Usually when presented with the opportunity to sell a great company, of course we approach the project with a lot of enthusiasm. However, we knew that this distributor/dealer business was located in a community that was clearly lacking economic vibrancy due to its isolated and somewhat desolate location.
The AdvantEdge Solution
We counseled our client that we felt that with a customized approach we could ultimately be successful but that it would require patience and could take longer than a year to find a buyer and close a sale. The business experienced active interest levels throughout our initial phases of marketing because the numbers look good, but buyer feedback inevitably went something like this, “if only it were located (elsewhere), we would pursue it aggressively.”
The offering had been in 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 very competitive suitors and the result to the owner was very nearly full price, all cash in about 13 months. The successful buyer had come through Alan’s professional (CPA) channels, had been living on the East Coast but wanted to get back to the area where he was raised. The unsuccessful buyer was from the local area with very good synergistic reasons for buying the business. This buyer had come through our broader & 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 offers). Bringing multiple buyers is always ideal for the seller and we were pleased to be able to do so on this project.