FBB eNews
December  2016

 

In This Issue 

 

New Year's Resolution


FEATURED 

CLIENTS 



Specialty B2B Service Business
#2116

Working as a full-service provider of electronic systems, including fire alarm, security alarm, and communication services, this company provides best in class design, engineering, installation, and monitoring services throughout the state of Colorado.  Thriving since inception, the company has prized relationships with large organizations that rely on its expertise in new installations and ongoing service.  As a  trusted and respected supplier to many large organziations , the company is positioned  for growth.  
 
Purchase Price..............TBS
 Down Payment..........TBS
 Gross Sales...$1,690,187
SDE...$360,263


For more information,
contact Brad VanderBrug

B2B Drug Testing Service
#2216

This is a well-established company that provides drug testing, education, and compliance consulting.  Its clients are government entities (such as cities, counties, and schools) and private and public companies. They provide a continuous stream of recurring revenue.  The firm has grown every year for the last ten years.  For 2015, the Seller's Discretionary Earnings were nearly $300,000, and YTD 2016 is well ahead of that with $280,000 for the first nine months.  The company also benefits from low overhead and high profit margins.  Most of its business comes from a steady flow of referrals.  Due to Federal government regulations and Colorado laws (legalized marijuana), the future of the drug testing industry looks promising.  This business should make an appealing acquisition for: 1) another drug testing/compliance firm; 2) a person seeking a profitable business with growth opportunities; or 3) someone in the medical/health industry. 
 
Purchase Price......$880,000
 Down Payment....$220,000
 Gross Sales...$772,219
SDE...$294,595

For more information,
contact Ron Brasch

Roofing and Exterior Construction Business
#1916

This well-established, well-regarded roofing and exterior construction company prides itself on having industry leading certifications and awards.  This is not a typical out-of-state roofing operation that preys on hail victims.  Only about 40% of its revenue comes from hail restoration work.  Business is performed from two locations, one in Northern Colorado and the other in Denver.  Both of these markets are currently very active and there is more than $500,000 of work in the pipeline. We believe this would be an ideal acquisition candidate for an industry buyer, the manager of a roofing or construction business, or a marketing-oriented entrepreneur ready to take the business to the next level.  
 
Purchase Price.......$790,000
Down Payment...$200,000
 Gross Sales...$3,300,000
SDE........$462,000
For more information,
contact Ken Galecki

 

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New Year's Resolution
 
At the end of the calendar year, it is common to make personal resolutions for the approaching New Year. The resolutions might include goals, such as exercising more, losing weight, etc. In addition to your personal goals, if you own a business and are contemplating a potential sale within the next five years, I would suggest that you also consider some resolutions that will help maximize the value of your business.
Below are some resolutions for your consideration.
1. Run your business like a business; not like your personal checking account.  It compromises credibility if you are explaining why trips to Hawaii, children's cell phone bills, and other personal expenses are run through the business.

2. Properly allocate income and expenses.  This can be done through accrual vs. cash accounting and by not sitting on a couple weeks of deposits at year end, if you are a cash basis taxpayer.

3. Document your processes and procedures.

4. Analyze your customer base.  If you have a customer that accounts for more than 10% of revenue, it is a red flag to buyers and lenders.  Consider restructuring or eliminating marginally profitable customers to focus on more profitable ones.

5. Update or create a business plan that documents and measures your progress.

I could go on, but you can envision the picture.  Spend time working with your employees to prioritize projects that will increase the value and marketability of your business.  Feel free to contact us for additional suggestions or a free, no obligation estimated range of market value for your company.
Last month, shortly after the election, I attended a business conference in Arizona.  The conference was attended by approximately forty-five private equity groups and several hundred business intermediaries from across the country.  Without getting too political, the consensus among the attendees was very upbeat, due to the belief that the new administration would be more pro-business and that action to reduce taxes and regulatory burdens, particularly within the banking industry, would be favorable to the already active M&A industry.   We shall see...
The team at The FBB Group would like to wish you and yours a pleasant and safe holiday season.
The majority of our business is derived from referrals. Please consider referring our services if you encounter a situation involving the potential purchase or sale of a business.

RV Chernak Signature
Ronald V. Chernak
President 
     
Inspiring business relationships since 1982!


Thinking about selling your business?  Click here for our Frequently Asked Questions and more!  http://www.fbb.com/selling-a-business/selling-faqs