Case Study Example #1
Situation & Context: Long-time owner of Oink’s Ice Cream & Yogurt Dutch Treat Shop, Roger Vink, was ready to transition into retirement. Roger found Small Business Deal Advisors online and reached out in early March of 2020. After numerous conversations, Roger decided the time was right to list the business for sale and begin talking to buyers. He officially signed with our team toward the end of March of 2020. When signing, Roger brought two buyers to the table with him expecting to sell the business to one of them, under a discounted agreement with Small Business Deal Advisors. Within a few weeks, both buyers had disappeared and aggressive marketing was launched to find new buyers.
Reason for Sale: Roger was ready to retire, having owned and operated Oink’s for over 35 years.
Positive & Negative Deal Attributes: Roger had built a strong local name, and the business demonstrated strong margins, despite being closed during the winter. Although this was viewed as a plus, the seasonality and the fact that the workforce consisted of 10 to 40 part-time employees, that largely had to be rehired at the beginning of the season presented some difficulty.
Results after 3 Months: After 3 months over 10 potential buyers had inquired, signed NDAs, and received detailed business information. The strongest offer emerged from the competitive bidding process run by Advisor Doug Yntema, leaving Roger an easy choice.
Decision: After moving forward under a Letter of Intent with the eventual buyer, Michael Schimanski, the deal encountered a few hurdles. With Doug spearheading the process, both buyer and seller were able to get through financing, get out of a side lease, terminate an easement with the neighboring lot, and properly value collectibles that would be part of the sale. The eventual purchase price came in over $25k above the initial asking price.
Conclusion, Feedback & Recap: The seller commented, “I’m very pleased with the outcome of this process. I was impressed with the number of buyers brought in. We received three offers in the first few weeks on the market. Doug promised me SBDA had a large database of buyers and robust marketing plan, but receiving three offers and getting over asking price was a nice surprise, especially in the middle of the COVID shut down!” commented the former owner, Roger Vink, “There were some challenges with financing, early possession, easements with an adjacent property, and valuing collectibles that were included in the sale. We could not have completed the sale without the expert guidance and relentless push to get over every obstacle. I couldn’t be happier.”
Case Study Example #2 – College Hunks Hauling Junk of Des Moines, IA
Situation & Context: After opening in 2018 and quickly growing the moving and junk hauling franchise in Des Moines, Iowa, the Seller was confronted with personal and family reasons to sell the franchise quickly.
Reason for Sale: The Seller encountered serious personal and familial needs that took priority over running a business.
Positive & Negative Deal Attributes: Since the business was only operational for a little over a year, there was not an established track-record our team could show to buyers. In spite of this, our team moved quickly to get the opportunity on the market and in front of buyers. The business had generated substantial cash-flow for the part-time owner since opening, and therefore our team focused our marketing on the long-term potential growth and immediate growth opportunities a buyer could capitalize on. The Seller had also done a nice job managing the company, resulting in a 4.8 star Google review (100’s+ of reviews). Ultimately, our team knew the importance of sharing the needs of the client, without showing any desperation.
Results: The standard marketing procedures and processes were run, with an advisor quarterbacking the deal. Within 2 months of marketing the opportunity, lead Advisor Doug Yntema knew he had found a buyer that fit incredibly well for the opportunity. Leads continued to come in, resulting in 7 serious, interested buyers with signed NDAs, and after four months, a Letter of Intent was signed and the buyer and seller quickly moved toward an amicable closing.
Conclusion, Feedback & Recap: Once again, a targeted marketing approach resulted in the best outcome for our client. Proper presentation and marketing, including highlighting the strengths and opportunities available for a new buyer drew a large buyer pool in a timely manner. National and local target advertising, including listings on the top-ten business-for-sale listing sites, a strong Google presence, paid targeted Facebook advertisements, along with research, email and calling efforts, and an internal database generating immediate interest remains the secret to Small Business Deal Advisor’s success. Our client was very satisfied and confident in the buyer overtaking the legacy he had built and felt he had sold the business for a good price.
Case Study Example #3 – Family Wellness Center
Situation & Context: In 2019, the owner and operator of Family Wellness Center (“Seller”), was ready to retire. The Seller had built a wonderful business, a venture she had poured her energy and ambition into since 1998. She had founded Family Wellness Center, a private acupuncture and alternative medicine center in Midland, Michigan. Family Wellness Center had established itself locally with a strong community-centered approach, a great team, and a facility that was situated along a heavily trafficked Midland road.
Reason for Sale: While the Seller had enjoyed founding and operating the business for some time, she was ready to retire. The Seller’s biggest concern going into the sale process was the ability to find a buyer that would value the business she had created and be a good fit to take care of her team and customers for many years to come.
Positive & Negative Deal Attributes: Small Business Deal Advisors took the time to fully understand the deal intricacies, industry, and Seller goals before launching any marketing. Acupuncture as an industry at the time was gaining traction and insurance had begun to include acupuncture as a treatment option for veterans. Family Wellness Center had generated very consistent cash flows for many years and Small Business Deal Advisors worked closely with the Seller to highlight the business’s strengths and growth opportunities. The task remained of finding an acupuncturist or business owner with some related experience who was a good fit, financially capable, and motivated to take over for the Seller in Midland.
Upon launching the business for sale opportunity, the following marketing efforts were taken:
- Database Blast – the opportunity was confidentially sent to our database of 49,000+ business buyers and sellers
- Strategic List – the advisor on the deal compiled a strategic list of 115 acupuncture practitioners, alternative medicine practitioners, industry-related companies, and competitors. All contacts were called and emailed several times to confidentially spread the opportunity.
- Online Marketing – the business for sale opportunity was confidentially listed on the top-10 business for sale listing sites that receive thousands of visitors each day. The opportunity was also listed on smallbusinessdeal.com which places very well on google, ensuring anyone searching for “acupuncture clinic for sale” has the Small Business Deal site pop up generally first or second in search results. Confidential paid FaceBook ads were also placed and targeted at those interested in acupuncture, alternative medicine, and small business ownership.
- Tailored Advertising – In order to ensure the proper market was made aware of the opportunity, the lead advisor on the deal felt it was necessary to advertise the clinic for sale throughout acupuncture schools and associations across the Midwest. Paid advertisements were placed and discussions had throughout many associations including Pacific College, the American Association of Acupuncture and Oriental Medicine (AAAOM), the Michigan Medical Acupuncture Association, the National Certification Commission for Acupuncture and Oriental Medicine (NCCAOM), among others.
Results: After launching the database blast inquiries began to come in, NDAs were processed by our system, and discussions with buyers were had. After the first week of marketing 8 serious buyers had inquired and either passed or requested more information. A few weeks later, after contacting everyone on the strategic list, and receiving more inquiries from online and paid advertisements, the lead advisor had 15 serious buyers looking at the opportunity but had not received any offers in writing. After two months of marketing the business for sale, an inquiry was received from the Buyer. The Buyer had heard about the opportunity through his network and then found the opportunity online to inquire. The lead advisor expediently followed up with the Buyer and both agreed this opportunity was a great fit for him.
Decision: The Buyer that was found by Small Business Deal Advisors had recently sold his acupuncture clinic in the Washington D.C. area and was looking to move back to his hometown of Midland, Michigan. In fact, the Buyer had actually crossed paths with the Seller during acupuncture education and association involvement and had worked with some of the team members at Family Wellness Center in the past. The Seller was very pleased and the terms were amicable negotiated. All parties felt as they had benefitted from the deal, and most importantly, the Seller’s goal of leaving the business in caring and capable hands was met. The Seller could now enjoy retirement and enjoy watching the next chapter for Family Wellness Center.
Conclusion, Feedback & Recap: Trusting the process allowed the Seller to have multiple interested buyers at the table at the same time. By creating a private auction process, the most serious and capable buyers rose to the top and the Seller received favorable terms. While the marketing process can take some time, interest continued to come in consistently from marketing, and it was a matter of time before a buyer of great fit was found.
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