Archive for category: General

Uncovering an individual’s motivations to buy or sell businesses can be extremely challenging because they either want to keep it a secret or they just aren’t sure themselves.

One of our main functions as business intermediaries is to qualify potential buyers and sellers and to understand why someone wants to buy or sell. Nobody wants to move down the path toward closing a deal just to find out that the other party isn’t really compelled to complete the transaction.

Walking away from a deal can happen on the buy side or the sell side, but in either case, there are going to be some upset people if it happens. Transactions can be tedious, difficult, long processes so it’s best to anticipate the hard work.

Buyers: Are you willing to put in the time and effort to look for a business? Are you willing to get a loan and fill out paperwork? Will you be seeking assistance to help with the process? Do you really want to own your own business? Can you manage your attorney and accountant advisors instead of letting them control you? If you answer yes to these questions, then you might be ready to buy a business.

Sellers: Are you willing to talk to multiple buyers and share your financial history? Are you prepared to transition into the next phase of your life? Is your husband or wife ready to have you around the house? Are you willing to listen to advisors about your business value? Can you manage your attorney and accountant to get the business sold? Are you willing to train a buyer if necessary? If the answer is yes to these questions, then you might be ready to sell your business.

Obviously, there is plenty of soul searching that needs to be done, but that needs to happen prior to searching for a business or a searching for a buyer for your business. Spend some time talking to your Apex Business Advisors to uncover your true motivations.

Doug Hubler
President

We had a couple successful closings today, but one stands out because of the positive experience that could be relevant when dealing with your own transaction.

Both buyer and seller had to take assertive steps to make the deal work. They were open to suggestions by their Apex advisors, such as local bank options and other professionals needed to complete the deal. Also, communication between buyer and seller improved through the process as trust between the two solidified.

Our Apex Business Advisors proved their credibility because of their deep knowledge of selling similar businesses in the industry. The buyers and sellers met with recommended banks and used forms provided by Apex that have been tested over hundreds of transactions. The seller was also very instrumental in the licensing process, which cut the lead time required for a new license.

They began this process relying on the advisors, but once the buyers and sellers developed a relationship, the deal was able to proceed more smoothly. They were flexible, they showed good entrepreneurial skills by adjusting to impediments, working together through issues, and readily communicating with all involved. Because they had similar goals, they were able to make the deal happen.

It is from these experiences that we are able to successfully assist our buyers and sellers with their deals, and provide practical and valuable processes.

Doug Hubler
President

Selling and Buying businesses is different than completing real estate transactions. With a real estate transaction a price is agreed to, probably an appraisal is ordered, and maybe an inspection, but there is very little due diligence required. When selling a business there is quite a bit more involved in the due diligence process, financing options, business valuations, legal documentation, and so on.

After closing on a real estate transaction, the seller is gone. However, in a business transaction, the buyer and seller may be working with each other for months preparing for the sale and then additional time working together during a transition.

The relationship developed between the buyer and seller during due diligence and contract negotiations is very critical. Imagine working with a buyer who continually looks for reasons to slow down the process, always tries to find and point out all the negatives associated with the business, refuses to be reasonable on contract negotiations, and is, in general, a pain in the a–.

Not a pretty picture! OH, and now the buyer wants the seller to be grateful for the opportunity to train them? The decision whether or not to sell a business can be a very difficult one to make, and emotions tend to run high. Owners care about their businesses and want the right type of person to take it over. Buyers need to accomplish their business acquisition goal in a diplomatic, engaging, and time focused manner. The seller should be the buyer’s ally!

Use your Apex Business Advisor to assist you during your acquisition.

Doug Hubler
President

It’s been a very hectic and dusty 2 months. We are expanding our space and are now nearly done with the construction. Our improved office will be able to handle the increased interest in our seminars, give us more breathing room for our various networking meetings, and allow for additional conference rooms and office space.

We also added a “new” broker who was able to move into his office in the last few days. I say “new” because Steve Weaver previously worked with us, but bought a business and left to run that business for the last 7 years (see Steve’s Bio here). Steve improved that business to such an extent that he is able to return to Apex and still own a business! It’s great to have him back!

For more information about buying or selling a business please contact an Apex Business Advisor.

We wish everyone a very happy Thanksgiving holiday!

Doug Hubler
President