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Why Waiting to Sell Your Business Might Backfire

By EMILY MALTBY

Millions of small-business owners may be delaying retirement to their late 60s or 70s and beyond, in hopes of riding out the sluggish economy and a slump in the sales value of small businesses.

But waiting for the market to recover could backfire, according to some who study small-business valuations. If and when the economy brightens, there could be a hefty backlog of retirement-age small-business owners eager to sell out, competing with newer sellers for the same group of buyers.

“If you continue to hold on another day, that’s another day where several more thousands of business owners turn 65. The market will be flooded for small businesses and the valuation will continue to trend down,” says John Warrillow, creator of the Sellability Score, an online tool to help business owners value their firms.

For those looking to sell their business at the highest possible price in order to retire comfortably, “I don’t think waiting is necessarily the answer,” he adds.

The first wave of baby boomers turned 65 last year, and the growing number that will reach that milestone in the next five to 10 years could compound the problem. “That will make the field enormously crowded,” says Steven D. Popell, an exit-strategy consultant in San Francisco. “The number of companies that will be up for sale in the next decade will increase dramatically.”

Read this entire article by Clicking Here or visit The Wall Street Journal at www.WSJ.com and search for “Why Waiting to Sell Your Business Might Backfire”

To receive free advice on the correct time to sell your business contact The CBI+Team by phone (479)770-8989 or email info@cbiteam.com

Death Takes Business Owners

Two business owners with whom we were working to sell their businesses died within 2 weeks of one another. Both were still working in their businesses and trying to sell. Both were in their 70’s and had been in ill health.

Both had listed their businesses for sale within 8 months of their deaths. Both left widows behind who are trying to figure out what to do with the assets, employees, customers….it’s a nightmare.

The CBI+Team did our best to help but were limited by time and lack of organization and declining revenues of the businesses due to the ill health of the two principals.

Lesson: Don’t think that you will run your business forever, you won’t. Don’t think selling it is a six month process. Start planning to sell at least 24 months before you HAVE to sell.

Don’t die in your business and leave your spouse with a nightmare. Call us today at 877-582-5200 and we will

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help you plan an orderly exit.

Carl Grimes visits University of Tennessee Dental School

Carl Grimes was guest speaker at “Lunch and Learn” event held Wednesday, October 31, 2012 for over 100 4th, 3rd, 2nd and 1st year dental students at the Memphis based University of Tennessee Dental School. Carl spoke on “Dreams and Goals” and shared how the students should “Begin with the end in mind” for their personal and professional careers. He showed them the path to owning their own practice begins with deciding between ownership and employment. He told them that deciding if they wanted to have a boss or be the BOSS was the first question to be answered. If wanting to be the BOSS, then plan where you want to be and the lifestyle that appeals to you and then begin the path to ownership.

The CBI+Team recently helped Dr. Peter Jeppsen of Siloam Springs, Arkansas achieve his dream of owning his own practice and Dr. Jeppsen graciously allowed a video presentation of his comments to be presented as he addressed the question, “What advice would you give to dental students as they approach graduation?”

The CBI+Team has set up a specialty practice matching dental students with practices with owners who need to sell and retire.

If you know a dentist approaching retirement age who needs to sell their practice, contact us today at 877-582-5200 or email info@cbiteam.com and we will gladly pay you a referral fee if we sell the practice.

Great News for Businesses in Arkansas

By Arkansas Business Editors

Home BancShares announced record profit. Arvest Mortgage blew past its previous record for mortgage origination.

A Florida company, NextLife Enterprises, picked Rogers as the headquarters for its NextLife Asset Recovery Services subsidiary, which expects to employ 350.

The Arkansas Game & Fish Foundation is building in Jacksonville. Antique Brick & Block is expanding its manufacturing facility near downtown Little Rock (and adding two handsful of jobs). The Clinton National Airport unveiled its new baggage screening system, which will speed up the process and declutter the check-in area.

The biggest business news last week was Murphy Oil’s long-considered decision to spin off its Murphy USA retail business – the most recognizable part of the business for anyone who has ever shopped at Wal-Mart – into a separate publicly traded company.

And it will be headquartered in El Dorado along with Murphy’s previous spinoff, Deltic Timber. Is there any other city the size of ElDo with such a roster of publicly traded companies?

We still have questions about how the spinoff will work, but investors seemed to like the idea just fine. Murphy’s stock popped up by as much as 10 percent after Tuesday morning’s announcement before settling down at a gain of about 6 percent from its close on Monday.

To top it off, the fall leaves are looking better than we feared during the summer drought. That’s good news, too.

To read the full article visit www.arkansasbusiness.com and search “The Good News Is” or click on the link below.

[Link to this article]

SOLD: Two prominent, local franchises!

Two celebrated franchises, Auntie Anne’s and Rocky Mountain Chocolate Factory at the Pinnacle Promenade in Rogers, transferred ownership this past week courtesy of The CBI+Team and Senior Advisor, Casey Grimes!

Bob and Irene Phillips have been the sole owners of the businesses since originally opening them in July of 2007. Casey Grimes was able to find interested buyers in husband and wife team, Kerry and Regina Laman. They were seeking a great business opportunity and decided these were reliable and established businesses in which to invest their time, efforts and money.

The CBI+Team has a proven, successful process for the sale of any business. Auntie Anne’s & Rocky Mountain Chocolate Factory are just two of the well over 600 businesses we have helped sell. To learn more about this process and how it can benefit your business, please contact our offices at (877) 582-5200 or info@cbiteam.com.

Auntie Anne's & Rocky Mountain

Pictured from left to right Bob and Irene Phillips (sellers) Regina and Kerry Laman (buyers)

Client Referral

Clete Brewer

“Carl and his son [Connor] sold me a Sport Clips franchise through their office here [Northwest Arkansas] back in 2002 and I have also sold a minority interest in a pizza business through them so I have been on both sides of their business. You will find them easy to work with. They have a process which they follow that has made them successful.”

-Clete Brewer referring The CBI+Team to a friend and potential client

Carl Grimes has been involved inthe sale of over 600 businesses in his career as a professional business broker and has implemented his selling process with The CBI+Team.

Find out more about his process and how it can benefit your company by contacting our offices at (877) 582-5200 or info@cbiteam.com.

Seller’s Feedback

Former owner of Datakeeper Technologies, Laura Ruether, speaks about the experience with The CBI+Team and how operations are running after selling her business:

“THINGS ARE GREAT!  Jeff, the new owner, has strengths everywhere I had weaknesses and we get along great and video chat daily.  He has done everything he said he would do and fallen short in nothing.  He has hired a new support person and I have trained her and I am already out of the support business and just doing the training and design as I wanted.  I’m just about to go ‘part time!’  We hired and trained a new programmer and we have implemented several new processes that will ensure we are competitive for years to come.”

“I fully anticipate the new owner will do even better with revenue this year than I had projected.  We have gotten National Center to extend our agreement for several more years and are now the exclusive and only recommended product in our market.  The National Center will soon be ‘mandating’ everyone use our software and this should greatly increase our revenue.”

“Thank you for your assistance in the entire sale.  While things never go smoothly in a sale of this kind, the first offer falling apart ended up being a major blessing in disguise as those people did not have the expertise of my final buyer.”

-Laura Ruether

Thanks for the wonderful comments Laura, the CBI+Team is glad we could help and we look forward to hearing from you again.

Keeping jobs and family entertainment here in Arkansas!

The Fort Smith/River Valley office of The CBI+Team brokered the exchange of ownership for Midland Bowl, the oldest bowling center in Fort Smith, Arkansas. Dawayne Murdock, intermediary for The CBI+Team, handled the negotiations and finalized the transaction between Benefit Bank of Fort Smith and principal Andy Bartholomy. Owner of Bartholomy Bowling Centers, Mr. Bartholomy operates over half a dozen bowling centers in Missouri, Oklahoma, Tennessee, and now Arkansas.

Midland Bowl

Dawayne Murdock and Andy Bartholomy finalizing the transaction.

Midland Bowl, open since the 1970’s, has been on the verge of closing its doors to the public and to the 25 employees working there. Andy Bartholomy stepped in and made sure that wasn’t going to happen. He’s looking forward to rejuvenating Midland Bowl with his expertise in the family entertainment industry.

Along with Dawayne Murdock, the CBI+Team office in Fort Smith helped complete this sale. Other offices are also located in Lowell, Arkansas; Duluth, Minnesota; Springfield, Missouri; and Joplin, Missouri. Carl Grimes founded the Confidential Business Intermediary Team and its mission statement, “to help people confidentially sell and buy businesses to secure their financial future.”

Contact The CBI+Team to find out how we can help you. (877) 582-8200

Allen Lindley and Carl Grimes celebrate the closing on Datakeepers Technology

Data KeepersLess than a year ago Laura Reuther, owner and founder of Datakeepers Technologies of Lebanon, Missouri contacted Carl Grimes of The CBI+Team and expressed interest in selling her unique, niche educational software company.

After having an independent, third party, certified business appraisal done to help Laura establish a framework for the value of the company, the CBI+Team listed the business for sale and took it to the market.

The advertising and marketing conducted by The CBI+Team produced over 125 interested parties. Allen Lindley of the Springfield, Missouri office of The CBI+Team, began pre-screening the various parties. The Datakeeper listing attracted international attention in addition to USA-based companies.

Very quickly three offers were made on the business, one of which was from a successful entrepreneur from Houston, Texas. After due diligence including face to face meetings between the Seller and Buyer and a meeting with the national organization that supports Datakeepers, the deal closed successfully for all parties.

Laura will remain on with the Buyer for a period of time as a consultant and will collect royalties for a specified period of time.

If you have a software company that you’re thinking about selling, contact Carl Grimes of The CBI+Team at (877) 582-5200 or carl.grimes@cbiteam.com and we will help you begin the process of preparing your business for sale so it can be presented to hundreds of potential buyers utilizing the proprietary CBI+Team marketing plan.

Why Sell? Why Now?

By Jon Holbert

These questions come up often in conversations with business owners. The answers are unique to each individual owner, but there are some constants that I’d like to address.

1) Why Sell?

a) Retirement. Even if you are technically not “retirement age”, business owners are often motivated by the desire stop working full time in their own business. Some will work part time, work for someone else or even begin a new business venture.

b) Health Issues. Many business owners are forced to sell because their health will no longer allow them to work in the business.

c) Interest. Many owners have lost interest in their current business. Let’s face it. Working in your own business can be grueling at times with long hours and lots of stress. Other times business owners have other businesses or interests that require more of their time. FYI— golf and fishing are not other interests, refer

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d) Timing. Many times if a particular business is the hottest thing going or if it is on the upswing, the timing may be right to get a great price for your business. Sometimes you just have to strike while the iron is hot.

 

2) Why Now?

a) Market Conditions. No one can predict the future, if you are considering selling, the only time you can be sure of the market conditions is now. As Yoda would say “Difficult to see. Always in motion is the future.” Many times we see owners postpone selling their business and then have some catastrophe or market shift that makes their business worth less or worse, worthless.

b) Taxes. There are some things that are predictable, especially in today’s climate. Those things are higher taxes, more government regulations and intervention. It seems inevitable that there will be a capital gains tax increase in the near future as well as additional regulations concerning employee benefits, environmental regulations and income taxes.

c) Trends. As we slowly recover from the 2008 recession, most businesses are beginning to experience upward trends in sales and profit and these are the trends buyers are looking for. Any business that has survived during the last 5 years has proven itself to be resilient and flexible in dynamic markets.

d) Buyers. With some larger companies downsizing, some retirement age people who aren’t ready or able to retire and with tight job markets for recent graduates there are plenty of willing buyers out there. The question is—are they capable of buying a business? The answer is—yes, many of them can. Now that people can invest their 401k into their own business without taxes and penalties, the door opens for many. Also, recent graduates or younger buyers can buy themselves a job with help from their families.

Using a business broker can help you determine if the time is right to sell. He or she will be up on current trends and market conditions. He or she will carefully screen buyers so that only qualified people will “see” your business and can help with recommendations for valuations and tax consultants.

Ultimately, only you can decide when the time is right to sell your business, but it just makes sense to use a professional business broker to provide confidentiality, insight into the market, bring you screened buyers and provide the consultations you need to make an educated decision. Once again, Master Yoda says “Already know you that which you need.”

Jon Holbert