Many Questions and One Answer

Many Questions and One Answer

By Jon Holbert, CBI NWA MANAGING PARTNER

In my role as managing partner of CBIs Northwest Arkansas division, my team and I help sellers answer the who, what, when, where and why associated with successfully transitioning out of their businesses.

Whether it’s a Main Street or lower middle market business, a single response to their questions looms large: Buyers Buyers. Buyers. Buyers.

Who decides the best time to sell? Which businesses successfully transition to new owners? Where should successful businesses be located? When will the market respond to my business?

All questions are relevant and while every business is unique, the unifying force in the sales equation comes down to one audience: the buyer.

Where should successful businesses be located?

Consider the long-held belief that business success is determined solely by where a business is located. The mantra “Location. Location. Location” is rightly being challenged and disputed as the only watchword to determine business success. In today’s world, location alone is not the final deciding factor in value or success. Whether it’s an online business or one with a Heartland address, the beauty of the location is determined by the beholder and in our discussion, the buyers.

 

Who decides the best time to sell? When will the market respond to my business?

Indeed, we are experiencing a period of profound change in the U.S. and in the world as we cope with a global health pandemic and an intentional economic slowdown meant to slow the spread. I am confident we’ll endure and adapt – that’s who we are as entrepreneurs. But, while the effects of the pandemic have reached far and wide across the financial markets, many M&A watchers and business owners are asking themselves whether deal making will continue. Buyers will answer these questions best. But I can tell you that our office continues to see interest as private capital seeks to acquire innovative companies. Unlike previous economic downturns, capital for business acquisitions is readily available and many lenders have money to lend at very reasonable rates. Many people have had more time to think through their future and found that the time is right. Strategic partners were looking for strategic partners pre-COVID, and that has continued.

 

Which businesses successfully transition to new owners?

Just as we’re all working to adapt to a new normal, it’s my belief that all businesses can emerge from this crisis stronger and more resilient, but only if they can improve their agility, reimagine their operating models and provide products that truly resonate in the marketplace. To answer the question of which businesses will successfully transition I would say that is up to the buyer. But with a team like ours by their side following the successful sale, our business resource services, and value builder products can help provide a smooth transition. But, as with so many of these questions, it will ultimately be determined by the buyer.

Why are small businesses selling so well right now?

Buyers. That’s why. Now is the time to ask yourself if now is the time that’s right for you and your family to exit your business. For many owners, it is the perfect time. At CBI, we are continuing to see an influx of buyers. Our listings are moving at a rapid pace from agreement, to market to close as quickly as we can complete the paperwork. In fact, we have buyers eagerly waiting for a business to buy. And, the ones they are searching for not only check all the boxes in what meets their needs, skills, abilities, interests and budgets but also are the answer for which they’ve been searching in the dream of owning their own business.

 

Schedule your complimentary appointment today and let us explore your options, answer all your questions, and connect your business with best-fit buyers.