eNewsletter
August 2017

Featured Clients this issue:
**Details of each client below article

- Outdoor Adventure Sports Outfitter #917
- Relocatable Value-Added Distribution #417
- Full-Service Provider of Electronic Systems #2116



One of my Dealmakers (synonymous with the title Broker Associate, but Dealmaker is more descriptive) was recently approached by a business owner about using our services to help sell his company.  The business owner had recently elected to use an out-of-state business broker to assist him in selling his business.  After a year of very limited activity and without one visit from the firm, even when a potential purchaser came to visit the business, the business owner began to regret his decision.

Similarly, last month, I was contacted by a business owner who had attended a seminar conducted by a large out-of-state business brokerage firm.  The business owner was enamored by the concept of a price far in excess of the fair market value of the firm and signed an agreement which included a $35,000 non-refundable retainer.  The business was put on the market at a price that was almost double what our 35-years of experience indicated the business was worth.  After about two years on the market, the company had received only a single offer at approximately the value we originally placed on the company.  The business owner called us as a result of the out-of-state firm commenting about the competition being across the street from the business, which was incorrect.

If you are considering the sale of your business, which may be your most valuable asset and the cornerstone of your retirement plan, you need to be prudent in your choice of firms to represent you.  At The FBB Group, we believe it is important for us to be at every meeting between buyer and seller and to participate in virtually every phone call when a transaction is being negotiated.  We know, and have worked with, a number of local transaction law firms, accounting firms, and transaction lenders.  Coupling the knowledge gained in our many years of doing business with the significant resources established through our ongoing working relationships, we aim solely to maximize the benefit of our clients.

We will, o n occasion represent an out-of-state client.  For example, we are representing a manufacturing business in California because we successfully advised that business owner in the sale of two other companies while he was living in Colorado.  After selling his second business, the entrepreneur moved to California and started his existing company.  When it was finally time to retire, he called us to represent him, yet again.  In my mind, the only way to do the job properly was to "partner" with an existing intermediary firm in California, and I chose one I had worked with for many years on various assignments.  When The FBB Group identified a buyer for the business, the other broker in California met with both the client and buyer group.  We are currently in the process of negotiating a Letter of Intent on that transaction.

If you are a business owner considering a potential sale, do your homework and make sure that you have "boots on the ground" readily available to assist you in the complex task of achieving a successful sale.  Ask for and check references. 

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.


Ronald V. Chernak
President
 
Inspiring business relationships since 1982!

Outdoor Adventure Sports Outfitter #917
This well-established, very profitable business has been recognized as one of Colorado's top-rated outfitters.  Activities include not only two very different, exciting adventures, but several parcels of real estate, vacation homes, and a bar and grill.  It's the full deal when looking for outdoor entertainment in the state of Colorado.  Top selling entertainment for individuals, families, and groups.  The business, with an exceptional team of experienced guides and a well-trained staff in place, is an ideal acquisition candidate for an investor or a synergistic acquirer.  
  • Purchase Price...TBS
  • Down Payment...TBS
  • Gross Sales...$3,800,000+
  • SDE...$1,000,000+

For more information contact Lynn Lage lynn@fbb.com.

Relocatable Value-Added Distribution #417
This company, established 13 years ago, represents only the finest ISO Certified manufacturers from around the world.  It specializes in Motion Control Components and Thermal Management.  The products are custom fabricated in China and sold only factory direct to key OEM manufacturers in North America.  A few of the industries served include Food Machines, Engine Controls, Security, Solar Trackers, HVAC, Satellite Systems, and 3D Print Equipment.  Current backlog of approximately $1 million.  
  • Purchase Price...TBS
  • Down Payment...TBS
  • Gross Sales...$2,000,000+
  • SDE...$785,000+

For more information contact Lynn Lage lynn@fbb.com.

Full-Service Provider of Electronic Systems #2116
This business-to-business service company installs and services fire alarm, security alarm, and communication systems.  It is well known in the industry for providing best in class design, engineering, installation, and monitoring services throughout the state of Colorado.  Thriving since its inception over 30 years ago, 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 organizations , the company is positioned  for continued growth.  
  • Purchase Price...TBS
  • Down Payment...TBS
  • Gross Sales...$2,000,000
  • SDE...$395,000

For more information contact Lynn Lage lynn@fbb.com.

The FBB Group welcomes Tyler Callaway! 

Tyler has joined the firm as our Business Analyst. Tyler brings experience with Financial Planning, Currency Pairs Trading, and entrepreneurship.  He is a recent graduate from UCCS with a degree in International Business.  Tyler is a part of several organizations throughout the community and is on the Board of Directors for Middle Market Entrepreneurs Group.  He enjoys getting to the mountains in the winter for snowboarding and the coast in the summer for fishing.

Come learn about the trends and dynamics occurring nationally, statewide, and in our community!

The UCCS Economic Forum is the premier resource for  local economic information. This information is provided for-and supported by-local businesses. 

Don't miss the opportunity to hear how the global, national, state and local economies are expected to perform next year. Hear the information you will use to develop your business plan for 2017.

**Terms & Definitions

TBS (To be suggested by Purchaser) - Seller, in his/her sole discretion, has the right to accept or reject all offers.

Seller's Discretionary Earnings (SDE):  A term used to denote a business's cash flow or the amount of pretax money a buyer can expect to earn in first-year operations.

EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization):   All interest, tax, depreciation and amortization entries in the Income Statement are reversed out from the bottom line Net Income (It purports to measure cash earnings without accrual accounting, canceling tax-jurisdiction effects, and canceling the effects of different capital structures.)
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