuing to run a business vs selling may be “ the path of least resistance’’,  Attempting to sell a business on a whim or buying a business from someone “kind of interested” in selling can be arduous .   For me, there needs to be a strong “want” when selling a business.
  2. Seller Financing– I want to buy a business that offers Seller Financing.   When Seller Owner holds a note on the business  he has a vested interest in your success.  To avoid not going thru a bank or other lender holds a high value to me and would be my first choice.
  3. A Good value relative to asking  price as a multiple of adjusted cash flow. A higher multiple may be ok but must be quantifiable.
  4. I  would be willing to buy a business that has poor financial  records yet feel numbers can be substantiated. I recognize different small businesses handle their “accounting” in so many different ways, and if I can find good value does exist within a  a company with poor records ,  I would have further interest. Some business buyers may be less comfortable  when records on the surface dont make sense.
  5. Recurring Income- Strong recurring revenue would be important to me.     Am I walking into ongoing sales or am I going to have to go out and get new sales each and every month.  And what is the cost to get that new business.
Acquiring A Business

Photo (c) tampabusinessbroker.com

“A Rising Tide Raises all Ships. ” Now is a good time to buy a business. As the economy improves, I feel  value will be realized.   The process of buying and selling a small business requires certain individual criteria to be met.  My criteria will be different than the next persons.   What is important to others may be similar to the above criteria.  But if you are looking to buy a business you need to outline what is important to you.

 

 

How to Sell Your Business-Two Most Important Ingredients

By | |
Comments Off on How to Sell Your Business-Two Most Important Ingredients

How to Sell Your Business-Two Most Important Ingredients

How to Sell your business very often  involves many many moving parts and finding the right Buyer for your business can be a very involved process.  Do you use a business broker to sell your business?  Do you try to sell your  business yourself?  These are just a couple of the initial questions a business owner must answer to begin the process of selling ones business.  When selling a business it is easy to think that I will sell my business to “the first person to comes along with enough money to pay my asking price” .

The Right Conditions For Selling Your Business

The sale of a business involves many terms and conditions by both the buyer and seller that must be met to consummate in a sale.  Very often as you go thru the process of due diligence by both the buyer and seller, wants and needs are uncovered, and potential roadblocks to completing the sale can occur. Two important elements have a very strong impact on increasing the likelihood of a successful sale of a business.

When trying to sell your business are you working with:

An Interested-Qualified Buyer?.

  • An Interested business buyer
  • A Qualified business buyer

As a business broker based in Anderson South Carolina, one of my more important responsibilities  when I represent a business owner selling their business is to qualify or “pre-screen” the various inquiries on the business for sale.  There are many people that inquire/ask about a business for sale and probably less than 5% of those buyer prospects actually buy a business at all.

Difference Between Qualified And Interested Buyer

A Qualified buyer can mean many things, but having the adequate available cash, equity, financing, special skillset, proper personal family and life situations are important to establish.

An Interested Buyer is one that wants to buy the business.  They have seen basic information on the business and based on that, if no significant negatives or unknowns surface, they want to buy the business.  There will always be a lot of due diligence, verification, questions and answers, but this buyers desires to see the process move forward.  If my wife and I were looking to buy a new home, and she finds a home that she likes- I am pretty much transformed into an Interested Buyer.

I may turn from looking to buy a home to working to buy this certain home.  Issues may occur when doing the due diligence on buying the home but I task these as issues to overcome, not reasons to get out of the deal- If I am a truly interested buyer (and or my wife really wants the house).

When going through proper due diligence many discoveries and discrepancies can be uncovered.  When you have a Seller that is truly interested in selling their business and you are working with an interested and qualified buyer, issues uncovered in due diligence are not “Gothcha” moments but rather are business related issues that both parties seek equitable resolution and or explanation on. Issues that surface become hurdles but not roadblocks.

Buying and selling a business is a process.  When Selling your business at some point in the process you ascertain that you are working with an interested qualified buyer.  From my perspective, having an interested Seller and recognizing that you are working with a truly interested qualified buyer are two important ingredients towards a successful sale of a business.  Looking to Buy a Business in South Carolina or looking to sell your South Carolina business?

Scott Messinger

South Carolina Business Broker

Scott@GatewayBusinessAdvisors.com