Bridgepoint Success Story: Selling on a Positive Note
Business Location: Saskatoon, SK
Type of Business: Farm, Auto & Industrial Auto Parts Supplier
Asking Price: $550,000
With over 10 years in business, two partners had worked side by side every day, investing at least 50 hours each per week in running and maintaining their business. Suffice it to say, they were tired and looking for a change of pace that would allow for more quality family time and hobbies.
These owners decided that the only solution was to sell their business. Their number one concern was to ensure that the next owner would treat their customers with the same loyalty and respect that they had built into their business.
Bridgepoint Business Brokers' Work
We conducted a thorough review of the business' financial situation, and came to the bleak conclusion that the business' fixed assets alone would not help them retire, as they were worth only $30,000. Knowing that this wouldn't allow the owners to exit the business, we looked for ways to build business value. The business did generate strong profits, and if the partners were willing to transition the business it could be worth up to $550,000.
The owners were very pleased with this value and our ability to support the financial and all other corporate information in one concise document for potential purchasers.
We created a polished and executable marketing plan that allowed us to pursue an exhaustive search for a buyer in Saskatoon. A nine month journey of coffee meetings with prospective buyers was worth it when a perfect match came along - a local Saskatoon family that possessed all of the right skills and experience to run the business.
We began to share the business' detailed package with the family, answering all of their questions and concerns. They too discovered that it was a great fit, as they decided to proceed with purchasing the business. Our assistance didn't end there as we guided them in writing an offer that the sellers would find acceptable. Also, for these serious buyers, financing was an issue. Our strong relationships with local lenders allowed us to help this family secure a loan so they could turn their business ownership dream into a reality.
As with any business transaction, last minute problems do arise and can crater a deal. This deal was no different, there were some last minute details that came up, but we were able to find creative solutions and close the deal in a timely manner.
The partners were more than thrilled! They both saw a life ahead that included more personal time - for one owner it was more time with his recently retired wife, and the other was eager to spend the summers enjoying his passion for golf. The buyers were happy as they now had a business and a future that their family could grow with.
We successfully took the sale of a business from what looked to be a $30,000 liquidation to a comfortable retirement for these local Saskatoon business owners.
- Large amount of business goodwill that needed to be justified and transitioned
- Owners wanted the "right" buyer to take over the business
- Time was of the essence as the owners were reaching burnout
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