Patience Yields Great Outcome Even in a Slow Market

The Challenge

AdvantEdge Advisors approaches each project with enthusiasm, but we knew that this distributor/dealer business was located in a geographic region characterized by economic stagnation.
Patience Yields Great Outcome Even in a Slow Market

The AdvantEdge Solution

The client was engaged and the business experienced active interest levels throughout our initial phases of marketing because the profitability and trends were attractive. The buyer feedback, however, went something like this: “If only it were located (elsewhere), we would pursue this further.” The offering had been marketed within our networks for nearly twelve months when not one but three suitors emerged. The first was from California looking for a business pursuit in a quality setting. He visited and showed interest, but eventually dropped out. The other two became competitive suitors. The successful buyer had come through Alan’s professional (CPA) channels, had been living on the East Coast but wanted to return to the area where he was raised. The unsuccessful buyer was from the local area and had synergistic reasons for buying the business. That prospective buyer had come through broader and customized marketing efforts. Ultimately he stated that he felt he thought he had “it all locked up” and that he was now disappointed that he had “missed a great opportunity” (when the other buyer out-performed his offer). Bringing multiple buyers into the process is ideal positioning for the seller and we were pleased to be able to do so on this project.

The Results

The owners realized a very strong price, all cash (through buyer SBA bank financing), and a relatively short-term exit. The entire process took about thirteen months.

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