For a couple who were ready to sell their small, highly profitable business in the automotive services sector, the challenge was the sheer number of similar competitors also on the market. "We were the same size as many other businesses with owners who were also ready to sell," the couple said. "We were all doing well, but we all faced the same problems and competed for the same customers. With so many businesses just like ours on the market, we expected lots of low-ball offers if we got offers at all."
"With so many businesses just like ours on the market, we expected lots of low-ball offers if we got offers at all."
The couple turned to Travis Kellett, founder of Bridgepoint Business Brokers. Rather than focus on the traditional market of new owner-operators, Kellett assessed the business potential and created a profile of a different target buyer. "We had seen a growing number of similar businesses coming on the market and it was clear that trend would continue for at least two to five years," says Kellett. "Sellers far outnumbered traditional owner-operator buyers and prices were declining."
Kellett assessed the business potential and created a profile of a different target buyer, then built a marketing plan that positioned the business as a strategic investment.
Rather than look for traditional buyers, Kellett built a marketing plan that convincingly positioned the business as a strategic buy for larger provincial or regional business investors. Using his connections and mix of marketing channels, Bridgepoint attracted the interest of a number of potential buyers both inside and outside the province.
A corporate buyer from Alberta purchased the business in conjunction with an international investor. "we didn't show the buyer an owner-operated business," says Kellett. "We showed them a strategic investment."
In the end, a corporate buyer from Alberta purchased the business in conjunction with an international investor. "We didn't show the buyer an opportunity to buy an owner-operated business," says Kellett. "We showed them a sound strategic investment that would give them strong returns and establish them in one of North America's fastest-growing economies. They agreed with our business valuation, even though it was higher than the value based only on the traditional fundamentals."
The sellers were delighted with the clean, all-cash offer Kellett brought to the table. "We looked at our business and thought we'd sell to a younger version of us after a long, complicated process. Travis looked at our business and knew how to find a buyer we'd never have even thought of. He made the process simple for us. Now we're excited to move on to the next stage of our lives."
"Travis knew how to find a buyer we'd never have thought of. Now we're excited to move on to the next stage of our lives."
Find out how Bridgepoint Business Brokers can help you maximize the return on the sale of your business, whatever the market conditions. Call Travis at 306-979-8750, email firstname.lastname@example.org or visit us online at www.yourbridgepoint.ca.