Back to the Basics of Business Sales: Part 2

The Deal Board

Andy and Jessica welcome you to another episode of The Deal Board Podcast. This week, they continue their Back to the Basics of Business Sales series focused on the core principles of making successful and profitable business deals while debunking persistent myths in the brokerage and M&A world. In Part 1, we addressed certain myths about buying businesses, and today, we’re discussing selling myths. Join us as we uncover the truth about business valuation, explore why business succession plans often fall short, emphasize the importance of keeping your business sale confidential and consulting with expert advisors, explain why a one-size-fits-all approach to listing your business just doesn't work, and much more. Don’t miss out on these expert insights that will equip you with the knowledge to confidently navigate your business sale and avoid costly mistakes. To transform your selling strategy, tune in today!

Listing of the Week:

Ryan Armstrong is selling a specialty contracting and distribution company in Phoenix for $5.9 million, plus an additional $4.75 million in land. This established B2B contractor excels in a niche market, offering custom solutions for diverse commercial and industrial needs. For more details about this confidential listing, which presents a unique investment opportunity in a profitable market segment with significant growth potential, email Ryan at [e-mail] or call him on his mobile at [phone].

Deal of the Week:

Rupesh Bharad recently closed a challenging two-state truck stop deal that involved multiple licenses and franchises, including real estate licenses, liquor licenses, two Hardee’s franchises, an auto sales business, and a mom-and-pop restaurant, all under one transaction! To learn more, contact Rupesh by calling him at [phone] or emailing him at [e-mail].

Key Points From This Episode:

• [00:22] What to expect from Part 2 of the Back to the Basics of Business Sales series.

• [01:28] Why you won’t get multiple times your earnings for your small business.

• [04:15] The essential role of comprehensive, up-to-date financial documentation.

• [07:08] Common reasons why even the best-planned business successions fail.

• [09:32] Fear of change and the importance of keeping your business sale confidential.

• [12:02] How to implement a multi-faceted approach to listing your business.

• [15:07] Listing of the Week: Ryan Armstrong (Phoenix) is selling an established B2B contractor with a strong presence in a niche market.

• [16:40] Deal of the Week: Rupesh Bharad (Richmond, VA) closed a challenging two-state truck stop deal involving 20 different licenses, two franchises, and more!

• [19:18] Stock versus asset sales: what the difference is and why it’s important.

• [21:32] Dispelling the myth that you can easily replace a partner to buy their shares.

• [23:48] Why your business might be unique, but the process of selling it isn’t.

• [26:32] The value of having a skilled team of advisors to guide you through the deal.

• [28:48] Reasons that business valuation is an art, not a science.

Links Mentioned in Today’s Episode:

The Deal Board Podcast

Subscribe to The Deal Board Podcast YouTube Channel

The Deal Board on LinkedIn

The Deal Board on Facebook

United Franchise Group

Transworld Business Advisors

Transworld on Linkedin

Transworld on Facebook

Call us on [phone]

Email us at [e-mail]

Andy Cagnetta on X

Jessica Fialkovich on X

Exit Factor

#thedealboard #transworldbusinessadvisors #realestate #commercial

Quotes:

“There are a lot of business selling myths. A lot of business owners come to us with preconceived notions of what they think they’re going to get for their business, how the process works, [and] how quickly it will sell.” — @acags [0:00:41]

“People will make detrimental decisions to your business when they have a fear of change in place.” — @jessfialkovich [0:10:46]

“The good news is every business is different, but what we’ve seen year after year in talking about [pricing and the transfer of businesses is that] things are so similar. It follows a formula for pricing the business. It follows a process for selling the business.” — @acags [0:24:35]

“A valuation is a moving target. [What] everyone is trying to do is to create – a range of value for your company at a specific period in time.” — @jessfialkovich [0:30:06]