There Is No “Normal”

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No NormalEvery deal is different.

Every opportunity is different.

Every buyer is different.

Every seller is different.

Every advisor is different.

Hmmm, I wonder why there are so many ways for deals either to get done or collapse? <<insert sarcasm here>>

What keeps things so exciting in our day-to-day work lives are the variables we deal with and trying to figure out how to manage specific situations when really there are no deals are exactly the same.

We want to figure out a “normal” to improve our odds of success, but how we handle one customer may have a different results from the last customer who was under very similar circumstances.

Out of the hundreds of deals we’ve closed (and hundreds of deals that fell apart) over the years, we develop general “rules” to live by. But sometimes those rules come back to bite us, so we adjust and do our best to create consistent outcomes.

How could we ever anticipate….

Getting a call the day of closing that the buyer isn’t going to show up because his wife threatened divorce that morning?

Sellers backing out of a deal because of a life-changing event that forces them to keep the business?

When the wife of the owner had to sign closing docs for her husband because he was going to “IRS jail”?

A landlord making it almost impossible to get a new lease?

The bottom line is that we can’t. Things happen that we couldn’t have imagined. All we can do is dig in and try to figure out how to make it work…and sometimes see if we can salvage it at all.

If we can’t, we just have to move on to the next opportunity. Fortunately for us and our customers, there are hundreds of opportunities out there every year.

There just isn’t a “normal”.

If you or someone you know is interested in buying or selling a business, please contact one of our Apex Business Advisors today!

Brokers Wanted: The Price of a Successful 2015

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WantedPart of having a successful business is occasionally needing to add or replace staff. Fortunately, at Apex, our experience has been pretty good over the years with finding and retaining good brokers.

However, in the last 2 months, we lost two of our brokers, Jeff Wilson and Brandt Hill, as they pursue their own entrepreneurial dreams.

Their experience was no different from any other buyer who’s looking for a business. The timing was right, the deal looked good, and the business fit the personality of the brokers.

Of course we aren’t slowing down. Business goes on. And now Apex is looking to add new talent.

What makes a good broker?

Our Apex brokers have all owned businesses in the past or have a background that gives them insight into what it takes to own and operate a successful business. However, part of the success of our office can be attributed to the wide and varied backgrounds of our brokers and the different knowledge and perspective that each offer our team.

Credentials within our office range from college degrees to multiple advanced degrees and certifications, and previous careers include military, sales, finance, home remodeling, distribution, and medical.

But the best brokers have a couple of things in common…a strong desire to help both colleagues and clients succeed, and a motivation in this tough business that is fueled by both the ability to help others and the thrill of seeing a successful deal to fruition.

If you or someone you know may be interested in learning more about this industry and becoming an Apex business broker, please email me at .

And, as always, if you’re looking for assistance buying or selling a business, contact one of our Apex Business Advisors today!

 

Buyer Beware: Don’t Be a Victim of Business Valuation Seminar Fraud

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Beware of those people and companies who offer consulting and valuation services for huge up-front fees. We usually hear about these scams after they’ve transpired and business owners are either really mad or unaware of what they just got themselves into.

There are legitimate Mergers and Acquisition firms who typically get their business from referrals and basic marketing. Then there are companies (fortunately very few) who love to hold seminars on business valuation for the express purpose of selling a business valuation for their invited guests.

fraudalertThis is a hard-core, one-call close type event that will always snare a few very excited and unsuspecting victims. If you didn’t bite the first time, rest assured you will get a call in a couple months and they’ll try again to take advantage of you.

Their hook is getting a business owner to believe that their business is worth as much or more than the owner believes.

For the pleasure of getting a nice printed document, there will be a fee of $20,000 to over $50,000. The price of the valuation really depends on how good the salesman is and how much excitement they’re able to build in the target.

They will offer a huge “discount” to get the owner’s commitment right then. They tell their targets that they don’t usually work with such small businesses, but will make an exception because they really like the owner/business.

These activities are harmful to the business owner and waste time and money. Even worse, owners will receive exaggerated business values that will only further confuse them down the line.

It also harms the Business Advisor/Broker industry. We’re not all the same. At Apex we believe in telling the truth about business value. Of course we try to get as much for the business as possible, but the goal is to sell the business at what the market will actually accept.

With the other scam valuation companies, they have no intention of trying to sell your business. They already made their money!

Smart Business: Why You Need A Broker When You’re Selling

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meetingThere are many reasons to use a professional Business Advisor/Broker such as Apex Business Advisors. Here are a few (in no particular order of importance):

  • We sell lots of businesses and that’s all we do.
  • Sellers typically will sell one business in their lifetime and often make a mess of it on their own.
  • We know the right professionals to bring to the transaction to ensure a smooth closing, such as attorneys and accountants.
  • We expand the market and make the market for your business. Maximum exposure while maintaining confidentiality.
  • The seller needs to run the business and not spend time dealing with “tire kickers” on Craigslist or from other advertised sites who aren’t serious buyers.
  • We know the pitfalls and the warning signs in deals and can help steer around them.
  • We understand the market and what drives business value and will give you a really good handle on your true business value. It’s an art and it takes many years of experience to master.
  • We bring buyers who are serious and qualified from all over the world. Buyers are already in our network and waiting for the right business.
  • We have great relationships with the banks who can make the deal happen.
  • A seller needs a facilitator or a filter to handle the buyer and the process.
  • It’s better to use a broker to assist in the negotiation, keep relationships strong and maintain professionalism throughout the process.

These are just a few of the reasons why having a professional Business Advisor/Broker in your corner is just smart business when you’re looking to sell. To learn more, give us a call at (913) 383-2671.