A Strategic Growth Partner is an excellent choice where an aggressive Business Owner seeks a partner who can provide capital and knowhow to grow the business far faster with less risk than the Business Owner can realize by themselves.
We can pair you with a Strategic Growth Partner who typically acquires the business with the Business Owner receiving a minority share. The Business Owner stays on to manage and grow the business with the help of outside capital via internal growth and acquisition. The results can be spectacular with 500% - 1,000% and more growth possible in five years.
Overview
Business Auction Sale resulted in higher price and Seller choice of Buyers.
In 2022, we executed an Auction Business Sale for a 20+ Year Repair Service (AAA*) with an
EBITDA of $1,500,000* from Revenues of $11,000,000*. The result:
The Sellers were able to interview multiple Buyers and selected the Buyers who they believe will
be the best caretakers of their employees and legacy.
Time on Market – 27 Days
This is number of days from Seller approval of the marketing materials and marketing strategy to
Seller acceptance of Letter of Intent or equivalent from the successful Buyer. AAA was on the
market for 27 days.
Number of Offers – 3 with more pending
The business received two Letters of Intent, and two email offers:
The Sellers found a buyer and offer they liked and decided to close the offer process leaving
disappointed Buyers who were hoping to make a serious bid.
Sale Price
Industry Comps indicated valuations in the 3x EBITDA ($4,500,000) to 5x EBITDA
($7,500,000) range for similar business in this industry.
AAA was sold for 6.83x EBITDA or $10,245,000. Significantly more than the industry comps.
This additional Sale Price justifies use of the Auction Business Sale even after payment of
Broker Commissions.
Broker Comments
AAA is an excellent A+ business with General Manager on staff. Owners were are-absentee. All
Buyers were institutional, professional buyers with adequate cash available to acquire the
business. Estimated time to Close after Letter of Intent is 60-90 days. Not every business will
qualify for a Business Auction. Contact us to find out more about Business Auctions.
*The Business Name, Revenues and EBITDA were slightly changed to protect confidentiality of
the Seller.
Please contact us for more information about the Business Auction Sale.